Abstracts of 27th Annual Meeting of Sago Palm Studies

13

The Integration of Corporate Social Responsibility for the Mine Rehabilitation
with Sago Plants: A Case Study of PT Vale Indonesia Tbk (Vale)
Laura Dellia1*, Katsuya Osozawa2
1,2

Department of Resource and Environmental Policy, Faculty of Agriculture, Ehime University, 3-57 Tarumi, Matsuyama, Ehime 790-8566, Japan*Corresponding author: Laura Dellia (laura.bkt@gmail.com)

Abstract: Integrating a corporate social responsibility (CSR) for the mine rehabilitation with sago planting
in the Vale’ contract of work area requires a review of community development programs and reclamation
projects. The data of the CSR programs are gathered from in-depth interviews, the annual reports, andmanagerial reports. Furthermore, we present a diagram of CSR for the program of mine rehabilitation withsago planting based on the frameworks of triple bottom lines (the economic concerns, the social concerns,
and the environmental concerns). We then propose CSR stages for that programs towards the local
livelihood in general and the post-mined area in particular. Based on these steps, the way to improve CSR
program for sago planting in a participatory need assessment are discussed and recommended
Keywords: corporate social responsibility, sago planting, community development, reclamation projects,
mining contract of work, triple bottom line, participatory need assessment
Introduction
The strategic issue in the Regency of Luwu Timur, the Province of South Sulawesi, is one of theregions with the largest nickel reserves in Indonesia. At this time, the nickel mining in Luwu Timur isconducted by PT. Vale Indonesia (Vale), but the potential for environmental damage and public poverty asa result of mining activities can happen in every time. Therefore, Vale as the leading of mining company
has been implementing corporate social responsibility (CSR) for community development program. The
aim of this research is to design CSR programs for the mine rehabilitation with sago plants and thendescribes how the implementation of CSR stages based on the participatory need assessment.
Methods

The research was conducted in October - November 2017, which is a case study of the Vale’contract of work area at the Regency of Luwu Timur, the Province of South Sulawesi, Indonesia. The
methods of data collection were in descriptive and qualitative research with in-depth interviews, andconducted the field observation to the post-mined area. The obtained data is analysed by SWOT analysis(Humphrey, 2005) and the frameworks of the triple bottom line (Elkington, 1997)
Results and Discussions
1. In General, the interview result based on the local livelihood
In the beginning, the implementation of Vale’ corporate social responsibility (CSR) was investigatedseriously. It is very important to find a link between the implementation of CSR program and the sago
planting. PT Vale Indonesia Tbk (Vale) began planting sago palm at the post-mined area in end year 2015s.
There were a 2000 sago-seedlings ordered by the contractor. Running time, at least the mortality of sago
seedling is high (fewer than 5% life). At this time, Vale still purchases at least 1000 sago-seedlings formine reclamation project in early of the year of 2018 with different method and treatment
Based on the in-depth interview, The SWOT analysis is created as follow;

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Abstracts of 27th Annual Meeting of Sago Palm Studies

Strengths
 Having a good policy in mining reclamation
following Vale Environmental Management
System (EMS) Having a modern nursery for seedling andcultivating It is easy to find the sago seedling in the localarea
 Having a regular inspection in sago planting






Opportunity
The supplier of sago seedling is from contractor,
not local people
The area of sago seedling is outside of Luwu
Timur regency
New technology in sago processing
Vale can be a pioneer to plant the sago in the
post-mined area

Weakness Due to high mortality of sago seedling, themine rehabilitation with sago plants can be
stopped Ineffective the significance of budget
allocation for mining reclamation if the sago
planting always meets the failure Lack of experiences in sago planting Lack of knowledge in sago planting Lack of collaboration with other parties
especially sago expert or academician
 Marginal land after mining activities
Threats
 Maybe not or difficult to find the best practicefor sago planting in the post-mined area
 Less of reference or information about the sago
research in the mining area
 The sago crops are being economically lesscompetitive with other commercial crops suchas palm oil, pepper, and cocoa.

