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Waste Management & Resource Recovery

Used Cooking Oil (UCO) Aggregation, Pre-Treatment & ISCC Biofuel Export

Collect, filter, dewater, and consolidate commercial Used Cooking Oil (UCO) across NTT into ISCC-certified sustainable aviation fuel (SAF) and biodiesel feedstock for export from Tenau Port.

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Business illustration (AI): Used Cooking Oil (UCO) Aggregation, Pre-Treatment & ISCC Biofuel Export
Business illustration (AI)

BUSINESS OPPORTUNITY

Business Overview

Restaurants, hotels, food stalls (warung), and fried snack vendors across Greater Kupang generate over 80,000 to 120,000 liters of Used Cooking Oil (UCO / Minyak Jelantah) monthly. Historically, this degraded oil is dumped into municipal stormwater gutters or dangerously re-filtered and resold for human consumption. Under international renewable energy mandates (EU RED II), UCO is an ultra-high-demand, double-counted feedstock for sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) biodiesel. This enterprise establishes a licensed UCO collection, mechanical filtration, dewatering, and bulk storage depot in KIB, securing international ISCC EU sustainability certification and shipping bulk containerized UCO via Tenau Port to global biofuel refineries.

Products & Business Formats

ISCC-Certified Filtered Used Cooking Oil (UCO Biofuel Feedstock)
Mechanically filtered, dewatered, and certified sustainable used cooking oil (Free Fatty Acids < 3%, moisture < 0.5%) for global SAF and biodiesel refineries.
Industrial Technical Grease & Bio-Lubricant Feedstock
High-viscosity refined fatty acid fractions utilized as renewable base oils for bio-lubricants, mold release agents, and technical soaps.
Solidified Organic Fatty Sludge for Biomass Briquettes
Dewatered solid organic fat filter-cake combined with agricultural biomass to manufacture high-calorific industrial fuel briquettes.
Licensed Used Cooking Oil Collection & Recycling Services
Turnkey scheduled oil collection, supply of food-grade recovery oil drums, and digital traceability certificates for restaurants and food hotels.

Business model

Revenue is based on trading margins from used-cooking-oil export sales per metric tonne (FOB Tenau or CIF Surabaya/export), the difference between dirty-oil purchase prices from kitchen partners and biofuel market prices, and fatty-acid residue by-product sales.

Development stages

  1. Stage 1 — Open a collection depot with holding capacity of 30 tonnes, a bag-filter filtration system, and collection from 100 major Kupang restaurants.
  2. Stage 2 — Install 100 m³ storage tanks and water-separation centrifuges, and obtain international ISCC-EU certification for export.
  3. Stage 3 — Develop an integrated collection network throughout mainland Timor districts (Soe, Kefa, Atambua) and shipments of 10 flexibags/month.

BUSINESS OPPORTUNITY

Market & Potential Buyers

Restaurants, hotels, food stalls (warung), and commercial food processors across Greater Kupang consume vast quantities of cooking palm oil, generating an estimated 80,000 to 120,000 liters of Used Cooking Oil (UCO / Minyak Jelantah) monthly. In the absence of formal collection, this waste oil is dumped into municipal drainage or illegally re-filtered and sold for human consumption. Under international renewable energy mandates (EU RED II), UCO is an ultra-high-demand feedstock for Sustainable Aviation Fuel (SAF) and biodiesel. A licensed collection, pre-treatment, and export staging facility in KIB captures massive export value.

Market Demand & Potential Buyers

  • International Sustainable Aviation Fuel (SAF) and hydrotreated biodiesel (HVO) refineries in Europe and Singapore
  • Commercial biodiesel manufacturing complexes in East Java (Surabaya/Gresik) via Tenau container shipping
  • Industrial bio-lubricant and bio-grease formulators across Indonesia
  • Local commercial food enterprises seeking certified responsible waste oil disposal certificates
100% supply-chain traceability

ISCC sustainable aviation fuel certification standard

The first commercial Jakarta–Bali SAF flight demonstrates that Indonesian used cooking oil is a strategic commodity for global aviation decarbonisation.

