SSIA Ind Est

completed

The proposed transaction is an IDR A Loan of up to US$100 million to PT Surya Semesta Internusa (“SSIA” or “Parent Company”) to fund the US$262 million Phase I development of the new Subang Industrial Estate (SIE) in Subang, West Java (“SIE Phase I” or “Project”), expected to be a green, state-of-the-art facility. The whole SIE development may be expanded to up to 2,000 hectares through future phases that are not part of this IFC investment. The project will be implemented and operated through SSIA’s wholly-owned subsidiary, PT Suryacipta Swadaya and its subsidiaries (“SCS” or “Project Company”). The project is located 100 km east of Jakarta along the Cikopo-Palimanan Toll Road within a 17,000-hectare area that was re-zoned by the government in 2011 as an Industrial Zone. In 2014, SCS won a public bid for a Location Permit for SIE Phase I within this Industrial Zone. The current land use in the area is predominately small-scale agriculture, with presence of some residential areas. The government will build a new toll road connecting the Cikopo-Palimanan Toll Road with the planned Patimban Port that will cross the project area, but its construction and operation is independent from the project and is not an associated facility.  SIE Phase I includes the following stages: (i) land acquisition on willing buyer-willing seller basis; (ii) land clearance and site preparation; (ii) design and construction of supporting infrastructure including waste water treatment facilities, internal road networks and basic utilities connections (sewage, electricity, etc); (iv) sell or lease pre-designated plots of land to commercial customers, which are expected to be light to medium industry (e.g. manufacturing) by internationally and local recognized firms; and (v) construction of a few SCS buildings, including residential blocks.  Construction of SIE Phase I is expected to begin in late 2018 or early 2019 and be completed in 3-4 years. During operation SCS, as estate manager, will service tenants by maintaining communal infrastructure, supplying pretreated industrial water, removing nonhazardous waste, and treating industrial waste water.  Established in 1971, SSIA is an Indonesian conglomerate with core businesses interests in real estate, construction services and hospitality. SCS was established in 1990 and specializes in owning, developing, selling, leasing and managing industrial and commercial areas in Indonesia. SCS’s existing flagship development is the Suryacipta City Industrial Park in Karawang, West Java (“SCI Park”).