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, PT Gawi and PT Prakars). 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 $50 million including contingencies but excluding incremental working capital. The proposed IFC investment is an A loan for IFC’s own account in an amount of up to $25 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

The plant will be established at the company’s existing facilities in Batam, Indonesia. Batam is an island off the coast of Singapore connected to it by an hour-long ferry ride. It is also connected by flights to Medan and Jakarta, both about one hour away. The Batam plant is a stand-alone facility with independent power, steam generation and water supply. At Batam, the raw material, diesel, LPG and other feedstock are unloaded through an adjacent public jetty through dedicated pipelines. This jetty is capable of berthing three 12-meter draft vessels simultaneously. The jetty and related facilities also allow movement of material through isocontainers and dry containers.

This project involves the strengthening and expansion of an existing oleochemicals company in Indonesia. The project will generate developmental benefits in the form of preservation of existing jobs and some new jobs, and will signal IFC’s confidence in the Indonesian economy. - Job preservation and social stability: The Company expects that it would hire 70-75 new employees as a result of the expansion. It already employs about 550 people directly and the palm kernel oil feedstock that would be purchased by the Company is estimated to be responsible for another 1500-1900 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 250-300 jobs. Thus, directly and indirectly, the Company is estimated to be supporting about 2,500 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. - Demonstration Effect: IFC's presence will be a positive signal to investors and companies about the willingness of the financial community to support good companies and at the same time send positive signals about the recovery of the Indonesian economy. - Foreign Exchange Earnings: Ecogreen exports about 95% of its production, earning valuable foreign exchange.

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 information submitted by the project sponsor. The following potential environment, health and safety impacts of the projects were analyzed: Environmental, health and safety management; Raw material sourcing; Air quality impacts (including odor) and abatement; Waste water quality, temperature and treatment; Cleaner production; On-site solid waste management procedures; Handling and storage of fuel and other hazardous materials; Fire safety and emergency response; and Community relations and community development.
Location of environmental documents in locally affected community
PT.Ecogreen Oleochemicals Jalan Pelabuhan Kav. 1 Kabil, Pulau Batam 29435 Indonesia Phone. (62-778) 711002 Fax. (62-778) 711007