PROJECT PROPOSAL
MAHKOTA TIRTA
MELAYU DELI
Executive
Summary
We own a ‘full-spectrum’ of
bottle-to-bottle recycling facilities, from upstream to downstream that offers a more
environmentally sustain- able packaging to support the implementation of circular economic concept
PT Mahkota Inti Persada-led by executives who have strong backgrounds in plastic bottle
production, bottled drink- ing water, and a banker with expertise in Micro, Small and Medium Enterprises
(MSMEs)- sets its goal to become one of the leaders in Indonesia that manufac- tures bottled drinking water using 100 percent recycled plastic bottle.
Introducing “Le Bening” bottled drink- ing water, PT MTMD focuses on environ- mentally-friendly drinking water (often locally abbreviated as AMDK) for the public consumption.
North Sumatra, Indonesia’s most big population in Indonesia, is our first market, before we seek to conquer the archipelago nation.
Circular economy is at the very core of
our business, as we care to produce eco-sustainable with competitive pric- ing thanks to our strong backgrounds and competitive advantages in the pro- duction of food-grade recycled polyeth- ylene terephthalate (rPET) bottles.
Our company has a vision to realise a more sustainable future for the plastic packaging in Indonesia and want to be one of the the local pioneers who implement the
‘Extended Producer
Responsibility’ concept to reduce plastic waste in the world’s fourth most popu- lous nation.
PT MTMD offers a complete rPET value chain, from manufacture to conver- sion into packaging and recycling, and other related
activities potentials to improve the walfare of scavengers in
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MISSION &
VISION Our Mission
We seek to end up the Cycle of Throw- Away Society by educating the public about the importance of reducing plas- tic waste in the planet.
We believe that given the right tools, ecosystem and adequate financing, the green economy as well as circular eco- nomic concept can be implemented in many aspects of production cycle.
Our Vision
We aim to be a manufacturer, who cares with the Extended Producer Re- sponsibility concept, as we seek to maximize the use of recycled plastic products and minimize the use of virgin plasticmaterials in our product. Our group has a
mission to re-purpose the waste packaging for a second life and give benefits to the society as a whole.
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PAIN POINTS
Indonesia, which has around 270 million population, is responsible as one of the world’s largest contributors to plastic waste leakage into the oceans.
Each year, the world’s fourth most populous nation generates around 42 million tons of municipal waste and 7.8 million tons of plastic waste, of which 4.9 million tons of the latter are continually mismanaged; going uncollected, disposed improperly, or leaked from formal landfills, known locally as TPA
(1) .
From an estimated 201.1 kilotons to 552.3 kilotons of plastic waste that are discharged into Indonesia’s marine environment annually, 83 percent of it come from land- based sources and are carried through Indonesia’s intricate river systems, whereas the remaining 17 percent are derived from discarded wastes from coastal areas (2).
Data from The Ministry of Environment and Forestry (MoEF) shows that only 10 percent of plastic waste in Indonesia are recycled and 20 percent ended at TPA. The rest are estimated to become waste that leaks to the river and the sea.
As the population incerases, plastic litter is estimated to increase and may become a big challenge to tackle by Southeast Asia’s largest economy in the future.
Indonesia’s Environmental Problems
(1)World Bank. (2021). Plastic Waste Discharges from Rivers and Coastlines in Indonesia. P. 14.
(2) Ibid
PAIN POINTS
The current practice of how Indonesia is handling the gargabes does not really educate the public about the importance of reducing plastic litter to help the planet.
There needs to be a stronger effort promote the sustainable planet concept.
Growing concerns of Indonesia’s marine litter problem has pushed the Indonesian government to take actions:
Through the Presidential Regulation
no. 81/2018 on the Handling of Marine Debris, where the National Plan of Action of Marine Debris, the government aims to reduce 70 percent of marine plastic litter by 2025.
