DPMPTSP — SPECIAL REGION OF YOGYAKARTA
Investment Prospectus
Study on Primary and Secondary Sector Investment Potential Based on Leading Commodities in DIY
Investment Project Ready to Offer (IPRO), KPI Sentolo, Kulon Progo Regency
Coconut Coir Processing Industry
Integrated Chili Processing
Future Expansion Opportunity: Biomass
Conceptual design illustration of the coconut coir plant in Tuksono, KPI Sentolo
2026
2
Contents
01
Project Profile
02
Market Aspects
03
Legal Aspects and Business Model
04
Technical Aspects
05
Financial Aspects
06
Socio-Economic and Environmental Aspects
07
Risks and Mitigation
08
Conclusions and Recommendations
Future Expansion Opportunities: rice husk and straw biomass, presented separately on page 24.
Illustration of the chili plant’s production and packaging area
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
3
01. Project Profile
Project Rationale
Kulon Progo produces large volumes of coconut, chili, and rice, yet most of this output is still sold as raw material. Raw-material collection, post-harvest processing, quality standards, and secure buyers are not yet in place, so much of the added value is captured outside the regency. The Sentolo Industrial Designated Area (KPI), particularly Tuksono, is being developed as a processing hub that closes these gaps.
2025 GRDP of IDR 17.93 trillion, about 8.6% of DIY’s GRDP, growing 4.36%
2025 investment realization of ±IDR 567 billion, above the regional target of IDR 160 billion
±2,569 ha of KPI across five sub-districts; KPI Sentolo covers ±1,718.63 ha
Aligned with the 2025–2029 RPJMN, the 2025–2045 RPJPD, and the 2022–2042 Kulon Progo RPIK
Agriculture is a base sector, while manufacturing shows positive growth
Close to Yogyakarta International Airport, the national road, and the railway line
Project Strengths
Both projects buy raw materials from local farmers and collectors, process them in Tuksono, and sell to industrial buyers. Coconut Coir Project uses coconut husk that is currently wasted, without competing with the coconut market, while Chili Project absorbs grade B/C chili and harvest surpluses that are now sold at low prices.
Land is provided under long-term leases, so investor capital goes into buildings, machinery, and working capital. The coir investment can start with a small pilot phase, and every feasibility result comes with clearly stated risk limits.
Investment Value
IDR 33.49 billion
for two ready-to-offer projects
Business Classification (KBLI)
32905
Coconut fiber industry (Coconut Coir Project)
10303
Drying of fruits and vegetables, including dried chili (Chili Project)
10779
Seasonings, including chili powder and sauces (Chili Project)
Final codes are set at OSS registration according to the process configuration.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
4
01. Project Profile
Indicative Project Location
Map of the five KPIs in Kulon Progo Regency; project location is indicative
Land Status
78 parcels
±24.52 ha in Tuksono–Salamrejo
72 parcels
±22.61 ha in Tuksono
6 parcels
±1.91 ha in Salamrejo
21 parcels
±13.4 ha in the Wonobroto cluster
Almost all parcels hold freehold titles (SHM) registered to their owners, mostly designated as residential yard land. The Wonobroto cluster alone exceeds the ±4.3–5.3 ha required by the three facilities. Each parcel still needs to be checked for ownership, effective area, road access, and spatial-plan compliance, and its tenure arrangement agreed, before it is offered to investors.
Land Lease Rate
IDR 35,316
per m² per year (estimate)
Reconciled from three benchmarks: lease rates for regional government assets in Sentolo, land lease offers in Tuksono, and land value. Landowners currently record a preference for sale; the lease arrangement will be agreed during due diligence.
Land requirement | Area | Annual lease cost |
Coconut Coir Project — commercial phase | ±2.8 ha | ±IDR 988 million |
Coconut Coir Project — pilot phase (SME partner land) | ±1.5 ha | As agreed with the SME partner |
Chili Project — chili plant | ±0.32 ha | ±IDR 112 million |
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
5
02. Market Aspects
Leading Commodities in Kulon Progo
Commodity | 2025 production | Raw-material potential | Project |
Coconut (as copra) | ±26,950 tonnes; >65,000 farming households | ±124,000,000 nuts/year; husk largely unused | Coconut Coir Project |
Curly red chili | ±38,310 tonnes | Seasonal harvest; Panjatan is the largest producer | Chili Project |
Bird’s eye chili | ±10,690 tonnes | Supplementary supply | Chili Project |
Source: Kulon Progo Agriculture and Food Office; Statistics Indonesia (BPS) Kulon Progo; compiled by the study team, 2026.
