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WASHINGTON, D.C., March 11 -- The International Finance Corporation (IFC) signed investment agreements in Jakarta today to provide a financing package of US$35 million to P.T. Dharmala Agrifood for its expansion into poultry production. The company is the agribusiness arm of the Dharmala Group. Established in 1971 as P.T. Tjilatjap Pelletizing Factory, the company began as a trader of primary agricultural commodities. Its expansion into the poultry industry represents on-going diversification from trading and processing of primary products to value-added high margin products. IFC's investment will help to position Dharmala Agrifood as a fully integrated poultry operator. IFC's financing package consists of a US$20 million loan for its own account and a syndicated loan of up to US$15 million, which IFC will raise from international banks and financial institutions. The project promotes rural growth and will have a significant developmental impact as it includes construction of various production units throughout Indonesia, including the underdeveloped islands of Kalimantan and Sulawesi. The company plans to establish a contract farming network to supply broilers for its processing plant. The proposed outgrower network will provide more rural employment opportunities and increased income for local farmers. Mr. Karl Voltaire, Director of IFC's Agribusiness Department said, "We are very pleased to be associated with this project -- which not only uses modern technology and meets international environmental standards -- but also makes available an improved range of lower-priced, hygienically processed meat products." IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
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