Seaweed exported to Foreign Countries is still raw material. Price of dried seaweed is US $ 1, if it is processed into carrageenan, can reach US $ 7 / kg. - US $ 14 / kg, while the high grade (powder) costs IDR8 million/kg. China is the biggest export market where the demand is only raw material. The purposes of this study are: 1). To analyze factors influence the productivity of seaweed processing industry in Indonesia. 2). To formulate a development strategy for the seaweed processing industry in Indonesia. 3). To design priorities for the right strategy to support the development of the seaweed processing industry in Indonesia. The research location is Makassar Industrial Zone, at PT. Bantimurung Indah, Maros Regency, Seaweed industry in Takalar Regency, Jeneponto, Bantaeng, East Luwu, Malang, Surabaya and surrounding areas. The research was conducted for 6 (six) months. The research approach were qualitative and quantitative, and analyzed with Cobb Douglass, SWOT and PHA. The results of regression analysis of seaweed processing companies showed that the company is in a condition of decreasing return to scale. The increase in output has a smaller proportion compared to the addition of inputs. The results of the SWOT analysis found the strategic effort to develop Euchemacottonii seaweed processing production. There are three strategies found in the company such as utilizing the availability of land to capture the opportunities of high market demand with government policies that continue to increase processing production to access export markets and limit the export market of raw materials, the availability of production equipment can be accompanied by the quality of its human resources, Utilizing high prices of processed products with strategic distribution to the location. The alternative which is the company's first priority is alternative 1 (production) which is able to overcome production targets, raw material prices, increase raw materials, and improve the quality of labor.