Nabati was founded in 1985 by Mr Krisdianto Lesmana and his wife, Mrs Ida Surjati Djaja Mukti (the “Founders”). The Company is part of the Nabati Group which consists of several lines of business:

(i)    Food manufacturing; 

(ii)    Quick service restaurants; 

(iii)    Domestic sales and distribution; 

(iv)    International sales and distribution;

(v)    Property and building management services. 

The Founders in 2005 passed the leadership baton to their eldest son, Mr Erwin Lesmana. Their other sons, Mr Ernest and Ericksanders Lesmana, and daughter, Mrs Elisa Lesmana, are also holding key management positions. 

Nabati is wholly owned by the Founders’ family.

The total project cost is estimated at US$133 million. IFC´s investment consists of an A Loan of up to US$40 million, a B loan of up to US$30 million and an MCPP loan of up to US$ 30 million.

44.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	44.0
Equity

* These investment figures are indicative

The Project will be located in Majalengka, West Java, Indonesia.

- The development impact of the proposed project will be assessed using the AIMM framework. Project-level impacts are expected through employment creation both during the construction and operation phases as well as through economic activities along the value chain, especially at the downstream end with Nabati's extensive sales force and distributors. - The Project will also increase tax revenues in Majalengka, a frontier region in Indonesia where the minimum salary is US$150 per month vs. US$ 200 in the closest largest city (Bandung) or US$ 250 in Jakarta. The Project will also improve incomes of the SMEs which supply materials to Nabati. - The Project is also expected to contribute to food security for bottom of the pyramid consumers. The new facilities to be funded by IFC will produce low market pricing products which are fortified with vitamins A, B1, B2, B6 and B12 (currently ~80% of Nabati's products are fortified).

- IFC is considered an ideal partner given its reputation, environmental & social standards, long term local presence and network around the world. - IFC is able to provide debt with a 7 year tenor, 2 years longer than what the market is offering. IFC helps mobilize long term capital which meets the Company's financing needs and matches the maturities of assets and liabilities, improving the balance sheet structure. - IFC will assist Nabati in upgrading its practices to meet IFC's Performance Standards. This would not only help Nabati to build a sustainable operation but also encourage other companies to adopt international best practices as consumers give each day more value to E&S friendly products. - During the appraisal, IFC has advised the Company to strengthen its corporate governance by establishing a functioning board of commissioners and an effective audit committee. IFC Advisory Services ("AS") will help Nabati to establish corporate governance best practices that will allow the Company to continue expanding and prepare for an eventual IPO. - From an energy efficiency perspective, IFC Energy and Water Advisory team is conducting a back of the envelope assessment of waste heat to power options. The improved efficiency through modernization and potential investments in waste heat recovery will produce significant reductions in Green House Gas Emissions. Nabati is looking forward to hearing IFC's proposal.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures as described in this document and the attached Environmental and Social Action Plan (ESAP).

Key Environment and Social (E&S) issues associated with this project as identified during IFC’s review are related to the company’s corporate organizational capacity and competence and implementation of an Environmental and Social Management Systems (ESMS) to manage E&S risks in its current and future operations. Associated risks include: efficiency of water and energy use; effective reuse, recycling and disposal of solid wastes; management of effluents, and ensuring good labor and working conditions are applied in its operations.

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.