This Plan of Action aligns with theGovernment Regulation No. 81/2012 on the Management of Household Waste and the Likes; and the Presidential Regulation No. 97/2017 on National Policy and Strategy for the Management of Household Waste and the Likes, where it is aiming for 30 percent reduction of waste generation and increase waste handling up to 70 percent by 2025.
Public Education & The Regulations
Indonesia’s government ambitious targets heeds a support from the private sector.
It needs needs a concerted efforts the nation’s stakeholders, including a producer of bottled drinking water producer like us.
Various researches showed that Indonesian public has low literacy with regards to sustainable consumption concept.
They also lack of knowledge about the impacts of littering on the environment and the planet.
The current concept of waste management policy in Indonesia for households focuses on the idea of “cleanliness” within the environment, instead of a really waste management concept. This means, it does not matter where the waste goes, as long as the environment is clean, people and the governments, are happy.
THE OPPORTUNITIES
Backed by our affiliates, which own high-tech bottle-to-bottle recycling facilities and long- established collection centers, we aim to become the first local pioneer that offer a full spectrum of businesses that supports the circular economic as well as the EPR concepts.
PT MIP will not only roll out a bottled drinking water product that uses 100 percent recycled PET, but we will also offer our EPR in a various aspects, including monetary benefits scheme for those participating in our plastic bottle collection process to public educational about waste prevention and management, policy advisory supports and various social activities to raise consumer awareness about the importance of reducing plastic waste for the planet.
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Indonesia’s government target to reduce plastic waste by up to 70 percent until 2025 needs commitment from all the nation’s stakeholders.
This presents an opportunity for PT MIP to promote our concept of a complete package of Circular Economy and Extended Producer Responsibility with 3R (reduce-reuse- recycle) principles.
Our Business Model: Extended Producer Responsibility
Our business model follows the principles of EPR, in which, producer is responsible to collect, handle the disposal of the used packaging, process, and then recycle them into food grade product.
OUR UPSTREAM BUSINESS PROCESS
We design our business model in line with the circular economy concept, which aim at resource efficiency and reducing environmental pollution throughout value chains. Supported by our full-spectrum of facilities and ecosystem, we are capable of implementing Circular design and production (up-hill), or the pre-use phase, which include development and distribution of reusable, and recyclable plastic bottle, in substitution for the use of virgin materials.
PT MIP, backed by veteran industry players in the plastic bottle manufacturing, is capable to implement Circular use (top-hill), and translate the idea into a business model that allows sharing economy in various phase of production cycle, including for production of rPET, and collection of plastic bottle waste to be recycled, and reuse into a food-grade bottled drinking water product.
Last but not the least, we are able to implement both Circular value recovery (down-hill), or post use phase, and Circular support (cross-hill), as we are able to increase the resource recovery and extend product value and the waste value model by implementing technology. We offer an application that offers more monetary benefits for those participating in our plastic bottle collection efforts.
As a producer of 100 percent rPET product, we seek for investor participation for financing our project as part of our efforts in creating a breakthrough for one the major bottlenecks to the transition towards circular economy in a developing nation like Indonesia. In our business model, we also would like to involve a broad range of actors in development cooperation who aim to advance circular economy.
Last but not the least, we are able to implement both Circular value recovery (down-hill), or post use phase, and Circular support (cross-hill), as we are able to increase the resource recovery and extend product value and the waste value model by implementing technology. We offer an application that offers more monetary benefits for those participating in our plastic bottle collection efforts.
OUR UPSTREAM BUSINESS PROCESS
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PT. MAHKOTA INTI PERSADA
OUR SUPPLY CHAIN
HIEARCHY
THE OPPORTUNITIES
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Indonesia harbors around 6 million scavengers. Often regarded as the marginalized group, they work under radar to help reduce waste in the society. Through a sharing economic concept and the technology, we can leverage their abilities to send more bottle plastic waste to be recycled into food grade products.
W h at If W e Can Empower Scavengers?
