Team 16 business plan submission

Business
Plan
”Clean Cookstoves, Sustainibility for Indonesia”

TEAM #16
BIOKRAFTSTOFFE

PPM SCHOOL OF
MANAGEMENT
JAKARTA


EXECUTIVE SUMMARY

Indonesia with its 240 million population, at least 100 million people cook with kerosene
and wood-fires stove for their daily cooking needs. These group belongs to lower-middle income
communities which can only afford to buy these kinds of stove. These stoves suffer for low
efficiency and poor level of emissions. The unavailability of more proper stove and fuel made
them stay in the same condition for years. This condition becomes even worse when the
Indonesian government run convertion of kerosene to gas. Since most people can not afford to
buy gas stoves, regulators, and the jar, there is a lot of kerosene users are back again using
firewood which has worse emissions level and low level of security.
What is needed by this community is a stove with a low level of emission, high efficiency
and affordable fuel. This condition provides an opportunity to position the stove named Protos as
a substitute for kerosene stoves and firewood to a cheaper fuel than LPG. This idea could not
work alone. We need a program to support and deliver those ideas. That’s why we came up with
a program named “Clean Cookstoves, Sustainibility for Indonesia” to challange those ideas. By
doing it, we aim to bring community to enjoy live by doing cleaner, healthier and happier
cooking.
We are Biokraftstoffe here as a partner of BSH (Bosch and Siemens Home Appliances
Group) will act as an agent who colaborates some partners to build alliances in order to run these
programs. Our vision is “Achieving Healthy Way of Cooking to Support Indonesia Sustainability
Environment”. This vision reveals our goal which is distributing 5.000 protos cookstove into one
spesific area and reach break even points within 2-3 years while there is still cost gap which we
have to cover costs for $ 30 for each stove. To achieve this goal we collaborate the power of local
partners that has full concerns in developing CSR program deal with Carbon reduction and
environmental program through community development to cover this cost gap. We colaborate
three local partners and one international partner that has fitted the criterias. Our local partners
are BSH, PT. Indocement Tbk (HeidelbergCement Group), and PT Shell Indonesia; while our
international partner is CER’s (Certified Emission Reduction)’s buyers.
BSH will act as protos cookstove producer who provides the cookstove, while PT
Indocement Tbk (part of the HeidelbergCement Group) will provide plant oil supply from jatropha
plantation in their areas since 2007 as part of their CSR program. Our local firm, PT Shell
Indonesia will donate such amounts to support our program which align with their program
named “Global Alliances Clean Cookstove Program”. On the other hand, CER’s buyers
(international companies) will buy the certified emission reduction issued by us as agent who
collaborates our local partners regarding CDM (Clean Development Method). All those partners
are colaborated into one to be hand in hand supporting our program. We will organize and run all
their support and investment so that our vision will be acomplished.
“Clean Cookstoves, Sustainibility for Indonesia” is a program that consider with the
implementation of CDM (Clean Development Management) project under the supervision of
UNFCCC which requires application of a baseline and monitoring methodology in order to
determine the amount of Certified Emission Reductions (CERs) generated by a mitigation project
in a project host country like here in Indonesia. There are 3 projects of CDM that we are possibly
going to develop. They are AMS-I.G (Plant oil production and use for energy generation in
stationary applications). This project will be collaborated with PT Indocement Tbk which have 170
hectares jatropha plantation and produce plant oil which next will be used for supporting oil
supply of protos. The second project is AMS-I.H (Biodiesel is produced from cultivated oil crops or
from waste oil/fat and used for the generation of electricity. This program will be in charge of
Biokraftstoffe which are doing two main activities: processing jatropha crops to become plant oil
then sell it to our customers and collecting used oil from food stall and sentra “gorengan” in
Sumedang and Majalengka then sell it to our customers. The last project is AMS-II.G (Energy

TEAM #16 BIOKRAFTSTOFFE PPM SCHOOL OF MANAGEMENT Page 1


efficiency measures in thermal applications of non-renewable biomass). This project will be
collaborated with BSH by producing and distributing protos cookstove with low level of emission.
These 3 projects in the following three years will reduce totally 15.252 ton CO2 at the end
of 3rd year of which counts for 2.217.333.052 rupiahs. This amount can cover the cost gap of
1500 cookstove for the next two years and keep the price as minimum as $ 5. The CDM program
will keep generating revenue for years running. On this basis the cost gap of 1500 protos
cookstove annually will be covered.
We plan to implement this program in a place named Citeureup, 45 km away from
southern Jakarta and 20 km away from northern Bogor. We chose this region since it’s near
factory of PT Indocement so that it can be correlated with CDM program done by them. Besides,
this region is densely populated area which most of their citizen is from low-middle economic
classes that mostly used kerosene as their way of cooking. These type of citizens belongs to our
target consumers so by chosing this place is very beneficial for us. Citeureup consists of 12
villages, namely Hambalang, Citeureup, Tajur, Pasir Mukti, Leuwi Rubber, Nambo, Bantarjati,
Gunung Putri, Lulut, Gunung Sari, Tarikolot and Puspanegara. These villages are part of the three
villages, namely sub Citeureup, Gunung Putri and Cileungsi. There are 75,000 people live right
next to the factory area. By assuming that each family consist of 5 members, there will be 15.000
households as our potential market while we target 5.000 households (one-third of all citizens of
Citeureup).
However, the whole progam has to be safeguarded. One important thing that needs to be
considered is the availability of fuel supply for 5000 families that would be our target consumers.
Currently, the availability land of jatropha owned by PT Indocement is not enough to meet the
objectives of this program. For that reason, we need to secure our supply by combining fuel
supply of Jatropha and used oil we gained by collecting used oil from fast-food industry like McD
or KFC, and Sentra Gorengan near the neighbourhood and build the system that enable
household to collect their used oil to the collector we point. This activity will sooner become
small business entity and empower community to be a real businessman as used oil collector and
middleman. Form of used oil collection can be designed like depo or cooperation located in each
village under the supervision of Minister of Small-Medium Enterprise. By doing this, it will atrract
and retain protos user to keep using their stove because of cheaper and easier to find biofuel
rather than kerosene or fire-wood.
We will acquire customers by promotion activities like bundling system, cooking
competition, food bazaar in Independence Day, Microfinance program, Membership program,
and Member get member program. The cooperatif (Koperasi) in selected villages will be set as
integrated selling point, that is to sell the cookstove, fuel and service inquiries. The promotion
activities can also be embedded with training program to help the customer getting the product’s
insight. The one in charge for this training is Cooperative (Koperasi) staff which is regarded as our
sales person in retail chains. Cooperative (Koperasi) will gain profit from us with special discount
for $3 for each protos purchasing item.
We will raise capital fund from charity plan in Europe, involving BSH and all its chain
including retailers and customers. We bring the campaign to offer non-cash BSH consumers 1
cent Euro for each purchasing activities. We target to gather amounts for € 150.000. The charity
fund will be used to help to register CDM project AMS-I.G and AMS-I.H. The whole business plan
will see break-even-point in the first quarter of the 2nd year. The NPV (Net present Value) will be
Rp. 1.527.558.148 and IRR (Internal rate of Return) value would be 53% and 44% for MIRR
(Modified Internal Rate of Return).



