The seaweed industry is recognised by Indonesia's national government as one that supports tens of thousands of coastal households and has potential for modernisation and expansion. Policy decision makers are seeking to be informed by evidence and this report investigates some of the key elements that will need to be addressed to advance the industry in a sustainable way. The industry at the moment is invested mainly in carrageenan seaweeds which provide an ingredient used in food processing. Currently Indonesia is a significant global exporter of this seaweed that is dried but otherwise minimally processed. Other countries, notably China, take the seaweed and process it to capture a higher market value. Chinese companies have invested in creating the largest and most modern processing plants in the world partly on the back of Indonesian supply. The report finds that there is an opportunity to develop an integrated seaweed industry but several different elements need to be concurrently addressed to achieve that potential. This includes enhancing transparency and efficiency along the supply chain, improving research and development, offering technical support, considering the impact of marine space use on communities and identifying and implementing quality standards. This report offers insight for policymaking by closely examining the lives of seaweed farmers and their communities. Our goal is to better understand how to build an industry that contributes to national growth.