Figure 2: SWOT analysis for sago planting in the post-mined area
This is recommendation for future research, there are :Research on the soil condition in the post-mined area, research on the quality of sago-seedling towards theneed of mining reclamation projects. research on the method of sago planting and its fertilizing in the post
mined area, research on the supply chain management on the sago seedling, specifically the delivery risk
for sago logistic distribution and research on the participatory need assessment (CSR for community
development) integrating the sago’ planting projects and etc.
Conclusions
1. Based on both the in-depth interview and the field observation, the planting of sago have so far not
been optimally identified. We identified that most of the sago stakeholders are still lack ofunderstanding on the importance of sago benefits for food security, disaster mitigation and biodiversity.
2. For Vale policy, CSR for community development programs can be integrated in the mining
rehabilitation project. It is very important to gain benefit for local people in their sustainable livelihoodand land conservation as well.
3. In the post-mined area, the research on sago planting are facing some significant problems which need
to be solved immediately by comprehensive research.
4. CSR for sago planting in the post-mined area is suggested following the model of participatory needassessment.
References
Carroll, A.B. 1991 The Pyramid of Corporate Social Responsibiiity: Toward the Moral Management ofOrganizational Stakeholders.
Elkington, J. 1997 Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Gabriola Island,
CanadaHumphrey 2005 SWOT Analysis for Management Consulting. SRI Alumni Association Newsletter, USA
Metaragakusuma, A.P., Ozosawa, K. and Hu, B. 2016 An Overview of The Traditional Use of Sago for Sagobased Food Industry in Indonesia. ICOA Conference Proceedings, Japan
Osozawa, K. 1998 Sago Farmers in Eastern part of Indonesia and Relaxation of Regulation in Japan. In: Asano
Naonobu kashiyo (Ed.). Japanese Agriculture and Forestry and relaxation of regulation, JapanPT Vale Indonesia Tbk 2014 Memorandum of Understanding on Integrated Community Development Program(PTPM), Sorowako, Indonesia
The Department of Agriculture, Indonesia 2015 The Performance Report on General Directorat of Plantation.
JakartaAbstracts of 27th Annual Meeting of Sago Palm Studies

Durability of Sago Thatch on Beach Huts of the VSU Resort, Leyte(Advance report)
Masanori Okazaki1, Koki Toyota2, Shun Nishiyama3, Toshihiko Momose4, Suzette B. Lina5,
Marcelo A. Quevedo5 and Jose L. Bacusmo5
1Japan Soil Research Institute, Ltd., 2 Tokyo University of Agriculture and Technology,
3
Ishikawa Agriculture and Forestry Research Center, 4 Ishikawa Prefectural University,
5
Visayas State University

Abstract: The durability of sago (Metroxylon sagu Rottb.) thatch on the beach hut wasobserved in the field condition of Leyte, Philippines, with comparing those of nipa (Nypafruticans) and footstool palm (Livistona rotundifolia, anahaw in Filipino) for 5 years. The sagoand nipa palm thatch were sustained with small parts of destruction of the edge of eaves,although the footstool palm leaf thatch have already been broken from the sewn parts. It issuggested that the sago and nipa palm shingle roofs were stronger than footstool palm leaf roof
in hot and high moisture condition.
Keywords: beach hut, footstool palm, durability, nipa palm, sago palm
Introduction
Leaf and leaflets of the footstool, nipa and sago palm can be used for thatching. To makethatch, the leaflets are taken off the rachis and are folded over a wooden or bamboo lathe andsewn together. It is important that the midribs do not break but bend. The folded and lathedleaflets then are put on top of a house, partially covering each other. Such a thatched roof maylast for several years (Flach, 1977). On the other hand, a thatched roof from footstool palm
(Livistona rotundifolia) leaves was made by connecting leaves together on large roof beams.
The thatch production from nipa palm (Nypa fruticans) in Bohol, Philippines, was reported by
Carandang et al. (2009). Nipa palm could produce the mean value of 51,148 shingles per year.
The front side epidermis of nipa palm leaflet is thick and cell groups immediately below the
epidermis support the leaflet structure (Abe, 1994). After three years under drying condition twoor three layers of cells below the epidermis would make the cured epidermis to combine theoriginal epidermis. The large vascular bundle of nipa palm leaflet makes the connection withfront and back side epidermis by vascular bundle sheath, which give rise to bocks structure.
Local producers in western Leyte easily made a shingle from the thorn-less leaves of nipa palmby hand, one of the reason of thorn-less leaves.
Meanwhile, Celiz et al. (2002) revealed that sago palm (Metroxylon sagu Rottb.) leaf
production. Okazaki et al. (2013) determined the breaking resistance of nipa and sago palm
leaflets and concluded that sago leaflets showed lower breaking resistance than nipa leaflets
after air-drying. However, there is no report on comparable study on the durability of thatch in
the field condition. The mesophyll cells of sago palm leaflet enrich between the epidermises andhas small amount of the cavity cells in the front epidermis. However, the structure of sago