1. MARKETING PLAN
a. Product Description and Purpose

Protos is the world’s first plant oil cookstoves. Based on technology developed by BSH,
Protos is able to burn almost any filtered plant oil – including used frying oil. Protos cookstove
is rigorously tested, affordable, aesthetic, and directly meet consumer needs while providing
health, environmental and economic paybacks. Our products are ideal carbon programs due
to their ultra-high efficiencies and 5-year extended life durability.
By using this stove, it can reduce indoor air pollution (black soot/smoke) and increase
the overall health of the family. The ultimate purpose is helping non-traditional customers
enjoy safer, cleaner and lower-cost cooking so that it will support environmentally
sustainibility program. Here is the product spesification of Protos Cookstove:

Power range •2-2,5 kW
Usage •2-4 liters/ week
Fuels •All plant oil also used oil
Efficiency •45-58 %
Emission •Ten times lower than kerosene
CO2 Balance •Netrals

The elements support are:
 mat,
 oil tank,
 stove cover,
 stove body,
 regulator,
 adaptor,
 pump
 vaporizer

b. Competitive Strategy and Positioning

Competitive strategy is a plan for how a firm will compete, formulated after
evaluating how its strengths and weaknesses compare to those of its competitors. Protos
cookstove as “a new to the world product” decide to concentrate on special niche product
offered in limited areas after determining it cannot compete on price with major
competitors (kerosene stove). We will compete with kerosene stove which is known as



cheaper, excessive fuels supply, and popular to the people. Here is competeitive strategies
that we are going to use to distribute Protos to target markets:

1. Collaborating with three local partners and one group of international partner by
bringing issue of CDM (Clean Development Mechanism). By doing so, we could get
offset from CER’s issued. This program will be sustainability visible to cover the cost
gap which is $ 30 per stove and will be (mechanism will be explained later in Cash
flow statement). We’ve pointed three local partners to support our programs. Those
are:

One international partners is group of companies which frequently bought CER from
carbon stock market. We’ve identified 9 international buyers related with our carbon
issue (list of companies explained in Annexes).

By gathering these partners into one, it will strengten our goals to drop 5.000 protos
cookstoves within 3 years, either we can do by conducting promotion strategy,
delivering intensive training and small talkshow about products to potential users,
above the line promotion, or media exposure as part of company activities in
developing CSR program.

2. Attracting target market by educating them through event based marketing usually
done in neighbourhood near target market (Citeureup). The event can be like Arisan
RT or RW (monthly housewifes community gathering), Food bazaar, Cooking
competition commemorate The Independence Day of Indonesia, or Bazaar promo.
These events will be beneficial since we can educate the market the advantages using
Protos rather than kerosene or fire-wood. We can give special promo to target market
by giving them discount for the first trialist user. We can also retain them in order to
keep using the stove by using membership program which allow them to get oil supply
regularly by delivering them directly into their house. This service will satisfy customer
since they don’t need to look for the oil or gather the oil themselves.
3. Combining two kinds of oil supplies which are Jatropha oil and used-frying oil to
ensure the availability of oil supplies. By doing this pattern we can solve the problem
in keeping the availability of oil support that mostly became weakness of BSH which
implement this program years by years. Based on our research, Jatropha oil will
produce 321.000 Litre/ year with total area of 170 ha owned by PT Indocement Tbk,
while used oil will produce 300.000 Litre/year which we get by collecting them from
Sentra Gorengan Majalengka until Sumedang and some Restaurants located in West



Java. This supply has been excessive for the need of Citeureup markets annually which
is 150 Litres/year/household.
4. Empowering Citeureup citizens by opening new businesses focused on used frying
oil collection so that it fulfill the employment. They can be a collector, middleman or
reseller of used frying oil. By doing so, it will improve the welfare of citizens there.
5. Supporting the issue of CDM (Clean Development Mechanism) in order to response
to environmental and Health (MDGs) program. Here is list of three projects which we
will run to support CDM project:
Clean Development
Mechanism (CDM)

AMS-I.G : Plant oil production and use for energy
generation in stationary applications

AMS-I.H : Biodiesel production and use for energy
generation in stationary applications

AMS-II.G: Energy efficiency measures in thermal applications
of non-renewable biomass

By implementing those strategies, we can have positioning for Protos as:

The world’s first plant oil stove which is efficient,
reliable, healthy, eco-friendly with high technology Kompor Minyak
support so that it can burn for almost any filtered Nabati
plant oil – including Jatropha and used frying oil.
Murah, Hemat, Aman
,
c. Market Penetration Assumptions

