This study aims to identiry the tourism indicatoG that should be priodtized in Kotagede as one of the icon of halal tourism in Yogyakana. Kotagede is the center of the establishme of Mataram Islam Kingdom in Yogyakarta whicb is developed as tlalal tourism. The cultural values aod guidance of Islam still maintahed by the community. Along with the development of cultue among lhe community, Kotagedc as the cetrterof culturat heritage of Mataram Islamic Kingdom cau be one of the Halal tourism icon in the city of Yogyakarta with the local wisdom as the priority. The purposive sampliug technique was used to obtain respondents who comprised of 150 visitors, 150 craftsmen and 150 local community msrnbers. By usi[g lEportance PerforEece Analysis (lPA). tie various indicators will be used to determine the priority ofhalal tourism devolopmsnt such as the diversity of halal attractions, the integntion of creative industrics with halal toudsm attractions, the availability of mosque facilities, the involvement of local communities in halal tourism activities.The results indiczted that the honesty in the management aDd cosmrmity arormd in Kotagede; the comeitmeDt of manrgement and cornmudty to promote Sharia tourism; and the involvement of local commudties ia providing services to tourists are the variables which have high priorities to be improved. This study re€ommetrds the right policy priorities of these variables for achieving the sustainable developmest ofhalal towism areas