MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
PT JOTUN INDONESIA |
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Registered Office : |
Kawasan
Industri MM2100 Block KK-1, Cikarang Barat, Bekasi 17520, West Java |
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Country : |
Indonesia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
08.08.1995 |
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Com. Reg. No.: |
No.
C-18181.HT.01.04.TH.2006 |
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Legal Form : |
Limited
Liability Company |
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Line of Business : |
Paint
Manufacturing |
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$ 2,300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name of Company
P.T. JOTUN INDONESIA
Address
Head Office
& Factory
Kawasan Industri
MM2100 Block KK-1
Cikarang Barat,
Bekasi 17520
West Java
Indonesia
Phones - (62-21)
8998-2657 (Hunting)
Fax - (62-21) 8998-2658
Land Area - 30,000 sq.
meters
Building Area - 21,000 sq.
meters
Region - Industrial
Estate
Status - Owned
Date of Incorporation
a. 08 August 1995
as P.T. JOTUN INDONESIA PAINT AND CHEMICALS
b. 26 September
2005 as P.T. JOTUN INDONESIA
Legal Form
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg.No
The Ministry
of Law and Human Rights
No. C-18181.HT.01.04.TH.2006
Dated 21 June
2006
Company Status
Foreign
Investment (PMA) Company
Permit by the Government
Department
The Department
of Finance
NPWP No.
6.165.524.7-025
The President
of the Republic of Indonesia
No.
B-236/Pres/5/1995
Dated 19 May 1995
The Capital
Investment Coordinating Board
- No.
267/I/PMA/1995
Dated 02 June 1995
- No.
15/II/PMA/1998
Dated 21 January 1998
- No.
889/III/PMA/2001
Dated 6 June 2001
- No.
564/III/PMA/2004
Dated 17 June 2004
- No.
294/II/PMA/2005
Dated 5 October 2005
- No.
659/III/PMA/2006
Dated 23 May 2006
Related Companies
a. A Member
Company of the JOTUN Group, Norway
b. P.T. JOTUN
POWDER COATING INDONESIA (Powder Coating Manufacturing)
CAPITAL AND OWNERSHIP
Capital
Structure :
Authorized
Capital : US$
8,675,000.-
Issued Capital : US$
8,675,000.-
Paid up Capital : US$
8,675,000.-
Shareholders/Owners
:
a. JOTUN A/S
of Norway -
US$ 8,600,000.-
b. JOTUN
SINGAPORE Pte., Ltd. of Singapore -
US$ 75,000.-
BUSINESS ACTIVITIES
Line
of Business
Paint
Manufacturing
Production Capacity
a. Liquid Paints - 4,800 tons
p.a.
b. Distributor of
Paint Machinery
Component and Parts
Total Investment
a. Equity Capital - US$ 8.6 million
b. Loan Capital - US$ 3.0 million
c. Total
Investment - US$
11.6 million
Started Operation
July 1996
Brand Name
JOTUN Paint
Technical Assistance
JOTUN A/S of
Norway
Number of Employee
183 persons
Marketing Area
Domestic
(Local) - 100%
Main Customer
a. P.T. CATUR
MITRA SEJATI SENTOSA (Depo Bangunan)
b. Distributors
and Building Material Shops
c. Painting
Contracting
Market Situation
Very Competitive
Main Competitors
a. P.T. NIPPON
PAINT INDONESIA
b. P.T. NIPSEA
PAINT
c. P.T. ICI PAINT
INDONESIA
d. P.T. KANSAI
PAINT
e. C.V. MOWILEX
f. P.T. CHUGOKU
PAINT INDONESIA
g. Etc.,
Business Trend
Growing
BANKER, AUDITOR & LITIGATION
Bankers :
a. P.T. Bank
MANDIRI Tbk
Komplek Duta Merlin
Jalan Gajah Mada No. 3-5
Jakarta Pusat
Indonesia
b. P.T. Bank
CENTRAL ASIA Tbk
Jalan Daan Mogot 48-A
Jakarta Barat
Indonesia
Auditor :
Sidharta Sidharta
& Widjaja Public Accountant
Litigation :
No litigation
record in our database
FINANCIAL FIGURE
Annual
Sales :
2005 – Rp. 111.7
billion
2006 – Rp. 160.1
billion
2007 – Rp. 175.0
billion (estimated)
Net Profit
(Loss) :
2005 – Rp. (4.6
billion)
2006 – Rp. (6.7
billion)
2007 – Rp. 4.0
billion (estimated)
Payment Manner
:
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of
Management :
President Director -
Mr. Kjetil Urheim
Director -
Mrs. Pirokida Irene Hasugian
Board of
Commissioner :
Commissioner -
Mr. Tris Agustian Pandjaitan
Signatories :
President Director (Mr. Kjetil Urheim)
or the Director (Mrs. Pirokida Irene Pandjaitan) which must be approved by
Board of Commissioner.
