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Develop Various Sago Foods, Ministry of Agriculture Holds FAO: December 2017

The Ministry of Agriculture through the Food Security Agency (BKP) continues to commit to realizing local food-based diversification, in an effort to reduce dependence on rice and flour.

Massive use of local food is considered capable of contributing positively to strengthening national food sovereignty. To that end, BKP is supported by the Food and Agriculture Organization (FAO) and the Regional Government of Southeast Sulawesi Province conducting the 'Promoting Sago Starch Utilization in Indonesia' activity in Kendari (18/12/2017). This activity has begun in 2016 and is currently entering the final stages.

On that occasion, the representative of FAO Indonesia-Timor Leste, Mark Smulder stressed to maintain the sustainability of this activity. According to him there are three things to note that is commitment, expertise, and opportunity.
March 2015, Perhutani Sago Factory Operations : September 2014

PT Perhutani (Persero) is targeting the sago factory Kais District, South Sorong regency, began operations in March 2015 with a capacity of 30,000 tons of corn per year.

"With an investment of around Rp112 billion, this plant will be the first modern sago factory in Indonesia," said Director Bambang Sukmananto Perhutani, on the sidelines of the review completion sago factory in Sorong, West Papua, on Thursday (4/9).

According to Bambang, the physical construction of the plant has reached 60%, then just the completion of the installation of processing machines and machine boiler and electrical installations.

He explained that the sago factory is a new business for Perhutani after getting approval from the government and the Ministry of Enterprise to manage an area of ??15,000 hectares in the region.

"In the early stages (2015) The new production capacity 25 percent and then 50 percent in 2016 and entered full kapaitas in 2017. In essence, Perhutani ready and continue to develop to meet the needs of the plant sago sago national, currently at 5 million tons per year," Bambang said.

Surely Bambang, with the development of sago factories into industrial production of sago Perhutani nasiobal ??then later not only for domestic use but also can be exported to bring in foreign exchange. "The export market potential of sago especially in ASEAN countries, including Japan," he explained.

He said, sago with the Latin name Metroxylon Sp is native to Indonesia which is the main source of carbohydrates that can be used for healthy food, bioethanol, sugar for the food and beverage industry, animal feed, pharmaceutical and paper industry and others.

Bambang explained that Indonesia has the potential to be the world's largest corn producer because there is the world's largest corn crop in New Guinea with a stretch of about 4.5 million hectares. "We are ready to partner with the communities where sago factories located for economic development in the region. In addition to processing, Perhutani also provide knowledge about the development of productive sago palms," he said.

Quality trees from Papua quite famous for Sago King, which could produce up to 900 kilograms of corn per stem. Unlike the Malaysian sago palm produces an average maximum of 250 kg of corn starch per stem.

During this time sago farmers such as Papua, only able to make one sago trunk for two weeks, but with this partnership sago plant population results can be directly processed by a short time.

Other Food Growing in Indonesia
Indonesia Industry Report and Market Research
August 20, 2018
Industry Code : A1190
Forecast to : 2022

Other Food Growing in Indonesia This class consists of units mainly engaged in the agricultural activities of preparing/carrying out the planting, sowing of seeds, raising seedlings, cultivation, harvesting and post-harvesting associated with other plants which are not included in any other classes, like sago and sugar palm.
The primary activities of firms in this industry are:
- Sago Growing.
- Sugar Palm Growing.
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Jakarta 12720, Indonesia
Chapter Headings US $ Select All
Industry Outlook 60.50
Key Statistics 60.50
Market Characteristics 36.30
Segmentation 36.30
Industry Conditions 60.50
Industry Performance 60.50
Key Factors 27.50
Sago Plants Helps Peatlands Restoration 0.39
Kotawaringin Hulu Return Grow Gardens of Palm Sugar 0.39
Sago can be a National Food Security Reserves 0.39
Sago Produced by NSP, 50% has been Exported 0.39
Plants Sago Will Be Protected 0.39
Riau's Sago as a National Commodity 0.39
Three Companies Develop Bio Ethanol from Sorghum 0.39
Maluku Develop Sago Plantation in Tawiri 0.39
Potential Sago Plantation in Papua Totaling 1.23 million ha 0.39
Potentials of Sago Plantation 0.39
Sago Plantation Areas Changed Into Areas for Construction 0.39
To Revitalize the Sugarcane Industry, Sugar Manufacturers Need to Co-operate with Investors 0.39

Report Content

The Other Food Growing industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.

Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.

The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.

