Producing one ton of export-grade coconut shisha charcoal costs about $1,455 (Rp 24,734/kg) at Rp 13,500/kg raw material and Rp 17,000/USD. At a 25% margin the factory sells at about $1,819/t and keeps roughly $364/t before tax.
Producing one ton of export-grade coconut shisha charcoal costs about $1,455 (Rp 24,734/kg) at Rp 13,500/kg raw material (verified 15 July 2026; factory model).
At a 25% margin the factory selling price is about $1,819/t, of which roughly $364/t is factory EBITDA (verified 15 July 2026).
Raw material is about 68% of total factory cost once the 25% production material loss is counted (verified 15 July 2026).
| Cost line | Rp / kg finished | ≈ USD / t |
|---|---|---|
| Raw material — carbonized coconut shell (Rp 13,500/kg + 25% production loss) | Rp 16,875 | $993 |
| Unloading from truck (+ 25% loss) | Rp 63 | $4 |
| Tapioca binder | Rp 616 | $36 |
| Oven drying (wood-pellet) | Rp 200 | $12 |
| Production wages | Rp 1,850 | $109 |
| Container stuffing | Rp 50 | $3 |
| Electricity | Rp 500 | $29 |
| Maintenance | Rp 350 | $21 |
| Office & misc | Rp 750 | $44 |
| Production subtotal | Rp 21,254 | $1,250 |
| Inner plastic bag | Rp 300 | $18 |
| Labour — inner plastic | Rp 300 | $18 |
| Inner box | Rp 1,825 | $107 |
| Labour — inner box | Rp 150 | $9 |
| Master box | Rp 650 | $38 |
| Labour — master box | Rp 100 | $6 |
| Sticker | Rp 105 | $6 |
| Silica gel | Rp 50 | $3 |
| Packaging subtotal | Rp 3,480 | $205 |
| Total factory cost | Rp 24,734 | $1,455 |
| Factory margin (25% on cost) | — | $364 |
| Factory selling price | — | $1,819 |
Per-kg costs of finished charcoal. Raw material and truck unloading carry the 25% material lost in cleaning, grinding and drying — you buy more shell than you sell as briquette.
Selling price by raw-material price and margin
| Raw material | 10% margin | 15% margin | 20% margin | 25% margin |
|---|---|---|---|---|
| Rp 12,000/kg | $1,479 | $1,546 | $1,614 | $1,681 |
| Rp 13,500/kg | $1,600 | $1,673 | $1,746 | $1,819 |
| Rp 15,000/kg | $1,722 | $1,800 | $1,878 | $1,957 |
| Rp 17,000/kg | $1,883 | $1,969 | $2,055 | $2,140 |
At Rp 17,000/USD, packaging included. Margin applied as a markup on cost.
What the factory actually keeps
| Raw material | 10% margin | 15% margin | 20% margin | 25% margin |
|---|---|---|---|---|
| Rp 12,000/kg | $134 | $202 | $269 | $336 |
| Rp 13,500/kg | $145 | $218 | $291 | $364 |
| Rp 15,000/kg | $157 | $235 | $313 | $391 |
| Rp 17,000/kg | $171 | $257 | $342 | $428 |
EBITDA, not net income — 5–10% of production typically fails and must be remanufactured.
How this is calculated
Every input is bought in Indonesian rupiah, so the model works per kg of finished charcoal in IDR and converts to USD per ton at the end. Raw material and truck unloading are multiplied by 1.25 because 25% of the material is lost to rotary cleaning, grinding, extrusion waste and drying. Fixed lines — tapioca binder, oven fuel, wages, container stuffing, electricity, maintenance and office — are added per kg, then retail packaging (inner plastic, printed inner boxes, master carton, stickers, silica gel and their labour).
The margin is a markup on cost: selling price = cost × (1 + margin). What the factory keeps is EBITDA before tax; 5–10% of production typically fails QC and is remanufactured, and equipment financing sits outside this model. Cleaner grades lose more material — see the price-to-grade check for how loss changes the standard price per grade.
Frequently asked questions
How much does it cost to produce shisha charcoal?
About $1,455 per ton (Rp 24,734/kg) all-in at the factory — raw material at Rp 13,500/kg including the 25% production loss, plus binder, fuel, wages, electricity and retail packaging.
How much profit does a shisha charcoal factory make per ton?
At a 25% margin on cost, about $364 per ton EBITDA before tax. Across common margins the range is roughly $145–$364/t — and 5–10% of production fails and is remade.
Why does the raw-material price matter so much?
Carbonized coconut shell is about 68% of total factory cost, and every kilogram of finished charcoal needs 1.25 kg of it because of the 25% production loss. A Rp 1,500/kg move in raw material shifts the selling price by roughly $138/t.
Run the factory model yourself
Change the raw-material price, exchange rate and margin to see cost, price and profit.
Last verified 15 July 2026. Figures are illustrative industry ranges, not quotes — verify before relying on them. Freight and the US–Indonesia tariff change most often.
