Jakarta. Indonesia’s largest rayon fiber producer Asia Pacific Rayon, or APR, has secured a syndicated loan facility of Rp 4.5 trillion ($300 million) with national and international affiliated banks, the company announced in a statement on Friday.
Among the participating banks are Bank Rakyat Indonesia (BRI), Bank Central Indonesia (BCA), Bank Pan Indonesia, who also act as the joint mandated lead arrangers and bookrunners. Bank Bank Pembangunan Daerah Jawa Barat, Bank Woori Saudara Indonesia, and Bank KEB Hana Indonesia also joined in the syndicated loan facility.
APR is part of the resource-based industrial group Royal Golden Eagle (RGE). According to APR director Basrie Kamba, the company will use the fundings to support continued investment in their operations at Pangkalan Kerinci, Riau Province.
“Rayon fiber, or viscose, is a textile raw material derived from sustainably managed plantations. As rayon is both renewable and biodegradable, it supports the trend towards sustainable fashion in Indonesia and in other markets around the world,” Basrie said.
Basrie noted APR’s expansion plan aligns with the government’s strategy to boost investment and employment to recover from the Covid-19 pandemic. The government has introduced Job Creation Law to improve the investment climate. Last month, President Joko “Jokowi” Widodo also stated the investment would be the key factor in achieving 5 percent economic growth in 2021.
"This loan facility and our continued investment in our operations are evidence of the growth potential of the viscose rayon sector in Indonesia and around the world,” Basrie said.
“We are committed to supporting the Indonesian government's efforts to improve the investment climate in export-oriented manufacturing industries, and its efforts to create upstream jobs in plantations and the processing of raw materials, and downstream opportunities in textile factories and related businesses,” he added.
BRI executive vice president Hari Setiawan hopes this collaboration will bolster APR’s growth and development in increasing production and operations and also supporting the recovery of Indonesia's export growth.
Whilst BCA executive vice president Susiana Santoso said the syndicated loan reflects the banks’ confidence in APR.
“And as our contribution to promote a sustainable and environment friendly industry. We hope this cooperation will tighten our relationship as well,” Susiana said.