The creative industry of recycled handicrafts is an important sector in driving economic growth and creating jobs in Indonesia. In Kediri City, the development of the recycling handicraft industry is becoming increasingly important considering the high amount of waste generated by community activities in the city. This research is to identify user needs, intangible assets, ecosystem processes, operational activities, and other factors related to the development of the recycling craft industry in Kediri. The method used is a moderation collaboration model with an analytical hierarchy process that can improve influential factors in building a recycled craft creative industry by considering internal operation factors. The results obtained regarding the success strategy of the recycling craft business include meeting user needs, managing Intangible Resources, increasing technological and labor capacity, increasing commercialization of recycled products, managing operational activities, and protecting domestic results, taking into account environmental and social aspects.