Indonesia: HCFC Phase-out in the PU Foam Sector: Additional Financing for Stage 2 (WB-P161588)

  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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
Dec 22, 2017
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.
Government of Indonesia
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Climate and Environment
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Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Project Cost (USD)
$ 4.26 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 @ WB website

Updated in EWS Mar 27, 2019

Disclosed by Bank Jun 30, 2017

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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 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.

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

funded by Montreal Protocol Investment Fund

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Task Team Leaders: Johannes Heister,Ina Binari Pranoto

Government of Indonesia
Contact: Pakpahan
Director General for Debt Management, Ministry of Finance


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