As we are “new to the market” with the product that has been developed in six years
period, we have to use market penetration strategy. We assume that we will penetrate the
market by gaining competitors' customers (part of their market share) which considered to
be kerosene and fire-wood user. Other ways include attracting non-users of our product or
convincing current customers to use more frequent of our product (by promotion or training
activities etc). By doing so we will gain the advantages of entering a new spesific market.
The assumptions are as follows:



Number of potential customer (all citizens of Citeureup) 75.000 citizens (Source: PT
Indocement Tbk Final Report
Number of household (assumption 1 household: 5 citizens) 15.000 households
Number of target market 5.000 households
Percentage of target market from potential market 5.000/15.000 x 100 %
33,3 %
Those numbers will be acquired for three years period by calculation as follows:

Year 1-5 1st year 2nd year 3rd year 4th year 5th year
Sales of Protos
1600 1700 1700 1500 1500
Cookstove (unit)
Percentage of target 10,67 % 11,33 % 11,33 % 10 % 10 %
market from from from from from
potential potential potential potential potential
market market market market market
Price per unit (dollar) 5 5 5 5 5
Price per unit (rupiahs) 42.760 42.760 42.760 42.760 42.760
Sales of Cookstove
68.416.000 72.692.000 72.692.000 64.140.000 64.140.000
(in rupiahs)

We also provide fuels and pre-heating materials to burn those cookstove using two
kinds of fuels which are jatropha oil and used-frying oil. Besides, we also can get revenue
from these sales. Here is the calculation:

Sales of Jatropha oil
321.970 321.970 321.970 321.970 321.970
(Litres)
Price per Litre (rupiahs) 3.500 3.735 3.985 4.252 4.537
Total sales of Jatropha Oil
1.126.893.939 1.202.395.833 1.282.956.354 1.368.914.430 1.460.631.697
(rupiahs)
Sales of Used-frying oil
300.000 350.000 428.030 653.030 878.030
(Litres)
Price per Litre(rupiahs) 3.500 3.735 3.985 4.252 4.537
Total sales of Jatropha Oil
1.050.000.000 1.307.075.000 1.705.577.271 2.776.480.561 3.983.228.556
(rupiahs)
Sales of Spiritus (Litres) 58.240 120.120 182.000 236.600 291.200

Price per Litre (rupiahs) 10.000 10.670 11.385 12.148 12.962
Total Sales of Spiritus
582.400.000 1.281.680.400 2.072.049.980 2.874.140.527 3.774.409.775
(rupiahs)
TOTAL SALES OF FUEL AND
2.759.293.939 3.791.151.233 5.060.583.605 7.019.535.518 9.218.270.029
PRE HEATING

Number of jatropha oil sales remains same every years since we only have 170 ha
jatropha plantation that we can organize for 5 years periods owned by PT Indocement Tbk.



while sales for used-oil is getting increase following the increasing number of coockstove sold
every years.

Besides selling our main business as explained above. we also gain revenue from the
sales of CER’s (Certified Emission Reduction) from CDM project. Here is the calculation:

Project AMS-II.G
1.722 3.552 5.382 6.997 8.611
(tCO2/year)
Project AMS-I.G
1.610 1.610 1.610 1.610
(tCO2/year)
Project AMS-I.H
620 755 1.153 1.547
(tCO2/year)
Price per tCO2/year ($) 17 17 17 17 17

Price per tCO2/year (Rp) 145.384 145.384 145.384 145.384 145.384
Total Sales of CER from
250.386.140 840.613.702 1.126.333.210 1.418.861.447 1.710.830.318
CDM

Here is the total sales for all products wesell in 5 years period:

Year 1 Year 2 Year 3 Year 4 Year 5

Net Revenue (rupiahs) 3.283.344.080 4.922.532.936 6.477.684.815 8.694.956.965 11.185.660.347

d. Price Strategy

We use cost-based and competitive-based pricing which means we set the price for
our products based on each items build for installment and production of cookstove.
jatropha oil, used-frying oil and pre-heating materials. We also concern the price of our
competitors product for both of the cookstove and the fuels (Jatropha and used-frying oils).
Here is the price list we are going to set for four of our products:

Products Price
Protos Cookstove Rp. 42.760
Jatropha oil/Litres Rp. 3.500
Used frying oil/ Litres Rp. 3.500
Pre heating materials (spiritus)/Litres Rp. 10.000

e. Promotion Strategy

The activities we are going to develop for promotion strategy is by using two kinds of
activities:

1) We offer protos cookstove by bundling system. We will sell protos cookstove, plant
or used oil, and spiritus in a package so that our customer will find no difficulties in



using it. Our promotion campaign is “Buy Protos, Discount for Fuel Supply!!” only for
cash payment. In the first time user buy the cookstoves, we will provide the oil and
spiritus for 1 month consumption. We will stimulate user to buy the oil in koperasi
regularly every month with very low price for fuel for Rp. 3.500/litre. This bundling
system is more economical than buying separatedly. Bundling system sold for Rp.
70.760, while for seperated buying sold for Rp. Rp. 110.760. Buyers will save for 36 %
with this system.

SAVE 36 %

Plant oil Spiritus
Rp. 42.760 Rp. 40.000 Rp. 28.000
*Cash only
2) Regular promotion collaborate with bundling system, means we regularly attend and
educate housewife joining monthly meeting in each villages of neighbourhood (arisan
PKK RT, RW, dan kelurahan) to try and use Protos cookstove. The promotion activities
are giving discount by offering the first 7 cook stoves buyer free for oil supply for a
month. By promoting to 12 villages we will get 1008 buyers in a month.

