add tests

Signed-off-by: Sylwester Piskozub <sylwesterpiskozub@gmail.com>

Author: Piskoo

app/cli/documentation/cli-reference.mdx

@@ -2729,6 +2729,7 @@ Options inherited from parent commands
 ### chainloop policy develop
 
 Tools for policy development
+Refer to https://docs.chainloop.dev/guides/custom-policies
 
 Options
 
@@ -2797,7 +2798,7 @@ Initialize a new policy by creating template policy files in the specified direc
 By default, it creates chainloop-policy.yaml and chainloop-policy.rego files.
 
 ```
-chainloop policy develop init [directory] [flags]
+chainloop policy develop init [flags]
 ```
 
 Examples
@@ -2807,14 +2808,15 @@ Examples
 Initialize in current directory with separate files
 chainloop policy develop init
 
-Initialize in specific directory with embedded format
-chainloop policy develop init ./policies --embedded
+Initialize in specific directory with embedded format and policy name
+chainloop policy develop init --directory ./policies --embedded --name mypolicy
 ```
 
 Options
 
 ```
 --description string   description of the policy
+--directory string     directory for policy
 --embedded             initialize an embedded policy (single YAML file)
 -f, --force                overwrite existing files
 -h, --help                 help for init

app/cli/internal/policydevel/init_test.go

@@ -0,0 +1,257 @@
+// Copyright 2025 The Chainloop Authors.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package policy
+
+import (
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestInitialize(t *testing.T) {
+	tempDir := t.TempDir()
+
+	t.Run("embedded rego", func(t *testing.T) {
+		opts := &InitOptions{
+			Directory:   tempDir,
+			Embedded:    true,
+			Name:        "test-policy",
+			Description: "test description",
+		}
+
+		err := Initialize(opts)
+		require.NoError(t, err)
+
+		policyPath := filepath.Join(tempDir, "test-policy.yaml")
+		assert.FileExists(t, policyPath)
+	})
+
+	t.Run("standalone rego file", func(t *testing.T) {
+		opts := &InitOptions{
+			Directory: tempDir,
+			Embedded:  false,
+			Name:      "standalone-rego",
+		}
+
+		err := Initialize(opts)
+		require.NoError(t, err)
+
+		assert.FileExists(t, filepath.Join(tempDir, "standalone-rego.yaml"))
+		assert.FileExists(t, filepath.Join(tempDir, "standalone-rego.rego"))
+	})
+
+	t.Run("file exists and no force", func(t *testing.T) {
+		opts := &InitOptions{
+			Directory: tempDir,
+			Name:      "duplicate",
+		}
+
+		// First time should succeed
+		err := Initialize(opts)
+		require.NoError(t, err)
+
+		// Second time should fail
+		err = Initialize(opts)
+		require.Error(t, err)
+		assert.Contains(t, err.Error(), "already exists")
+
+		// With force it should succeed
+		opts.Force = true
+		err = Initialize(opts)
+		require.NoError(t, err)
+	})
+
+	t.Run("name and description are properly set", func(t *testing.T) {
+		customName := "custom-policy-name"
+		customDesc := "This is a custom policy description"
+
+		opts := &InitOptions{
+			Directory:   tempDir,
+			Name:        customName,
+			Description: customDesc,
+			Embedded:    true,
+		}
+
+		err := Initialize(opts)
+		require.NoError(t, err)
+
+		policyPath := filepath.Join(tempDir, customName+".yaml")
+		assert.FileExists(t, policyPath)
+
+		content, err := os.ReadFile(policyPath)
+		require.NoError(t, err)
+
+		policyContent := string(content)
+
+		assert.Contains(t, policyContent, "name: "+customName)
+
+		assert.Contains(t, policyContent, "description: "+customDesc)
+
+		assert.FileExists(t, filepath.Join(tempDir, customName+".yaml"))
+	})
+}
+
+func TestLoadAndProcessTemplates(t *testing.T) {
+	t.Run("embedded rego", func(t *testing.T) {
