Wings Oil Palm

completed

The project companies were established by the Wings Group in 1995 to engage primarily in the development and maintenance of oil palm plantations and related manufacturing activities. Agricultural development started in 1996 and as of December 2000 a total area of 10,659 ha had been planted with oil palms. The project covers both the development progress to date and the next phase comprising the maintenance to maturity of immature plantations, planting of the remaining 2,700 ha of land and the construction of a second palm oil mill. The project is the Wings expansion into agribusiness as a strategic investment that will offer synergy with its existing business and capitalize on Indonesia''s optimal conditions for oil palm cultivation. The project is located in an undeveloped rural area in Kalimantan. It has a significant development impact by providing employment and income generating opportunities to the local people in the remote area. It is in support of an export product for which Indonesia has a competitive advantage. In addition, the project will serve as a model in addressing social/community issues in the plantation development.IFC''s role is seen as crucial because long-term financing is still scarce in Indonesia, especially for agribusiness projects. This is particularly relevant in the oil palm industry where large plantations developed in the early 1990s are currently unable to source end-financing to complete their investments and more specifically their processing facilities. IFC''s financing of the project is expected to be pivotal in reducing the perceived risks by potential institutional investors and banks.