15

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Abstracts of 27th Annual Meeting of Sago Palm Studies

leaflet will not be broken, because of the uniformly arranged cells (Abe, 1994). Large vesicularbundles of sago palm may contribute the hard strength. The thatch in tropical areas requires theshade and way of the wind.
We tried to elucidate the durability of sago thatch in the field condition. This is an advancereport.
Materials and Methods
The durability experiment of three palm thatches on the beach huts was carried out in thecampus of Visayas State University, Leyte, Philippines from 2011. Leaves and leaflets; footstool,
nipa and sago palm were used for thatch to compare the durability in the field. The footstool
palm leaves collected from the neighborhood of Visayas and sewn together on large roof beams.
The nipa and sago thatches were made by hand in the local village and transported to the beachhuts of VSU Resort. The field observation of thatches on the beach huts of VSU Resort has been
done with naked eyes since 2011yearly.
Results
1. Footstool palm thatch
The footstool palm leaves are characterized by the broad fun. Footstool palm thatch is tiedclose together with the adjacent leaf. On the beach huts they gave comfortable atmosphere andtemperature on the beach in Baybay, Leyte. However, the durability of footstool palm was
relatively weak in the field condition of VSU campus. Drying period from December to May inthis area strongly affected the enation structure of footstool palm. Prevailing and strong windattacked the swing parts and destroyed the connection during study period. The hut of footstool
palm roofed with Galvanized iron sheets.
2. Nipa and sago palm thatches
Nipa and sago palm thatches are strong and durable for at least 5 years on the beach of Leyte.
The price of sago is 3,000 Ps per 100 shingles in Dulag, Leyte in June of 2018.
References
Abe, N. 1994 Durability of leaves of sago palm, nipa palm and coconut palm, and their lamina
anatomy. Sago Palm 2: 7-12
Carandang, M. G., Camacho, L. D., Carandang, A. P., Camacho, S. C., Gevaa, D. T., Rebugio, L.
L. and Youn, Y-C. 2009 Sustainable thatching materials production from nipa (Nypafruticans) in Bohol, Philippines. Forest Science and Technology 5: 17-22
Celiz, L. L., Okazaki, M., Josue, A. R. and Toyota, K. 2002 Sago palm production and income
analysis in northern Mindanao, Philippines. Sago Palm 10: 16-23
Flach, M. 1997 Sago palm, Promoting the conservation and use of underutilized and neglected
crops. 13. 1-76, International Plant Genetic Resources Institute
Okazaki, M., Quevedo, M. A., Lina, S. B., Ookawa, T. and Katsumi, N. 2013 Breaking
resistance of sago palm leaflets. Sago Palm 21: 8-13

