Nabati Indonesia (IFC-40460)

Countries
  • Indonesia
Geographic location 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
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
Mar 22, 2018
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
KALDU SARI NABATI INDONESIA, PT
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 44.00 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.
Loan Amount (USD)
$ 44.00 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.
Project Cost (USD)
$ 133.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 27, 2019

Disclosed by Bank Jan 10, 2018

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

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.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - PT Kaldu Sari Nabati Indonesia - Nabati 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.

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/

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