The exhaust industry is one of the industries located in Purbalingga Regency which is manufactured by the traditionally production process. The activities during all processes on this industry have built a value chain. This research aims to (1) investigate how to obtain all raw materials, (2) analyze how to market the products, and (3) analyze the value chain. Data were collected by interviews using questionnaire. The number of sample was 54 entrepreneurs through simple random technique. The

more »

... ue chain analysis is used to analyze the series of activities. The results show that (1) the raw materials are come from Tegal and own Purbalingga; (2) the marketing spreads to almost throughout Indonesia with three channels, i.e. through agents, direct to consumer, and through online sales; (3) The value chain is divided into three main activities, i.e. the process of obtaining raw materials, exhaust production process, and marketing process of the products.