MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	P.T. SUNGAI RANGIT
Registered Office :	Jalan Malijo No. 21 RT. 09 RW. 03, Madurejo, Arut Selatan, Kotawaringin Barat, 74100, Pangkalan Bun, Central Kalaimantan
Country :	Indonesia
Date of Incorporation :	06.04.1990
Com. Reg. No.:	No. AHU-AH.01.10-13450
Legal Form :	Limited Liability Company
Line of Business :	Oil Palm Plantation and Palm Oil Refinery

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$ 4,600,000
Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Indonesia	b1	b1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Name of Company

P.T. SUNGAI RANGIT

company Address

Head Office

Jalan Malijo No. 21 RT. 09 RW. 03

Madurejo, Arut Selatan

Kotawaringin Barat, 74100

Pangkalan Bun

Central Kalaimantan

Indonesia

Phone - (62-532) 24264

Fax - (62-532) 24264

Building Area - 2 storey

Office Space - 230 sq. meters

Region - Commercial Building

Status - Rent

Branch Office

Sampoerna Strategic Square Tower A, 28^th Floor

Jalan Jend. Sudirman Kav. 45

Jakarta Selatan, 12930

Indonesia

Phones - (62-21) 577 1711 (Hunting)

Fax - (62-21) 577 1712

Building Area - 30 storey

Office Space - 400 sq. meters

Region - Commercial

Status - Rent

Plantation Site

Desa Kartamulia, Kec. Sukamara

Kabupaten Sukamara, Pangkalan Bun

Central Kalimantan

Date of Incorporation

6 April 1990

Legal Form

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

Company Reg. No.

The Ministry of Law and Human Rights

- No. AHU-80004.AH.01.02.TH.2008

Dated 31 October 2008

- No. AHU-AH.01.10-13450

Dated 19 August 2009

Company Status

Private National and Domestic Investment (PMDN) Company

Permit by the Government Department

The Department of Finance

NPWP No. 01.505.917.3-712.000

The Capital Investment Coordinating Board

- No. 756/I/PMDN/1996

Dated 2 December 1996

- No. 216/III/PMDN/2000

Dated 7 September 2000

- No. 42/III/PMDN/2003

Dated 13 March 2003

Related Company

A Member Company of the SAMPOERNA STRATEGIC Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 312,000,000,000.-

Issued Capital : Rp. 258,000,000,000.-

Paid up Capital : Rp. 258,000,000,000.-

Shareholders/Owners :

a. P.T. SAMPOERNA AGRO Tbk - Rp. 245,100,000,000.-

Address : Jl. Basuki Rachmat No. 788

Ilir Kemuning, Palembang

South Sumatera

Indonesia

b. P.T. SAMPOERNA BIO ENERGI - Rp. 12,900,000,000.-

Address : Sampoerna Strategic Square Tower A, 28^th Floor

Jl. Jend. Sudirman Kav. 45

Jakarta Selatan

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Oil Palm Plantation and Palm Oil Refinery

Production Capacity :

a. Fresh Fruit Bunches - 720,000 tons p.a.

b. Crude Palm Oils - 144,000 tons p.a.

c. Palm Kernel (PK) - 36,000 tons p.a.

Total Investment :

a. Equity Capital - Rp. 258.0 billion

b. Loan Capital - Rp. 170.8 billion

c. Total Investment - Rp. 428.8 billion

Started Operation :

1997

Brand Name :

Sungai Rangit

Technical Assistance :

None

Number of Employee :

2,275 persons

Marketing Area :

Local - 100%

Main Customer :

a. P.T. ASIANAGRO AGUNG JAYA

b. P.T. KARYA PRAJONA NELAYAN

c. P.T. SINAR ALAM PERMAI

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. P.T. AMP PLANTATION

b. P.T. ASTRA AGRO LESTARI Tbk

c. P.T. GUNUNG SAWIT BINA LESTARI

d. P.T. TUNAS BARU LAMPUNG Tbk

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Bankers:

a. P.T. Bank CENTRAL ASIA Tbk

Jalan Jend. Sudirman No. 70

Palembang, South Sumatera

Indonesia

b. P.T. Bank MANDIRI Tbk

Jalan Jend. Sudirman No. 55

Palembang, South Sumatera

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – Rp. 325.0 billion

2009 – Rp. 340.0 billion

2010 – Rp. 357.0 billion

Net Profit (estimated) :

2008 – Rp. 26.0 billion

2009 – Rp. 27.2 billion

2010 – Rp. 30.3 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Chang Poh Sang

Directors - a. Mr. Sie Eddy Kurniawan

b. Mr. Jaffesjah Chandra

Board of Commissioners :

President Commissioner - Mr. Ekadharmajanto Kasih

Commissioner - Mr. Bambang Sulistyo Pik

Signatories :

President Director (Mr. Chang Poh Sang) or one of the Directors (Mr. Sie Eddy Kurniawan of Mr. Jaffesjah Chandra) 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$ 4,600,000 on 90 days D/A