Development Direction
Priority Industries
Coconut fiber industry
Chili processing: paste, sambal, and dried chili
Integrated farm-produce processing in KPI Sentolo
Competitive Advantages
Abundant raw materials nearby
Coconut and chili production centers lie within Kulon Progo and neighboring regencies.
Low raw-material cost
Husk is bought as a by-product; grade B/C chili is bought at about 30% of the farm-gate price within a price band.
Strategic location
Tuksono lies at the center of the regency, close to the national road, the railway, and Yogyakarta International Airport.
Leased land and shared facilities
Investors do not need to buy land; weighbridges, warehouses, and wastewater treatment can be shared.
Regional government support
Licensing facilitation, utility coordination, and a regional investment incentive framework.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
6
02. Market Aspects
Products and Target Markets
Project | Product | Annual volume | 2026 price assumption | Target buyers |
Coir | Coconut fiber (cocofiber) | ±960 t | IDR 2,775/kg | Mattress and spring bed makers, geotextiles |
Coir | Bristle fiber (coco bristle) | ±480 t | IDR 11,436/kg | Brush makers, asphalt additives, automotive (later market) |
Coir | Coir pith (cocopeat) blocks | ±3,480 t | IDR 3,324/kg | Growing media and horticulture, domestic and export |
Chili | Chili paste or ground chili | ±500 t | IDR 30,338/kg | Food manufacturers |
Chili | Sambal and chili sauce | ±250 t | IDR 19,826/kg | Brand owners (toll manufacturing), hotel, restaurant, and catering distributors |
Chili | Dried chili | ±33 t | IDR 51,363/kg | Seasoning manufacturers and distributors |
Coconut Coir Project volumes are at full capacity of 40,000 husks per day. The bristle price uses the export bristle benchmark and still needs to be confirmed by buyer quotations, since the asphalt-additive market generally uses lower grades.
Coconut Husk Supply Area
Commercial-scale supply requires husk from Purworejo and Kebumen in addition to Kulon Progo. The plant buys husk, not whole coconuts, so it does not compete with the fresh coconut, copra, and coconut sugar markets.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
7
03. Legal Aspects and Business Model
The processing hub in KPI Sentolo is based on Government Regulation No. 20 of 2024 on Industrial Zoning and on the DIY and Kulon Progo spatial plans, which designate industrial areas. At the regency level, the 2022–2042 Kulon Progo Industrial Development Plan guides industry built on local resources.
Spatial Planning and Regional Development
Industrial Sector
Licensing and Incentives
Environment and Food Products
Licensing and Incentives
Risk-Based OSS
Licenses are filed through OSS according to the KBLI code and the activity’s risk level.
Basic Approvals
Spatial-use conformity (PKKPR), environmental approval, and building approval.
Product Standards
Distribution permits, halal certification, and a food-safety system for chili products.
Regional Incentives
May be applied for and are assessed against set criteria; not granted automatically.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
8
03. Legal Aspects and Business Model
Business Model of Coconut Coir Project
Coconut farmers and collectors
Sub-district cooperatives (aggregators)
Dwarf-coconut farmer groups (outgrowers)
Sendangsari Cempol coir SMEs (pre-processing)
Coconut Coir Project Company
(investor)
Coir plant in Tuksono
Mattress and spring bed makers
Growing media and horticulture
Geotextiles, asphalt additives, soil stabilization
Automotive industry (later market)
Industrial mentor partner: skills, process, quality; prospective buyer
Regional government: land, utilities, licensing, incentives
Bank: loan for 60% of investment
husk and semi-processed material
coconut fiber, bristle, coir pith
Project company
:
The investor owns the plant, funds buildings, machinery, and working capital, and runs production and sales.
Purchasing principle
:
The plant buys husk, not whole coconuts, so farmers keep selling coconuts in existing markets and earn extra income.
Cooperatives and outgrowers
:
Sub-district cooperatives collect husk from collectors; dwarf-coconut farmer groups supply under contract as outgrowers.
Coir SMEs
:
The Sendangsari Cempol SME cluster hosts the pilot phase and later supplies semi-processed material to the commercial plant.
