The Role of the Sago Supply Chain for Rural Development in Indonesia: A Review and Perspective

Abstract

As the demand for local products increases, there has been a call to promote sago starch (Metroxylon sagu Rottb.) at the regional level in Indonesia. In this study, we examine the current status of the sago supply chain and its role in promoting rural development. Our study reveals the weak bargaining position sago farmers have due to inefficiencies in the sago supply chain and lack of market information. Furthermore, we also point out the direction in which future actions should be taken as guidelines in order to achieve a high level of efficiency along the sago supply chain. In particular, we highlight farm production management, logistical systems, agronomy, and knowledge and information as key dimensions of sago supply chain in the context of rural development.