Timber Trading Company Equity Stake For Sale in Manggar, Indonesia

The main product was biomass wood chips of standard size for power plants, produced from wood waste from production forests (logs, whole trees, branches, and wood industry residues).

The wood chips are used as co-firing fuel for power plants, specifically for the Suge power plant in Belitung through a collaboration with PT Belindo Agro Makmur.

The company provided logistics and bulk delivery services for wood chips from processing locations near the production forests to the power plant with scheduled daily truck deliveries. The main assets offered as part of the business include:
(1) A drum chipper/crusher machine with a capacity of 15–20 tons/hour, powered by a 235 HP diesel engine and equipped with a cutting blade system;
(2) A material handling system consisting of conveyors and wood chip stacking/packaging facilities;
(3) A semi-permanent mini-factory building of approximately 15 x 20 m along with basic infrastructure (foundation, work floor, roof, corrugated iron walls, loading area);
(4) A fleet of transportation and logistics support equipment (trucks for transporting raw materials and wood chips, loading and unloading equipment);
(5) Other operational equipment such as scales, QC equipment, and field work equipment for operations in the production forest area. The total value of these main assets is approximately Rp1.78 billion and they are used directly in the production and distribution of biomass wood chips. - The main facility consists of a semi-permanent mini-factory measuring approximately 15 x 20 meters, built on land leased from the local community in the production forest area of ​​Cendil Village, Kelapa Kampit District, East Belitung Regency. This is close to the town of Manggar.
- The building has a corrugated iron roof and walls, designed for a one-way workflow to minimize handling time, facilitate loading and unloading, and protect materials from rain. Inside the factory area, there is a wood receiving area, a cutting and chipping area, a conveyor to move chips to the stacking/packaging area, and a loading area for transport trucks.
- The location was chosen close to the raw material source to reduce logistics costs, while delivery to the power plant is done using trucks with a net capacity of approximately 5-7 tons per trip. The current business is funded by owner's equity (internal capital) without bank loans or other debt. All business ownership (100%) remains with the original owners before the entry of investors.

The planned transaction involves the sale of a minority stake of approximately 20-30% to a strategic investor.

There are no interest obligations as no loan scheme is used; cash flow will be used for capital return through profit sharing and dividends according to the share proportion.