3) Event based Promotion such as:
a) Cooking Competition.
Promoting cooking competition by using protos cook stove as burner and
collaborating with food or cooking materials such as instant meatball.
sausage. or food flavor. Each group of 4 people must pay for registration fee
for Rp. 100.000. By paying and joining this competition. they will get one
Protos Cook stove to be used as burner. if they win they will get some
attractive and valuable prices. This activity will be done every 6 months. We
targeted 100 people will join this program per event. so there will be 50
buyers in a year.



b) Food Bazaar Protos Expo
This activities is held by joining bazaar usually done to comemorate the
independence day of Indonesia. We will give special price by launching
offering “Buy 2 get 1 free” for only one day event. This event we will target 50
buyers in a year.

4) Microfinance Program
We will offer micro finance program by giving them access to pay for the stove within
four to six months through fuel savings alone. This self-financing loop makes it
possible to scale-up the initiative over time impacting millions across the globe. We
will colaborate with koperasi in collecting the installment. Every months we will billed
the money paid by our buyer. We target to acquire 15 buyers every 3 months period
so there will be 60 buyers in a year.
PARAMETER KEROSENE STOVE PROTOS COOKSTOVE
Fuel + pre-heating Rp. 204.000/month Rp. 68.000 /month
Price of stove Rp. 200.000 Rp. 42.760
Total Rp. 404.000 Rp. 110.760

If they use protos cookstoves, they will benefit economically better than use kerosene
stove. By doing so, they’ll save Rp. 293.240 per month. This amount will be allocated
for Rp. 55.000 to pay the installment fee per month (package of cookstove and one
month fuel supply), even they still can save the rest Rp. 182.480 for monthly saving. By
2 months period they can fulfill the installment.



2 x installment Rp. 55.000

5) Membership (Retention Program)
We also make our retention program for our customer by offering membership card.
For the one who has bought our cook stove will automatically get a membership card.
The advantages they got is they can have a right to purchase our plant/ used oil
regularly. While for the one who hasn’t bought or cookstove may not buy our fuel.
This program will be enlarged with special discount for the member who has bought
our fuel for minimum 50 litres with 10 % discount.

6) Member Get Member (Development Program)
If existing buyer can get a new member by their own effort. we will give them
incentive $ 3 for each new buyer. This program will develop and acquire new buyers in
the future. We target 5 new buyers each month can be gained by this program so
there will be 60 buyers in a year.

7) Training for Trainer
We also promote our cookstove by training how to use and teach the manual to
trainers (koperasi staff who will sell protos, fuel and spiritus) that will be done in every
6 months period in 3 villages. These 3 villages represents 12 districs we have. Here is
the calculation:



KOPERASI NUMBERS OF COST PER TOTAL COST
LOCATION TRAINING TRAINING (RUPIAHS)
(Districts)
Gunung Putri 2 300.000 600.000
Citeureup 2 300.000 600.000
Cileungsi 2 300.000 600.000
TOTAL COST OF TRAINING PER YEAR (rupiahs) 900.000

8) Marketing Tools

Here is the list of marketing tools that we are going to use to support our promotion
activities above:
YEAR 1-5
MARKETING NUMBER OF NUMBER OF COST PER TOTAL
TOOLS ACTIVITIES ITEMS USED ITEMS COST
(items) (month) (MONTH) (RUPIAHS) (RUPIAHS)
Banner 6 3 100.000 300.000
Flyer 6 1000 100 1.200.000
Poster 6 30 4000 1.440.000
TOTAL COST OF TRAINING PER YEAR (rupiahs) 2.940.000

Here is our design to support our “1 CENT CHARITY PROGRAM FROM EUROPEAN COUNTRIES”:

We will collaborate with BSH to bring this campaign by using their existing marketing program. This
logo will be added to price tag and poster in every retail store where BSH products existed in all over
European countries.


SUMMARY OF OUR PROMOTION STRATEGY FOR THREE YEARS PERIOD
YEAR 1
Program Period Target buyers (per period) Target buyers (year)
Bundling system Every month 84 1008
with Regular promotion
Cooking competition Every 6 month 25 50
Food bazaar in Independence Once a year 50 50
day
Microfinance program Every 4 month 132 396
Membership Every month 3 36
Member get Member Every month 5 60
TOTAL NUMBER OF BUYERS YEAR 1 1600 buyers
YEAR 2
With Regular promotion
Food bazaar in Once a year 50 50
Independence day
YEAR 3
With Regular promotion
Food bazaar in Once a year 50 50
Independence day
Here is the value preposition of using Protos Cook Stove as our promotion campaign:

More
powerful
stove

Local
added Uses
value and renewable
job energy
creation Value
Preposition

Healthy Environm
for the entally
user friendly



f. Distribution and Logistics
We will distribute and display protos cookstove, fuel, and pre-heating materials by
placing them monthly in our distributor such as a depo, koperasi, or food stall. Here is the
amount for each distributor (koperasi) we plan each month:

Number of Item distributed (monthly)
Koperasi Location
Cookstoves Plant Oil Used-oil Spiritus
(Village/ Desa)
(unit) (Litre) (Litre) (Litre)
Hambalang 11 2.236 2.083 405
Citeureup 12 2.236 2.083 405
Tajur 11 2.236 2.083 405
Pasir Mukti 11 2.236 2.083 405
Leuwi Rubber 11 2.236 2.083 405
Nambo 11 2.236 2.083 404
Bantarjati 11 2.236 2.083 404
Gunung Putri 11 2.236 2.083 404
Lulut 11 2.236 2.084 404
Gunung Sari 11 2.236 2.084 404
Tarikolot 11 2.235 2.084 404
Puspanegara 11 2.235 2.084 404
TOTAL NUMBER 133 26.830 25.000 4.853

We also held promotion activities regular and in special occasion located in public area
near the neighbourhood based on promotion schedule designed. We place our cook stove
together with our oil supply in every depos we have, so that they can buy at once easily. This
program is the implementation of bundling system we explained before in promotion
strategy.
We also offer membership program so that only buyer who can buy our oil supply. This
strategy is used to anticipate oil buyer who wants to stock or resell the oil for trading rather
than to consume by using protos cookstove.

