Disclaimer
This Investor Memorandum has been prepared by PT Sapta Borneo Utama for information purposes only and does not constitute an offer to sell or a solicitation to purchase securities in any jurisdiction. Recipients should conduct independent due diligence and obtain professional legal, financial, tax and technical advice before making any investment decision.
Executive Summary
PT Sapta Borneo Utama is developing an integrated agribusiness and renewable energy platform in Majalengka Regency, West Java, Indonesia, combining sugar manufacturing, ethanol production, biomass power generation, plantation development and plasma farmer participation.
Strategic Investment Rationale
| Rationale | Description |
|---|---|
| Strategic National Industry | The project supports Indonesia's sugar self-sufficiency objectives and renewable energy development agenda. |
| Integrated Industrial Platform | Sugar manufacturing, ethanol production, biomass power and plantation development are integrated into one ecosystem. |
| Diversified Revenue Streams | Revenue is expected from sugar sales, ethanol sales, renewable energy benefits and carbon credit opportunities. |
| ESG-Aligned Development | The project incorporates environmental, social and governance principles throughout planning, construction and operation. |
Project Location
The project is located in Majalengka Regency, West Java, Indonesia. The location provides agricultural development potential, transportation connectivity, labor availability and long-term industrial expansion opportunity.
Project Components
| Component | Description | Capacity / Target |
|---|---|---|
| Sugar Factory | Integrated sugar processing facility | 10,000 TCD |
| Ethanol Plant | Fuel ethanol, industrial ethanol and chemical feedstock | 60 KLPD |
| Biomass Power Plant | Bagasse and biomass residue-based renewable power | 30 MW |
| Core Plantation | Initial plantation development | 500 Ha |
| Plasma Program | Farmer partnership and feedstock expansion | 10,000–20,000 Ha |
Project Cost & Financing
| Item | Value / Description |
|---|---|
| Total Project Cost | USD 1,000,000,000 |
| EPC Contract Value | USD 442,500,000 |
| Financing Structure | Senior Secured Project Finance |
| Debt Tenor | 20 Years |
| Interest Rate | 3.00% Fixed |
| DSRA | 6 Months Debt Service |
Financial Highlights
| Metric | Base Case Value |
|---|---|
| Annual Revenue | USD 198.396 Million |
| EBITDA | USD 109.118 Million |
| CFADS | USD 91.712 Million |
| Annual Debt Service | USD 70.548 Million |
| DSCR | 1.30x |
| LLCR | 1.45x |
| PLCR | 1.60x |
| Project IRR | Approx. 11.8% |
ESG Framework
| Pillar | Key Elements |
|---|---|
| Environmental | Renewable biomass energy generation, carbon reduction initiatives, sustainable agriculture and waste minimization. |
| Social | Community development, farmer empowerment, employment generation and stakeholder engagement. |
| Governance | Corporate transparency, compliance framework, risk management and ethical business practices. |
Carbon Credit Opportunity
Potential carbon credit generation may arise from:
- Biomass power generation.
- Sustainable plantation development.
- Circular economy initiatives.
- Renewable energy utilization.
Community Development
The project is expected to contribute to:
- Local employment.
- Agricultural productivity.
- Farmer income growth.
- Skills development.
- Regional economic development.
Implementation Schedule
| Phase | Duration |
|---|---|
| Development & Permitting | 6 Months |
| Engineering | 6 Months |
| Procurement | 12 Months |
| Construction | 24 Months |
| Commissioning | 6 Months |
| Total Implementation Period | 24–30 Months |
Target Investor Universe
| Investor Type | Role |
|---|---|
| Commercial Banks | Senior secured project finance lenders. |
| Development Finance Institutions | ESG and infrastructure-focused long-term capital providers. |
| Export Credit Agencies | Equipment and EPC-linked financing support. |
| Infrastructure Funds | Long-term real asset investors. |
| Private Credit Funds | Structured debt and bridge financing participants. |
| Strategic Investors | Industrial, agribusiness and renewable energy partners. |
Project Sponsor
| Company | PT Sapta Borneo Utama |
|---|---|
| Website | www.saptaborneo.com |
| info@saptaborneo.com | |
| Telephone | +62 21 50322435 |
Conclusion
The PT Sapta Borneo Utama Integrated Sugar Industry Development Project represents a significant agribusiness and renewable energy investment opportunity supported by integrated operations, ESG alignment, diversified revenue streams and long-term growth potential.
Document Information
| Document Owner | PT Sapta Borneo Utama |
|---|---|
| Project | USD 1 Billion Integrated Sugar Factory Project |
| Location | Majalengka, West Java, Indonesia |
| Classification | Confidential |
| Status | Final / Published |
| Prepared For | Lenders, ECAs, Institutional Investors and Strategic Partners |
| Date | June 2026 |
Revision History
| Version | Date | Document No. | Status | Description |
|---|---|---|---|---|
| 1.0 | June 2026 | SBU-FIN-002 | Final / Published | Investor Memorandum issued for institutional lender data room publication. |