Gunung Steel (IFC-48157)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Cikarang Barat, West Java Province
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 28, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
PT. Gunung Raja Paksi Tbk
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 60.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Sep 14, 2024

Disclosed by Bank Jun 28, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Project consists of an investment by IFC in the form of an A loan of up to US$60 million equivalent in PT Gunung Rajapaksi Tbk (GRP or the Company). GRP is a leading steel producer in Indonesia involved in the production of crude steel from EAF to mainstream and downstream flat steel products. The Company primarily serves the growing domestic demand for steel in Indonesia. The Project will fund GRP’s capital expenditure to expand its upstream, middlestream and downstream capacity to produce coated steel, along with investments to increase energy efficiency. The climate component of the Project is assessed as 92 percent of the total Project cost, and the Project is aligned with the goals of the Paris Agreement.

The proposed investment will be used to fund capital expenditure and working capital needs associated with GRP’s flat steel business, including (i) downstream capacity expansion through the set-up of a new steel coating line; (ii) cost efficiency and productivity improvement measures related to existing?equipment; and (iii) scrap inventory.                                      

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B project according to IFC's Policy on Environment and Social Sustainability (2012), with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

 IFC’s proposed financing will comprise up to US$60 million (equivalent in IDR) in the form of a senior-secured A loan with a seven-year maturity. 

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Listed on the Indonesia Stock Exchange (IDX) in September 2019, GRP has a market capitalization of IDR5.01 trillion (US$308 million) as of May 29th, 2024. The Company (under a different name) was founded by six siblings in 1970 in Medan, Sumatra Province and later moved to Jakarta in 1991. Currently, first- and second-generation members of the founding family, directly and indirectly own 90.3 percent of GRP shares. The remaining 9.7 percent is held by the public.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - PT Gunung Raja Paksi Tbk Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

PT. Gunung Raja Paksi Tbk
Chrishandy Kurniawan
Deputy CFO
+62 899-8787-367
chrishandy.kurniawan@gunungsteel.com
Jl.perjuangan no.8.Kp.Tangsi.RT 04 RW 006.Sukadanau.Cikarang Barat.Bekasi.
https://www.gunungrajapaksi.com/    

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works