Djajanti's cement project secures German credit
Djajanti's cement project secures German credit
JAKARTA (JP): The widely-diversified Djajanti Group has
obtained a US$255 million credit commitment from Germany's KFW
finance company for the procurement of plant machinery and
equipment from Krupp Polysius for its cement project on Seram
Island in Maluku.
The loan agreement was one among billions of dollars of
business deals concluded by Indonesian and German companies
during President Soeharto's current visit to Germany with 15 of
his cabinet ministers.
Burhan Uray, Chairman of the Djajanti Group, announced in
Hannover that the 11-year loan would be used by Djajanti's
subsidiary, PT Maluku Dinamika Semen, which is now building one
of the largest single-site cement plants in Indonesia with an
annual capacity of 10 million tons.
Maluku Dinamika's Director Rubyanto Hamidjojo said the first
stage development covers the construction of a cement plant with
two lines designed with a combined annual capacity of 4.7 million
tons.
The first phase of the cement project will require a total
investment of $800 million, of which $400 million will be
financed by equity capital and $400 million by loan funds.
"We will get the remaining $145 million from foreign and
domestic banks," Rubyanto said.
He said the plant will use the Polysius process technology,
which has proven very reliable at many cement plants in
Indonesia.
Rubyanto added that the cement project, slated to come on
stream in the first semester of 1998, will also export a portion
of its output to Australia, the Philippines, New Zealand, Sabah,
Sarawak, Singapore and Papua New Guinea.
Dinamika Semen -- the first cement project in the eastern
Indonesian region -- is 65 percent owned by Burhan Uray and his
family-controlled PT Artika Optima Inti wood company. The other
35 percent is held by other domestic businessmen, including
Sudwikatmono and Isfan Fajar Satryo, a son of Vice President Try
Sutrisno.
Kreditanstalt fur Wiederaufbau (KFW), a state finance company,
specializes in providing semi-concessional loans, including
export credits, to developing countries.
KFW, however, usually allocates the bulk of its loan funds to
sovereign borrowers such as the Indonesian government under the
Consultative Group on Indonesia (CGI) program.
The Djajanti Group is thus one of the few companies to get
export credit funds from KFW.(vin)