Used Cooking Oil Takes Flight: Indonesia's Sustainable Aviation Fuel (SAF)

Market Evidence & Context

Skyrocketing Global Demand for ISCC-Certified UCO for SAF

Aviation decarbonization mandates in Europe and North America have made certified UCO one of the world’s most valuable renewable agricultural commodities. Bolok Industrial Park Profile

Substantial Untapped Waste Oil Volume across Kupang Food Hubs

Over 80,000 liters of used cooking oil are generated monthly in Greater Kupang with virtually zero licensed industrial aggregation infrastructure. Bolok Industrial Park Profile

Discounted Backhaul Container Freight to Surabaya & Export Gateways

Empty shipping containers returning from Tenau Port to Surabaya provide exceptionally low maritime freight rates for bulk flexi-tank liquid shipments. Road Distances from KIB Bolok to Key Port, City, and Airport Hubs

Existing UCO collection in Kupang is handled by informal, unlicensed collectors who gather small quantities in rusty jerrycans to sell to illegal black-market food re-processors. They lack quality testing, settling tanks, or international sustainability certifications. An officially licensed, ISCC-certified collection company in KIB deploying food-grade drums and flexi-tanks secures exclusive contracts from hotel chains and restaurants.

BUSINESS OPPORTUNITY

Raw Materials & Supply

Used cooking oil is collected directly from restaurants, hotels, catering kitchens, and food processing plants across Greater Kupang and Timor Island.

Raw material sources and requirements
Materials & RequirementsProcurement SourceQuality & Key Specifications
Commercial Used Cooking Oil (UCO / Waste Palm Oil)Registered hotels, restaurants, food stalls, and fried food processors in Kupang.Free of excessive water, food crumbs, and chemical cleaning detergents (FFA < 5%, moisture < 2%).
Food-Grade 20-Foot Container Flexi-Tanks & Steel DrumsCertified packaging manufacturers, shipped via Tenau Port.Multi-layer food-grade polyethylene flexi-tanks (24,000-liter capacity) and UN-stamped 200-liter drums.
Process Steam / Thermal Energy for Settling & DewateringCaptive small biomass boiler or waste-heat exchanger.Low-pressure steam heating settling tanks to 60°C–70°C for rapid oil-water phase separation.

Seasonality & Supply Continuity

Operating continuously year-round. Waste oil collection peaks during major holiday tourist seasons (Christmas, New Year, Easter, Eid) and wedding festival cycles.

Collection & shipping

Oil is collected in 20-liter airtight bins via light trucks, transferred to KIB bulk tanks, and pumped into 24,000-liter flexi-tanks inside 20-foot shipping containers at Tenau Port.

Procurement & handling costs

Used oil purchasing and collection logistics represent 60%–70% of sales value. International ISCC certification commands premium export pricing ($850–$1,100/tonne).

BUSINESS OPPORTUNITY

Why Consider KIB

KIB provides the certified industrial setting: master AMDAL zoning for bulk oil storage, direct road access to Tenau Port, and empty container backload savings.

Direct 7.9 km Highway Drayage Corridor to Tenau Port
Enables rapid, low-cost transport of heavy 20-foot flexi-tank containers directly to container vessel berths without municipal road width limits. Road Distances from KIB Bolok to Key Port, City, and Airport Hubs
Utilization of Low-Cost Empty Container Backhaul Shipping
Capitalizes on the 70%+ empty container return imbalance from Kupang to Surabaya, securing heavily discounted ocean freight for heavy bulk liquids. Road Distances from KIB Bolok to Key Port, City, and Airport Hubs
Master AMDAL Zoning for Bulk Oil Storage & Pre-Treatment
Industrial estate zoning legally satisfies all environmental regulations for installing bulk oil storage tanks and wastewater settling sumps. Government Regulation Number 22 of 2021 on Environmental Protection and Management

BUSINESS OPPORTUNITY

Business Development Requirements

Investors can establish a certified UCO consolidation and pre-treatment depot (500–1,000 tonnes/month capacity) inside a leased warehouse or plot in KIB.