KEY STATISTICS 2014 2015 2016 2017 2018
Industry Revenue 107,942 104,367 131,689 158,085 169,151 Rp.Billion
Industry Gross Product 7,016 6,784 8,560 10,276 10,995 Rp.Billion
Number of Establishments 110 120 130 130 130 Units
Employment 109,600 101,200 85 81,000 85,400 Units
Exports 2,856 3,457 6,481 6,521 7,820 Rp.Billion
Imports 10,926 10,899 25,482 30,419 35,880 Rp.Billion
Total Wages 1,425 1,316 1,114 1,010 1,109 Rp.Billion
Domestic Demand 116,012 111,809 150,690 181,983 197,211 Rp.Billion
The data above is sample data only

Cost of Goods Sold 67.13 Gross Profit 32.87
Operating Expense 21.5 Profit (Loss) Before Tax 11.36
Administration 1.58 Depreciation 0.56
Electricity 0.66 Freight 1.99
Fuel, Parking, Toll & Retribution 1.62 Interest 3.09
Land and Building Rental 2.74 Marketing 2.69
Repairs and Maintenance 0.54 Service Fee 0.7
Staff Welfare Allowance 1.38 Other Expenses 0.92
Stationery & Inventory 0.48 Telephone 0.8
Utensils and Equipment 1.24 Wages and Salaries 0.5
The data above is sample data only

Central Java 13.4 DKI Jakarta 6.5
East Java 22.4 North Sumatra 17.9
Papua 2.0 Bali 3.0
South Sulawesi 6.0 West Java 28.8
The data above is sample data only

Chapter Headings

Industry Outlook

A key analysis section, the Industry Outlook outlines expectations for the key industry indicators over the next five-year period.

Key Statistics

The key indicators for the industry for last five years are provided here, and include:
•   Industry Revenue
•   Industry Value Added
•   Employment
•   Establishments
•   Exports
•   Imports
•   Domestic Demand
•   Total Wages

Market Characteristics

Market Size
This section gives the size of the domestic market and the size of the export market for each industry.

This section lists the industry"s major supplier and its major customer industries, with SIC"s (KLUI) for easy reference.

Demand Determinants
Lists the key factors which are likely to cause demand to rise or fall.

Domestic and International Markets
The trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover. The size of the domestic market (domestic demand) and the proportion of this accounted for by exports
Outlines the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand States the size of the domestic market (domestic demand) and the proportion of this accounted for by imports
Domestic and international markets defines the market for the products and services of this industry, both locally and in other countries. This outlines: the size of the domestic market (domestic demand) and the proportion of this accounted for by imports, the key countries from which imports are sourced (with percentage and relative size if available), the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand, the size of turnover and the size of exports as a proportion of turnover, the key export destinations (percentages and relative importance of these, if available, the trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover.

Basis of Competition
Gives the key types of competition between firms within the industry. It also highlights competition from substitute products in alternative industries.


Products and Service Segmentation
This details the key products and/or services provided by this industry. Wherever possible, we include an indication as to which of these are the most important to demonstrate which have a more significant influence over industry results as a whole.

Major Market Segments
The key client industries and/or groups are detailed here. Wherever possible, an indication as to which of these are the most important is included. This will highlight the client groups that are most important to the industry. Trends in these client groups may have an important impact on the demand for products and services provided by the SIC, hence they may be important to monitor suggested links

Industry Concentration
This is an indicator of how much industry turnover is accounted for by the top players.

Geographic Spread
This is a guide to the regional share of industry turnover/gross product. DIS calculates this on the basis of turnover or production, however, the number of establishments may be used as a proxy where these are not available.

Industry Conditions

Barriers to Entry
This section outlines factors that can prevent a new company from entering the industry and will also give an indication of the extent to which this occurs.

Taxation refers to all kinds of taxation that are specific or are particularly important to an industry. This includes taxation concessions.

Industry Assitance
Assistance refers to government and/or other measures in place designed to improve the performance of the industry or sections of the industry. (eg grants, subsidies)

Regulation and Deregulation
Where licenses are required to operate in an industry, these will be noted here. Where possible, details regarding the degree of difficulty in obtaining a licence are included. Important issues relating to regulation and deregulation are included here.

Cost Structure
The average costs for a company operating in this industry as a percentage of total revenue.

Capital and Labour Intensity
Provides a guide to the amount of capital used in production/providing a service compared to the amount of labor in the total mix of inputs.

Technology and System
Acknowledges the latest technology and/or systems available to this industry within the country. Technology refers to machinery and equipment (such as computerisation) which enables better and more efficient production. Systems refer to methods of production that also enables better and more efficient production.

Industry Volatility
Industry volatility refers to the year on year fluctuations, which occur in industry output.

This gives an indication of the extent to which the industry is global. As a guide, we base its definition of the level of globalization on a number of factors, some of which include: the level of foreign ownership, the proportion of demand accounted for by foreign operators, and in the case of industries dominated by domestic participants, the volume of production conducted in other countries.

Industry Performance

Historical Performance
This section details previously important events in the development of the industry

Current Performance
This is the key analysis section for the industry over the past five years. The key performance indicators for the industry in question are discussed, providing trends and explanations for occurrences in the industry.

Key Competitors

Lists the Major Players in the industry with key details relating to those players

Key Factors

Key Sensitivities
The sensitivities are factors that are outside of the control of an operator of the industry, but are likely to have significant impact on a business.

Key Success Factors
These are the factors within the control of the operator and which should be followed in order to be successful. Often these may include behavior that will help to minimise the effects of the key sensitivities.

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Table of Contents
About this Report
Key Statistics
Market Characteristics
Industry Conditions
Key Factors
Key Competitors
Industry Performance