Circular Economy Opportunities for Waste Valorization in Traditional Sago Processing Systems

Sago ( Metroxylon sago ) is a strategic local food commodity in eastern Indonesia that plays an important role in food security and local livelihoods. However, sago processing is still dominated by linear and traditional production models that generate large amounts of solid and liquid waste that remain underutilized, leading to environmental problems and low value addition. This study aims to identify the stages of sago processing, examine key problems at each stage, and analyze the potential application of circular economy principles to support sustainable sago processing. A case study approach was employed at a sago processing unit in North Luwu Regency. Data were collected through in-depth interviews with owners, managers, and workers, as well as direct field observations covering the entire production process from harvesting to packaging. The analysis was conducted using the 9R circular economy framework, incorporating economic, environmental, and social dimensions. The results indicate that sago processing generates solid waste in the form of leaves, fronds, bark, and sago pulp, as well as liquid waste from starch extraction. These by-products have significant potential to be transformed into value-added products, including natural packaging materials, bio-briquettes, animal feed, mushroom cultivation media, sago larvae cultivation media, organic fertilizers, and biogas. In addition, modernization of processing equipment could improve starch extraction efficiency and reduce raw material losses. The adoption of circular economy practices in sago processing has the potential to increase income for processors, reduce environmental pollution, and create new business and employment opportunities for local communities. Therefore, transforming sago processing toward a circular economy model can enhance environmental sustainability while strengthening local economic and social resilience.