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Peri-urban agriculture plays a pivotal role in urban sustainability, offering economic, social, and environmental benefits. However, its development faces challenges from rapid urbanization and modern agricultural practices. This study focuses on Batu, East Java, Indonesia, examining how peri-urban agriculture evolves amidst urbanization and identifying factors and stakeholders crucial for its sustainability. Through statistical analysis of land use changes and qualitative system dynamics, the typology of peri-urban agriculture in Batu are: family-based commercial, multi-cropping commercial, and multifunctional commercial. Furthermore, the pivotal role of regional governance in developing peri-urban agriculture is important to enhance the sustainable development. Moving forward, policymakers should prioritize the development of multifunctional peri-urban agriculture, collaborate with local stakeholders to ensure its sustainable growth. This requires revitalizing local peri-urban agriculture initiatives and integrating them into broader urban development strategies. By doing so, cities like Batu can harness the full potential of peri-urban agriculture to enhance urban sustainability and resilience. [ABSTRACT FROM AUTHOR]