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The quality of human resources (HR) as a source of competitive advantage in Bangka Belitung Islands is still low. This is indicated by the value of Human Development Index (HDI), which is no.4, in the Sumatera region. In addition, the human resource development competencies have not yet met the standard set by the companies/institutions where they work. In particular, the purpose is to study the effects of human resource development strategy on human capital, structural capital, and relational capital and their impacts on the improvement of competitive advantage. The method used in the study is an explanatory survey. The sample used in this study consists of 330 respondents. The model of effect was analyzed using the Partial Least Square (PLS) technique. The results showed that the human resources strategy has a significant positive effect on human capital, structural capital and relational capital in Bangka Belitung Islands. However, it did not affect the local competitive advantage. This is because the competitive advantage in this province still comes only from its most well-known natural resource: tin. Structural capital and relational capital affected the local competitive advantage, but human capital did not affect it