+		opts := &InitOptions{
+			Embedded: true,
+			Name:     "embedded-test",
+		}
+
+		content, err := loadAndProcessTemplates(opts)
+		require.NoError(t, err)
+		assert.NotEmpty(t, content.YAML)
+		assert.Empty(t, content.Rego) // Rego file should be empty for embedded
+	})
+
+	t.Run("separate rego file", func(t *testing.T) {
+		opts := &InitOptions{
+			Embedded: false,
+			Name:     "separate-rego-test",
+		}
+
+		content, err := loadAndProcessTemplates(opts)
+		require.NoError(t, err)
+		assert.NotEmpty(t, content.YAML)
+		assert.NotEmpty(t, content.Rego)
+	})
+}
+
+func TestExecuteTemplate(t *testing.T) {
+	testCases := []struct {
+		name     string
+		template string
+		data     *TemplateData
+		expected string
+	}{
+		{
+			name:     "basic interpolation",
+			template: "Hello {{.Name}}!",
+			data:     &TemplateData{Name: "world"},
+			expected: "Hello world!",
+		},
+		{
+			name:     "sanitize function",
+			template: "{{.Name | sanitize}}",
+			data:     &TemplateData{Name: "My Policy"},
+			expected: "my-policy",
+		},
+		{
+			name:     "indent function",
+			template: "{{indent 2 \"hello\"}}",
+			expected: "  hello",
+		},
+		{
+			name:     "multiple fields interpolation",
+			template: "Name: {{.Name}}, Desc: {{.Description}}",
+			data:     &TemplateData{Name: "test", Description: "description"},
+			expected: "Name: test, Desc: description",
+		},
+		{
+			name:     "trimSpace function",
+			template: "{{.Name | trimSpace}}",
+			data:     &TemplateData{Name: "  spaced  "},
+			expected: "spaced",
+		},
+		{
+			name:     "combined functions",
+			template: "{{.Name | trimSpace | sanitize}}",
+			data:     &TemplateData{Name: "  My Policy 123  "},
+			expected: "my-policy-123",
+		},
+		{
+			name:     "empty template",
+			template: "",
+			data:     &TemplateData{Name: "test"},
+			expected: "",
+		},
+		{
+			name:     "embedded rego flag",
+			template: "Embedded: {{.Embedded}}",
+			data:     &TemplateData{Embedded: true},
+			expected: "Embedded: true",
+		},
+		{
+			name:     "material kind",
+			template: "Material: {{.MaterialKind}}",
+			data:     &TemplateData{MaterialKind: "SBOM_CYCLONEDX_JSON"},
+			expected: "Material: SBOM_CYCLONEDX_JSON",
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			result, err := executeTemplate(tc.template, tc.data)
+			require.NoError(t, err)
+			assert.Equal(t, tc.expected, result)
+		})
+	}
+
+	errorCases := []struct {
+		name     string
+		template string
+		data     *TemplateData
+		errMsg   string
+	}{
+		{
+			name:     "invalid template syntax",
+			template: "{{.Name",
+			data:     &TemplateData{Name: "test"},
+			errMsg:   "template parsing error",
+		},
+		{
+			name:     "missing field",
+			template: "{{.MissingField}}",
+			data:     &TemplateData{Name: "test"},
+			errMsg:   "template execution error",
+		},
+		{
+			name:     "invalid function",
+			template: "{{.Name | invalidFunc}}",
+			data:     &TemplateData{Name: "test"},
+			errMsg:   "template parsing error",
+		},
+	}
+
+	for _, tc := range errorCases {
+		t.Run(tc.name, func(t *testing.T) {
+			_, err := executeTemplate(tc.template, tc.data)
+			require.Error(t, err)
+			assert.Contains(t, err.Error(), tc.errMsg)
+		})
+	}
+}
+
+func TestSanitizeName(t *testing.T) {
+	testCases := []struct {
+		input    string
+		expected string
+	}{
+		{"My Policy", "my-policy"},
+		{"  Trim Spaces  ", "trim-spaces"},
+		{"UPPER CASE", "upper-case"},
+		{"Special!@#Chars", "special!@#chars"},
+		{"", ""},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.input, func(t *testing.T) {
+			assert.Equal(t, tc.expected, sanitizeName(tc.input))
+		})
+	}
+}