AOP is controlled by PT. Astra International (Astra) with 87.3% shareholding. Astra is a long-standing IFC client and one of the largest Indonesian business conglomerates comprising a holding company with operating activities in six business areas: Automotive (its core business which contributes more than 80% of Astra’s consolidated revenues), Information Technology, Financial Services, Agribusiness, Heavy Industry and Infrastructure. Astra’s consolidated net revenue, for 2002 and 2003, was $3.3 billion and $3.7 billion respectively, while its net income was $393 million and $516 million respectively.

The total project cost is $54 million. The proposed IFC investment is a loan for IFC’s account of up to $24 million.

24.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	24.0
Equity

* These investment figures are indicative

The project will be implemented in the existing plants of the company and its subsidiaries in the greater Jakarta area.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental /social information submitted by the project sponsor, along with onsite review of selected manufacturing facilities by technical and environmental staff. Environmental and social issues which were reviewed for this investment included the coverage and implementation of its environmental and health and safety management system, as well as review of the development impacts and sustainability.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the following locations - At Astra International public library and at PT Astra Otoparts Tbk head office.

The project will help the company continue to restructure and improve its competitiveness. AOP began this process in the wake of the removal of duty protection and domestic content requirements on automotive components in 1999. The company is focusing on high volume products with high margins and market share. This project will help AOP expand, de-bottleneck and increase its value-added products. The project will create 551 direct employees through out the project companies. IFC has a strong role in the project by providing long term funding that is not easily available in the local market and by creating a “demonstration” effect to encourage foreign banks to provide long term funds to sound Indonesian companies with proven track records.