Newly Established Charcoal Business Equity Stake For Sale in Ampana, Indonesia

BUSINESS METRICS

Partial Stake Sale

Asking Price: NA

Reason: Reason for investment.The Company is raising IDR 4.372 billion in equity to develop a 1,500 m² integrated coconut processing facility in Ampana, Central Sulawesi, transforming the current trading and outsourced-processing operation into an integrated in-house production platform for copra, coconut shell charcoal, cocopeat and cocofiber.The investment will fund the development of the processing facility, Central Thermal Unit (CTU), copra drying system, processing machinery, vehicles and initial working capital required to transition from outsourced processing into an integrated production operation.1. Established Local Commercial Network.The Company has established relationships with local coconut suppliers, collectors and buyers in Central Sulawesi, providing a dependable and readily accessible local sales channel to support ongoing operating cash flow.This existing network provides the Company with an established commercial route rather than requiring the business to rely solely on the development of new export markets.The Founder also maintains a network of export traders and intends to independently pursue international market opportunities through established B2B platforms, including Go4WorldBusiness, to develop additional export channels and reach potential international buyers directly.2. Domestic Market as the Initial Commercial Base.The financial model has been structured with the domestic market as the initial commercial foundation.Under a scenario where all projected sales are made domestically, the project reaches an estimated payback period of approximately 4.85 years.This provides an underlying domestic-market case without requiring the financial model to depend on export sales from the beginning.The Founder considers it highly unlikely that the Company will operate for five years without developing an export network, given the existing network of export traders and the Company's planned direct engagement with international B2B buyers.An investor with established export relationships could further strengthen and accelerate this market-development process.3. Export Market Upside.Published export-market data indicates that international market prices can be materially higher than the Company's current domestic selling-price assumptions for certain coconut products.For example, the Company's current domestic working price for copra is approximately USD 0.89/kg, while published Indonesian export data indicates an average export price of approximately USD 2.23/kg.Similar differences can be observed in export-market pricing for coconut shell charcoal and cocopeat, depending on product specifications and market segment.The Company therefore views export sales as an additional source of revenue and margin upside beyond the domestic base case, rather than as a requirement for the initial commercial operation.4. Products Serving Established Food, Energy and Industrial Supply Chains.The integrated facility is designed to monetize multiple components of the coconut through four principal product streams:• Copra — serving coconut oil and downstream food and oleochemical industries.• Coconut Shell Charcoal — serving biomass, activated-carbon and energy-related applications.• Cocopeat — serving horticulture and growing-media markets.• Cocofiber — serving industrial, horticultural and material applications.This diversified product structure allows the Company to extract value from different coconut components rather than relying on a single finished product.5. Flexible Product Allocation.The Company's integrated processing model provides flexibility in allocating coconut biomass according to market demand.Cocofiber will not be assigned a premium domestic selling price in the base case. The current working assumption is Rp2,000/kg, equivalent to approximately USD 0.11/kg, reflecting a conservative approach given the Company's current lack of an established domestic cocofiber buyer.Where domestic cocofiber demand or pricing is insufficient, suitable material can instead be directed toward cocopeat production, subject to processing specifications.This flexibility allows the company to prioritize the product with stronger available demand rather than being dependent on a fixed sales mix for every product stream.6. Conservative Yield Assumptions and Operational Upside.The financial model uses conservative theoretical yield assumptions.For example, the theoretical calculation indicates that approximately 88 coconuts can produce around 13–14 kg of copra, while traditional practical observations under certain conditions may produce approximately 17 kg from a similar quantity.The higher practical yield has not been incorporated into the base financial projection.If improved processing methods, drying control and operational efficiency enable the Company to achieve higher actual yields, this could provide additional upside to production efficiency and margins.7. Transition from Outsourced Processing to Integrated Production.The current operation relies partly on outsourced processing services.The proposed facility is designed to bring key processing activities in-house, giving the Company greater control over:• production scheduling;• product quality;• processing yield;• operating costs;• inventory management; and.• production capacity.The integrated facility will initially focus on four product streams, with potential future expansion into higher-value downstream products such as VCO, coconut shell charcoal briquettes and coconut concentrate.________________________________________Reason for the valuation.The proposed valuation reflects the Company as an early-stage integrated coconut processing project supported by an existing operating and commercial foundation, rather than as a mature business valued solely on historical earnings.The existing business has demonstrated commercial activity, established supplier and buyer relationships, while current processing remains partly outsourced and production capacity is limited.The proposed IDR 4.372 billion investment is intended to establish the infrastructure required to move into integrated in-house processing, including the 1,500 m² facility, production infrastructure, CTU/pyrolysis system, copra drying system, processing machinery, vehicles and initial working capital.Accordingly, the valuation reflects the combined opportunity represented by:• planned processing capacity;• production infrastructure and equipment;• diversified product portfolio;• established local supplier and buyer channels;• access to international market opportunities;• operational and yield improvement potential; and.• future downstream expansion.The valuation is therefore not based solely on the Company's limited historical earnings, as the proposed investment is primarily intended to create the infrastructure and capacity required for the next stage of the business.________________________________________Investor participation.1. Equity Investment.The Company is seeking IDR 4.372 billion in exchange for 40% equity participation, subject to final legal and investment documentation.2. Capital Recovery Through Operations.The facility is designed to generate operating cash flow through the sale of multiple coconut-derived products.The investor's initial capital is expected to be recovered progressively through operating cash flows and agreed distributions over time, subject to actual business performance and the final investment agreement.3. Permanent Equity Participation.Following recovery of the investor's initial capital through the agreed distribution mechanism, the investor will retain the 40% equity participation and continue to participate in future distributions and long-term enterprise value, subject to the final shareholder agreement.4. Strategic Value and Export Network.Beyond capital, an investor with established international buyer or export-trading relationships could provide additional strategic value by helping the Company accelerate the development of export sales channels.The Company's existing local network provides the initial commercial foundation, while an investor's international network could support the transition toward higher-value export markets.5. Flexible Investment Structure.The current funding requirement is IDR 4.372 billion based on the Company's planned facility scope.If a prospective investor is unable to provide the full amount, the Company is open to discussing an alternative investment structure and corresponding project scope.However, the Company does not intend to reduce the project scope merely to fit a smaller investment if doing so would result in undercapitalization or compromise operational sustainability.Instead, the Company prefers to reassess the investment structure, facility scope and financial projections together with the investor.6. Future Expansion.Following establishment of the core integrated operation, the Company intends to explore higher-value downstream products, including:VCO → Coconut Shell Charcoal Briquettes → Coconut Concentrate.These expansion opportunities are intended to increase product value, diversify revenue sources and support the Company's long-term growth.________________________________________Use of Funds.The investment will fund the initial land lease, factory development, Central Thermal Unit (CTU), processing machinery, production vehicles and office equipment, together with initial raw materials, labour, transportation, utilities, packaging and other operating requirements required to commence integrated operations.________________________________________

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