g. Market Development
We will develop the market in spesific area named Citeureup, 45 km away from
southern Jakarta and 20 km away from northern Bogor. We chose this region since it’s near
factory of PT Indocement so that it can be correlated with CDM program done by them.
Besides, this region is densely populated area which most of their citizen is from low-middle
economic classes that mostly used kerosene as their way of cooking. These type of citizens
belongs to our target consumers so by chosing this place is very beneficial for us.
Citeureup consists of 12 villages, namely Hambalang, Citeureup, Tajur, Pasir Mukti,
Leuwi Rubber, Nambo, Bantarjati, Gunung Putri, Lulut, Gunung Sari, Tarikolot and
Puspanegara. These villages are part of the three District (kecamatan), namely sub
Citeureup, Gunung Putri, and Cileungsi. There are 75.000 people live right next to the factory
area. We plan to develop this community to become environmentally aware with cleaner
and sustainability way of cooking and healthy life. By doing so we hope they will increase
their ecnomic life through new and more employment surround them.
Here is the map of Citeureup and its 12 villages surround PT Indocement, Tbk. Red lines
circle represents our focus target market:



Total land area of PT Indocement Tbk in Citeureup consists of 240 ha of land plants
(including 78 ha of the building) which altogether having a 2700 ha area, including
excavation and mineral reserves. It brought a broad impact on the surrounding community.
Residential area is directly adjacent to production facilities, namely in the north, west, and
partly from the southern boundary line of factory land. Quarry and adjacent conveyor
located surround with residential land, agricultural land and industrial land.

2. BUSINESS OPERATIONS
a. Organization and Structure Type, Employee, Team Bios, and Talent Gaps
The suitable organizational structure is divisional one. This will support many parties
that are involved within the chain. Divisional organization structure fits as well with the
diversed operational and marketing activities.



Here is the definition of each element in organization structure:
Team Biokrastoffe
Biokrastoffe is the team’s name by whom this business plan is written. The team is
ready and fully intended to lead the business as it was planned. It consists of three members
who are more than capable to sit in board’s chair. All member of the team hold a graduate
degree in Master of Management (MBA) and some professional experiences, locally and
abroad. However, some expertise are required to cover Cleaning Development Mechanism
area.
The team vision is achieving healthy way of cooking to support Indonesia’s sustainable
environment in 2015. Should any managerial help is needed, the team has a back up from
PPM Management Consultancy to provide nexessary knowledge and service. More details
regarding team members are given in the annexes.
Key Parnertship
The business and social relation with key partners are maintained by Biokrastoffe team.
This relation is crucial as several possible revenues may come from here. These revenues
could be in a form of a financial support or grant and payment. The ability to keep the
relationmaintained may also be a key point to ensure flow of raw material. In one end, the
key partners include any companies, business entities, in this case Shell Indonesia and
Indocement Heidelbergcement Group. In the other end, NGO, foundation and general public
such as foreign embassies in Indonesia are potential ker partners. In this part, the business
plan includes UNFCCC for CDM project purposes.
Marketing division
Marketing division will lead teams for customer support, service and sales. The sales
department are responsible to manage the product’s selling activity in daily basis or in a
special events. In the same time, they are also given fully product knowledge. Meanwhile
promotion and communication planning will be done by marketing department head.
Production division
The production activities will be divided into two parts, the distribution and production.
The distribution team will have to collect the used oil and protos cookstove to the depo and
further transfer it to the reselling point.
The production team will have the responsibility to produce the plant oil out of the
jatrhopa seeds. They too filter the used oil collected from the food chain and do further
process. Production team will manage all the activities in the depot including material
storage and equipmment maintenance.
Purchasing: the division will hold responsibility for business or production procurement.
Their position in the business will support the core activities mainly in operation and
marketing.
General affair and Human resource department
General affair will hold the administrative responsibilities in general.However, this
division has two subordinates. The division will be led by a head of division. Ideally someone
who has human resource management background.
 Human capital: this sub-division is responsible to recruit necessary employee from
sales force, accounting staff, production personels and maintain employment. The
division will be responsible for building strong system dedicated for employee
training such as product knowledge, sales and marketing skill, communication skill
and relationship building.
 Administration: they will work on any business administration matters. Their
position internally can be seen as an interdivision hub. They wil be responsible for
keeping and storing any necessary document and archive,within a corporate level or
lower.



Finance
Finance division will be led by a division head and will have two sub-divison. The
division will be responsible to organize cash-flow, tax management and accounting
management. There will be two sub divisions here:
 Accounting: this sub-division will work on accounting management activity including
cash-flow management, journal, internal audit and tax.
 Carbon Trading Management: the sub-division calculate all the cabon trading
conversion. They have to measure the gain ina business and environmental
perspective from 5 Clean Development Mechanism (CDM)
The organization will be led by a CEO. One CFO (Chief Financial Officer) will have to be
responsible for the business financial performance. One marketing director will lead the
marketing division. A single person as Chief Operating Officer takes the lead of the operation
division and one human resource director will be responsible for general affair and HRD

Highlights
Division Sub division Staff Labor
Accounting 1
Finance
CDM 1
Production 1 3
Operation Purchasing 1
Distribution 1 3
Sales 5
Marketing Technical Support 2
Customer Service 1
Human capital 1
HRD & General Affair
Administration 2
Total number of staff and labor 16 6

b. Business Processes
The business process describes how the revenue will be generated. In this business plan,
there are three different business processes . Each of them refers to the proposed CDM
project as the main drive of the business. Every operational activities of the CDM project are
varied within the business. The details are given as the following
Project CDM AMS-I.G
The AMS-I.G will make use of the carbon trading with the base of 170 Ha ready to harvest
jathropa plantation own by Indocement Heidelberg Group. The baseline of the project
proposal is: oil crops is cultivated, plant oil is produced and used for the generation of
electricity, thermal or mechanical energy displacing fossil fuel.
 Process I
Indocement Heidelbergcement Group will be proposed to use the jathropa seeds
from their plantation. These seeds further are the source of raw material to produce
plant oil. The oil it self is sold to supply the Protos cookstove.
 Process II
The proposal as a request to join Shell’s Global Alliances Clean Cookstove program.
Shell Indonesia is then expected to promote financial donation that will be used for a
CDM project registration at UNFCCC. Once the registration is fulfilled, the authorized
auditor then performs project audit. Hereafter, the carbon trading incentives will be
obtained as the project has been approved valid. The process from the registration



up to CDM project approvel will take a year to complete. For global overview of the
project, please see the picture below.

