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            BANK NEWS RELEASE NO. 77/116                                                JUNE 2,   1977

             INDONESIAN DEVELOPMENT FINANCE COMPANY RECEIVES $40 MILLION WORLD BANK LOAN


                       The \1orld Bank has approved a $40 mi 11 ion loan for Indonesia to as-

            sist the operations of Bank Pembangunan Indonesia (BAPINDO), the Government-

            owned development bank.

                       Apart from partly replenishing BAPlNDO's foreign exchan9e resources,

            the loan will contribute to the sound development of Indonesian industry by

            providing finance on suitable terms.               The loan includes arrangements for

            strengthening the organization and improvin9 its operations.



•                      As of December 31, 1976, BAPINDO had total assets amounting to Rp 125

            billion ($300 million eouivalent), including net-worth of Ro 45 billion ($108

            mill ion equivalent).         RAPINDO has a staff of aobut 800, working in 16 depart-

            ments at headquarters in Jakarta, in 10 branch offices and eight representative

            offices.

                       BAPINDO's operations include medium and long-term loans in foreign and

            domestic currecy, working capital loans in domestic curre~cy and investments in

            equity shares.        Operations cover activities in manufacturing, land and maritime

            transportation and tourism.

                       Interest on the $40 million loan wi 11 be 8.2% per annum.           The proceeds

            of the loan wil 1 be onlent to BAPINDO by the ~overnment of Indonesia at an in-

            terest rate of 11% and relent by BAPINDO to sub-borrowers at a rate of 15%.                  The

            amortization schedule will be adjusted to conform substantially to the aggregate



•           of the repayment schedules of subloans made by BAPINDO, whose maturities will not

            exceed 15 years including three years of grace.

            NOTE:     Money figures are expressed in U.S. dollar equivalents.