The Company is 60% owned by PT Surya Esa Perkasa Tbk. (“SEP”), a company that is listed on the Indonesian stock exchange. Mr. Theodore Rachmat, Mr. Garibaldi Thohir and Mr. Vinod Laroya (through their shareholding in SEP) and SEP are the key Sponsors of this Project.

The Project cost has been estimated to be US$750 million and will be financed by up to US$500 million of senior debt and US$250 million of equity. IFC is expected to invest up to US$125 million in the form of debt and equity, to finance part of the Project. In addition to the above investment, IFC plans to mobilize up to US$400 million of senior debt from other banks.

130.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	130.0
Equity

* These investment figures are indicative

The Project is located at Jl. Poros Sulawesi, Uso Village, Batui District, Banggai, Central Sulawesi 94762, in Sulawesi island of Indonesia. It is approximately 40 km away from the nearest airport which is at Luwuk – the Capital of Banggai Regency.

1) Enhancement of food security: The project will introduce a new supplier of a critical nutrient that is essential for improving farm productivity. This is expected to improve the supply in the regional ammonia market and therefore directly and/or indirectly help address the increasing challenges of affordable and sufficient food supply.
2) Local Value Addition and Creation of Export Revenues: The proposed project would contribute towards value addition taking place within Indonesia and create significant export revenues for Indonesia.
3) Job Creation and Community Development: The Project will create quality employment opportunities in the Central Sulawesi province of Indonesia. The Project is expected to create about 350 direct jobs during operation and 2,000 indirect jobs. Indirect jobs are expected to arise from opportunities created for local contractors engaged in regular maintenance and repair activities for the Project, transportation, food supply and other activities associated with the Project. In addition, the Company will provide social infrastructure and professional training to its personnel.
4) SME Development Impact: Chemical and petrochemical projects typically create a large number of downstream jobs and entrepreneurial opportunities in segments such as trading, logistics and transportation. The proposed Project is expected to have a significant multiplier effect through the creation and growth of supporting SME businesses.

1) Long Term Financing: Ammonia plants are capital intensive and the sector is cyclical and therefore needs appropriately structured long-term financing to be sustainable. IFC will provide funding with tenors longer than those currently available in the local market.
2) Mobilization: In addition to a direct investment, IFC will syndicate about US$400 million for the Project. IFC''s participation will attract and provide comfort to other investors at a time when other global and local banks have reduced lending due to the continuing shortage of long term liquidity in foreign currency.
3) Sharing Industry Knowledge: IFC has extensive global experience in project finance of large complex green-field plants in the chemical sector. IFC will share this experience/ expertise with the Company; in particular ways to manage risks related to Project execution. IFC will also share this knowledge and expertise with the syndicate banks, which is expected to give them additional comfort on the Project structure.
4) Environment and Social (E&S) Guidance: IFC would help the Company to: (i) develop its environmental and social management systems and capacity; (ii) address the Project''s substantial E&S challenges due to its size and complexity; (iii) develop comprehensive E &S assessment documentation and ensure compliance of the project with IFC''s Performance Standards and (iv) share IFC''s global experience/best practices dealing with community related issues.

The Project is located in a predominantly agricultural area and stakeholders have high expectations in respect to job opportunities, local procurements, and investment in local communities. The residential dwellings in proximity to the Project may be affected by construction and operational related nuisance impacts. The 2,090 MTPD ammonia plant will generate in excess of 1 million ton CO2-equivalent greenhouse gas per annum, mainly from the ammonia manufacturing process. The discharge of large amounts of cooling seawater, treated effluents, and storm water runoff also have the potential to impact the marine ecology. A natural reserve area for protected birds is located approximately 50 km to the southwest of the project site. Mitigation measures for the potential environmental and social impacts have been identified and are incorporated into an attached Environmental and Social Action Plan (ESAP).



The potential adverse E&S impacts of this project from the combined impacts aforementioned are therefore diverse and irreversible. This is therefore an E&S Category A project.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.