IFC lends $5m to local firms<\/p>\n
JAKARTA (JP): Local mining service firm PT Dianlia Setyamukti
\nsaid the World Bank's private-sector arm, International Finance
\nCorporation (IFC), had agreed to provide it with a US$5 million
\nloan to boost its production.<\/p>\n
Company president Tjahyono Imawan said on Wednesday the
\nagreement was signed last week and the loan would be disbursed
\nlater this month.<\/p>\n
\"The loan is not much, but it indicates foreign investors'
\nconfidence in our company,\" Tjahyono told a media briefing.<\/p>\n
He said the loan was aimed to cover the company's expansion
\nprogram worth $10 million to boost production to 2.15 million
\ntons this year from 1.8 million tons in 2000. The remaining $5
\nmillion would be covered with the company's equity and loans from
\nlocal financial institutions.<\/p>\n
The company, which provides excavation and transportation
\nservices to mainly coal mining companies, would use the loan to
\nbuy heavy equipment, including excavators, shovels and
\ntransportation and add to its working capital, Tjahyono said.<\/p>\n
Of the total loan, $4 million carries an interest rate of 5
\npercent above the London inter-bank offered rate (LIBOR) maturing
\nin 2006, while the remaining $1 million is due in 2010 with an
\ninterest rate of 4.5 percent above LIBOR, Tjahyono said.<\/p>\n
The company would pay the loan's installment every six months
\nstarting next year, he said, adding IFC had an option to convert
\nthe loan into shares starting 2004.<\/p>\n
Company finance director Bimantoro Adisanyoto said the loan
\nwould enable the company to meet the growing demand in the mining
\nindustry.<\/p>\n
Early this year, the company was awarded by its coal mining
\ncompany clients contract extensions for another three to five
\nyears, but Bimantoro was reluctant to provide figures on the
\nvalue of the contracts.<\/p>\n
The company, which was established in 1991, provides full
\nmining services to coal mining company PT Berau Coal located in
\nEast Kalimantan.<\/p>\n
It provides transportation to carry coal produced by coal
\nmining company PT Adaro Indonesia in South Kalimantan, where it
\nserves as the subcontractor of Adaro's contractor PT Pamapersada
\nNusantara.<\/p>\n
Aside from coal companies, the company also provides services
\nto gold mining companies, but, the company said, gold accounts
\nfor only 10 percent of the company's operations.<\/p>\n
Akil Abduljalil, IFC's senior executive, said IFC agreed to
\nprovide a loan to Dianlia on the grounds that the company
\nsupported the superior mining industry.<\/p>\n
\"We strongly support private sectors or firms that are export-
\noriented,\" he told The Jakarta Post.<\/p>\n
The loan also indicated IFC's commitment to help
\nthe country recover from its economic crisis, which started in
\nmid-1997, he added.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ifc-lends-5m-to-local-firms-1447893297",
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"sponsor": "Okusi Associates",
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