The Deli Serdang Regency Government is focusing its regional economic strategy on downstream processing of the cassava commodity. This step is being taken as an effort to transform from a mere raw material supplier into an agro-industrial hub oriented toward high value-added products.
During the Regional Business Forum (Forbisda), part of the 26th Anniversary series of Apkasi, Acting Regent of Deli Serdang, Asri Ludin Tambunan, emphasized that traditional agricultural business models are no longer sufficient. According to him, processing agricultural yields into finished products is key to improving farmers' welfare, fostering local MSMEs, and creating new job opportunities.
Data shows that Deli Serdang has a strong foundation, with 12,400 hectares of cassava cultivation land spread across various sub-districts, such as Kutalimbaru to Hamparan Perak. A consistently increasing production trend exceeding 109,000 tons per year serves as strategic capital in supporting the processing industry ecosystem.
Asri highlighted the significant price disparity between selling raw materials and processed products. He noted that cassava sold at IDR 1,500 per kilogram can surge in value up to IDR 36,000 per kilogram when marketed as chips. The success of a local MSME that has penetrated the Malaysian and South Korean markets serves as concrete proof that the region's processed products possess global competitiveness.
To achieve the target of a 40 percent growth in value-added products, the local government is committed to optimizing policy support. This includes facilitating superior seeds, building agricultural infrastructure, easing access to People's Business Loans (KUR), and offering certification assistance for at least 300 active MSMEs in the future.
