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Indonesia - Wilmar Group

Issue

A complaint signed by representatives of 20 Indonesian and International NGOs was filed in July 2007 regarding a series of IFC investments in companies of the Wilmar Group—a major agribusiness conglomerate specializing in production and trade of palm oil. The complaint raises a number of concerns about the social and environmental impacts of Wilmar Group’s operations, including compliance with national laws, compliance with IFC procedures and standards, and claims regarding the company’s compliance with certification protocols of the Roundtable on Sustainable Palm Oil.

IFC Interest

IFC’s support of the Wilmar Group includes an investment guarantee for $33.3 million in April 2003; a loan of $17.5 million in June 2006, and additional guarantee for $50 million in December 2006 to Delta-Wilmar CIS in the Ukraine; and an April 2006 grant of $375,000 through the Global Environment Facility-funded Biodiversity and Agricultural Commodities project.

   
Current Status
CAO Compliance is conducting an appraisal. A report is pending.

 

Last updated: 07/21/2008