Investor Needed for Palm Oil Plantation Project in Riau, Indonesia

Opportunity Snapshot

  • Country: Indonesia Indonesia
  • Industry: Agriculture
  • Stage: Start-up
  • Investment size: $99,999,967 / min. $9,999,991
  • Type of investment: Debt, Equity

Investment Opportunity

We will conduct the construction of palm oil plantation area of ± 19,000 ha and build Palm Oil Factories (MCC) with a capacity of 90 tonnes FFB / hour.

Our private national company is based and operates in Indonesia. Our core business is palm oil plantation and production of Crude Palm Oil (CPO). We are owners of palm oil plantation as vast as +- 19,000 ha (twenty thousand hectares) in Indonesia, Riau Province. Our company has acquired sole exclusive legal permit to work on the area and now we are looking for investment partner to develop the entire area. Feasibility study by Independent consultant on the project has also been done. The project is suitable for investment.

Rationale for the deal

The palm oil industry is a very prospective industry. Demand is growing year by year, but suitable arable land bank is getting more and more limited, also to the fact that palm oil is only suitable in tropic equator zone of earth (right now Indonesia and Malaysia are the two most viable locations to plant palm oil).

Palm oil production is a long-term oriented business, but it is very lucrative and sought by many investors. Palm oil is harvestable from the fourth year of planting and keeps producing for another 25 years before its next replanting. For this project, although the payback period will be obtained in 10 years 3 months, the project has internal rate of return of 18.46% and Profitability Index of 2.51. The project will generate continuous stream of income for another 20 years at the very least without needing further investment.

Use of financing

We have been self-financing the project on small scale basis on our own but we are limited by financial constraints. We have over a decade of experience in palm oil industry and can operate the project on your behalf if requested. We possess the technical know-how, but the project would require much more investment fund to develop the whole vast area of land. The amount of investment needed in total is approximately 150 million USD (construction period spread in 5 years). For your information, the project cannot offer collateral at the current stage.

Opportunity for the investor

We are open to any kind of cooperation options available, and we are willing to share equity or profit share to you. We are ready to discuss various possibilities on the cooperation if you have interest on the project.

For your references, please study our project executive summary included in this bundle and the complete feasibility study/business plan of the project. I have included some general information regarding palm oil industry as well. If you have any questions, please do not hesitate to contact me.

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