Jakarta, June 6, 2005--The International
Finance Corporation, the private sector arm of the World Bank Group, today
signed an agreement to provide a $24 million loan to PT Astra Otoparts
Tbk, which manufactures and distributes automotive components for domestic
automotive companies and for the domestic and export replacement market.
The loan, one of the first of its kind, provides the borrower with
the option to draw down funds in either US Dollars or Indonesian Rupiah.
The loan will support Astra Otoparts’ and its subsidiaries’ efforts to
enhance their product and process engineering skills and to strengthen
their position in the replacement market.
“The loan supports the development of a local Indonesian company and will
help it remain competitive in an increasingly open global marketplace,”
said Dimitris Tsitsiragos, the Director of IFC’s Global Manufacturing
and Services Department. IFC’s Country Manager for Indonesia, German
Vegarra, added “IFC’s capacity to provide long-term Indonesian Rupiah
financing gives Astra Otoparts the ability to avoid foreign exchange risk
if needed while helping fuel growth with long-term capital.”
President Director of PT Astra Otoparts, Budi S. Pranoto said, “IFC has
trusted Astra Otoparts by providing a loan that will be used for business
expansion to meet the increasing demand of car and motorcycle components
in Asia. The amount of Astra Otoparts sales in the first quarter
of 2005 has reached 41 percent of the total sales of the previous year
and they are expected to increase further.”
PT Astra Otoparts Tbk is an operating holding company with 28 partly and
wholly owned affiliates and subsidiaries that manufactures and distributes
automotive components. The Company and its subsidiaries directly
employ over 17,000 people. PT Astra Otoparts is majority owned by
PT Astra International Tbk., a large Indonesian group of companies with
businesses in automotive, financial services, heavy equipment, agribusiness,
information technology and infrastructure. The whole Astra group
employs more than 100,000 people throughout Indonesia.
The mission of the International Finance Corporation (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.