Added value of palm sugar processing by the Buhung Lali forest farmers group in South Sulawesi, Indonesia

Abstract

Abstract. Lestari PEE, Syahidah, Mujetahid A. 2026. Added value of palm sugar processing by the Buhung Lali forest farmers group in South Sulawesi, Indonesia. Asian J For 10 (1): r100135. https://doi.org/10.13057/asianjfor/r100135. Non-Timber Forest Products (NTFPs) play a vital role in sustainable forest management by providing economic benefits while maintaining ecosystem health. Among these, the sugar palm (Arenga pinnata) represents a high-value NTFPs that is predominantly managed using traditional methods by the community of Bukit Harapan Village, Bulukumba District, South Sulawesi, Indonesia, particularly members of the Buhung Lali Forest Farmers Group (FFG). This study aims to describe the production process of palm sugar, from sap tapping to the final products, and to analyze the added value generated from processing sap into granulated palm sugar and liquid palm sugar. Data were collected through direct observation, structured interviews, and documentation of production activities. Analysis using the Hayami Method reveals that granulated palm sugar provides an added value of IDR 4,800/kg with a profit rate of 98%, whereas liquid palm sugar yields an added value of IDR 600/kg with a 66% profit rate. The higher added value and profitability of granulated sugar are primarily due to its higher market price and the lower interest among KTH members in producing liquid sugar, which is less favored in the local market. Furthermore, labor requirements differ between the two products, with granulated sugar production being more capital-intensive and efficient in labor use, while liquid sugar production relies more on manual labor. These findings underscore the economic potential of diversifying NTFPs-based products and optimizing production processes. Promoting high-value products like granulated palm sugar can enhance the income of small-scale farmers and entrepreneurs, support local agroindustries, and contribute to sustainable forest resource management. Overall, this study highlights the importance of integrating traditional knowledge, market strategies, and value-added processing to strengthen both rural livelihoods and environmental sustainability.