CAPABILITIES
Management
Capability :
Good
Business Morality
Good
Credit Risk
Average
Credit Recommendation
Credit should be proceeded with monitor
Proposed Credit Limit
Small amount –
periodical review
Maximum Credit Limit
US$ 2,300,000 on 90 days D/A
OVERALL PERFOMANCE
Initially named P.T. JOTUN INDONESIA PAINTS AND CHEMICALS was set up in
August 1995 in Jakarta with an authorized capital of US$ 1,500,000 entirely
issued and paid up. The founding shareholders of the company are JOTUN A/S of
Norway and Mr. Lukman Kartono, an Indonesian businessman of Chinese extraction.
The company notary deed has been changed a couple of times. In September 2005
the company named P.T. JOTUN INDONESIA (P.T. JI). On the same occasion the
authorized capital was increased to US$ 3,400,000 entirely issued and paid up.
Concurrently Mr. Lukman Kartono pulled out and replaced by Mr. Gunawan as new
shareholder. The latest in May 2006, the authorized capital raised to US$
8,675,000 entirely issued and paid up. On the same occasion Mr. Gunawan pulled
out and the whole share sold to JOTUN SINGAPORE PTE. Ltd., of Singapore. We note
that the company's majority share is controlled by JOTUN A/S of Norway. The
deed of amended was made by Mrs. Enimarya Agoes Suwarko, SH, a public notary in
Jakarta, under Company Registration Number C-18181.HT.01.04.TH.2006, dated June
21, 2006.
P.T. JI is a Foreign Investment (PMA) company, engaged in paint
manufacturing industry such as liquid and powder. Previously, the plant located
at Jalan Daan Mogot Km.12.5, West Jakarta, on a land of some 14,750 sq. meters.
It has been starting with trial production in the early of July 1996. P.T. JI
took over plant and activities of P.T. POLAR SAKTI JAYA which had been
operating since 1985 in decorative and marine paint processing under the
license and technology and brand JOTUN A/S of Norway. It has produced liquid
paint and powder paint since September 1996. But since October 2004, the plant
had been relocated to Kawasan Industri MM2100 Block KK-1, Cikarang, Bekasi,
West Java on a land of 30,000 sq. meters and the plant had been operating on 2
October 2005. The plant has expanding frequently to increasing production
capacity. The plant has absorbed an investment of US$ 11.6 million come from
owned capital of US$ 8.6 million and the rest is loans. The plant produced
liquid paint of 4,800 tons per year. The plant produced decorative paint,
automotive paint and marine paint and using JOTUN brand. The company also
engaged in the field of distributorship of paint machinery component and parts.
Besides, P.T. JI is also marketed powder coating produced by sister
company named P.T. JOTUN POWDER COATINGS INDONESIA. The economic crisis
occurred in the country caused the prices of paint to rise up highly amidst the
weak of purchasing power among metal industries, shipping companies as well as
property business. On the other hand the basic materials mostly are imported
payable in US$ while the products are sold in Rupiah domestically. But since
2000 the painting industrial sector had been rising as evident from rising
demand for paint from automotive industries, property business and shipping
companies which jumped up within the last five years.
Generally, demand for paint has kept on increasing by 7% to 8% per annum
in the last five years having close relation with the activity growth of
various industrial sectors such as property sector, office buildings,
apartments, shopping centers, and automotive sector. The demand is estimated to
be rising by at least 6% per annum in the coming five years. The competition is
very tight on account of lots of similar company operating in the country. The
business position of P.T. JI is favorable being classified as one of large
sized paint industries controlling 4% of the paint market shares in the
country. Besides, the company has established customers and wide marketing
networks in the country and JOTUN products are popular in the market.
