Several microorganisms have been found to produce raw starch digesting amylase. We have isolated Penicillium brunneum from sago palm tree at a sago processing site, which was used as a source of starch digesting amylase. All the raw starch digesting enzymes were effective for cereal starches, but root starches and sago starch were resistant to the enzyme reaction. Treatment of sago starch by heating to temperature below gelatinization temperature at lower pHs resulted in an increase in the ability of enzyme to digest sago starch granules. Heating to 60.degree.C at pH 2.0 resulted in a conversion rate of sago starch granules to glucose near to the conversion rate of raw corn starch to glucose. At higher concentration, the degree of hydrolysis of treated sago starch granules was about 275% as compared to that of untreated sago starch granules. Addition of the enzyme in large amount or small portion at various time intervals was found effective in the hydrolysis of treated sago starch granules.