A state-owned enterprise with branch operations in Sumatra sought to downstream its products to capture greater value. While the company has strong and well-established capabilities as a raw material producer, its knowledge and experience in developing downstream products were still limited. In addition, access to downstream markets had not yet been fully developed.
To address these challenges, we initiated a pilot project using a toll manufacturing approach to validate cost structures, potential margins, and overall commercial feasibility. This approach allowed the company to test downstream operations with controlled risk.
We also supported the client in expanding market access by connecting them with relevant refineries and strategic partners. Alongside this, we designed a practical and scalable business model that the company could implement as a foundation for sustainable downstream growth.
Through this structured approach, the client was able to reduce uncertainty, strengthen its downstream capabilities, and take concrete steps toward building a viable and competitive downstream business.