Highlights
 Capacity: 320.000 litres of  Harvesting time: twice a  Broad of plantation Area:
plant oil a year year 170 Ha
 Retail price plant oil: Rp.  Total carbon emission  Initial investment for bio-
3.500 / litre improvement: 1.610 facility: Rp. 60.000.000
tonCO2 per year
 Shell’s Global Alliances  CDM project registration: €
Clean Cookstove: € 75.000 75.000

Project CDM AMS-II.G
This project base line is based on installation of more-efficient thermal energy generaton
units utilizing non-renewable biomass and/or complete replacement of existing less-efficient
thermal applications and/or retrofitting of existing thermal energy generating appliances
reduces GHG emissions by saving non-renewable biomass. In this case, the selling activity of
Protos cookstove it self.
 Process I:
The first process is defined as selling the cookstove at $5 each. The revenue is fixed
as much as $150.000 for 5000 units of Protos cookstove.
 Process II:
Basically, the process here is the same as what was mentioned in project CDM AMS-
I.G. Only the project audit will have some diffrences. The initial fund needed for
CDM project registration will be obtained from Shell’s Global Alliances Clean
Cookstove too.



Highlights
 Sales target year 1: 1600  Sales target year 2&3 : 1700  Total revenue up to year 3
@ $20 each: $100.000
 Shell’s Global Alliances  Pre-heating material: Rp  Emission reduction initial
Clean Cookstove: € 75.000 10.000 / litre year: 1605 tonCO2a year

Project CDM AMS-I.H
AMS-I.H project is base on biodiesel production from cultivated oil crops or from waste
oil/fat and used for the generation of electricity, thermal or mechanical energy displacing
fossil fuel.
 Process I
Main material of the biodiesel in this process comes from partner food chain
restaurant and hotel in a form of used oil. After the used oil collection, it will be
brought to the biofuel facility to be further processed. The outcome is the biodiesel
used to supply as a fuel for Protos cookstove. Plant oil capacity does not fulfill the
required fuel supply for 5000 Protos cookstove. Therefore, the collection of used oil
plays very important role in this business plan.
 Process II
The process will not much differ from the previous two CDM project. The only
different lays again in the project audit. But this will be the main concerned of the
authorized party like UNFCCC.



Highlights
 Collection target in initial  Selling price: Rp 3.500 / litre  KFC food chain in
year: 300.000 litres Used oil will be bought from Indonesia: 317 stores in
food chain for Rp. 1.400 / 2007 (assumption 50% of
litre them located in Java)
 Shell’s Global Alliances  Mc Donald food chain in  Emission reduction initial
Clean Cookstove: € 75.000 Indonesia: 112 in 2011 year: 533 tonCO2
(assumption 50% located in
Java)

Year 1 Year 2 Year 3
Partner Additional Information
Contribution Allocation Contribution Allocation Contribution Allocation
Initial Fee for
CDM Project
BSH - - € 75,000 - - European Charity Program
(Project AMS-I.G;
AMS-I.H)
Indocement 170 ha Jatropha 170 ha 170 ha
Sustainability of Sustainability of Sustainability of Plantation already exist
(Heidelberg Plantation (equal Jatropha Jatropha
Plant Oil Supply Plant Oil Supply Plant Oil Supply since 2007
Cement Group) with $ 55,000) Plantation Plantation
Initial Fee for Shell' Cookstove Program
Shell Foundation CDM Project has establish in India. For
€ 75,000 - - - -
(Indonesia) (Project AMS- Indonesia will establish
II.G) soon (end of July 2011)

The Charity Plan
The charity plan is set to collect the donation to fund the project. The idea is to save 1
euro cent from the first 15 million BSH unit sold in Europe. In 2010, BSH has sold 40 millions
unit. Suppose in 2011 BSH sales stays the same that means BSH will be able to collect €
150.000 or equal to Rp. 1.898.544.000 within perhaps half a year.
The 1 euro cent donation will be included into the retail price of the product. By doing
this, any purchase on the unit sold will add 1 euro cent to the donation automatically. Also,
to simplify the payment mechanism, the donation payment will only be available in every
purchase with credit card and debit card. Therefore, the customer that want to buy BSH
product and be involved in the program will not have to search for 1 euro cent coin.
Many home appliances unit that BSH sells have a price range above € 100. The huge
different between the retail price with the donation -1 euro cent - will not harm the price
competitiveness of BSH product with those of competitors. Please see examples of
mentioned BSH units below.


SIEMENS HB23AB520 BOSCH HBA23B150E BOSCH GSD12A20
Built in oven Built in oven Refrigerator
Retail price € 499 Retail price € 539 Retail price € 299
Charity plan € 0.05 Charity plan € 0.05 Charity plan € 0.05

SIEMENS KG36VV03 BOSCH WAE28162NL SIEMENS WD12D520
Refrigerator Washing Machine Washing Machine
Retail price € 349 Retail price € 469 Retail price € 699
Charity plan € 0.05 Charity plan € 0.05 Charity plan € 0.05

At the same time ,this charity plan can also be used as BSH marketing or advertising
strategy as the green issue is involved here. The communication has to be direct and eye-
catching which will create a sense of an involvement and contribution in customer’s heart
for a better world and living. In a way, their 1 euro cent will make a positive big different
half-a-world far in Indonesia. Hopefully this will also help improve BSH sales. The issue will
also bring up companies exposure beneficially, on environmental issue to the public.
Retail chain store is the perfect place to sound loud the communication as home
appliances products are mainly purchased here. All over Europe, there are many retail chain
stores that sell home appliances. Their numbers, like Media Markt and Saturn, are growing
up year after year which will positively support the charity plan to be succed.