Scavengers, the less appreciated informal workers
Indonesia is a country where the public is not forced and even educated to separate their litters by categories in their bins. In overseas, even a developing country like India, the government is active in educating consumers to separate the general litters, recycled waste and organic waste.
In Indonesia, the job on separating the litters lies at the hand of scavengers.
The local garbage officers are busy making sure their territory is clean, instead of filtering the litters.
W ha t If we can offer scavengers more money, lend them electric motorcycle?
You would be amazed how much recycled materials scavengers can send to the collection centers if they are equipped with smart app and use a motorcycle in their jobs!
WHAT WE OFFER TO THE MARKET
Apart from our bottle using 100 per- cent recycled plastic, our bottle caps are also made of the fully recycled plastics.
Le Bening is more than a bottled water.
If most of the plastic bottle litters in In- donesia end up in the ocean, we expect it will not happen with our product, as we also offer our
collection services to B-to-B customers to align our mission to end the
ongoing cycle of “throw- away society” (produce-use-dispose).
We are one of the very few who are capable of offering a complete
circular economic concept.
Introducing Le Bening
Bottled drinking water that uses 100 percent recycled plastic
Eco Friendly But Affordable
W e aim to end the cycle of throw-away-society
LeBening is bottled drinking water product produced by PT Mahkota Inti Persada. Our bottle uses 100 percent recycled plastic.
As part of our commitment to reduce plastic waste, we offer what no other local producers in
Indonesia can offer. This include:
The absence of labels to reduce unnec- essary and non-recyclable plastic use. Embossed logos on packaging, in which apart from offering innovative impres- sions, it will also cut the non-recyclea- ble plastic material.
No Plastic Labels
Embossed Logo
Barcoded Cap
MARKET STRATEGY
NORTH SUMATRA is Our Big Market
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Population
15.3 Million (as of June 2022) – BPS Data 10.4 million (68%) are in productive age
Eco-friendly awareness
We have to well educated most people to make a move about Re-cycle PET and other plastic material.
Growth Potentials
With the population number 4 in Indonesia, North Sumatra become a big number of potential costumer. With the competitive price of Product , we have a big opportunities to penetrate the huge market.
An International Tourism Hub
North Sumatra have a lot of potential Tourism and Hospitality Business now.
With all the potential that North Sumatra have, we have optimistic that “Le Bening” will be a new competitor with other existing brand.
NORTH SUMTRA AMDK MARKETS
Aqua 63%
Rest 38%
1.5 Billion Cups per Month Consumption
*Source : AC Nielsen Survey 2019
365 Million Bottles per Month
How we penetrate the Market
Our Competitive Advantages
Competitive pricing:
A product that use recycled materials
but is “Affordable”
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B (63%)
C
D
Local Producers
Premium bottled drinking water (A). Brands like Equil (using bottle glass), which price could reach Rp 30.000 per bottle at retail price.
Aqua dominates 63% market share (B) , followed by Nestle and Le Mineral (C), both estimated to control a 4% stake.Their products hovered at around Rp
45.000 per carton (1 carton: 24 bottles ) .
This is followed by local Producers such as Cleo and Club (D), which offer cheaper product at Rp 30.000 per carton.
W e are targeting segment B, C and ramping up segment D
‘Full- spectrum’ of
bottle-to- bottle recycling
facilities
Long-established relationship with 20,000
scavengers.
W e are affiliated to 18 collection centers.
S W O T A N A L Y S I S
Traditional Market
Modern Trade
• Have advantage in Source Raw Material
• Have a Huge Business
• Circular Economic
• A lot of Products and Variances
• Experience in AMDK Market
• Huge Market of AMDK
• Growing Business 5%-10%
yearly
• Consumer Needs
• Open new Market
• Pricing Competition
• Competitor Break Trough
• New Adaption
• Government Issue
• Marketing Objectives
• Limited capital
CHAIN OF DISTRIBUTIO N
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