Napan Group gets loan

Napan Group gets loan

JAKARTA (JP): A syndication of domestic banks led by Bank
International Indonesia (BII) yesterday agreed to provide a loan
of US$52.50 million to PT Megarimba Karyatama, an affiliate of
the Napan Group, for the construction of a new compressed
fiberboard plant in Sumatra.

The loan agreement was signed here by the president of
Megarimba Karyatama, Sudwikatmono, and executives of the bank
syndication, including BII, Bank Bali, Bank Bira, Modern Bank,
Pan Indonesia Bank, Bank Dharmala, Bank Niaga, Ficorinvest Bank,
Finconesia Bank, Tamara Bank, Bank Pacific and Bank PDFCI.

Sudwikatmono said the loan, which will have a maturity of
eight years, will be used to finance the establishment of a
fiberboard manufacturing plant on a 40-hectare area in Lampung,
which will cost $70 million.

"Out of the costs, $17.5 million will be financed with the
company's own equity," he said.

The coordinator of the plant construction, Edward Djumali,
told The Jakarta Post that the interest rate on the loan will be
set at two percentage points above the average of the costs of
funds generated by the syndicated banks.

The planned plant, the first of its kind in the country, will
process wooden wastes and fiberwoods of unused logs to become
stiff sheets and boards, materials that can be used to make
furniture and home appliances, Sudwikatmono said.

He said that Megarimba Karyatama will start to construct the
plant in the first quarter of next year.

The plant, which will use German technology, will be capable
of producing over 130,000 cubic meters of compressed fiberboard
per year beginning in 1996.

"We plan to sell some 40 percent of the company's production
on the domestic market and the other 60 percent on the
international market," he said, adding that the company plans to
export its products to Japan, China and other Asian countries.

Djumali said his company, in producing fiberboards, popularly
known as medium density fiberboards (MDF), will rely on the
supply of raw materials from a 40,000-hectare forestry estate
owned by one of Napan Group's subsidiaries, PT London Sumatra,
and the state own forestry company PT Perhutani V, which is
committed to supplying materials from its 50-hectare estate in
South Sumatra under a long-term agreement.

Set up in 1993, Megarimba Karyatama is owned by Sudwikatmono,
Adry Pribadi, Deddy Kusuma, Wilson Pribadi, Eddy Suriatmadjaja
and PT Murni Cipta Sentosa. (fhp)