Highlights
 Charity Plan target: collect  The customer in Europe is  BSH sold 40 millions unit in
charity fund €150.000 in asked to join the program 2010. The charity counts
less than one year by spending 1 euro cent in only for the first 15 million
every BSH product they unit sold
purchase

c. Supply Chain and Distribution Channel, Collaborator and Partners
The picture shown below represents the supply chain network of BSH Protos project in
Indonesia. This supply chain connects all the concerned parties in the business. Further
more, these parties and their roles will be described in this part of the report. Look at the
picture below for better global view.

Customer
This business plan identifies three different potential customers. Each customer may have
different type of goods to purchase.
 The first customer is small food business. In Indonesia they tend to use gas fueled
cookstove.
 Household usage is considered as a potential customer too. However, the protos
advantage, that is 100-200 liters of oil usage per year compared to 200-400 liters of
kerosene, should be made familiar to them.
 Biodiesel business is willing to buy the used oil. They need it as a flow of raw
material in producing biodiesel.
Key Partner
There are several key partners involved here.
 Food chain, restaurant, hotels: they play the role as used oil supplier and provider.
The used oil will be traded from them with very low price per liter. The chance to
collect used oil in a big scale will come from the fast food chain like McDonald and
Kentucky Fried Chicken. They use oil in a big amount of it in their daily operation.
Their big numbers of restaurants



 Indocement (Heidelberg Group): Indocement had planted jathropa in Citeurep, West
Java, as vast as 170Ha. The land used for plantation was a former mining site. The
plantation has two roles, first as a plant oil source. It can also be used as CDM
categorization
Reseller
Partnership with local community trade union will hold the key role in the downstream area.
This partnership too will empower local residence too. Here are the key roles the local
community trade union has to play:
 Carry the task as a reseller point for used oil, biofuel and protos cookstove.
 They may also be considered as a service point to reach and engange the customers.
 Communication center can also be established here. This will support product
endorsement, product information and customer feedback.
 Other parties rather than local community trade union can be involved too as a
reseller. They can be in a form of small family stall, store or shop.
Distributor and Depot
Distributor and depot connect many players within the supply chain. The distributor main
activity will be transportation. While the depot operates as a storage point of used oil or
biofuel. There are three kinds of distributors and two types of depots. The details are given
as the following:
Distributor
 One distributor is situated between the food chain and biofuel facility. The
responsibilities will be included to collect the used oil from the food chain,
store it in the depot and transfer it futher biofuel facility and local
community trade union.
 The second distributor links the biofuel facility and local community trade
union. This distributor has to transfer the biofuel out of the biofacility to the
biofuel depots and transfer it further to the local community trade union.
 The last distributor is simply the Protos distributor. They have simply to ship
the cookstove to the selling point, in this case local community trade union.
Depot
 The first depot will be used as the storage point of used oil
 One more depot will be used as biofuel storage point.

d. Pre Heating Materials
90% rubbing alcohol or “spiritus” as most Indonesian call it, will be chosen for the pre-
heating material. There are many suppliers that might be requested to provide the pre-
heating material. Mostly, the deal can be done by any local chemical store.However, the
customer will be given the freedom to buy seperately from any parties.



Highlights
 Assumption usage for one  Assumption 4 times a day  Selling price per litre:
time light up the the cookstove is used: Rp.10.000
cookstove: 25ml 700ml / week of supply
 Price from supplier: Rp.  Distribution cost: Rp. 300 
9.500

e. Plant property and Equipment (Biofuels Factory)
The bio facility is a production house to produce the plant oil and filtered used oil. This
facility has several main equipment to be invested in. The details are given below:
 Jathropa press machine
This machine is used to press the jathropa seeds. The outcome is the jathropa
oil. There are several types of such a machine. The electrical one can produce from
300 liters up to more than 2000 liters of oil a day per machine. Very simple designed
press machine is given Rp. 2.000.000 price tag.

The machine that the bio fuel intends to invest is the manually operating
machine. Therefore, the capacity of the oil the machine can produce is much lower
too. As the consequencies, the bio facility will have to own several of it. Capacity can
run up to 25 liters a day. The operator number will be added up accordingly to the
number of the machines. The facility is planning to have 10 of this machine to cope
up with the monthly capacity.
 Filtering Machine
The same with its name, the machine has the very similar purpose. The
machine filters plant oil and used oil into the more useable form. Its construction is
very simple. Basically, it filters the oil through some layers of clothes or tight-
structured fabrics. It costs in a range of Rp. 500.000 to Rp. 750.000.

 Peeling Machine
This machine will be the most expensive of all the machine the facility should
has. It is used to peel out the jathropa fruit to have only the seed as the remaining
part. The specification is shown below. The price starts at Rp. 20 millions



.

 Oil Gallon and drums
The gallons an oil drums are used to store any neccesary oil, from raw material
to the processed oil. The facility should has enough nnumber of them. The number
of oil gallon and drum will be adjusted equal to 20% inventory out of total capacity
per month.