Industrial mentor partner
:
An industrial partner has expressed interest in mentoring skills, process, and quality and in buying output; a written agreement is being prepared.
Two sites, one chain
:
A 5,000 husks/day pilot at the Sendangsari Cempol SME cluster, which already has facilities and skilled workers; a 40,000 husks/day plant in Tuksono (industrial land, 500 kVA power, wastewater plant). The SMEs keep supplying pre-processed input.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
9
03. Legal Aspects and Business Model
Business Model of Chili Project
Chili farmers and farmer groups
Chili collectors
Chili Project Company
(investor)
Chili plant in Tuksono: paste, sambal, dried chili
Food manufacturers
Brand owners (toll manufacturing)
Hotel, restaurant, and catering distributors
grade B/C (food grade) chili and harvest surplus; seasonal contracts within a 25–33% price band
Regional government: land, utilities, licensing, food standards
The dried-chili line absorbs harvest surpluses so that farm-gate prices do not fall too far.
Raw material
:
Grade B/C chili, off-spec for the fresh market but still food grade, is bought through seasonal contracts within a price band of 25–33 percent of the farm-gate price.
Products
:
Chili paste or ground chili uses about 70% of raw material, sambal and sauce 20%, and dried chili 10% as a price buffer.
Buyers
:
Business-to-business sales to food manufacturers, brand owners through toll manufacturing, and hotel, restaurant, and catering distributors.
Off-season
:
The model uses only about 52% of machine capacity; buffer stocks of frozen paste and dried chili, staggered planting, and multi-center sourcing keep production going outside peak harvest.
Raw-Material Price Controls
Investment Offering Options
Single project — offered to investors in the matching business: fiber processors for Coconut Coir Project, food manufacturers for Chili Project.
Agro Green Investment Platform — one operator running several business lines in Tuksono with shared facilities; each line keeps separate cash flows.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
10
03. Legal Aspects and Business Model
Business Model Canvas — Coconut Coir Project
Key Partners
Farmers, collectors, cooperatives, and coir SMEs; industrial mentor partner; buyers; machinery suppliers; PLN and water provider; DPMPTSP and regional agencies; logistics partners.
Key Activities
Collection, grading, decortication, drying, baling, coir pith washing, quality control, dispatch.
Key Resources
Tuksono site, pilot line at the SME cluster, collection network, decorticators, drying yard, wastewater treatment, quality lab.
Value Proposition
Three products from one raw material: coconut fiber, bristle, and coir pith of consistent, traceable quality. Husk is bought as a by-product, so it does not compete with coconut markets and adds farmer income.
Customer Relationships
Specification-based contracts, quality certificates per shipment, repeat orders, joint technical trials.
Channels
Direct contracts with industrial buyers, distributors and exporters, the industrial mentor partner, product trials.
Customer Segments
Mattress and spring bed makers; growing media and horticulture; geotextiles and land reclamation; asphalt additives and soil stabilization; automotive as a later market.
Cost Structure
Husk purchase and collection, haulage, labor, power, water and wastewater treatment, maintenance, packaging, quality control, land lease, and loan interest. Investment of IDR 21.37 billion in two phases.
Revenue Streams
Sales of coir pith (±59%), bristle (±28%), and coconut fiber (±13%) at full capacity. EBITDA of about IDR 7.9 billion in 2036; rubberized coir as a later product.
Why Invest in the Coconut Coir Project
Abundant, low-cost raw material
Potential of ±124,000,000 coconuts per year; husk is bought as a by-product.
Three products from one input
Revenue spread across coir pith, bristle, and coconut fiber.
Risk tested in stages
An IDR 3.07 billion pilot tests supply, quality, and buyers before the commercial investment.
Domestic and export markets
Mattresses, growing media, geotextiles, and exports; an industrial partner is interested in mentoring and buying.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
11
03. Legal Aspects and Business Model
Business Model Canvas — Chili Project
Key Partners
Farmers, farmer groups, and collectors; industrial buyers; food technologists and machinery suppliers; logistics partners; Agriculture and Food Office; DPMPTSP.
Key Activities
Purchasing and grading, washing, drying and grinding, wet processing, pasteurization, packaging, quality assurance (HACCP).
Key Resources
Food zone at the Tuksono site, dry and wet process lines, cold room, clean process water, quality lab, supplier network.
Value Proposition
A seasonal value buffer: grade B/C chili that is still food grade and harvest surpluses are turned into shelf-stable paste, sambal, and dried chili that meet buyer specifications and are traceable.