The Growth of
Indonesian Paint Production, 2000-2006*
|
Year |
Production (Ton) |
Average Growth (%) |
|
2000 |
499,900 |
- |
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2001 |
532,110 |
6.44 |
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2002 |
559,686 |
5.18 |
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2003 |
569,771 |
1.80 |
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2004 |
620,896 |
8.97 |
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2005 |
646,985 |
4.20 |
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2006* |
679,334 |
5.10 |
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Average Growth, %/ year |
5.32 |
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Source : Central
Bureau of Statistic
*) Estimated
According to financial statement which audited by Sidharta Sidharta
& Widjaja, Public Accountant that sales turnover o P.T. JI in 2005 amounted
to Rp. 111.7 billion with a net loss of Rp. 4.6 billion rose to Rp. 160.1
billion with a net loss of Rp. 6.7 billion in 2006. It is projected the sales
turnover of the company amounted to Rp. 175.0 billion with a net profit of Rp.
4.0 billion in 2007 and projected to go on rising by at least 9% in 2008. It is
estimated the company has an estimated total networth by at least Rp. 120.0
billion. So far, we did not heard that the company having been black listed by
the Central Bank (Bank Indonesia). The financial statement of the company as
per 31 December 2005 and 2006 is attached below.
The management of P.T. JI is headed by Mr. Kjetil Urheim (50) a
professional manager of Norway assigned to administer the company in Indonesia.
The management has ample experience and handled by professional managers who
keep wide relation with private businessmen both of home and overseas and key
government officials as well. We observed that management’s reputation in said
business is sufficiently fairly good. So far, we did not hear 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. P.T. JOTUN
INDONESIA is appraised sufficiently good for business transaction. In view of
unstable economic condition in the country, we recommend to treat prudently in
extending loan to the company.
FINANCIAL STATEMNTS
As Per 31 December 2005 and 2006
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(in million of
Rupiah) |
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DESCRIPTION |
31 December |
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2006 |
2005 |
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A. |
ASSETS |
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Current Assets |
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- |
Cash on hand and in banks |
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11,220 |
12,016 |
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- |
Trade Receivable |
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55,428 |
43,219 |
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- |
Other Receivables |
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2,001 |
3,165 |
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- |
Inventories |
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28,041 |
20,745 |
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- |
Prepaid Taxes |
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10,566 |
7,333 |
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- |
Prepayment, current portion |
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2,214 |
1,510 |
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Total Current Assets |
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109,470 |
87,988 |
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Non Current Assets |
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- |
Fixed Assets |
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98,647 |
96,708 |
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- |
Other Assets |
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2,117 |
2,084 |
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Total Non Current Assets |
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100,764 |
98,792 |
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TOTAL ASSETS = TOTAL LIABILITIES & EQUITY |
210,234 |
186,780 |
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B. |
LIABILITIES & EQUITY |
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Current Liabilities |
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- |
Short-term bank loan |
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17,020 |
9,830 |
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- |
Trade Payables |
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29,359 |
20,363 |
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- |
Taxes Payables |
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1,845 |
2,643 |
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- |
Other Payables and Accrued Expenses |
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19,716 |
13,807 |
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- |
Loan from shareholder, current portion |
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- |
40,631 |
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Total Current Liabilities |
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67,940 |
87,274 |
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Long Term Liability |
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Loan from shareholder, non-current portion |
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60,000 |
60,000 |
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Obligation for post-employment benefits |
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2,686 |
1,885 |
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Total Long Term Liability |
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62,686 |
61,885 |
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Shareholders' Equity |
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- |
Share Capital |
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|
19,380 |
7,596 |
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- |
Foreign Exchange Fluctuations from Share Capital Payments |
52,771 |
15,867 |
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- |
Retained Earnings (Deficit) |
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|
7,457 |
14,158 |
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Total Equity |
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79,608 |
37,621 |
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C. |
INCOME STATEMENTS |
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a. |
Net Sales |
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160,094 |
111,755 |
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b. |
Cost of Sales |
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(97,174) |
(64,252) |
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c. |
Gross Profit |
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|
62,920 |
47,503 |
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d. |
Operating Expenses |
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(61,941) |
(48,534) |
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e. |
Operating Profit (Loss) |
|
979 |
(1,031) |
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f. |
Other Income (Expenses) |
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(6,144) |
(2,073) |
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g |
Profit (Loss) before Income Tax |
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(5,165) |
(3,104) |
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h. |
Income Tax |
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(1,536) |
(1,505) |
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i. |
Net Profit (Loss) |
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|
(6,701) |
(4,609) |
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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 |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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%)