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

  • Indonesia
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
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 22, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Government of Indonesia
The holder of the loan, grant, or other investment.
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, etc.
Project Cost (USD)
$ 4.26 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation 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

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
  • World Bank (WB)

funded by Montreal Protocol Investment Fund

Contact Information

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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