Awal Bros (IFC-40946)

Countries
  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Pasar Kemis, Semarang, Sukabumi, Java, Sumatera, and Kalimantan
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
Proposed
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."
Borrower
PT FAMON AWAL BROS SEDAYA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Education and Health
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)
$ 75.00 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)
$ 75.00 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)
$ 122.00 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 May 7, 2020

Disclosed by Bank Dec 27, 2019

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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 document, the proposed investment is an up to US$ 75 mm 10-year A-Loan to PT Famon Awal Bros Sedaya (“Famon Awal Bros” or the “company”), to support its overall expansion plan (The “Project”) within the next 5-7 years. The loan will consist of two tranches.

The first tranche, expected to be committed in early 2020, is an up to US$35 mm Loan to support the Company’s immediate plan to build three new hospitals, expand bed capacity in existing hospitals and potential refinancing.

The second tranche up to US$40 mm, expected to be committed after the completion of the three new hospitals under tranche 1, will be used to support the expansion plan for the remaining future hospitals. Currently, the company owns and/or operates eight hospitals with over 1000 beds across the islands of Java, Sulawesi and Kalimantan.

The company also owns and operates several clinics, including corporate in house clinics and a school clinic. The hospitals constructed under tranche 1 of this investment will be in: Pasar Kemis, Semarang and, Sukabumi, (under planning and design stage). The company have acquired the plots of land for these and up to 7 other future hospital units. Each new hospital shall be built within the urban fringe of second-tier Indonesian cities spread over about 6,000 – 13,000 m2 of land including generator houses, wastewater treatment, waste storage, and car parking.

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

The estimated Total Project Cost is US$122 million, which can be broken down as follows:

Total Project Cost for the development of three new hospitals funded by Tranche 1 is estimated at US$44 million. IIFC’s funds - US$35.00 million will be used to support bed capacity expansion in existing hospitals and potential refinancing.

Total Project Cost for the additional new hospitals to be developed after the initial three facilities are developed is estimated at US$78 million.  These additional hospitals will be funded in part by Tranche 2.

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.

PT Famon Awal Bros Sedaya is owned by Prof. Dr. Yos Susanto, Mr. Arfan Awaloeddin, and the Saratoga Group.

Prof. Yos Susanto is an industry veteran with almost 40 years of experience in the Indonesian healthcare industry. He was previously in charge of the hospital operations of Indonesia’s largest listed pharmaceutical group. 

Mr. Arfan Awaloeddin’s family originates from Pekanbaru in Sumatra and established a trading business in the 1950’s dealing in agri-commodities and food staples. The Awaloeddin Family later expanded into services and logistics for the petrochemical and natural resources sectors. In 1997, the Awaloeddin Family entered the healthcare business with the development of their first hospital in their hometown of Pekanbaru.

Saratoga is an Indonesian private equity firm founded by Mr. Edwin Soeryadjaya. Established in 1998, Saratoga has invested in various sectors including healthcare, consumer, infrastructure, logistics and natural resources. Saratoga has been an IFC client since 2006.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - PT Famon Awal Bros Sedaya Client -
- - - - PT Saratoga Investama Sedaya Tbk Parent Company -

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.

1/ The Project Contact

PT Famon Awal Bros Sedaya
Contact: Mr. Edi Anto
Chief Financial Officer

Phone number: +6221-4217746

Email: edi.anto@awalbros.com

Address: Graha Cempaka Mas Blok D/20 Jl. Letjen Suprapto, Cempaka Putih Jakarta Pusat 10640

Website: www.awalbros.com

2/ IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

3/ Local Access for Project Documentation

The SII will be disclosed locally at the following address: 

Graha Cempaka Mas Blok D/20

Jl, Letjen Suprapto, Cempaka Putih

Jakarta Pusat 10640

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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How it works