IFC to finance estate projects in Kalimantan

IFC to finance estate projects in Kalimantan

JAKARTA (JP): The International Finance Corporation (IFC) has
agreed to provide US$41 million in equity and loans to PT
Kalimantan Sanggar Pusaka to develop oil palm estates and
refineries in W. Kalimantan.

Under an agreement signed here yesterday, the IFC -- the World
Bank's private-sector arm -- will give Kalimantan Sanggar $15
million in equity funds, a $20 million loan for its own account
and a $6 million syndicated loan for an account with Bank
Brussels Lambert.

Kalimantan Sanggar corporate secretary, Indradi Kusuma, said
yesterday the IFC had also helped his company raise a $10 million
loan from the German Development Bank.

"The project will expand our oil palm estates to 35,000
hectares," Kusuma said.

Kalimantan Sanggar, established 1988, is a subsidiary of the
forestry-based Satya Djaya Raya Group, more popularly known as
Lyman Group.

Kalimantan Sanggar will use part of the loans to develop
34,000 hectares of oil palm plantations under the government-
supported nucleus estate and smallholder scheme in cooperation
with transmigrant families and local farmers, Kusuma said.

The nucleus estate and smallholder project will help raise the
living standards of more than 17,000 rural families, Kusuma said.

Kusuma quoted IFC's director for agrobusiness development Karl
Voltaire yesterday as saying "we are pleased to be associated
with a project that has a high development impact." (vin)