The development of the citronella oil agroindustry is facing challenges in terms of quality and limited production capacity, especially in the innovation and value-added sectors. This article aims to measure the level of application of innovation in the citronella oil agroindustry chain, starting from the aspects of cultivation, product handling, refining processes, and marketing institutions, including their effect on production value. This study takes location settings in five sub-districts of citronella oil production centers in Kabupaten Gayo Lues. A survey has been conducted on 40 respondents who were chosen deliberately to understand the general picture of the current production system of the community. To deepen the information, FGD was also conducted with 30 key informants. The results show that the application of innovations and good practices on all production lines from cultivation, post-harvest handling, refining, and marketing is low. So this has direct implications for the low productivity and value of citronella oil products produced. Four main components have the most influence, namely the handling of citronella leaves/leaves as raw materials, the refining process, the sale of citronella oil, and stock handling and marketing partnerships.
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