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Institutional aspect is one of strategic aspect for an agroindustry development, including Gayo coffee agroindustry in Province of Aceh, Indonesia. Institution has important role as medium for innovation distribution, certification, and quality management of agroindustry, that the institution conduciveness is very much determining the development of the agroindustry itself. The purpose of the study was to formulate strategy of Gayo coffee agroindustry institution by using interpretive structural modeling (ISM). The study result showed that it was important to formulate strategy of each element in the development system of Gayo coffee agroindustry institution. For the element program goal, strategy that was necessary to be done was improvement in human resources and institutional performance. In element obstacles, the chosen strategy was to build cooperative relationship among agroindustry's actors that need to be optimized. For element activity, the main strategy was to enhance the human resources capacity of agroindustry's actors. In the element indicator of program success, the recommended strategy was the establishment of agroindustry institutional system that is conducive and continues to grow. The last element was actors, with strategy focused on developing farmers and farming group. Result from these strategies formulation became valuable reference for follow-up plan of Gayo coffee agroindustry institution development in Province of Aceh, Indonesia, and also could be a model for development of agroindustry institution of other commodities.

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<p><strong>Purpose:</strong> The purpose of this study is to perform an assessment on the innovation potential of Gayo coffee agroindustry, as a basis of policymaking as an effort to promote agroindustry and to increase the revenue.</p><p><strong>Methodology/Approach:</strong> Innovation potential assessment was performed with “Map of the Company Innovation Potential” through a stakeholder survey by using questionnaire and confirmation.</p><p><strong>Findings:</strong> The result of the study shows that innovation potential of Gayo coffee agroindustry is good enough to be developed by considering today’s reality and condition, based on innovation potential assessment that had been performed. This condition is very possible for the development of innovation activity in the form of work and the agroindustry program of Gayo coffee becomes more serious concern, so that the potential of innovation improvement can continue to grow and evolve by involving various parties to create a synergy in supporting innovation development.</p><p><strong>Research Limitation/implication:</strong> This study describes the condition of innovation potential of Gayo coffee agroindustry in six aspects of assessment, which are: strategy and planning, marketing, technological process, quality and environment, logistic and human resources.</p><p><strong>Originality/Value of paper:</strong> This article is according to field data from an interview with the stakeholders, field trip, and quantitative analysis. This study is very helpful for the policy maker in expanding Gayo coffee agroindustry, and become a contribution to analyze innovation potential in other agroindustry.</p>

Utilization of cocoa bean to be a derivative products in industrial is wide enough, that it is necessary to determine the priority of the processed products development. This study aimed to determine the prospective processed cocoa products with a system approach using Bayes method and assessed the potential of added value by using Hayami method. Based on several assessment criteria indicated that chocolate bar is the priority product that needs to be developed and followed by several other processed products. This development was able to produce the added value of Rp 135.000 per kg of cocoa beans. Result indicated that by processing the cocoa beans into chocolate bar could provide a considerable income for the businessman.