BP8 Indonesia Secures US$375,000 to Expand Seaweed Procurement and Processing

Strategic Financing to Scale Indonesian Seaweed Operations

BPH Global Ltd’s Indonesian arm, BP8 Indonesia, has taken a significant step forward by securing a US$375,000 trade financing facility from Singapore-based Equenita Natural Resources. This funding is designed to enhance BP8 Indonesia’s purchasing power, allowing the company to independently acquire larger volumes of seaweed stock and expand its processing capabilities.

The timing of this facility is critical as BP8 Indonesia prepares to commission a new warehouse in Makassar, South Sulawesi. This infrastructure upgrade is expected to boost processing capacity, positioning the company to meet growing demand both domestically and internationally.

Balancing Independence and Partnership

While the financing empowers BP8 Indonesia to act independently in seaweed procurement, it also supports the expansion of its existing commercial arrangement with PT Kebula Raya Bestari. Under this partnership, Kebula manages key operational aspects such as accounts, warehousing, and delivery, which has already facilitated strong sales traction in Indonesian and Asian wholesale markets.

BP8’s Managing Director, Matthew Leonard, highlighted the dual benefit of this approach, "This facility is a key enabler to scaling our Indonesian operations and meeting the growing demand from our customers. Our focus remains on building a sustainable business that benefits local communities and delivers value to our stakeholders."

Sustainability and Local Community Engagement

BP8 Indonesia’s seaweed sourcing strategy emphasizes sustainability and traceability, partnering with local farmers in the Nunukan region. This approach not only supports responsible harvesting practices but also strengthens community ties and environmental stewardship, which are increasingly important factors for global buyers.

The company is actively seeking additional off-take partners to underpin its growth ambitions, signaling a broader strategy to scale operations while maintaining sustainable sourcing principles.

Loan Terms and Security

The trade financing facility is structured as a revolving loan with a 12-month term, carrying a 15% annual interest rate compounded monthly. Security includes a floating lien over seaweed stock held in the Makassar warehouse and a corporate guarantee from BPH Global Ltd. These terms reflect a balance between flexibility for BP8 Indonesia and risk mitigation for Equenita Natural Resources.

Equenita, with its strong regional footprint in commodities trading, brings not only capital but also supply chain expertise, which could be instrumental in navigating the complexities of scaling agricultural commodity operations in Southeast Asia.

Looking Ahead

BP8 Indonesia’s steady progress; from acquiring seaweed assets earlier this year to establishing commercial partnerships and now securing trade finance; paints a picture of a company poised for growth in a niche but expanding market. The coming months will be critical as the Makassar warehouse comes online and sales volumes ramp up, particularly in international markets where early traction has been promising.