Business process

  1. Scheduled collection from partner restaurants using barcoded, sealed collection containers and digital intake logging
  2. Depot unloading over coarse mesh vibrating screens into underground intake sump to remove solid food batter and bone particles
  3. Pumping into heated conical-bottom settling tanks (65°C–70°C) to accelerate natural gravity phase separation of water and heavy sludge
  4. High-speed centrifugal disc-stack separation to eliminate fine suspended solids and reduce free fatty acids/moisture
  5. Vacuum thermal dehydration to lower residual moisture strictly below 0.5% (meeting international SAF feedstock criteria)
  6. Storage in stainless steel or epoxy-lined bulk storage tanks with continuous nitrogen blanketing to prevent oxidative degradation
  7. Pumping into 24,000-liter multi-layer flexi-tanks pre-installed inside 20-foot export shipping containers for dispatch via Tenau Port

Initial Capacity & Production Scale

Conical-Bottom Heated Settling Tanks with Thermal Coils
Heavy mild steel or stainless steel settling tanks equipped with internal steam/hot water heating coils and bottom sludge drain valves.
Industrial High-Speed Disc-Stack Centrifugal Separator
Continuous centrifugal separator capable of clarifying up to 3,000 liters/hr of heated oil down to <0.1% insoluble impurities.
Continuous Vacuum Dehydration & Moisture Removal Column
Vacuum drying column operating under 50 mbar vacuum to flash-evaporate microscopic emulsified water droplets from the oil stream.
International Sustainability & Carbon Certification (ISCC EU)
Full chain-of-custody certification tracking waste oil provenance from restaurant fryers to export flexi-tanks.

Dedicated Production Facilities (Investor Scope)

Enclosed intake bay, heated settling tanks, disc centrifuge, vacuum dehydrator, bulk storage tank farm, container flexi-tank loading dock, and QC testing lab.

Securing exclusive ISCC EU sustainability certification and leveraging Kupang’s cheap empty container return freight unlocks lucrative export premiums in global aviation biofuel markets.

BUSINESS OPPORTUNITY

Estate Facilities Available at KIB

Bolok Industrial Park (KIB) prepares Phase I with a total area of 191 hectares under clean & clear Right of Management (HPL) land titles with flexible plot sizing, alongside ready-to-lease standard industrial warehouses. The facilities below represent the core estate infrastructure provided by KIB, while tenant-specific production machinery and specialized civil/utility works remain the investor's scope.

Phase I (Total 191 Ha HPL) & Flexible Plot Sizing
Clean & clear HPL land title spanning 191 hectares in Phase I, with plot boundaries customized to factory or logistics yard requirements.
Standard Ready-to-Lease Warehouses
Basic turn-key warehouse structures ready for storage or lightweight modular machine assembly; specialized retrofits installed by tenant.
Paved Heavy-Duty Main Estate Roads
Dedicated estate road network engineered for heavy truck and container maneuvers connecting to Bolok Port (3.6 km) and Tenau Port (7.9 km).
Clean Water Grid & Distribution Reservoirs
Industrial water distribution network backed by on-site storage reservoirs; advanced water purification (e.g., RO/UV) configured per plant.
Estate Electrical Power Grid
Medium-voltage power grid connections for operational loads; dedicated transformers or backup generator sets installed per plant load profile.
Fiber Optic Telecom & Estate Street Lighting
High-speed optical fiber connectivity, environmental street illumination, and planned green buffer zones across the estate.

Site Suitability & Building Delivery Boundaries

Industrial land plots in KIB Zone I with heavy load-bearing concrete hardstands, oil containment bunds, and wide access for 20-foot container chassis trucks.

Prospective investors are advised to consult with the KIB management team regarding exact plot sizes, standard warehouse technical specifications, electrical power capacity, and water flow rates prior to concluding detailed feasibility studies.

The management team of PT Kawasan Industri Bolok (Perseroda) assists local, national, and international investors (Timor-Leste, Australia, China, etc.) from initial site inspection through to leasing and operational licensing.

