The company is owned through a holding company structure whose shareholders are:

- Messrs. Eddy William Katuari and Fifi Sutanto (representing the Wings group) 47.7%;
- Mr. Jimmy Masrin and PT Lautan Luas Tbk (representing the Lautan Luas group) 33.3% and
- Mr. Robert Budi Hartono (representing the Djarum group) 19%.

The main sponsor of the company is the Wings group, which is one of Indonesia’s largest producer and marketer of soaps and detergents.

The Wings Group has seven main business activities –
- consumer products;
- packaging;
- chemicals;
- building materials;
- real estate;
- agribusiness and
- financial services.

Of these, the consumer products business is the largest in annual turnover. IFC has existing relationships with three of the Wings group companies (PT Sayap, PT Wings and PT Gawi). The other two members of the consortium are the Djarum group, one of the largest Indonesian cigarette manufacturers, and the Lautan Luas group which is Indonesia’s leading distributor and manufacturer of basic and specialty chemicals.

The total project cost is estimated to be about $84.0 million. IFC’s investment would consist of an A Loan of up to $30 million.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

The new fatty acid plant will be integrated with the company’s fatty alcohol plant at its existing site at Belawan, Medan in Indonesia. Adequate land is available at the plant site and the existing infrastructure can be expanded with marginal incremental investments to support the new project. The site is also located close to a jetty for easy access to movement of material.

Project Development Impact

This project involves the strengthening and expansion of an existing oleochemicals company in Indonesia. The project will generate developmental benefits in the form of job preservation and signal IFC’s confidence in the Indonesian economy.

- Job preservation and social stability.
The company employs about 550 people directly and the palm kernel oil feedstock purchased by the company is estimated to be responsible for another 1000-1200 jobs in the palm plantations. Indirect jobs at the port (where feedstock is unloaded and where final output is loaded for export), in transportation and support services both at the plant and the port may account for another 200-250 jobs. Thus, directly and indirectly, the company is estimated to be supporting about 2,000 jobs, a major contribution to social stability in these days of economic hardship in a country where living standards have yet to recover to the pre-crisis 1997 levels.

- Monitoring.
Monitoring of the development impact will focus primarily on the level of production and margins of the company.

- Demonstration Effect.
IFC''s support to Ecogreen will demonstrate that, in an environment in which many corporations are not current on their debt servicing obligations, and implementation of debt restructuring has been very slow, companies that are able to complete restructuring satisfactorily and meet their obligations will gain support from the lending community. It will also send a reassuring signal to other investors that IFC sees the Indonesian economy stabilizing.

IFC Role

IFC''s role is to help the company, which is in a capital intensive business, mobilize long-term funds at terms which are aligned to its business requirements. Availability of long-term financing at commercial terms is an issue in Indonesia, particularly for permanent working capital. IFC’s financing will also support Ecogreen’s ongoing efforts towards improving its global competitiveness after its acquisition from IBRA by a consortium of local private investor business groups.

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. The following potential environment, health and safety and social impacts were analyzed.

Environmental issues include: development of corporate environmental and health and safety management programs; raw material sourcing; air quality impacts (including odor) and abatement; waste water quality, temperature and treatment if necessary; energy efficiency in general; on-site solid waste management procedures; handling and storage of fuel, oils and hazardous materials; and workplace noise. Health and safety issues include: fire safety and emergency response; pressure vessel integrity; safety training, and housekeeping. Social issues in Ecogreen’s plants include community relations and community development activities.

Further details are provided in the Environmental Review Summary separately available with this document.
Location of environmental documents In locally affected community
The environmental documentation will be made available at the following locations:

PT.Ecogreen Oleochemicals
Jalan Raya Pelabuhan IV, Gabion-Bagan Deli,
Belawan 20414, Indonesia
Phone. (62-61) 6941020,
Fax. (62-61) 6941645

PT.Ecogreen Oleochemicals
Jalan Pelabuhan Kav. 1, Kabil, Pulau Batam
29435, Indonesia
Phone. (62-778) 711002,
Fax. (62-778) 711007