Customer Relationships
Letters of intent or offtake contracts, joint product specifications, repeat orders, food-safety documentation.
Channels
Direct contracts with industrial buyers, distributors, toll manufacturing, sample approval.
Customer Segments
Food manufacturers; brand owners (toll manufacturing); hotel, restaurant, catering, and retail distributors; industrial buyers of paste, sambal, and dried chili.
Cost Structure
Grade B/C chili within a price band, labor, energy, water, packaging, cold chain, sanitation, quality assurance, logistics, land lease, and loan interest. Investment of IDR 12.12 billion.
Revenue Streams
Sales of chili paste or ground chili (±500 t/year), sambal and sauce (±250 t/year), and dried chili (±33 t/year). EBITDA of about IDR 5.3 billion in 2036.
Why Invest in the Chili Project
Large, affordable raw-material base
Chili output of ±49,000 tonnes per year; grade B/C chili bought at about 30% of the farm-gate price.
Stronger returns
IRR of 16.6% and payback of 5 years 5 months in the base case.
Room to grow
Machine capacity is only about 52% utilized, so output can rise with demand.
Price risk under control
A price band, contract farming, buffer stocks, and buyer LoIs facilitated by the regional government.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
12
04. Technical Aspects
Accessibility
Industrial carrying-capacity map of KPI Sentolo
National road
Yogyakarta–Wates, with collector roads to Tuksono
Planned toll road
Corridor passing through or near Sentolo
Railway
Sentolo and Wates stations
Yogyakarta International Airport
Located in Kulon Progo Regency
Tanjung Emas Port
Semarang, about 145 km
Truck access, turning radius, and road class to the site still need to be checked at the detailed design stage.
Infrastructure and Utilities
Utility | Current condition | Status | Next step |
Electricity | PLN grid available around the area; the Tuksono substation cannot yet be relied on for project demand | Awaiting confirmation | Power availability letter and connection point from PLN |
Water | Water for washing coir pith and clean water for food processing | Awaiting confirmation | Confirmation from the water provider or a groundwater permit |
Wastewater | A treatment plant for each facility, matched to its effluent | Planned | Wastewater plant design and environmental approval |
Access road | Collector road to the Wonobroto cluster | Available | Check road class and truck circulation |
The regional government is facilitating the allocation of electricity and water from PLN and the water provider for the Tuksono area; official confirmation letters are a prerequisite before the investment decision. Utility status falls into three categories: available, planned, and awaiting confirmation.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
13
04. Technical Aspects
Plant Design of Coconut Coir Project
Conceptual site plan illustration; not a construction drawing.
Key Specifications
Item | Description |
Capacity | 5,000 husks/day (pilot) → 40,000 husks/day (commercial) |
Land | ±1.5 ha SME partner land (pilot); ±2.8 ha leased in Wonobroto (commercial) |
Buildings | Production ±1,400 m²; warehouses and drying yard ±11,200 m² |
Output | Coconut fiber ±960 t, bristle ±480 t, coir pith ±3,480 t per year |
Power | ±0.4–0.5 MVA; 500 kVA MV connection (subject to PLN confirmation) |
Workforce | ±180–220 people at a 50,000 husks/day benchmark |
Process Flow
1. Husk receiving and weighing
2. Decortication into fiber and pith
3. Separation of fiber and bristle
4. Sun-drying and drying
5. Washing and screening of coir pith
6. Baling and block pressing
7. Warehousing and dispatch
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
14
04. Technical Aspects
Plant Design of Chili Project
Conceptual illustrations of the site plan and production area; not construction drawings.
The food zone is separated from the coir and biomass zones to meet hygiene and food-safety requirements.
Key Specifications
Item | Description |
Land | ±3,160 m² leased in Wonobroto, Tuksono |
Buildings | ±2,600 m² |
Machine capacity | 7.66 tonnes of fresh chili per day |
Raw material | ±1,001 tonnes per year (±52% of capacity) |
Output | Paste ±500 t, sambal ±250 t, dried chili ±33 t per year |
Workforce | ±79 people |
Standards | GMP/HACCP, halal certification, distribution permit |
Process Flow
1. Receiving and sorting
2. Washing and grading
3. Drying, or grinding and cooking
4. Packaging and quality testing
5. Warehousing and cold chain
Buyer Commitment for the Chili Project: Steps within 0–3 Months
10–15
prospective buyers listed
Business
matching and sample trials
Templates
for LoI or MoU
1–2
companies signing LoIs
500 + 250 t
paste and sambal per year
Facilitated by DPMPTSP DIY and DPMPTSP Kulon Progo. Banks generally require a buyer LoI or MoU before disbursing investment loans.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
15
04. Technical Aspects
Development Scenario
2026
Preparation and initial construction
Parcel verification, utility confirmation, supply contracts, and buyer letters of intent. Construction of the Coconut Coir Project pilot and the Chili Project plant.
