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1st Int. Transborder Conf. of the Timor Island: Timor %u2013 Science without borderDili, 7-8 May 202558Downstream Development of the Indonesian Seaweed Industry: A Case Study from East Nusa Tenggara Province, IndonesiaW. Turupadang,1*, M. Johannes2, R. Tobuku1, Y. Linggi1, Sunadji1, F. Ch. Liufeto1, M.Dj. Ratoe Oedjoe1, L. C. Soewarlan3, R. L.Palinggi3, N. H. Armos3, N. Rammang4, L. S. Marimpan4, I. Benu5, I G N Jelantik5, P. Pasau6and N. Sesfao11 Aquaculture Department, Universitas Nusa Cendana, Jl. Adisucipto, Penfui, Kota Kupang, Nusa Tenggara Timur, Indonesia, 85001,2 Marine and Fisheries Agency Kupang District, Jl. Timor Raya, Oelamasi, Kabupaten Kupang, Nusa Tenggara Timur, Indonesia, 85362, 3 Marine Resources Management Department, Universitas Nusa Cendana, Jl. Adisucipto, Penfui, Kota Kupang, Nusa Tenggara Timur, Indonesia, 85001,4 Forestry Department, Universitas Nusa Cendana, Jl. Adisucipto, Penfui, Kota Kupang, Nusa Tenggara Timur, Indonesia, 85001,5 Animal Husbandry Department, Universitas Nusa Cendana, Jl. Adisucipto, Penfui, Kota Kupang, Nusa Tenggara Timur, Indonesia, 85001,6 Dryland Agricultural Management Department, Kupang State Agricultural Polytechnic, Address: Jl. Prof. Dr. Herman Yohanes, Lasiana, Kelapa Lima, Kupang City, Nusa Tenggara Timur, Indonesia, 85001*Corresponding author: wturupadang@undana.ac.idAbstractThe seaweed industry represents a strategic economic sector in East Nusa Tenggara (NTT), Indonesia, particularly in West Timor, where seaweed cultivation is widespread. This study examines the downstream development of the region%u2019s seaweed industry by evaluating current processing capacities, analyzing the impact of national policies, and identifying opportunities for value chain enhancement. Drawing on data from government reports, industry publications, and market sources, we assessed production output, firm capacity utilization, and policy outcomes. The findings reveal that although regional processors such as Algae Sumba Timur Lestari and Rote Karaginan Nusantara have a combined annual capacity of 13,104 tons, they operate at only 32% efficiency. Meanwhile, small-scale enterprises like Agar Kembang on Semau Island are pioneering alternative marketing strategies for raw dried seaweed as eco-labeled products. The 2022 ban on raw seaweed exports, designed to stimulate local value addition, resulted in a sharp price decline (from IDR 40,000 to IDR 13,000%u201315,000 per kg) and led to unintended consequences, including informal trade practices. Despite these constraints, rising global demand for seaweed-derived hydrocolloids and non-hydrocolloid products presents significant downstreaming potential. The study concludes that targeted infrastructure investment, enhanced regulatory enforcement, and market-oriented innovation are critical for unlocking the region%u2019s full processing capacity and advancing inclusive economic development.Keywords: seaweed industry, downstream processing, carrageenan, East Nusa Tenggara, value addition, export policy