1) there is an increase of product value added from Rp. 29,050,-/kg on the initial model, to Rp. 33,250,-/kg on thedevelopment model resulting in an increase in profit from Rp. 9,050,-/kg on the initial model to Rp. 13,250,-/kg on the development model;(2) there is an increase of profit margin from Rp. 54.000,-/kg on the initial model to Rp. 59,500,-/kg on the development model. This research does not carry out a deep analysis of the institutional industry, so that the future needs to be done institutional model development of the seaweed jelly industry. The paper include implication for the increasing productivity and community welfare. The paper includes implications for the cost reduction and increase value added of seaweed jelly industry. This paper resulting an development model and value added projection from that development model. KEY WORDSDevelopment model, value chain, value added, activity based costing, Hayami method, seaweed jelly industry.
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