Plastic use is predicted still increasing with the growing demand and population in Indonesia. However, this plastic demand raises concern regarding non-renewable fossil fuels use as the main source of plastic and plastic pollution impact to the environment. Biobased plastics made from renewable sources, such as sago starch based, can replace fossil-based plastics and promote rural economic development. Furthermore, biodegradable biobased plastics are considered less harmful to the environment. Nevertheless, biobased plastics face several challenges, in terms of sourcing raw materials for these bioplastics, and production costs. This thesis will analyse the potential to produce and apply biobased plastic in Indonesia. Specifically, the research project will analyse the environmental impact, economic benefit, circularity measure, and the potential of large scale biobased plastic production.