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This study concern with finding new areas for potential industry that can be developed and characterizes the region. Five potential industries observe to be developed, namely fisheries, petrochemicals, food and beverages, handicrafts, and fashion, will be located in a zone, which has the potential to be the provincial capital of an island in Indonesia. The five potential industries will be assessed by five factors consisting of technology, transportation, social, policy, and economy. The phenomenon of determining which areas will be made, the area of industrial development by taking into account five sub-factors including the multi-criteria decision making (MCDM) where the decision to choose the developed industry depends on the assessment of stakeholder preferences, which consists of the government, the public, industrial actors, and investors with consider influential factors. In research the MCDM model used is the Analytic Hirarchy Process which will produce weights, then the weights are used as input to determine which industries are feasible to be developed using the assignment method. Research results show that food and beverage industry must be developed with focus on technology and economy pillars to enhance and support the community to keep the development and sustainability of region potential industry.

The assignment of industry type at a location generally influenced by, the amount of flagship industry and the factors number of potential infrastructure existed at a location. A kind of factors that affected to determination of flagship industry, observed in this research namely production, export, infestation, labour and location quotient. Complexity conditions of decision-making that focuses on the number of flagship industry, and every type of industry affected by the dominant factors that impact on a site, provide a model that unite a kind of its factors. This paper will be presented a model that focused to assign priority development of flagship industries in an area, respect to affected factors with analytic hierarchy process (AHP). The model consists of nine types of flagship industries which potentially to be developed, and affected by a potential factor consists on the flagship industry. Results of the study showed, in order to determine an important flagship industry developed in the future, depend on the availability of LQ index and production, which required to be able to follow the needs of the development of the dynamics of the market competition in the future for seaweed commodity.