Abstracts of 27th Annual Meeting of Sago Palm Studies

The Current Situation of Sago Production and Market Linkages inSouth Sulawesi, Indonesia
Marlisa Ayu Trisia1*, Andi Patiware Metaragakusuma2, Osozawa Katsuya2,
Mayumi Kikuta1, Hiroshi Ehara1
1
Applied Social System Institute of Asia (ASSIA), Nagoya University
2
Faculty of Agriculture, Ehime University, Japan
A number of studies have been conducted to study on sago palm in Indonesia. Our previous
research in 2016 identified several actors involved in sago business in South Sulawesi. The
objectives of this study are to understand the nature of traditional sago production in South
Sulawesi and identify market linkages of sago starch in South Sulawesi.
Materials and Methods. The survey was conducted from February to April 2018 in Luwu
Utara region and Makassar city. A total of 27 respondents (sago processors, dange (roastedsago) maker, dried sago producer, sago-based cookies industry, middlemen and retailers) wereinterviewed about their current situations and their market linkages.
Results and Discussion. For small and medium sago businesses, understanding the marketingof the product is the important way to maximize their profit. According to our investigation in
the field, the market linkages of sago production in South Sulawesi can be classified into thefollowing categories: (1) Producer to domestic trader, which is showed in the distribution of wet
sago by sago processor and dange maker, (2) Producer to retailer in dried starch market, and (3)Producer to consumer in sago-based cookie industry. However, linkages between producers andcooperatives, and exporter were not found. Moreover, Fluctuations in the output price is one of
the most important problems because there is a big gap between producer prices and consumer
prices. The current state of sago market in South Sulawesi is still ineffective because of many
steps with too little value addition. For example, the price of dried sago in Makassar hikes over
89.5% - 96% until it reaches the consumers without any extra value addition. Based on ourinterview, the important criteria for setting market price are demand, quality, season based andavailability of sago (Fig. 1).
Factors constraining sago starch development
As in this study, it shows that every actor has their specific constraints (Fig. 2). The main
constraining factors for sago producer are machinery and equipment, low price, availability ofsago palm, less support from government and market respectively. For dange maker, the17Abstracts of 27th Annual Meeting of Sago Palm Studies

18

constraining factors are quality (color), price, climate, equipment, and market. Meanwhile,
constraining factors for dried sago producer are financial, market, availability and quality ofsago starch, equipment and storage and transportation and shipping to market outside South
Sulawesi. Moreover, for sago-based cookies producer, factors constraining production are thedurability of product, packaging, human resources, and price.

DemandAvailability of sago
Quality
Season based0%
Not important

20%

40%

Slightly important

60%

80%

Important

100%

Very ImportantFig 1. Criteria for setting market price

Price

5

Resources
Support fromgovernment

5
4
3
2
1

4

Price

3

Quality(color)1

Machinery &equipment

MarketClimate(a)Financial

Transportation & shippingMarket(b)
Humanresources

Market5432
1

Equipment

2

Resources

Equipment &storage

Price

Market5
4
3
2
1

Durability of
product

Packaging(d)(c)
Fig 2. (a) Constraining factors of sago processor, (b) Constraining factors of dange maker, (c)Constraining factors of dried sago producer and (d) Constraining factors of sago-based cookies
producer (Ranking 1= low, 5= high)Abstracts of 27th Annual Meeting of Sago Palm Studies

