The flag you get when you start can be found in Storage, you can also find one near the boxes at the start making it ideal for a spare or having flags on both sides.
Our Proud Flag on the level small item mount
It is recommeded that you put the flag in the level Small Item Mount. Make sure you do not drop your flag as you wont find another one on a different island. Jebe and Frits are depicted on the flag, one per side.
Tip: The flag is usefull as it will point in the direction the wind is blowing, which will be the direction you're traveling.