2027–2028
Pilot operations
The Coconut Coir Project pilot operates to test supply, quality, and buyers. Chili Project starts operating with a gradual production ramp-up.
2028
Commercial-phase decision
The Coconut Coir Project commercial plant in Wonobroto is built if pilot results meet price, quality, and volume conditions.
2029 onward
Commercial operations
Coconut Coir Project operates at 40,000 husks/day. Further study of the biomass opportunity and shared facilities.
Shared Facilities
Weighbridge
Shared warehouse
Power and water network
Wastewater and waste management
Fire protection system
Truck traffic management
Quality laboratory
Estate management office
Go/No-Go Indicators for the Coconut Coir Commercial Phase
≥90%
of target supply for 6 months
≤+10%
husk price vs assumption
≥97%
selling price vs assumption
≥50%
commercial volume under LoI
500 kVA
PLN letter and land lease ready
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
16
05. Financial Aspects
Capital Expenditure of Coconut Coir Project (IDR million)
Component | Pilot | Commercial | Total |
Buildings | 1,029 | 8,636 | 9,665 |
Machinery and equipment | 1,740 | 8,106 | 9,846 |
Licensing and pre-operation | 83 | 502 | 585 |
Working capital | 219 | 1,057 | 1,276 |
Total investment | 3,071 | 18,301 | 21,372 |
Debt (60%) | 1,843 | 10,981 | 12,823 |
Equity (40%) | 1,228 | 7,320 | 8,549 |
Chili Project (IDR million)
Component | Value |
Buildings | 7,026 |
Machinery and equipment | 3,293 |
Licensing and pre-operation | 310 |
Initial working capital | 1,493 |
Total investment | 12,121 |
Bank loan (60%) | 7,273 |
Equity (40%) | 4,848 |
Total Investment Requirement
Project | IDR million |
Coconut Coir Project | 21,372 |
Chili Project | 12,121 |
Total, two projects | 33,493 |
Financing Structure
DEBT 60%
EQUITY 40%
Financial Model Assumptions
Parameter | Coconut Coir Project | Chili Project | Note |
Projection period | 10 years | 10 years | Model assumption |
WACC | 7.83% | 7.79% | Cost of capital calculation |
Loan interest | 8.2% | 8.2% | Investment loan benchmark |
Debt : equity | 60 : 40 | 60 : 40 | Model assumption |
Tenor / grace period | 8 years / 2 years | 8 years / 2 years | Model assumption |
Corporate income tax | 22% | 22% | Tax regulation |
Price escalation | 3.5% per year | 3.5% per year | To be updated at financing stage |
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
17
05. Financial Aspects
Projected EBITDA (IDR billion)
Feasibility of Coconut Coir Project
NPV
IDR 3.30 billion
IRR
11.0%
Net B/C
1.16
Profitability index
1.19
Payback period
7 years 3 months
Discounted payback
8 years 11 months
Minimum DSCR
1.62
WACC
7.83%
CONDITIONALLY FEASIBLE
Feasibility of Chili Project
NPV
IDR 6.78 billion
IRR
16.6%
Net B/C
1.59
Profitability index
1.64
Payback period
5 years 5 months
Discounted payback
6 years 9 months
Minimum DSCR
1.32
WACC
7.79%
CONDITIONALLY FEASIBLE
Coconut Coir Project is feasible but its margin is thin: IRR exceeds WACC by only about 3.2 percentage points. Chili Project has more headroom but is sensitive to the price of grade B/C chili and to selling prices. Conditional status means selling prices, supply, and buyers must be proven before full investment.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
18
05. Financial Aspects
Sensitivity of the Coconut Coir Project
Scenario | NPV (IDR million) | IRR | Min. DSCR | Status |
Base case | 3,302 | 11.0% | 1.62 | Feasible |
Building cost −20% | 5,097 | 13.1% | 1.75 | Feasible |
Loan interest +20% | 2,425 | 11.0% | 1.55 | Feasible |
Husk purchase price +20% | 253 | 8.1% | 1.51 | Borderline |
Production volume −10% | 181 | 8.0% | 1.53 | Borderline |
Selling price −5% | (1,028) | 6.8% | 1.46 | Not feasible |
Selling price −10% | (5,374) | 2.0% | 0.92 | Not feasible |
Bristle price −50% | (8,799) | −2.2% | −0.09 | Not feasible |
Sensitivity of the Chili Project
Scenario | NPV (IDR million) | IRR | Min. DSCR | Status |
Base case | 6,784 | 16.6% | 1.32 | Feasible |
Building cost −20% | 8,281 | 19.5% | 1.47 | Feasible |
Production volume −10% | 2,651 | 11.4% | 1.15 | Feasible, thinner margin |
