Summary of Proposed Investment
Project Number
7101
Company Name
KIA KERAMIK MAS, PT
Date SPI Disclosed
Aug 29, 1995
Country
Indonesia
Industry
Manufacturing
Status
Completed
Sector
Glazed Ceramic Tiles
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Feb 29, 1996
Signed : Apr 29, 1996
Invested : Jun 28, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Indonesia-P.T. KIA Keramik Mas (“KKM”) |
| Region | Asia |
Sector
Project No007101
Projected Board DateSeptember 29, 1995
Company NameP.T. Kia Keramik Mas
Technical Partner and/or Major Shareholders
P.T. Keramika Indonesia Assosiasi (“KIA”) owns 83.2% of KKM''s shares and Mr. T. Tedja, a former President and Director of KIA, holds 1.8%, while IFC holds the remaining 15%. KIA is ONGKO Group’s publicly listed ceramic wall tile company. The ONGKO Group is one of Indonesia''s most successful business groups with operations in banking and financial services, ceramic manufacturing, plastics, audio cassette manufacturing, and real estate.
Project Cost Including proposed IFC investment
Total project cost is US$175 million; IFC proposed investment consists of - Equity: US$ 6.3 million; A loan - US$ 20 million, B loan - US$ 86 million
Location of project and Description of site
Of the six proposed manufacturing lines, one will be located in Cileungsi at the existing site (20 miles from Jakarta), one in Surabaya, (Indonesia’s second largest city in East Java) at a new site in a factory area, and four in Karawang, 25 miles from Jakarta at an industrial site.
Description of Company and Purpose of Project
KKM is one of the three ONGKO Group ceramic tile manufacturing companies. KKM started operations in 1985 and was the first Indonesian producer of glazed ceramic roof tiles. The proposed project is to expand KKM’s ceramic roof tile production capacity from the current 18.6 million pieces to 87.2 million pieces by 1998 through the addition of six fully automatic production lines in three phases. The proposed expansion will allow KKM to (i) meet the fast growing demand, (ii) better exploit economies of scale, and (iii) utilize modern, efficient technologies and lower production costs.
Environmental Category and Issues
This is a category “B” project under IFC’s environmental review procedure. The project is being designed to fully comply with all the relevant Indonesian and World Bank guidelines. In that respect, the Sponsors have submitted separate environmental health and safety plans for each of the three proposed sites.
The is September 14, 1995 from the Public Information Center.
| Date SPI sent to PIC | August 29, 1995 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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