, P.T. Astra International is one of the largest automotive business in Indonesia. The company also has interests in financial services, agribusiness and heavy equipment. The $150 million rights issue will complement Astra’s recently scheduled comprehensive debt restructuring plan which will be approved on November 26, 2002. The plan aims to: establish an achievable debt amortization schedule, and an appropriate and sustainable capital structure; and provide funding flexibility to support Astra's operations and business development. Development Impact Indonesia is lagging other Asian crisis countries in its corporate restructuring efforts. The project is part of the financial restructuring of one of the leading Indonesian private sector corporates and as such is expected to have a strong demonstration effect on the restructuring of the corporate sector in the country. The venture will help Astra, which employs over 56,000 people, to be more competitive by enabling it to: strengthen its balance sheet; undertake needed investments in modernizing and expanding its automotive distribution/dealership business to further enhance customer service and productivity in a competitive and increasingly liberalized industry. The proposed rights issue would be marketed extensively to institutional investors in the US and in Europe and would help to re-introduce Indonesia and Astra to these markets. IFC Role because of its strong, long-standing relationship with Astra and its reputation as an independent investor, IFC has been invited by C&C/Jardines to be a stand-by investor for unsubscribed rights. IFC involvement should help ensure success of the rights issue in the current uncertain economic and political climate and send a strong signal to the investment community that IFC is supportive of first-class companies in Indonesia with good corporate governance and environmental performance. This is the first non-distressed rights issue in Indonesia since the Asian crisis and its success would provide a much-needed vote of confidence in Indonesia’s manufacturing sector.