Grade B/C price at 33% of farm-gate | 1,529 | 9.9% | 1.03 | Borderline |
Selling price −5% | 906 | 9.1% | 0.98 | DSCR below 1 |
Grade B/C price at 35% of farm-gate | (1,984) | 4.9% | 0.70 | Not feasible |
Selling price −10% | (5,007) | −0.1% | 0.43 | Not feasible |
Break-Even Points (NPV = 0)
−3.8%
Coir selling price
+21.7%
Husk purchase price
−10.6%
Coir production volume
−5.8%
Chili selling price
33.9%
Grade B/C chili price relative to farm-gate (±IDR 10,270/kg)
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
19
06. Socio-Economic and Environmental Aspects
Employment Analysis
Project | Workforce requirement | Key skills |
Coconut Coir Project | ±180–220 people (50,000 husks/day benchmark; to be adjusted to 40,000 husks/day) | Decorticator operators, grading, drying, pressing, wastewater treatment, maintenance |
Chili Project | ±79 people | Food handling, drying and grinding, GMP/HACCP, cold storage, laboratory |
Workforce figures are planning requirements and exclude shared services and supplier-level employment.
Local Economic Linkages
Coconut farmers and collectors
Additional income from husk without giving up existing coconut markets
Chili farmers and farmer groups
An additional sales channel for grade B/C chili and harvest surpluses
Cooperatives and coir SMEs
Roles as aggregators and suppliers of semi-processed material
Local food SMEs
Subcontracting opportunities in packaging and product sample trials
Economic Impact
Benefits to the region are measured through local raw-material purchases, logistics and maintenance services, contracts with small businesses, local wages, and regional taxes and levies. This study does not compute multipliers because no input–output model or project-specific household survey is available; local value should be recorded from the start of operations so that impact can be measured with transaction data.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
20
06. Socio-Economic and Environmental Aspects
Environmental Aspects
Issue | Coconut Coir Project | Chili Project |
Water and wastewater | High — coir pith washing; treatment from the start | High — processing and cleaning |
Energy | Moderate | Moderate–high — dryers and cold chain |
Dust and fire | High — fiber dust, stacked bales | Low–moderate |
Food safety | — | Very high |
Circular Economy
Coconut husk
coconut fiber and bristle
Coir pith
cocopeat for growing media
Chili harvest surplus
dried chili and paste
Chili organic residue
compost and organic processing
Sustainable Development Goals (SDGs)
SDG 8
Decent work and economic growth
SDG 9
Industry, innovation, and infrastructure
SDG 12
Responsible consumption and production
SDG 6
Clean water and sanitation
SDG 7 & 13
Clean energy and climate action (once baseline data exist)
SDG 17
Partnerships for the goals
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
21
07. Risks and Mitigation
PRE-CONSTRUCTION
Risks
PRE-CONSTRUCTION
Mitigation
CONSTRUCTION
Risks
CONSTRUCTION
Mitigation
OPERATION
Risks
OPERATION
Mitigation
Decision Points before Full Investment
Decision point | Evidence required | Consequence if not met |
Land and legality | Final parcels, ownership due diligence, spatial conformity, legal access | No irreversible construction |
Utilities | Power and water availability letters, connection points, connection costs | Utility investment costs remain provisional |
Supply | Supply contracts or MoUs specifying volume and quality; collection trials | Remain at pilot stage or gradual ramp-up |
Market | Buyer specifications, product trials, letters of intent or offtake contracts | No premium prices in the base case |
Food safety (Chili Project) | Process flow, GMP/HACCP plan, shelf-life validation | No commercial product launch |
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
22
08. Conclusions and Recommendations
Market
Kulon Progo has large supplies of coconut and chili. Coconut fiber, coir pith, chili paste, sambal, and dried chili have clearly defined industrial buyer segments, although most are not yet under contract.
