Development of Sustainable Sago-Based Agroindustrial Products in Meranti Islands Regency

The largest sago producer in Meranti Islands Regency is located in Tebing Tinggi Timur District, with a sago plantation area of 16,680 ha and a production volume of 94,932 tons/year (BPS, 2025). The lack of development of sago derivative products has resulted in low economic value and price fluctuations that tend to decline compared to other plantation crops. Based on the industrial tree, sago has great potential to be developed into various food and non-food products that have high economic value and are sustainable. Research on the development of sago agro-industrial products needs to be conducted to identify potential sago products for development, taking into account techno-economic analysis and sustainability. The sustainability analysis in this study examines three main pillars: the economic, social, and environmental aspects of sago agro-industrial products. This study analyzes the existing conditions of the sago agroindustry using a supply chain approach and Multiaspect Sustainability Analysis (MSA), identifies potential products through the Exponential Comparison Method (ECM), and analyzes the techno-economic feasibility of potential products. The results show that the sago supply chain consists of farmers, processing industries, collectors, and consumers. The overall sustainability index of the exsisting sago agroindustry is categorized as unsustainable (47.29), with the economic aspect being sustainable (71.12), while the social (29.00) and environmental (41.75) aspects are unsustainable. The main constraints include low quality of human resources, limited access to finance and technology, and suboptimal waste management. Two priority products were identified for development, namely sago noodles, a starch- based product with an MPE value of 319,388,146, and biopellets, a waste-based product with an MPE value of 226,411,519. The techno-economic feasibility analysis of sago noodles shows positive results, with a net present value (NPV) of Rp2,201,104,376. This project shows significant profit potential with a discount rate of 11.75%. The project's Internal Rate of Return (IRR) reached 30.70%, which exceeded the discount rate applied, with a Payback Period (PP) of 3 years and 5 months, indicating that the initial investment could be recovered in less than the project's lifespan. The Benefit-Cost Ratio (B/C) of 2.03 also showed positive results because the ratio was >1. The techno-economic feasibility analysis of biopellets shows positive results, with a net present value (NPV) of IDR 2,969,734,599 at a discount rate of 11.75%. The project's Internal Rate of Return (IRR) reached 36.96%, which exceeded the discount rate applied, with a project Payback Period (PP) of 2 years and 3 months, indicating that the initial investment can be recovered. The benefit- cost ratio (B/C) of 2.39 also shows positive results because the ratio is >1.