19

Floral Morphology of Metroxylon Palms: Sago Palm and Solomons’ Sago Palm
Hiroshi Ehara 1*, Hitoshi Naito 2, Mai Takagi 1, Takashi Mishima 3, Yukio Toyoda 4, Mayumi Kikuta 1,
Yulius B. Pasolon 5 and Philimon Ala1 6
1
Nagoya University, 2 Kurashiki University of Science and The Arts,
3
Mie University, 4 Rikkyo University, 5 Halu Oleo University, 6 Department of Forest, Vanuatu
The genus Metroxylon is distributed from Southeast Asia to Micronesia, Melanesia and Polynesia. It
is divided into two sections: Metroxylon and Coelococcus. Metroxylon sagu Rottb. (called the truesago palm: hereafter “sago palm”) is the only species in the section Metroxylon. The other species arerecognized within the section Coelococcus, representing the eastern half of the Metroxylon distributing
area. In Papua New Guinea and Solomon Islands, both sago palm and Solomons’ sago palm (M.
salomonense (Warb.) Becc.) of section Coelococcus are distributed. The Solomons’ sago palm is foundin Vanuatu as well. The original habitats of these two species are comparatively close together insome areas.
The sago palm can propagate in two ways: vegetative propagation by adventitious buds arising fromlower leaf axils or subterranean stems or suckers (tillers), and sexual propagation by seeds. For
cultivation purposes, it is more common to transplant suckers, as seedlings take about 1 year to growto a suitable size for transplantation. The use of seedlings is slowly increasing, however, because it is
not easy to secure large sufficient numbers of suckers for transplanting in large-scale plantation
projects. Although sago palm seeds (fruits) are known to show low germination, the authors reported
that the removal of seed husk tissues could lead to germination rate over 90% when the clean-mature
seeds were soaked in water. The removal of the exocarp, mesocarp and sarcotest is consideredeffective as physical treatment prior to seeding (Ehara et al. 2001). However, the former results were
given from the well-developed fruits. On the other hand, the section Coelococcus species can bepropagated by seeds alone as they do not produce suckers. Their seeds generally show highgermination rates and some of Coelococcus species even produce viviparous seeds (Ehara et al. 2003).
The authors reported the morphology of pollen grains with the structure of hermaphrodite andstaminate flowers of sago palm in the previous report (Ehara et al. 2006). In this study, the floral
morphology of sago palm and Solomon’s sago palm was observed and compared to investigate thedevelopment of seed/fruit that will show germinability.
Materials and Methods Some fruits at various development stage were sampled for morphologicalobservation from a spiny sago palm that was transferred from Papua, Indonesia to Aberisawah,
Southeast Sulawesi and grown there. First-, second- and third-order branches of inflorescence weretaken from a spiny sago palm (vernacular name: Yierevi, Ehara and Naito WWK3) grown in Wewak,
East Sepik, Papua New Guinea (Moem village, 3°34.743’S; 143°41.470’E) and a Solomon’s sago
palm (vernacular name: Takur dun, Ehara and Naito GA1-1) grown on Gaua Island in Vanuatu(14°15.907’S; 167°36.098’E). Flowers at the pre-anthesis stage were obtained from some ofrepresentative branches of each palm. Cross section of gynoecium (i.e. pistil) in the hermaphrodite
flower was prepared using a plant microtome and observed under a stereoscopic microscope.
Results and Discussion There were three different types of fruits, (1) with one seed having
horseshoe-shaped endosperm, (2) seedless including endosperm-like inner part divided into two cloves,

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Abstracts of 27th Annual Meeting of Sago Palm Studies

and (3) seedless including the inner part divided into three cloves (Fig.1). Tomlinson (1990) describedthat the gynoecium is trilocular, but two ovules abort in M. vitiense (H. Wendl.) H. Wendle. ex Benth.
& Hook. F. (Fijian sago palm).
Thus, internal structure of the gynoecium (Fig.2) of the sago palm and Solomons’ sago palm wasobserved. In both of the two species, base part of gynoecium was trilocular (Fig.3). The Solomons’sago palm is solitary: it does not sucker from the base of palm. There was no difference in the internal
structure of gynoecium between sago palmand Solomons’ sago palm that is propagatedby only seed. From this result, it isconsidered that Solomons’ sago palm also
has three ovules at the early stage of flower
development and two of them will abort tolead enough development of a vigorous seedthat will show higher germinability. The
anatomical observation at the following
Fig.2. Hermaphrodite
development stage of flower is further
flower of sago palm.
subject to make clear when and how thePe, petal; A, anther;number of ovules diminishes and an embryo
G, gynoecium.
(from Ehara et al.
develops with the progression in Metroxylon
Fig.1. Sago palm fruits.
2006)
palms. The process of flower development is
not clear even in Fijian sago palm. In case ofsago palm, the reason why seedless fruits
including two or three cloves of endospermlike part are also produced and their
proportion among the produced fruits should
be studied.
Although the flower density on 3rd-order
Sago palm
Solomons’ sago palmbranch of an inflorescence tended to be highFig.3. Cross section of gynoecium (i.e. pistil).
by 30% in sago palm (3.1/cm2) rather than in
Solomons’ sago palm (2.5/cm2), the numberof flowers was apparently large in Solomons’sago palm reflecting its larger number of
1st-order branches in the inflorescence(Table 1). It is still unknown whatpercentage of flowers will produce fruits inboth the two species, which is also an
important next subject.
References
Ehara, H. et al. 2001. Seed Science & Technology 29:83–90.
Ehara, H. et al. 2003. Sago Palm 11:14–17.
Ehara, H. et al. 2006. Japanese Journal of Tropical Agriculture 50:121–126,
Tomlinson, P. B. 1990. The structural biology of palms. Clarendon Press Oxford 496p.

