Dairy Farmer Support and Food Security Project

The project will help PT Cisarua Mountain Dairy (CMD) sustain its operations through the COVID-19 crisis by providing financing for working capital and operational expenditure. Due to global logistic disruptions, CMD needs to increase its inventory levels of imported materials to ensure adequate buffers for sustained operations. The US dollar appreciation versus Indonesian rupiah has been weighing on the cost of imported materials, further increasing liquidity needs for building up those inventories. In addition, CMD has started experiencing delayed payments from some of its customers, which have been more severely affected by the crisis. As a result, the cash conversion cycle of the company is expected to increase significantly and cannot be financed from the company's operating cash flow alone. The liquidity support will allow CMD to sustain business operations, enabling stable production and timely payments to farmers, suppliers, employees and sales agents.