- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
December 11, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD1.2 million (JBIC portion) with PT. FASIC INDONESIA (PTFI), an Indonesian subsidiary of FASIC CO., LTD (FASIC; Headquarters: Aichi Prefecture; President: Issei Shibata). The loan is cofinanced with THE SHIGA BANK, LTD. with the overall cofinancing amount reaching the equivalent of USD1.761 million.
This loan is intended to provide funds to PTFI required for conducting the manufacturing and sales business of suits in Cianjur, Jawa Barat. The loan will fund the expansion of its production facilities.
FASIC is a small and medium-sized enterprise (SME) specializing in development of private brands for retailers of men's clothes as well as for women's clothes, such as suits and jackets. The company is mainly planning, manufacturing and supplying its products to major volume sellers of suits. In March 2011, FASIC established PTFI in Indonesia as its production base under China plus one policy, for it has geographical advantage with access to its export destinations, Japan and Korea, in addition to having inexpensive and abundant labor force. Since FASIC has its sights on local production and consumption type business, it intends to increase the local market share by strengthening its production system in Indonesia where the market of textile products is expected to increase due to expansion of domestic demand along with the country's stable economic growth. Thus, this loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries through support for the overseas business deployment of FASIC.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, in growing markets such as Indonesia, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.