Abstracts of 27th Annual Meeting of Sago Palm Studies

Can Sago Starch-Based Cookies Replace Wheat Flour-based Cookies in the
Food Industry? The Challenge, Marketing Strategy, and Market Prospect ofSMEs in South Sulawesi
Andi Patiware Metaragakusuma1*, Marlisa Ayu Trisia2, Katsuya Osozawa3
1
The United Graduate School of Agricultural Sciences (UGAS) Ehime University
3-5-7Tarumi, Matsuyama, Ehime 790-8566, Japan
2
Applied Social System Institute of Asia (ASSIA), Nagoya University
Furo-cho, Chikusa-ku, Nagoya 464-8601, Japan3
Department of Resource and Environmental Policy, Faculty of Agriculture, Ehime
University, 3-5-7Tarumi, Matsuyama, Ehime 790-8566, Japan*Corresponding author: A.P. Metaragakusuma (ap.metaragakusuma@yahoo.com)
Abstract: The popularity of cookies as a favorable snack is widely known by people with wheat
flour as a main raw material. On the other hand, sago starch-based cookies are getting more attention
in Indonesia. This study investigates whether sago starch-based cookies can replace wheat
flour-based cookies, and identifies the challenges, marketing strategies and its market prospects inSouth Sulawesi. A case study of sago starch-based cookies namely BASO was conducted throughin-depth interview and observation. The obtained data then were analyzed by fishbone analysis and
SWOT analysis. The results showed that within 10 months, the number of cookies production andsales of BASO has increased significantly by over 330%. The result indicated that sago starch-based
cookies are accepted by the urban community and has the high prospect to be developed.
Keywords: Indigenous starch, local economies, sago starch, SMEs, South Sulawesi, wheat flour
Introduction
Cookies are small size flour-based snack made from soft dough, high fat and sugar (Davidson,2016). Based on the statistic of food consumption, the average of cookies consumption in Indonesia
in 2017 is 0.1 kg/ capita/ week and the growth average of cookies consumption within 2013-2017 is
1.8 kg/ capita/ year (Ministry of Agriculture, 2017). In the urban community, wheat flour-based
cookies (WFBC) has a popularity, especially to celebrate events or ceremonies in Indonesia. Almost
70% of the imported wheat flour is used by food industry sector and the rest are absorbed for fodder
sector. In fact, consumption of wheat flour makes Indonesia as the second largest wheat importer inthe world. Moreover, a report from United States Development of Agriculture (USDA) predictedthat Indonesia will become the biggest importer in the world. Consequently, the wheat flour eating
habit should be anticipated by promoting local starch resources such as sago starch.
An initiative to make sago starch-based cookies (SSBC) originated from Dua Permata Luwu
(DPW), a small and medium-sized enterprise (SMEs) in Makassar with their renowned brand called“BASO”. BASO is abbreviated of BAgea Sagu Organik/ organic sago bagea. DPW successfully
created a special bagea that has unique taste and texture that was broadly accepted by urban
consumer. In this study, we investigated whether SSBC has a possibility to replace WFBC in thefood industry including the challenges, marketing strategies and its market prospects.
Methods
This study was conducted in Makassar, the capital city of South Sulawesi, Indonesia from March
to April 2018. The case study is DPW, a SMEs owned by two married women, Mrs. Mulyana
Mulkin (42 years old) and Mrs. Yusni Khadija (44 years old) that was established in 2015. In-depth
interview, and observation were carried out and then the obtained data were analyzed by fishbone
analysis and SWOT analysis.
Results and Discussion
DPW is identified as a pioneer of innovated SSBC producer. At the first, BASO was launched

