ABSTRACT SUPERIOR COMMODITY POTENTIAL OF HORTICULTURE AGROBUSSINESS AND DEVELOPMENT STRATEGY IN SOUTH HALMAHERA REGENCY. This study was conducted to evaluate the potential of the horticulture superior commodity, growth structure, relation of farm income and to define strategy formulation of superior commodity development in South Halmahera regency. Study was done using survey approach on location basis of horticulture superior commodity. Location was defined by multistage random sampling in South Halmahera regency. Samples were taken by purposive sampling method, based on the criteria including the stakeholders of horticulture commodity spreading around research location. Data were analyzed using Location Quotient (LQ) method comparing the regency PDRB and the province PDRB, using localization coefficient (αi) by defining growth structure of commodity focusing on either one areal or not; using specialization coefficient on one or more of commodities at one certain areal location, using Basic Service Ratio (BSR, the comparison of commodity basis and non basis of commodity, and SWOT analysis formulating the internal and external strategy. Based on LQ analysis, commodities of red pepper, lanseh and durian fruits had LQ value > 1, indicating that these commodities were categorized sector basis and tomato commodity LQ < 1 included into non basis sector or inferior commodity. Analysis of αi indicated that horticulture commodity was not concentrated into one location of region. In addition, analysis of , indicated that commodity of horticulture sub sector was not focused on one commodity. Analysis of BSR indicated that BSR value varied from one year to the other next year, such as in year of 2009 was 5.38, year of 2012 was 7.41 and year of 2013 was 10.22. The BSR > 1 indicated that correlation between sector basis of commodity contributed positively on development of non basis sector of commodity, while year of 2010 was 0.77 and year of 2011 was 0.833. Value of BSR < 1 was indicating negative contribution of commodity sector basis on non basis sector, especially in South Halmahera regency. Based on analysis results, the average income of each respondent for tomato was IDR 33,843,720.-; red pepper was IDR 10,782,350.- ; lanseh fruit was IDR 43,074,200.- and durian fruit was IDR 75,838,040.-. Development strategies based on SWOT analysis were (1) increase of product and agricultural commodity quality, (2) Focused and clearly political will of government, (3) Increase of farmer resource, (4) Self seedling development training, (5) Government regulation on prohibiting exploration of the agricultural potential areas, (6) Increasing activity of the industrial and trade office on easily market information, (7) Effective utilization of productive areas, (8) Collaboration between government and private entrepreneurship, (9) Adoption of modern agricultural technology, (10) Optimizing of the function of economical institution (corporation institution) and banking institution, and (11) Optimizing the role of field agricultural extension. Therefore, based on this research, it can be concluded that South Halmahera regency had high potential of superior commodity of the horticulture sub sector that can be developed due to higher supporting of potential location areas. Key words: Superior commodity, horticulture sub sector, SWOT analysis, South Halmahera regency.