According to the bank documents, the project objective is to reduce the consumption of HCFC-141b in the foam sector in Indonesia in order to contribute to the government's effort to comply with Indonesia's HCFC phase-out obligations under the MP. -- Stage 2 of the project will organize the HCFC-141b phase-out in the remaining PU foam sub-sectors, which are: thermoware, water heaters, imitation wood, sandwich panels, block foams, pipe and tank insulation, spray foam, and fishing boats. In addition, Stage 2 will support domestic foam system houses to ensure adequate supply of substitutes, provide technical assistance (TA)to the foam sector, and support the government’s regulatory agenda.
The project will provide investment support to 12 companies. Four companies with HCFC consumption of at least 20 MT each will introduce cyclopentane (CP) as foam blowing agent and eight companies (7-20 MT) will convert to pre-blended CP polyols. The technology deployed, safeguard requirements and the replacement process will be the same as for Stage 1. About 200 companies with HCFC-141b consumption below 7 MT will switch to pre-blended hydrofluoroolefin (HFO) -- a new and currently more expensive technology with low upfront investment cost. They will receive vouchers as financial incentive, which they can use to buy pre-blended polyol at a discount. Component 1 will also support two system houses to introduce technology that allows them to supply low GWP foaming formulations to the market.
funded by Montreal Protocol Investment Fund
Task Team Leaders: Johannes Heister,Ina Binari Pranoto
Government of Indonesia
Director General for Debt Management, Ministry of Finance
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