Conceming the govemment's policy on cultural tourism inSurakafta, Karaton Surakafta, as a cultural capital which is richwith haritage nfeq needs to be commodified in such a way thatit can serue as a commodity with high use-value and exchangevaluein the trade confexfs for the sake of sustainable tourism.The commodification of the cultwal heritage in tourism industry,which demands the roles of govemment and nongovemmentagents, should be supported with understanding of the tangibleand intangible values of the heitage rites. The local govemmentof Surakafta, as one of the management agents, should be ableto employ the thrae phases of sustainable tourism development:i.e. preseruing heritage, living within heritage, and marketingheritage.Key words.' Karaton Surakarta, ethnic tourism, heritage