MIRA INFORM REPORT

 

 

Report Date :

22.10.2007

 

IDENTIFICATION DETAILS

 

Name :

P.T. HUNTSMAN INDONESIA

 

 

Registered Office :

Jalan Raya Bogor Km. 27, 3, Gandaria, Cibubur, Jakarta 13710

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20 September 1999

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Textile Chemical Industry

Main Distributor and Trading of Textile Chemicals

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 1,600,000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Name of Company

 

P.T. HUNTSMAN INDONESIA

 

 

Address

 

Head Office & Factory

Jalan Raya Bogor Km. 27,3

Gandaria, Cibubur

Jakarta 13710

Indonesia

Phone               - (62-21) 8711500 (Hunting)

Fax.                  - (62-21) 8717971

Land Area         - 50,100 sq. meters

Building Space  - 12,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

a. 20 September 1999 as P.T. HUNTSMAN ICI POLYURETHANES INDONESIA

b. 28 August 2000 as P.T. HUNTSMAN INDONESIA

                            

 

Legal Form

 

P.T. (Perseroan Terbatas) or Limited Liability Company

 

                                                       

Company Reg. No.

 

The Ministry of Law and Human Rights

No. C-18835.HT.01.01.TH.99

Dated 17 November 1999

 

 

Company Status 

 

Foreign Investment (PMA) Company

 

           

Permit by the Government Department

 

The Capital Investment Coordinating Board

- No. 545/V/PMA/1999

  Dated 19 August 1999

- No. 302/II/PMA/2000

  Dated 03 November 2000

- No. 1473/III/PMA/2001

  Dated 05 November 2001

- No. 178/II/PMA/2006

  Dated 07 June 2007

 

The Department of Trade

NPWP No. 01.868.979.4-058.000



Related Company

 

The HUNTSMAN Group Members

a.       HUNTSMAN ICI INVESTMENT (Netherlands) B.V. of the Netherlands

b.       HUNTSMAN (Netherlands) B.V., of the Netherlands

c.       HUNTSMAN TEXTILE EFFECTS of the Switzerland

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             : Rp. 3,808,800,000.-

Issued Capital                                   : Rp. 1,904,400,000.-

Paid up Capital                                  : Rp. 1,904,400,000.-

 

Shareholders/Owners :

a.       HUNTSMAN INVESTMENT (Netherlands) B.V. of the Netherlands                          - 99.5%

Address : Merseyweg 10 3197 KG Botlek

                Rotterdam, the Netherlands

b.       HUNTSMAN (Netherlands) B.V., of the Netherlands                                                                                  -   0.5%

Address : Merseyweg 10 3197 KG Botlek

                Rotterdam, the Netherlands

 

 

BUSINESS ACTIVITIES

                             

Lines of Business:       

  a. Initial Unit (1999 & 2000)

      - Industrial Consulting Services

      - Main Distributor and Trading (Import-Export) of Textile Chemicals

 

  b. Expansion Unit (2006)

      - Textile Chemical Industry

      - Main Distributor and Trading of Textile Chemicals    

   

 

Production Capacity

 

  a. Initial Unit (1999 and 2000)

      - Consultant Services Fee                 - US$ 300,000.-

      - Main Distributor & Trading Value     - US$ 150,000.-

 

 

  b. Expansion Unit (2006)

      - Textile Chemical (Disperses & Pigments)     - 7,300,000 tons p.a.

      - Main Distributor and Trading Value              - US$ 21 million

 

 

Total Investment

 

  a. Initial Unit (1999 and 2000)

      - Equity Capital                           - Rp. 1,904.4 million

      - Loan Capital                              - Rp. 2,000.0 million

      - Total Investment                        - Rp. 3,904.4 million

 

  b. Expansion Unit (2006)

      - Equity Capital                           - US$.  --

      - Loan Capital                              - US$ 6,896,000.-

      - Total Investment                        - US$ 6,896,000.-

 

 

Started Operation

 

2000

 

 

Brand Name

 

HUNTSMAN

 

 

Technical Assistance

 

HUNTSMAN TEXTILE EFFECTS of Switzerland

 

 

Number of Employee

 

240 persons                                     

 

 

Marketing Area

 

Domestic (local)  - 98%

Export                 -   2%                   

 

 

Main Customer

 

Textile Industries in Indonesia

 

 

Market Situation

 

Competitive

 

 

Main Competitors

 

a. P.T. LAUTAN LUAS Tbk.

b. P.T. PINTU MAS MULIA KIMIA

c. P.T. MATA PELANGI CHEMINDO

d. P.T. PARAMA MANDYADANA

e. Etc.

 

 

Business Trend

 

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker  :

ABN AMRO BANK NV.

Gedung Bursa Efek Jakarta Tower II

Jl. Jend. Sudirkan Kav. 52-53

Jakarta Selatan

 

Auditor :

Internal Auditor

           

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2004 – Rp.   65.0 billion

2005 – Rp.   80.0 billion

2006 – Rp. 120.0 billion

2007 – Rp.   80.0 billion (January – June)

 

Net Profit  :

2004 – Rp.  3.2 billion

2005 – Rp.  4.0 billion

2006 – Rp.  7.2 billion

2007 – Rp.  5.0 billion (January – June)

           

Payment Manner :

Average

 

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Wang Shun Sheng

Directors                                         - a. Mr. Agus Suryadi AKA Liem Tjin Hong

                                                        b. Mr. Andreas Greiving

Board of Commissioners :

Commissioner                                 - None

 

Signatories :

President Director (MR. Wang Shun Sheng) or one of the Directors (Mr. Agus Suryadi AKA Liem Tjin Hong or Mr. Andreas Greiving) which must be approved by the shareholders meeting.

