MIRA
INFORM REPORT
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Report Date : |
26.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
P.T. RIAU ANDALAN PULP & PAPER |
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Registered Office : |
Pangkalan Kerinci, Kecamatan Langgom, Kabupaten Kampar, Riau Province |
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Country : |
Indonesia |
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Date of Incorporation : |
15 May 1989 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Integrated Pulp and Paper Industry |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 80,400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Correct Name of Company
P.T. RIAU ANDALAN PULP & PAPER
Address
Head Office & Factory
Pangkalan Kerinci
Kecamatan Langgom
Kabupaten Kampar
Riau Province
Indonesia
Phone - (62-761) 95529,
95725, 95777
Fax. - (62-761) 95681
Land Area - 45.0 hectares
Office Space - 18.0 hectares
Region - Industrial
Zone
Status - Owned
Branches
a. Jalan Teluk Betung No. 31
Jakarta 10230
Phone - (021) 3923189
Fax. - (021) 3923551
b. UNIPLAZA, East Tower
6th Floor, Block
A-1
Jalan Letjend. Haryono MT.
Medan 20231
Phones - (061) 532532
(Hunting)
Fax - (061) 530833
Date of Incorporation
15 May 1989
Legal Form
P.T. (Perseroan Terbatas)
or Limited Liability Company
Company Reg. No.
a. No.
C2-16.001.HT.01.04.TH'94
Dated 25 October 1994
b. No. W7-01312.HT.01.04.TH.2007
Dated 08 February 2007
Company Status
National Private and Domestic Investment (PMDN) Company
Permit by the
Government Department
The Capital Investment Coordinating Board
a. No.
21/I/PMDN/1990
Dated 4 January 1990
b. No. 438/III/PMDN/1994
Dated 24 October 1994
Related Company
The RAJA GARUDA MAS Group or the RGM Group Members
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized
Capital - Rp
3,000,000,000,000.-
Issued Capital - Rp 2,003,204,000,000.-
Paid Up Capital - Rp 2,003,204,000,000.-
Shareholders/Owners :
a. Asia Pacific
Resources International Holding Ltd., -
Rp. 1,467,689,000,000.-
Address : Bermuda - Berau
b. Tanoto
Interantional Perkasa Corp. -
Rp. 336,175,000,000.-
Address : Gedung BNI Plaza
Jl. Jend.
Sudirman Kav. 1
Jakarta Pusat
c. P.T. Raja
Garuda Mas Pulp Rayon and Paper -
Rp. 199,340,000,000.-
Address : Jl. M.H. Thamrin
Kav. 31
Jakarta Pusat
BUSINESS ACTIVITIES
Lines of Business:
Integrated Pulp
and Paper Industry
Production Capacity
First Stage
a. Pulps - 800,000
tons p.a.
b. Chlorines - 50,000 tons p.a.
c. Caustics Soda - 50,000 tons p.a.
Second Stage
a. Pulps - 500,000
tons p.a.
b. Papers - 600,000
tons p.a.
c. Chlorines - 50,000 tons p.a.
d. Caustics Soda - 50,000 tons p.a.
Total Investment
First Stage
a. Equity Capital - Rp 1,417.5 billion
b. Loan Capital - Rp 1,553.3 billion
c. Total Investment - Rp 2,970.8 billion
Second Stage
a. Equity Capital - Rp 598.7 billion
b. Loan Capital - Rp 1,111.9 billion
c. Total Investment - Rp 1,710.6 billion
Industrial Forest Estate Project
a. Equity Capital - Rp 157.0 billion
b. Loan Capital - Rp 293.0 billion
c. Total Investment - Rp 450.0 billion
Started Operation
1995
Brand Name
RIAU PULP
Technical Assistance
None
Number of Employee
4,655 persons
Marketing Area
a. Export - 75%
b. Local - 25%
Main Customer
Buyers in Asia,
Europe and USA
Market Situation
Very Competitive
Main Competitors
a. P.T. INDAH KIAT
PULP & PAPER Tbk.
b. P.T. TJIWI
KIMIA Tbk.
c. P.T. LONTAR
PAPYRUS
d. P.T. PINDO DELI
PULP & PAPER
e. P.T. PARISINDO
PRATAMA
f. Etc.,
Business Trend
Growing
BANKER, AUDITOR &
LITIGATION
Bankers :
a. P.T. Bank
MANDIRI Tbk.
Jalan Gatoto Subroto Kav. 36-38
Jakarta 12190
b. P.T. Bank BNI Tbk.
Jalan Jend. Sudirman Kav. I
Jakarta Barat
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales (estimated) :
2004 – Rp 4,780.0 billion
2005 – Rp 5,340.0 billion
2006 – Rp.
5,920.0 billion
Net Profit (Loss)
:
2004 – Rp 420.0 billion
2005 – Rp 440.0 billion
2006 – Rp. 560.0 billion
Payment Manner :
Sometime Delay
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Rudy Fajar
Directors - a.
Mr. Funadi Wongso
b. Mr. Thomas Handoko
c. Mr. Lim Wi Lin
Board of Commissioners :
President Commissioner - Mr.
Alagaratnam Joseph Devanesan
Commissioner - a. Mr. Sia Siew Kiang
b. Mr. Benny Setiawan
Signatories :
President Director (Mr. Rudy Fajar) or
one of the Directors (Mr. Funadi Wongso, Mr. Thomas Handoko or Mr. Lim Wi Lin)
which must be approved by President Commissioner (Mr. Alagaratnam Joseph
Devanesan) or Commissioners (Mr. Sia Siew Kiang and Mr. Benny Setiawan).
CAPABILITIES
Management Capability :
Fairly Good
Business Morality
Fairly Good
Credit Risk
Average
Credit Recommendation
Credit should be proceeded with monitor
Proposed Credit
Limit
Small amount – periodical review
Maximum Credit Limit
US$ 80,400,000.- on the 90 days of
payments
OVERALL PERFOMANCE
Initially named P.T. RIAU PULP & PAPER,
the company was established in 1989 with an authorized capital of Rp
100,000,000.-, issued and paid up capital of Rp 20,000,000.-. The original
founding shareholders are Mrs. Tinah Bingei, Mr. Ir. Frits Irawan and Mr. Ir.
Yusak Hartono, they are Chinese Indonesians. In 1992 the company renamed P.T.
RIAU ANDALAN PULP & PAPER (P.T. RAPP) and its authorized capital was raised
to Rp 500,000,000,000.-, issued capital to Rp 100,000,000,000 and the paid up
capital to Rp 10,000,000,000.-. In 1994 the authorized capital was again raised
to Rp 2,000,000,000,000.-, issued and paid up capital to Rp
1,417,500,000,000.-. Lastly, in February 2007, the authorized capital was again
raised to Rp. 3,000,000,000,000.-, issued and paid up capital to Rp.
2,003,204,000,000.- The
deed of amendment was made by Mrs. Linda Herawati, SH., a public notary in
Jakarta under Company Registration Number W7-01312.HT.01.04.TH. 2007, dated
February 08, 2007.
Since then the shareholders of P.T. RAPP are ASIA PACIFIC RESOURCES INTERNATIONAL HOLDING Ltd., of Bermuda-Berau, P.T. TANOTO INTERNATIONAL PERKASA Corp., and P.T. RAJA GARUDA MAS PULP RAYN AND PAPER, both of Indonesia. P.T. RAPP is a member of the APRIL Group or the RAJA GARUDA MAS Group, a large business group headed by Mr. Sukanto Tanoto AKA Tan Sui Hang. The group members have engaged in rubber glove manufacturing, woodworking, oilpalm plantation and palmoil refinery, industrial estate development, banking, office block rental management, iron and steel industry, logging, trading and other business activities.