Highlights
Operational investment Unit Price each Total initial investment
Press machine 30l / day 10 2,000,000 20,000,000
Filtering machine 50l / day 10 500,000 5,000,000
Peeling machine 250kg / hour 1 20,000,000 20,000,000
Oil Gallon 5l / unit 200 50,000 10,000,000
Drum oil 100l / unit 100 250,000 25,000,000
Other equipments 1 1,000,000 1,000,000
Total Rp.81,000,000

 Depot
The depot is intended to be a storage point. This will act as a distribution
centre for used oil, plant oil, jatrhopa seeds and Protos cookstove. At the begining of
year 1, the depot requires Rp 60.000.000. The fund paid will be included office
rooms and equipments. The location of the depot accordingly will be measured in a
such way that it is the optimal distance from all parties’ perspective.
f. Value Creation Projections (Cost Coverage)
See Annexes in Cash Flow Statement



g. Key Assumption
Key Assumption
1 Currency Convertion

1$= Rp 8,552
1€= $ 1.48
1€= Rp 12,657
2 Inflation Rate
6.70%
3 Days, Month and Year

1 Month = 25 workdays
1 Year = 300 days
4 Price from supplier:
Jatropha seed free (from Indocement Plantation)
Used Oil Rp. 1400/ litre (from restauran chain)
Spiritus Rp. 9500/ litre
each price assume increasing relative based on inflation rate
5 All activity is assumed no account receivable and no account payable
6 Price for CER is assumed € 17 /tonCO2/year

h. Business Models Overview (Graphic)

Business Model
Protos’s
US $ 50
COGS

Cost Gap

Incentive
US $ 20 for retail

End User
Price

Key Activities:
Customer
 Stove distribution
Relationship:
 Marketing
 Community social
program
event
 Sales activity
Value proposition:  Membership program Customer segment:
Key Partner:  Fuel supply
 Very economic stove  Training  Kerosene and
 BSH  User training
 Affordable fuel  Discount card for wood users who
 PT Indocement Tbk.  Fuel agency
 Easy to get fuel protos user can’t switch to gas
 PT Shell Indonesia development
 Eco-friendly fuel  C and B - Segment
 Potensial CERs Key Resources: Channel:
 Easy to use stove  Rural and
Buyer  Distribution team  Direct selling
 Cleaner cooking suburban
 Fuel Agents  Sales marketing  Community based
team • Healthier people selling  Young to middle age
 Training team • Happier planet  Event exhibition
 Cookstove
technology
Cost structure:
Revenue stream:
 Distribution and logistic • The Charity program
 Sales of stove
 Marketing and sales activity
 Sales of fuel
 Training activity <
 Carbon credit
 Fuel processing
 Partner’s CSR Program
 Protos ’s COGS
 Sales of Used oil
 Used oil sales activity



i. Financing Requirement
See Annexes in Cash Flow Statement Projection
j. Conclusions
By raising capital fund from charity plan in Europe, involving BSH and all its chain
including retailers and customers. We bring the campaign to offer non-cash BSH consumers
1 cent Euro for each purchasing activities. We target to gather amounts for € 150.000. The
charity fund will be used to help to register CDM project AMS-I.G and AMS-I.H. The whole
business plan which collaborate BSH, PT Indocement Tbk, PT Shell Indonesia will see break-
even-point in the first quarter of the 2nd year. The NPV (Net present Value) will be Rp.
1.527.558.148 and IRR (Internal rate of Return) value would be 53% and 44% for MIRR
(Modified Internal Rate of Return). We conclude that after implementing these whole
program with the partners we have, we strongly believe that our vision “Achieving Healthy
Way of Cooking to Support Indonesia Sustainability Environment” will be accomplished.



3. Annexes
a. SWOT Analysis

STRENGTH WEAKNESSES OPPORTUNITIES THREAT
 Full support of  Jathropha is not as  The increasing  The risk of using he
technical efficient number of local land for planting
 Ten times lower economically as partners supports jathropa based on
than kerosene in used oil for biofuels system reserarh
efficiency  Sociazilation of in Indonesia from  Indonesian
 The production of biofuels industry is 2007 government policy
biofuels contributes still limited  Adequate plant oil not stated the full
to secure energy  Less of governance’s resource for support of such
supply incentive Indonesia issue
 The use of biofuels  Unestablished  Pro job policy  The retail price of
can reduce GHG marketing system  Pro planet policy gasoline and diesel
emissions  Instability of  Pro poor policy is lowered by
 Due to a longer biofuels price  Pro growth policy Government of
value chain within  Local and Indonesia because
the national international of the drop in
boundaries, biofuel investment global oil rpices
production creates  scramble
new employment competition of raw
 Numerous materials between
availibility of raw foodstuffs and
material in energy
Indonesia  Large number of
 Availability of large competitor in this
plantation in industry
Indonesia  Trend of producer
 Cleaner burning, no to sell it export
ash, no soot rather than import
 Numerous number  Negative impact
of employees toward
environment


b. Competition Anlysis among Cookstoves

Protos LPG Stove Kerosene Stove Woods Stove
(1 Stove) (1 stove) (1 stove) (1 stove)
Stove Rp 70,000
Regulator Rp 100,000
Stove's Price Rp. 196,000 Rp 200,000 Rp. 40,000
Gas Tank (3 Kg) Rp 140,000
Total Rp 310,000.00
Fuel Price (/unit fuel) Plant Oil Rp. 3,500/ litre
Rp. 14,000/ 3 kg Rp. 8,500/ litre Rp. 1,000/kg
Preheating (Spiritus) Rp. 10,000/ litre
Fuel Consumption
(/week) Plant Oil 2 - 4 litre 3 Kg 4-6 litre 5 Kg
Preheating (Spiritus) 700 ml
Efficiency 55% 53% 40% 35%
Emission (/unit fuel) Carbon neutral 3 Kg CO2/Kg 2,5 Kg CO2/Kg 1,84 Kg CO2/Kg

c. Projected Cash Flow and Income Statements

Please See Annexes

Team 16 business plan submission

Team 16 business plan submission

Recommended

Recommended

More Related Content

Similar to Team 16 business plan submission

Similar to Team 16 business plan submission (20)

More from Iskandar Muda

More from Iskandar Muda (20)

Recently uploaded

Recently uploaded (20)

Team 16 business plan submission