SUMMARY
The relatively weak competitiveness of agricultural-based processed products is the reason why Indonesia is known as an importer of manufactured food, because it is still an exporter of agricultural-based raw materials. The comparative advantage of primary products only relies on the abundance of natural resources and uneducated TK so that they are still dominated by raw products. In the era of globalization, free trade demands highly competitive processed products, to be able to meet the high quality requirements and global market competition. Using a qualitative descriptive method, this paper aims to comprehensively describe the importance of increasing quality and competitive processed food products, supported by institutional development related to processed products. The technology development program and investment through the development and improvement of the performance of the agricultural-based processing industry in rural areas is predicted to be able to become the "engine" of strong economic progress. As a solution for efficiency, effectiveness, continuity and continuity of the process of procuring raw materials, labor and financing (capital) for processed products, if the processing industry is around the raw materials produced (agriculture in rural areas). Development of the role of industrialization to increase the added value of products, including diverting primary agricultural products (raw materials) into processed products as an effort to reduce imports. The role of the institution functions in line with the development programs implemented to be able to drive rural industrialization, create jobs and increase income in rural areas.