Indo-Rama gets loan

JAKARTA (JP): PT Indo-Rama Synthetics, one of the largest integrated producers of blended polyester yarns in Indonesia, agreed yesterday to a US$25.5 million deferred payment credit facility with Nissho Iwai Corporation of Japan for its polyester and weaving expansion plans.

The deal was signed by Indo-Rama's president, S.P. Lohia, Nissho Iwai Indonesia's General Manager Akitoshi Hosokawa and Project Officer of International Finance Corporation Akil Abduljalil,

The eight-year facility arranged by Nissho Iwai Corporation will finance the importation of Japanese machinery by Indo-Rama for its expansion projects.

The company said it had commissioned its polyethylene resin plant on schedule this year without any cost over-run and the new facility had stabilized production and had started exporting.

Since the price of polyethylene resin is firming up on the international market, the company plans to export over 70 percent of its production, Indo-Rama announced.

Indo-Rama, a listed company, posted a net profit of Rp 62.16 billion (US$28 million) last year, up from Rp 50.33 billion in 1993. (31)