Legal
The site lies within an industrial designated area and is consistent with the RTRW, RPJPD, RPJMD, and RPIK. Licensing follows risk-based OSS; regional incentives exist and are assessed against set criteria.
Technical
The plants are designed for Wonobroto, Tuksono, with the Coconut Coir Project pilot hosted by the coir SME cluster. Power and water confirmation and detailed design are still required.
Socio-Economic and Environmental
The projects raise incomes of farmers, collectors, cooperatives, and SMEs and make use of agricultural residues. Wastewater, dust, fire, and food safety must be managed from the outset.
Financial
Coconut Coir Project (IDR 21.37 billion) yields an NPV of IDR 3.30 billion and an IRR of 11.0%; Chili Project (IDR 12.12 billion) yields an NPV of IDR 6.78 billion and an IRR of 16.6%. Both are CONDITIONALLY FEASIBLE: margins are sensitive to selling and raw-material prices.
Risk
The largest risks are husk collection, buyer commitment, chili prices, utility capacity, and land status. Phased investment and evidence-based decision points are the main mitigation tools.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
23
08. Conclusions and Recommendations
Recommendations
Responsible parties
Land and Spatial Planning
DPMPTSP DIY, Kulon Progo Regency Government, ATR/BPN, Public Works Office
Utilities
PLN, water provider, Kulon Progo Regency Government, investors
Coconut Coir Project
Investors, cooperatives, coir SMEs, industrial mentor partner, Agriculture and Food Office
Chili Project
Investors, farmer groups, industrial buyers, Trade and Industry Office, Health Office
Buyer Commitment for the Chili Project (0–3 Months)
DPMPTSP DIY, DPMPTSP Kulon Progo, Trade and Industry Office, local food SMEs, prospective buyers
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
24
Future Expansion Opportunities
Not part of the ready-to-offer package
Rice Husk and Straw Biomass
Rice husk and straw can be processed into fuel pellets or briquettes for industry, with sugarcane bagasse as a supplement if its availability is confirmed. The opportunity does not yet have a stand-alone cash-flow model, a closed mass-energy balance, or a fuel purchase contract, so its NPV and IRR have not been calculated. It is therefore shown separately from the Coconut Coir Project and the Chili Project and can be upgraded to an IPRO once its prerequisites are met.
125,560 t
Kulon Progo rice output 2025
16,880 t
Sentolo rice output 2025
±IDR 22 bn
preliminary investment estimate
±1.5–2.0 ha
land requirement
800 kVA–1.5 MVA
power requirement
Prerequisites for Becoming an IPRO
1
Rice-mill census and raw-material volume
2
Delivered raw-material cost
3
Fuel specification tests (calorific value, moisture, ash)
4
A closed mass-energy balance
5
Letters of intent or fuel purchase contracts
6
A stand-alone cash-flow model for the Tuksono configuration
Link to the Estate
Reserve space in Tuksono can be prepared for this opportunity, drawing on shared facilities and residues from the Coconut Coir Project. Details are provided in Appendix J of the Final Report.
Investment Prospectus — Primary and Secondary Sector Investment Study, DIY 2026
DPMPTSP Special Region of Yogyakarta
Sentolo Industrial Designated Area — Tuksono, Kulon Progo Regency
Conceptual site plan illustration of the chili plant in Tuksono
Contact Us
Investment and One-Stop Integrated Service Office (DPMPTSP)
Special Region of Yogyakarta
Jl. Raya Janti No. 8, Wonocatur, Banguntapan, Bantul Regency, DIY, Indonesia
Office +62 274 4538737, +62 274 552521 · Call center +62 274 5021639
WhatsApp +62 821-1136-0606
dpmptsp@jogjaprov.go.id
https://jogjainvest.jogjaprov.go.id
All figures in this prospectus are taken from the 2026 Final Report of the Study on Primary and Secondary Sector Investment Potential Based on Leading Commodities in DIY and are indicative. Investment decisions still require due diligence, data verification, and approval by the relevant parties.