Indonesia : Cimory Inclusive Dairy Value Chain Project

Nonsovereign Project | 55301-001

The transaction involves an equity investment of up to IDR 140.59 billion (corresponding to up to $10,000,000 at the time of this approval) in PT Cisarua Mountain Dairy Tbk (CMD) for the Cimory Inclusive Dairy Value Chain Project in Indonesia.

Project Details

  • Project Officer
    Donges, Carine Sophie
    Private Sector Operations Department
    Request for information
  • Approval Date
    27 October 2021
  • Country/Economy
    Indonesia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Cimory Inclusive Dairy Value Chain Project
Project Number 55301-001
Borrower / Company PT Cisarua Mountain Dairy Tbk
Country / Economy Indonesia
Location Nation-wide
Type or Modality of Assistance
7693 Equity Ordinary capital resources USD 4.20 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Office of the Director General, PSOD
Responsible ADB Officer Donges, Carine Sophie
Project Sponsor(s)
Description The transaction involves an equity investment of up to IDR 140.59 billion (corresponding to up to $10,000,000 at the time of this approval) in PT Cisarua Mountain Dairy Tbk (CMD) for the Cimory Inclusive Dairy Value Chain Project in Indonesia.
Objectives and Scope The equity investment will promote increased production of affordable nutritious dairy products, which will support the livelihoods of stakeholders across the dairy value chain including sourcing from about 4,200 additional dairy farmers and creating jobs for about 400 employees and 5,000 female sales agents. It will support rural livelihoods, sustain gender inclusion, and contribute to food security. It is fully aligned with the Government of Indonesia's goal of improved sustainability of farming, with a focus on achieving food sovereignty through food self-sufficiency, strengthened agricultural bio-industry systems, enhanced gender equality, and increased farmer welfare.
Linkage to Country/Regional Strategy The project is aligned with ADB's Strategy 2030, which calls for ADB to (i) scale up its financing for agribusinesses and (ii) promote gender equality in at least 75% of its committed operations by 2030. The project will support operational priority (OP) 1 of Strategy 2030 (addressing remaining poverty and reducing inequalities) by improving the living standards of dairy farmers and sales agents. The project is consistent with three of the five elements of OP 2 (accelerating progress in gender equality) as it will economically empower women, enhance gender equality in human development, and strengthen women's resilience to external shocks. The project will support OP 3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability) through the adoption of energy efficiency targets. The project is also aligned with the Operational Plan for Private Sector Operations, 20192024, which aims to make direct equity investments in established medium-sized to large companies with significant growth prospects and/or the potential to gain significant market share in their industries, including in companies with existing relationships with ADB and in the context of an IPO when ADB's participation as an anchor investor will add value by improving environmental and social safeguard systems and corporate governance. Finally, the project is fully aligned with the objective of ADB's country partnership strategy for Indonesia, 20202024, which is to achieve higher, more inclusive, and environmentally sustainable growth.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects ADB has categorized the project in compliance with ADB's Safeguard Policy Statement (2009) as environment (category B). In this corporate finance transaction as defined in ADB's Safeguard Policy Statement, the use of ADB proceeds will be ring-fenced to the dairy processing capacity expansion at two of CMD's existing facilities, located in Pasuruan, East Java, and Sentul, West Java, and to working capital allocated to dairy activities. ADB has undertaken due diligence and reviewed the potential environmental and social (E&S) impacts of the project and the measures to avoid, minimize, mitigate, and compensate for the adverse impacts in relevant documents. The E&S measures and the institutional capacity and commitment of CMD to manage the project's E&S impacts are deemed adequate.
Involuntary Resettlement Involuntary resettlement (category C)
Indigenous Peoples Indigenous peoples (category C)
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 27 Oct 2021
Last PDS Update 10 Dec 2021

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
Cimory Inclusive Dairy Value Chain: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Oct 2021
Cimory Inclusive Dairy Value Chain Project: FAST Report Faster Approach to Small Nonsovereign Transactions Oct 2021

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Cimory Inclusive Dairy Value Chain Project: Updated Environmental and Social Compliance Audit Report Environment and Social Compliance Audit Reports Oct 2021
Cimory Inclusive Dairy Value Chain Project: Environmental and Social Compliance Audit Report Environment and Social Compliance Audit Reports Mar 2023

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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