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)