Estate Facilities Profile ↗

BUSINESS OPPORTUNITY

Risks & Considerations

Primary operational risks include free fatty acid (FFA) spikes from rancid oil, fraudulent adulteration with water or mineral oil, and international SAF policy shifts.

Collectors adulterating used cooking oil with water, sand, or mineral engine oil
Implement mandatory digital field testing (refractometer, moisture meter, viscosity) before accepting and paying for any collector barrel.
Flexi-tank bladder rupture or leakage during ocean container transit
Utilize premium multi-layer co-extruded food-grade flexi-tanks with reinforced bulkhead steel bars installed by certified rigging technicians.
Loss of ISCC EU chain-of-custody sustainability certification during annual audits
Deploy mobile digital traceability apps tracking GPS coordinates, restaurant signatures, and oil volume at every collection point.

BUSINESS OPPORTUNITY

Studies & References

Data sources include ISCC EU Waste and Residues certification standards, European Union Renewable Energy Directive (RED II), and Kupang municipal food waste generation data.

Used cooking oil processing· 2026

Undana Pharmacy Supports Tablolong Village Residents in Reusing Used Cooking Oil

Fakultas Kedokteran dan Kedokteran Hewan Universitas Nusa Cendana· Tablolong Village, West Kupang

Read summary

Technical training on collecting and purifying used cooking oil from household frying and coastal food stalls in West Kupang on 28 August 2026.

Accessed 2026-10-21

Renewable energy· 2025

Used Cooking Oil Takes Flight: Indonesia's Sustainable Aviation Fuel (SAF)

Kementerian ESDM RI· Jakarta – Bali

Read summary

The first commercial flight using Sustainable Aviation Fuel (SAF) based on a blend of refined used cooking oil (UCO) from Pertamina's Cilacap refinery (August 2025).

Accessed 2026-10-21

Waste data· 2025

Kupang City Government Encourages the Hotel, Restaurant and Catering Sector to Improve Waste Management

Pemerintah Kota Kupang · SIPSN· Kupang City

Read summary

SIPSN data estimate 26,67 tonnes of waste per day from trade, hotels, restaurants and cafés in Kupang City, with organic material forming the dominant share.

Accessed 2026-10-21

Industrial Park & Logistics

Bolok Industrial Park Profile

PT Kawasan Industri Bolok (Perseroda)· Bolok, West Kupang

Read summary

Official profile of the Bolok Industrial Park (Phase I covers 191 hectares with clean & clear HPL land title, flexible lease plots, ready-to-use standard factory/warehouse units, paved primary roads, clean water reservoir system, three-phase industrial power, and fiber-optic connectivity).

Accessed 2026-10-19

Industrial Park & Logistics· 2026

Road Distances from KIB Bolok to Key Port, City, and Airport Hubs

OpenStreetMap · OSRM Routing· Bolok, Tenau, Kupang City & El Tari Airport

Read summary

Calculated highway route distances from KIB Bolok: 3.6 km to Bolok ASDP Ferry Terminal, 7.9 km to Tenau Container Port, 14.5 km to central Kupang commercial district, and 25.0 km to El Tari International Airport.

Accessed 2026-10-19

Standards & Regulations· 2021

Government Regulation Number 22 of 2021 on Environmental Protection and Management

Government of the Republic of Indonesia· Indonesia

Read summary

Omnibus environmental regulation defining handling, licensing, storage, and recycling requirements for hazardous (B3) and non-hazardous industrial waste, governing environmental compliance for all KIB tenants.

Accessed 2026-10-19

View studies and references for this sector →

BUSINESS OPPORTUNITY

Next Steps

Interested in developing this business at KIB?

Submit target monthly aggregation volume, tank farm storage capacity, and flexi-tank loading design to KIB management to finalize industrial parcel leasing.

Discuss your business plan ↗

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Email[email protected]
Telephone number+62 812-4613-277
Office addressJl. Helong Raya, Desa Bolok, Kupang Barat, Nusa Tenggara TimurView on Google Maps ↗

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