P.T. RAPP is dealing with pulp industry, managing a plant in Pangkalan Kerinci, Kecamatan Langgom, Kampar, Riau Province. The construction of the plant started since 1992 by two stages. In the first stage P.T. RAPP has a production capacity of 500,000 tons per year including its chemicals production chlorines and caustic soda of 50,000 tons each per year. It has absorbed a total investment for the first stage of Rp 2,970.8 billion coming from company's capital of Rp 1,417.5 billion and the rest from loan. The second or expansion plant with a production capacity of 500,000 tons pulp, 600,000 tons paper, chlorines and caustic soda of 50,000 tons each per year. The second development has absorbed a total investment of Rp 1,710.6 billion coming from company's capital of Rp 598.7 billion and the rest from loan.
P.T. RAPP had been operating commercially
since 1995 and now it has an installed capacity of 820,000 tons per year,
including its expansion unit. It got a license from BKPM in 1993 to manage
Forest Industrial Estate (HTI) of 280,500 hectares in 10 locations in Kampar
area, Pangkalan Kerinci, Riau, while its paper manufacturing unit was handed
over to its affiliated P.T. RIAU ANDALAN KERTAS (P.T. RAK), its plant is
located at Kawasan Industri Kampar Pangkalan Kerinci, Pekan Baru, Riau. The plant started production commercially
since mid-1999 with a production capacity of 350,000 tons per year. P.T. RAPP
and P.T. RAK got electric energy supply from P.T. RIAU PRIMA ENERGI, also a
member of the RGM Group. Some 65% of the products is exported and the rest is
sold locally mainly to P.T. RAK.
Mr. Congizio P. Munoz, environmental manager of P.T. RAPP disclosed that from HTI of 280,509 hectares which was effective only 191,700 hectares, conservation area (54,000 ha) and enclave, infrastructure, etc., (34,800 ha). Of the effective land has been planted with acacia (pulp basic stuff) since 1993 and until December 2000 totaled 82,064 ha., while 109,672 ha. will be planted. P.T. RAPP needs acacia wood of 5.85 million cu.m per year to fulfill the needs of pulp plant which the capacity is now 1.3 million tons per year. Large portion of acacia wood has been supplied by its owned HTI and the other coming from joint concession with P.T. Wananugraha Bima Lestari, P.T. Titian Tata Pelita, P.T. Sumatera Sinar, P.T. Perawang Sukses and P.T. Bukit Raya Maluku.
Beside the above positive news there is also a negative information against P.T. RAPP. In July 2000 it was accused to seize 87 hectares land owned by 31 families (KK) of Kerinci, Riau, for industrial forest-estate (HTI) project. Mr. Lukman, a public figure of Pangkalan Kerinci said that the above 87 hectares land have not yet been compensated by P.T. RAPP. He said the people claim for compensation of Rp 10,000.- per m2, while P.T. RAPP will only pay the empowerment compensation of Rp 3.75 million per hectare. The land dispute has yet been settled to date.
Other negative news was that in the end of March 2001, P.T. RAPP was accused to absorb stolen wood from 800 hectares forest-estate owned by P.T. ARARA ABADI (a member of the SINAR MAS Group). The case came from the stealing of acacia mangium wood plantation owned by P.T. ARARA ABADI by persons who claimed themselves under the names of cooperatives in Riau. The stolen wood was sold using a document of Surat Angkutan Kayu Rakyat (People Wood Transporting Permit) and being absorbed by P.T. RAPP. According to Mr. Nur Mahmudi (former Minister of Forestry) the stealing and absorbing of illegal wood had been doing since 1998, causing the state loss at least Rp 400 million because no collecting of Forest Resources Provision Fund. But P.T. RAPP considered that the accusation was very premature and full of business competition. In May 2001 P.T. RAPP again was alleged to involve in manipulation of Reforestation Fund (DR) and forest contribution (IHH) of Rp 680.0 billion since 1999 to 2000. But Mr. Protasius Daritan, SH, president director of P.T. RAPP refused and the company used its owned fund since the early 1993 and not a single cent received or used the DR fund. The case is not clear, so far, and still under investigation of Attorney General office.
