Sago is known as a super crop because it is able to produce very large amounts of starch, which reach 20–40 tons per hectare. However, the economic value is relatively low. The research was conducted to obtain a model formulation for the sago bioindustry in Southeast Sulawesi. The research was conducted using multiple methods, namely surveys, FGDs, and limited production trials. Data analysis uses a system-dynamic approach. The results showed that the application of bioindustry principles through the utilization of sago waste into compost as much as 37 tons per year and the manufacture of liquid sugar as much as 10 tons per year, followed by government intervention in increasing the area of sago planting area to 250 ha per year, will provide an additional production of 218%, an additional land area of 160%, an additional employment of 216%, and an additional total income of 254% compared to the current sago management model. The application of bioindustry is able to provide direction for the development of sago in a sustainable and competitive manner.