Djajanti's cement project secures German credit<\/p>\n
JAKARTA (JP): The widely-diversified Djajanti Group has
\nobtained a US$255 million credit commitment from Germany's KFW
\nfinance company for the procurement of plant machinery and
\nequipment from Krupp Polysius for its cement project on Seram
\nIsland in Maluku.<\/p>\n
The loan agreement was one among billions of dollars of
\nbusiness deals concluded by Indonesian and German companies
\nduring President Soeharto's current visit to Germany with 15 of
\nhis cabinet ministers.<\/p>\n
Burhan Uray, Chairman of the Djajanti Group, announced in
\nHannover that the 11-year loan would be used by Djajanti's
\nsubsidiary, PT Maluku Dinamika Semen, which is now building one
\nof the largest single-site cement plants in Indonesia with an
\nannual capacity of 10 million tons.<\/p>\n
Maluku Dinamika's Director Rubyanto Hamidjojo said the first
\nstage development covers the construction of a cement plant with
\ntwo lines designed with a combined annual capacity of 4.7 million
\ntons.<\/p>\n
The first phase of the cement project will require a total
\ninvestment of $800 million, of which $400 million will be
\nfinanced by equity capital and $400 million by loan funds.<\/p>\n
\"We will get the remaining $145 million from foreign and
\ndomestic banks,\" Rubyanto said.<\/p>\n
He said the plant will use the Polysius process technology,
\nwhich has proven very reliable at many cement plants in
\nIndonesia.<\/p>\n
Rubyanto added that the cement project, slated to come on
\nstream in the first semester of 1998, will also export a portion
\nof its output to Australia, the Philippines, New Zealand, Sabah,
\nSarawak, Singapore and Papua New Guinea.<\/p>\n
Dinamika Semen -- the first cement project in the eastern
\nIndonesian region -- is 65 percent owned by Burhan Uray and his
\nfamily-controlled PT Artika Optima Inti wood company. The other
\n35 percent is held by other domestic businessmen, including
\nSudwikatmono and Isfan Fajar Satryo, a son of Vice President Try
\nSutrisno.<\/p>\n
Kreditanstalt fur Wiederaufbau (KFW), a state finance company,
\nspecializes in providing semi-concessional loans, including
\nexport credits, to developing countries.<\/p>\n
KFW, however, usually allocates the bulk of its loan funds to
\nsovereign borrowers such as the Indonesian government under the
\nConsultative Group on Indonesia (CGI) program.<\/p>\n
The Djajanti Group is thus one of the few companies to get
\nexport credit funds from KFW.(vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/djajantis-cement-project-secures-german-credit-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}