Increasing the Competitiveness of Agroindustry Sago Products through Resource Optimization

Abstract

The main source of agro-industrial raw materials mainstay of Meranti Islands Regency is Sago plants. The research aims to optimize resource use to increase the Sago agro-industrial competitiveness. Surveys were used as the research method. The census was chosen to take 56 respondents for review. SEM-PLS and Diamond Porters used data analysis methods—factors condition: natural, human, scientific, capital, and infrastructure resources. Demand conditions include household or small industry demand, export demand, and demand between districts, provinces, and countries. Related and supporting industries include manufacturing, home, distribution of Sago farmers, Sago refineries ownership, and a sewage treatment industry. Firm structure, strategy, and rivalry have competition between regions and countries and create labor. The government's role includes ease of licensing, research on Sago, land mapping, access to capital, and coaching. Chances include domestic political conditions and the use of social media. Competitiveness can be reflected in business profits. Results of the research show that demand conditions, firm structure, factor conditions, related and supporting industries, strategy and business competition, government involvement, and chances were determinants of increasing competitiveness of the agro-industrial Sago product. However, the condition factors (physical/natural resources, infrastructure resources, human resources, capital resources, and scientific resources) determine the most. In the future, utilization conditions need to be optimized to increase the competitiveness of the Sago agro-industrial as well as improve the welfare of the community.