New factory for Sago industry in Papua has already been operating in South Sorong, West Papua, since May 2016. Owned by Austindo Nusantara Jaya (ANJT) enterprise, the factory already have the concession permission in a 40,000 ha of land. In January 2016, President Jokowi has visited and inaugurated this sago factory, at that time, he also hoped that this industry will give benefits the Papuan people.
“I hope that sago industry in Papua will be beneficial to all of the people in Papua,” said Jokowi during his visit in 1 January 2016, cited from Detik.
This sago factory can process 6.000 sago trunks of 1 meter in length and can also produce around 100 ton of sago flour everyday. Furthermore, this industry is now creating more job vacancies for the local people. The local people can also supply the sago trunks being used for production. The company pays 9,000 IDR per trunk, which is more profitable than selling it to the rights holder of communal sago land. Selling sago trunks to the land owner will only get them around 900 IDR per trunk.
“Around 600 people are working in the plantation for supplying sago trunks,” said President Director of Forestry State Owned Corporation, Mustoha Iskandar, during his visit in Kais, West Papua, in the 1st January 2016, cited from Tempo.
During their first month of production, the factory had the production capacity of around 1.260 ton every month. ANJT enterprise has already invested US$40 Million to build this sago factory. Their target is to produce sago flour with a total capacity of 3.000 ton every mouth. The company said that their main target market are in East Indonesia, the rest are Surabaya and East Java.
Mustoha Iskandar also said that the income that Perhutani receives from this industry is around 100 billion IDR per year and it will give good economic impact to the people of Papua. This industry will be beneficial for the government and the Papuan people, not only will they get economic benefits, this industry will also create more employment. Last but not least, it will strengthen food security of the people of Papua, with sago, as their local staple food.