The company plant utilization has reached 100% with a capacity of 1.8 million per annum out of installed production capacity of 2 million tons p.a. Meanwhile, its paper making plant managed by P.T. RIAU ANDALAN KERTAS (P.T. RAK) has a production capacity of 350,000 tons p.a. Some 75% of P.T. RAPP's export from 2002 to date has been coming from the sales of pulp and the rest is from paper export. She went on to say that the international price of pulp has been rising between US $ 420 to US $ 450 per ton of which the price of the last two years was US $ 300 per ton due to an over supplies.
In September 2005, P.T. RAK planned to merge into P.T. RAPP but the plan has yet to be realized up to this time. In January 2006, P.T. RAPP thirdly gained a Golden Flag Award for its high achievement in Working Saffety and Health Management System Audit 2006 and Zero Accident Award. On 13 March 2006, P.T. RAPP received a certificate of Industrial Forestry Conservation (PHTL) from Indonesian Ekolabel Institution (LEI). That event ws attended by Mr. MS Kaban, the Minister of Forestry, Mr. Rachmat Witoelar, the Minister of Environment and Mr. Emil Salim and environmental export.
Up to December 2005, the industrial forestry areas of P.T. RAPP reached 254 thousand hectares consisting of own forestry 150 thousand hectares and the balance is of other business partners. Besides, P.T. RAPP is also collecting timbers of the villagers to meet the rest. Another product of the company is pure honey produced by villagers through community development program. In September 2006, P.T. RAPP allocated a fund of Rp. 30 billion for community development program and environmental conservation. Besides, P.T. RAPP tries to increase the villagers incomes by involving 9,800 families to plant acacia trees in an area of 26,000 hectares.
The company is neither public listed nor bond issued
company. Therefore, the company has no
obligation to publish financial statements publicly. But we estimate the total
sales turnover in 2004 amounted to Rp 4,780.0 billion increased to Rp 5,340
billion in 2005 and rose again to Rp.
5,920.0 billion in 2006. It is
estimated the operation in 2006 yielded an estimated net profit at Rp. 560.0
billion and the company has an estimated total networth at around Rp. 2,350
billion. It is projected the total
sales turnover in 2007 will increase sharply by 12% due to the increasing price
of pulp in the international market.
In Mid 2004, P.T. Bank MANDIRI Tbk., announced that P.T. RAPP and its two affiliated companies namely P.T. RIAU ANDALAN KERTAS (P.T. RAK) and P.T. RIAU PRIMA ENERGI (P.T. RPE) were registered as big bad debtors in line with evidences found by the Supreme Audit Agency (BKP). Total debts of P.T. RAP in that bank was Rp. 929.33 billion, P.T. RAK’s debts of Rp. 152.50 billion and P.T. RPE of Rp. 688.29 billion. However, these three members of the RAJA GARUDA MAS Group are appraised to pay their debts smoothly.
Since February 2007, P.T. RAPP is headed by Mr. Rudy Fajar (38)
as the president dirctor being assisted by three directors namely Mr. Funadi
Wongso (39), Mr. Thomas Handoko (40) and Mr. Lim Wi Lin (37). However, we believed that the primemover of
the company is Mr. Sukanto Tanoto alias Tan Sui Hang (58), a leading
businessman in the country. In mid
2006, one of foreign business magazines (Forbes), reported that Mr. Sukanto
Tanoko is one of wealth businessman in Indonesia with assets of US$ 2.8
billion. However, total debts of the
RGM Group’s company members are also huge reaching US$ 1.5 billion. Mr. Tanoto has wide relation private
businessmen of home and overseas as well as with the government sectors. As far
as business is concerned the management has never involved in any fraudulent
dealings or detrimental cases being settled in local district court.
We, therefore, recommend to treat prudently in extending any new loans to P.T. RAPP and an adequate collateral from the shareholders is highly required.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)