The industrial sector in Bantul, Yogyakarta potential is still dominated by small industries. There are lack of synergy between many parties, both government and private sectors in developing and empowering small businesses making it difficult to achieve the goal of creating small businesses are resilient and competitive. Thus, the need for a study of alternative priority needs of small industries which results can be used as a reference in formulating policy of development of the small industry. This analysis is used to make decisions effective output over the decision making process. The main tools Analytical Hierarchy Process (AHP) is a functional hierarchy with the main input of human perception. By hierarchy, a complex and unstructured problems solved in their groups, and the groups are arranged into a hierarchy form. Small industries were chosen as research sample includes melinjo chips industry, rice crackers industry, bakery industry, peyek cracker industry, and snack food industry. Food industries are scattered in the district of Bantul, Yogyakarta Province. The result was two things: (1) the ineffectiveness of the direction of development; (2) the lack of a uniform indicators of success, because each agency builder seeks to pursue the goals and targets in accordance with the criteria that they have set themselves. Factors that influence the activity / operating a small food industry in order are processes, products, labor, and then raw materials. The need for an industrial to an alternative support is the cornerstone of determining the appropriate policy applied to each different industries. Priority factors in every industry are factors that influence the selection of alternatives that may need assistance in the form of training, equipment, technical, capital and then marketing.
Keywords: Analytical Hierarchy Process, Policy making, Small Scale Food industries