<![CDATA[Batubara Regency, North Sumatra, has significant potential for developing palm oil-based MSMEs through the downstream processing of palm sap into brown sugar. This study analyzes innovations in production processes and business management practices in palm sap brown sugar MSMEs in the region, focusing on two MSMEs in Lautador District. Using a qualitative single-case study approach based on Local Economic Development (LED) Theory and Porter's Value Chain model, primary data were obtained through semi-structured interviews, participant observation, and focus group discussions (FGDs) with 10-15 business actors and stakeholders. Results show that the innovation of a semi-automatic steamer increased production efficiency by 105% (from 22% to 45%), monthly revenue increased by 132% to IDR 5.8 million per unit, and the share of digital sales reached 75% (a 1400% increase). Key obstacles include the lack of halal certification and village road infrastructure. Recommendations include facilitating BPDPKS (Indonesian Palm Oil Development Agency) for production equipment and certification, as well as establishing a joint production house. This study contributes to the literature on palm oil downstreaming and sustainable LED strategies. ]]>
Copyrights © 2025
