Summary of Proposed Investment
Project Number
10233
Company Name
GAWI MAKMUR KALIMANTAN, PT
Date SPI Disclosed
May 18, 2001
Country
Indonesia
Industry
Agribusiness and Forestry
Projected Board Date
Jun 18, 2001
Status
Completed
Sector
Palm Vegetable Oil
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Apr 30, 2002
Signed : Oct 16, 2002
Invested : Dec 20, 2002
Project Description
The project companies were established by the Wings Group in 1995 to engage primarily in the development and maintenance of oil palm plantations and related manufacturing activities. Agricultural development started in 1996 and as of December 2000 a total area of 10,659 ha had been planted with oil palms. The project covers both the development progress to date and the next phase comprising the maintenance to maturity of immature plantations, planting of the remaining 2,700 ha of land and the construction of a second palm oil mill. The project is the Wings expansion into agribusiness as a strategic investment that will offer synergy with its existing business and capitalize on Indonesia''s optimal conditions for oil palm cultivation.
The project is located in an undeveloped rural area in Kalimantan. It has a significant development impact by providing employment and income generating opportunities to the local people in the remote area. It is in support of an export product for which Indonesia has a competitive advantage. In addition, the project will serve as a model in addressing social/community issues in the plantation development.
IFC''s role is seen as crucial because long-term financing is still scarce in Indonesia, especially for agribusiness projects. This is particularly relevant in the oil palm industry where large plantations developed in the early 1990s are currently unable to source end-financing to complete their investments and more specifically their processing facilities. IFC''s financing of the project is expected to be pivotal in reducing the perceived risks by potential institutional investors and banks.
The project is located in an undeveloped rural area in Kalimantan. It has a significant development impact by providing employment and income generating opportunities to the local people in the remote area. It is in support of an export product for which Indonesia has a competitive advantage. In addition, the project will serve as a model in addressing social/community issues in the plantation development.
IFC''s role is seen as crucial because long-term financing is still scarce in Indonesia, especially for agribusiness projects. This is particularly relevant in the oil palm industry where large plantations developed in the early 1990s are currently unable to source end-financing to complete their investments and more specifically their processing facilities. IFC''s financing of the project is expected to be pivotal in reducing the perceived risks by potential institutional investors and banks.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Thomas Suseno
Director
PT. SAYAP MAS UTAMA
Kawasan Perluasan Utara PT. JIEP
Jalan Tipar Cakung Kav. 5-7
Jakarta Timur - 13910
P.O. Box 7668, Jakarta 13076, Indonesia
Email address: thomas.suseno@wingscorp.com
Director
PT. SAYAP MAS UTAMA
Kawasan Perluasan Utara PT. JIEP
Jalan Tipar Cakung Kav. 5-7
Jakarta Timur - 13910
P.O. Box 7668, Jakarta 13076, Indonesia
Email address: thomas.suseno@wingscorp.com