Summary of Proposed Investment
Project Number
8960
Company Name
INDO-RAMA SYNTHETICS, PT TBK
Date SPI Disclosed
May 1, 1998
Country
Indonesia
Industry
Manufacturing
Status
Completed
Sector
Integrated Textile Operation (Spinning, Weaving/Knitting, but no Garment )
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
C - No Impact
Previous Events
Approved : Dec 3, 1998
Signed : Dec 21, 1998
Invested : Dec 23, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Indonesia - PT Indorama Synthetics |
| Region | Asia |
| Sector |
Projected Board DateJune 4, 1998
Company NamePT Indorama Synthetics Tbk
Technical Partner and/or Major Shareholders
The Major shareholder of the Company is the Lohia family through their holding companies.
Project Cost Including Proposed IFC Investment
The proposed IFC A-Loan of US$30 million will be used to finance the working capital requirement of Indorama.
Location of Project and Description of Site
Indorama''s plants are located in Purwakarta and Bandung in Indonesia. Both of the sites are existing industrial sites. The proposed loan does not involve any additional construction.
Description of Company and Purpose of Project
IFC will play a critical role in alleviating liquidity problems faced by companies such as Indorama as a result of the financial crisis in Indonesia. In the prevailing environment, Indonesian companies are facing increasing difficulties in accessing new financing for working capital. Furthermore, they are unable to finance raw material imports as letters of credit opened with local banks and branches of foreign banks are no longer being accepted. The IFC loan would, therefore, provide the Company with the necessary liquidity to finance its increased working capital requirements and continue normal production. IFC’s intervention would also be very timely in supporting a fundamentally strong company withstand the crisis in Indonesia and remain viable.
Environmental Category and Issues
This investment is a classified as a Category C, since it will not directly involve any physical activities and will not have any environmental impact. With regard to the existing operations, the sponsor is in full compliance with both national air and water effluent standards and the World Bank Group guidelines established for this project. The company''s environmental management and health and safety practices are exemplary. The company provides environmental monitoring reports to IFC as required.
| Date SPI sent to InfoShop | May 1, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
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May 1, 1998 9:20 PM
Sponsor / Cost / Location
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