21

Abstracts of 27th Annual Meeting of Sago Palm Studies

22

only in 3 multiple flavors (cinnamon, cheese and chocolate) and then added into 7 flavors(strawberry, cappuccino, good time and chocolate stick) in April 2016. In April 2017, DPW added
more varieties to the product which are nastar and putri salju. Based on interview, the reasons why
they chose sago business was because they wanted to utilize sago starch as a special souvenir fromRegency of Luwu Timur which a legacy of Luwu people. On progress, DPW got support from Luwu
Timur government on certificate of food production for home industry (P-IRT) and halal label.
Furthermore, the government also promoted BASO through SMEs exhibitions and a main souvenir
to the guest of Luwu Timur Government. The result of our study showed that the trend of a numberof production (Figure 1) and sales (Figure 2) of BASO during 10 months (July 2017 to April 2018)
has increased by 334%. The result indicated that sago starch-based cookies are accepted by the urban
community and has the high prospect to be developed. Currently, the product is mostly sold online
through Facebook and other media social application. Certain amount are sold in a cooperative
belong to a mining company, PT Vale, in Luwu Timur and cooperative owned by Government of
Luwu Timur.
To improve the production and sales performance, it is important to understand the production
problems as it can be considered as the challenge and then formulate the suitable marketing strategy.
The fishbone analysis was applied to identify the problems and SWOT analysis was used todetermine available opportunities for BASO.

1 kg of sago starch = 11 ~ 15 packs of cookies(depend on the variant)Figure 1. Production of BASO during 10 Months(July 2017 - April 2018)

Apr-18

Feb-18Mar-18Jan-18Dec-17Oct-17

Nov-17

Sep-17

Jul-1718,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
Aug-17

In Idr (thousand)Sales Amount of BASO Products during 10
Months (July 2017 - April 2018)

Apr-18Mar-18

Feb-18Jan-18Dec-17

Nov-17Oct-17

Sep-17Aug-17

600
500
400
300
200
100
0

Jul-17

Number of prducts (in pack)

Production of BASO Products during 10
Months(July 2017 - April 2018)

1 USD = 13, 829 IDR (updated on 3 June
2018)

Figure 2. Sales of BASO during 10 Months(July 2017 - April 2018)

Conclusion
Through examining the case study, it can be concluded that the existence of wheat flour
based-cookies can be replaced by sago starch-based cookies. SSBC can be accepted by the urban
community who live in non-producing sago areas such as Makassar city, and has the possibility to
expand the market to other cities in Indonesia. Promotion through online media application becomesa good alternative to get more customers and to avoid a high cost promotion. DPW as a pioneer for
innovated SSBC can inspire other SMEs to grow and create a new eating habit of sago in the urban
area which eventually will encourage sago farmers to engage more in sago production.
References
Davidson, I. 2016 Biscuit Baking Technology - Processing and Engineering Manual.
Karim, A. A., Tie, A. P. L., Manan, D. M. A and Zaidul, I. S. M. 2008 Starch from the sago (Metroxylonsagu) palm tree - Properties, prospects, and challenges as a new industrial source for food and otheruses. Comprehensive Reviews Food Science Food Safety 7: 215–228.
Metaragakusuma, A. P., Osozawa, K. and Hu, B. 2016 An Overview of The Traditional Use of Sago for
Sago based Food Industry in Indonesia. ICoA Conference Proceedings, 119–124.
Minitry of Agriculture, Center for Agricultural Data and Information System 2017 Statistic of Food
Consumption.