Nabati Indonesia (IFC-40460)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Specific Location
Majalengka, West Java
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 22, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
KALDU SARI NABATI INDONESIA, PT
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 44.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 44.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 133.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 27, 2019

Disclosed by Bank Jan 10, 2018


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Project Description

According to the bank website, the project will support the expansion of its wafers, biscuits and snacks factory in Majalengka. The Project is expected to cost US$133 million of which US$33 million is from internally generated cash. 

Project-level impacts are expected through employment creation both during the construction and operation phases as well as through economic activities along the value chain, especially at the downstream end with Nabati's extensive sales force and distributors. It will also increase tax revenues in Majalengka, a frontier region in Indonesia where the minimum salary is US$150 per month vs. US$ 200 in the closest largest city or US$ 250 in Jakarta. The Project will also improve incomes of the SMEs which supply materials to Nabati. The Project is also expected to contribute to food security for bottom of the pyramid consumers. The new facilities to be funded by IFC will produce low market pricing products which are fortified with vitamins A, B1, B2, B6 and B12 (currently ~80% of Nabati's products are fortified).

Investment Description
  • International Finance Corporation (IFC)
Private Actors

Nabati was founded in 1985 by Mr Krisdianto Lesmana and his wife, Mrs Ida Surjati Djaja Mukti (the “Founders”). The Company is part of the Nabati Group which consists of several lines of business: (i) Food manufacturing; (ii)Quick service restaurants; (iii) Domestic sales and distribution; (iv) International sales and distribution; (v) Property and building management services. The Founders in 2005 passed the leadership baton to their eldest son, Mr Erwin Lesmana. Their other sons, Mr Ernest and Ericksanders Lesmana, and daughter, Mrs Elisa Lesmana, are also holding key management positions. Nabati is wholly owned by the Founders’ family.

Contact Information

Project Contact: Mr Erwin Lesmana
CEO, PT Kaldu Sari Nabati Indonesia 
Telephone No.: +62226000666
Office Address: JI. Soekarno-Hatta No.112, Bandung, 40223 Indonesia
Website: www.nabatigroup.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/