 

 

CAPABILITIES

 

Management Capability :

Good

 

 

Business Morality

 

Good

 

 

Credit Risk

 

Below Average

 

 

Credit Recommendation

 

Credit can be proceeded normally

 

 

Proposed Credit Limit 

 

Moderate amount

 

 

Maximum Credit Limit

 

US$ 1,600,000.- on the 90 days of payments

 

 

OVERALL PERFOMANCE

 

Originally the company name was P.T. HUNTSMAN ICI PLOYURETHANES INDONESIA was established on September 20, 1999 with an authorized capital of Rp. 2,152,500,000.- and an issued capital of Rp. 717,500,000.-  was paid up in full. The founding shareholders of the company are HUNTSMAN ICI INVESTMENT (Netherlands) BV.,  and HUNTSMAN ICI (Netherlands) BV., both are of Netherlands.  On August 28, 2000 the name of the company changed to P.T. HUNTSMAN INDONESIA (P.T. HI).  On October 11, 2006, the authorized capital was raised to Rp. 3,808,800,000.- and issued capital of Rp. 1,904,400,000.- was paid up in full.  The latest shareholders of the company are HUNTSMAN INVESTMENT (Netherlands) B.V., (95.5%) and HUNTSMAN (Netherlands) B.V. (0.5%), both are of Netherlands.  The deed of amendment was made by Mrs. Siti Safarijah, SH., a public notary in Jakarta under Company Registration Number W7-HT.01.10-4795, dated December 11, 2006.

 

P.T. HI is a foreign investment (PMA) company, engaged in industrial consulting services in textile chemical industries.  In 2000, P.T. HI expansion to main distribution of textile chemicals and import-export services of textile chemical and dye products.  It is an agent and distributor for textile chemicals and dyes products by HUNTSMAN TEXTILE EFFECTS of Switzerland, for Indonesia region marketing.  These textile chemical and dye products sold direct to end users, including big textile industries in Jakarta, Bandung (West Java), Semarang (Central Java) and Surabaya (East Java).    On June 7, 2006, P.T. HI obtained an expanding license issued by the Capital Investment Coordinating Board (BKPM) to deal with textile chemical industry, such as disperse and pigment of textile products. The company plant was located at Jalan Raya Bogor Km. 27,3, Gandaria, Cibubur, Jakarta Timur on a land area of 50,100 sq. metes.  The plant has obsorbed an investment of US$ 6,896,000.- all come from loan capital.  The plant had been operating since on March 2007 by produce of 7,300,000 tons textile chemical (disperses & pigments) per annum. We find that the operation of P.T. HI had been running well and growing slowly with the last three years. 

 

Generally, the demand for textile chemical products  has been fluctuating in the last five years as evident from figures of Indonesian textile export in the international market. According to the Central Bureau of Statistic (BPS) the Indonesian textile products export in 2000 amounted 1,365,100 tons (US$ 3,634.1 million), declined to 1,269,500 tons (US$ 3,198.9 million) in 2001, to 1,425,900 tons (US$ 3,075.9 million) in 2002 to 1,307,500 tons (US$ 3,064.6 million) in 2003 to 1,300,400 tons (US$ 3,354.6 million) in 2004  to 1,427,300 tons (US$ 3,704.0 million) in 2005 to 1,477,800 tons (US$ 3,908.6 million) in 2006.  

 

Year

Textile Products

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2000

2001

2002

2003

2004

 2005

2006

1,365.1

1,269.5

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

3,634.1

3,198.9

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

370.3

473.8

333.1

339.9

327.3

369.5

399.6

4,702.6

4,476.7

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

Source : Central Bureau of Statistic

 

The large number of other similar companies operating in Indonesia also led to fierce competition. We observed that P.T. HI’s business position is still quite good in line with the increasingly growing of its export market in the  last three years.       

     

Until this time P.T. HI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2004 is Rp. 65.0 billion increased to Rp. 80.0 billion in 2005 and to Rp. 120.0 billion in 2006. The operation in 2006 yielded an estimated net profit at least Rp. 4.6 billion and the company has an estimated total networth at Rp. 60.0 billion.   It is projected that P.T. HI’s total sales turnover will continue on rising by at least 35% in 2007.   We observe that company is supported by financially strong behind it. So far, we have never heard of the company having been black listed by the Central Bank (Bank Indonesia). Besides that, the company usually pays its debts punctually to suppliers.  

 

The management is led By Mr. Wang Shun Sheng (54), a professional manager from Singapore, with 21 years experience in textile chemicals manufacturing and distribution.  In his daily activities, he is assisted by Mr. Agus Suryadi AKA Liem Tjin Hong (41) of Indonesia and Mr. Andreas Greiving (45) of Netherlands, both as directors. We observed that management’s reputation in said business is fairly good. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors.

 

So far, we have never heard that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. PT. HUNTSMAN INDONESIA is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.


                                                                    


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions