Indobamboo Lestari - Bamboo Village Trust

Investing in Impact

P4G has provided the partnership with US $375,000 in grant funding. 

The built environment is a major contributor to environmental degradation and greenhouse gas emissions (building materials account for 11% of global greenhouse gas emissions). Meanwhile, the growth of urban centres across the world is dependent on the use of non-renewable resources (e.g. cement, steel), causing further environmental degradation and carbon emissions. There is a pressing need to increase the use of renewable bio-based materials that sequester and store carbon, replacing non-renewable building materials. 

Bamboo provides several advantages compared to other wood-based products. It grows fast and can sequester carbon effectively both in forests and as a building product. Additionally, some varieties of bamboo are well suited to restore degraded land, increase water table resilience and biodiversity. 

Indobamboo, an Indonesian company specializing in the design and manufacture of high-end laminated bamboo products, has recognized the potential of bamboo in the construction sector and has developed a structural engineered bamboo product that can be used for the construction of multi-storey buildings. The waste byproducts generated during the process are turned into briquettes to power Indobamboo’s factory boilers creating a circular and closed loop manufacturing system. 

Indobamboo will work with the Bamboo Village Trust (BVT) to ensure increased social and financial benefits for rural communities who grow bamboo for the business. BVT will also support Indobamboo in securing offtake agreements from village communities growing bamboo, and help rural communities manage and restore degraded landscapes.

There are key regulatory barriers that need to be overcome to increase the uptake of structural engineered bamboo. Cave Urban and the Green Building Council of Indonesia (GBCI) will support Indobamboo in engaging with relevant ministries to develop a national standard for Indonesia that is safe and fit for purpose for the requirements of the Indonesian building industry and the properties of locally-grown bamboo. The creation of a national standard will enable the development of building codes to support the uptake of bamboo-based building products. 

During the P4G funding period, Indobamboo will raise US $300,000 in investment for factories in Bali and Flores and to position itself for Series A investment. Its total goal for Series A investment is US $5.6 million to expand its operations and build a new factory in Java. It will create 45 new jobs and bring about 300 hectares of land under restoration. As part of the grant, the partnership aims to create high-profile bamboo-based buildings and kick off efforts to secure buyers in international markets.

The partnership comprises the following partners: Indobamboo Lestari (lead business partner); Bamboo Village Trust (lead administrative partner); Cave Urban; Green Building Council Indonesia, Atelier One; Catalyze Communications.