JAKARTA, INDONESIA (15 September 2020) — The Asian Development Bank (ADB) and PT Cisarua Mountain Dairy (”Cimory”) today signed a $15 million loan (in rupiah equivalent) to support livelihoods of workers in the dairy value chain and promote food security in Indonesia during the coronavirus disease (COVID-19) pandemic.
The loan will assist Cimory in its daily operations, which support the livelihoods of about 3,300 smallholder dairy farmers, 2,200 employees, and over 1,500 direct sales agents—most of them women—as they endure the COVID-19 crisis. The loan will also allow Cimory to increase its direct sales force and provide farming best practices and financial literacy training to at least 1,000 women farmers.
“Dairy is an important industry in Indonesia, as most domestic milk supply comes from thousands of smallholder farmers and thousands more are employed in processing and distribution,” said the Head of the Agribusiness Investment Unit at ADB’s Private Sector Operations Department Martin Lemoine. “Disruptions caused by COVID-19 have created food waste and interrupted food processing. We must support the livelihoods of farmers, factory workers, and sales agents during this testing time, and we must support production and distribution of dairy products to ensure food security for all.”
“COVID-19 has impacted our supply chain and changed consumer behaviors drastically in the food sector,” said the President Director of Cimory Farell Grandisuri Sutantio. “As a result, there is a high level of uncertainty as we try to increase the robustness of both our supply chain and financial posture. ADB’s support will help us navigate these uncertain times safely, allowing management to focus attention on business operations, ensuring business continuity, and safeguarding the livelihood of our stakeholders.”
Cimory is a well-established household brand in Indonesia operating in dairy products, processed meat products, and processed egg products.
The transaction is aligned with ADB’s $20 billion response package to COVID-19. As part of this assistance, ADB’s Private Sector Operations Department is providing financing support to companies facing temporary liquidity issues.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.