Lingga Encourages Sago Downstreaming to Boost Local Economy

The government of Lingga Regency, Riau Islands, is encouraging the downstream processing of sago into various value-added food products to strengthen the local economy.

Agung Yuda, Head of Panggak Laut Village in Lingga, stated that sago processing has been carried out for generations and has become a source of livelihood for the community. “There are nearly 20 sago mills in Panggak Laut Village. Production can reach 14 to 18 tonnes per month for a single mill,” he said on Thursday (13/8).

He noted that the sago potential in Lingga Regency is substantial, as the plant grows naturally and is widely found across several areas. Besides Panggak Laut, sago production also occurs in Nerekeh, Musai, and Teluk villages. The commodity is not only sold as raw material but is also being developed into flour, cookies, and alternative food products to replace rice.

“The flour is sent to Batam, while dried food products are marketed in Lingga, Tanjungpinang, and Batam. Some are also sent to Jambi,” he explained.

Agung added that the development of sago through Village-Owned Enterprises (BUMDes) has opened opportunities for local MSMEs to produce processed goods with higher economic value.

Mawardi, Director of BUMDes Karya Mandiri, explained the processing stages, where raw sago is cleaned before being dried and packaged. “The drying process depends on the weather because we still use sunlight. If it’s hot, it dries quickly,” he said.

Sago flour is packaged in one-kilogram packs priced at around IDR 5,000 per kilogram, with packaging sizes adjustable to consumer demand, ranging from five to 20 kilograms. Mawardi confirmed that their products have been marketed to several regions, primarily Batam and Tanjungpinang.

This business development has received support from Bank Indonesia through a sago production quality improvement programme in Lingga Regency in 2023. The support includes capital, production assets, equipment, and packaging machinery. “They have helped with capital, production tools, and packaging machines. Alhamdulillah, the support has been tremendous. Without BI’s assistance, we could not have continued because we needed capital support,” he said.