Overview

China Eximbank provides $31 million loan for Sokon Car Factory Project

Commitments (Constant USD, 2023)$32,987,918

Commitment Year•2017Country of Activity•IndonesiaDirect Recipient Country of Incorporation•IndonesiaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2017

End (actual): Nov 28, 2017

Last repayment (originally scheduled): Dec 31, 2023

Geospatial footprint

Map overview

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The purpose of the $150 million project was to construct an automobile manufacturing plant in a 20 hectare area within an industrial zone (known as Kawasan Industri Modern) in Serang Regency and Banten Province. More detailed locational information can be found at https://www.openstreetmap.org/way/438966026#map=14/-6.1970/106.3217

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownershipAt least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

PT. Sokonindo Automobile

Loan description

China Eximbank provides $31 million loan for Sokon Car Factory Project

Interest type•UnknownMaturity•7 years

Narrative

Full Description

Project narrative

In 2017, China Eximbank and PT. Sokonindo Automobile — a special purpose vehicle and joint venture between Sokon Group (Hong Kong) Company Limited and PT Kaisar Motorindo Industri — signed a $31 million loan agreement for the Sokon Car Factory Project. The loan carries a 7-year maturity. Its other borrowing terms are unknown. The purpose of the $150 million project was to construct an automobile manufacturing plant in a 20 hectare area within an industrial zone (known as Kawasan Industri Modern) in Serang Regency and Banten Province that is capable of producing the Dongfeng Sokon (DFSK). The facility’s production activities include stamping, welding, painting and assembly. It was designed to have production a capacity of 50,000 units per year by 2019. Construction began in 2015. The plant’s opening ceremony took place on November 28, 2017.

Staff comments

1. The Chinese project title is 小康集团印尼工厂汽车项目 or 小康印尼乘用化改造项目.