OVERALL PERFORMANCE

P.T. SUNGAI RANGIT (P.T. SR) was established in Pangkalan Bun, Central Kalimantan on April 6, 1990 with the authorized capital of Rp. 60,000,000,000 entirely issued and paid up. The founding shareholders of the company originally are Mr. Drs. Gowindasamy, Mr. Tohir, Mrs. Agustine Jessy and Mr. Leonardus Suparman. The company notary deed had been changed a couple of times. In June 2006, P.T. SAMPOERNA BIO ENERGI acquired 95% shares of P.T. SUNGAI RANGIT and 5% acquired by P.T. SAMPOERNA STRATEGIC. Later in December 2006 P.T. SAMPOERNA STRATEGIC pulled out and replaced by P.T. SAMPOERNA AGRO Tbk. The latest in August 2009 the authorized capital was raised to Rp. 312,000,000,000 issued capital to Rp. 258,000,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become P.T. SAMPOERNA AGRO Tbk (95%) and P.T. SAMPOERNA BIO ENERGI (5%). The latest revision of notary act was made by Mrs. Mala Mukti, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-13450 dated August 19, 2009.

We observe the majority shareholder namely P.T. SAMPOERNA AGRO Tbk., is a public listed company engaged in oil palm plantation and refinery and investment holding which majority shares is controlled by Mr. Michael Sampoerna and his father Mr. Putera Sampoerna. The Sampoerna family is also founder and business stakes owner of the SAMPOERNA STRATEGIC Group, a large business group in oil palm plantation and refinery, agribusiness, telecommunication, industrial paper etc.

P.T. SR is a private national company, subsidiaries of P.T. SAMPOERNA AGRO Tbk., a public listed company in oil palm plantation, refinery and investment holding. P.T. SR has been operates in oil palm plantation and processing (refinery). The company is managing and developing 13,455 hectares of oil palm plantation land located at Desa Kartamulia, Kec. Sukamara, Pangkalan Bun, Central Kalimantan. The oil palm plantation area has been planted since 1993 and had been production in 1997. As at year-end 2009, P.T. SR actively managed approximately 12,500 hectares of mature oil palm estates. While two other subsidiaries were still in the stage of developing oil palm estates, including initial works on the development of some palm seedlings and nursery areas, and a further 7,000 hectares of recently planted areas that are not expected to begin yielding for another two or three years. The recent upgrade of the palm oil mill at Sungai Rangit, which has since been able to process 75-tonne of FFB per hour, was also instrumental in bringing up both CPO production capacity and OER in 2009. The construction of a new jetty facility and an on-site 2,000-tonne CPO storage tank was also completed in 2009, bringing the estate’s infrastructure facilities towards best practice standards.

At present the processing plant has been producing since 2008 with an installed production capacity of 75 tons of fresh fruit bunches per hours, 144,000 tons of crude palm oil and 36,000 tons of palm kernels per annum. The whole products like crude palm oil (CPO) supplied to P.T. BUKIT KAPUR REKSA, P.T. WILMAR NABATI INDONESIA dealing with cooking oil industry, P.T. ASIANAGRO AGUNG JAYA, P.T. KARYA PRAJONA NELAYAN, all of them dealing with cooking oil industry and exporter of crude palm oil. We find that P.T. SR's operations have been growing in the last three years.

Generally outlook, the demand for CPO and PKO products has kept on rising well within the last five years in line with the increasingly growing demand for CPO and PKO products both from the local and foreign market. From the production sector, Indonesian CPO and PKO production has kept on rising significantly. The increase in production is caused by the increasingly growing wider of new oil palm estate development and production in Indonesia within the last several years. Besides, the national cooking oil production has kept on increasing in the last five years in line with the changing of the publics’ consumption patterns from using coconut cooking oil to palm cooking oil. Palm oil may tumble as much as 7.4 percent by the end of October 2010 as Malaysian production rebounds and Indonesian growers speed up shipments because of an export tax, according to Godrej International Ltd. Indonesia said August 2010 that production may fall to 19.0 million and 20 million tons, from 21 million in 2009. Global vegetable-oil demand will increase by 4.5 million tons in the year beginning Oct. 1, 2010 exceeding the 3.8 million tons increase in supply, Ministry said. The national crude palm oil, palm kernel oil production has kept on increasing in the last five years in line with the changing of the publics’ consumption patterns from using coconut cooking oil to palm cooking oil.

Indonesia’s Production, Consumption, Export of CPO, 2006-2010*

Year	Production (Thousand Ton)	Consumption (Thousand Ton)	Export (Thousand Ton)
2006	16,05	3,7	12,54
2007	17,27	4,0	12,65
2008	19,20	4,5	14,61
2009	21,14	4,9	16,94
2010*	22,30	5,1	17,15

Source: Agriculture Ministry, GAPKI

*) Estimated by GAPKI (Indonesian Pal Oil Association)

Until this time P.T. SR has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SR is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2008 amounted to Rp. 325.0 billion rose to Rp. 340.0 billion in 2009 increased to Rp. 357.0 billion in 2010 and projected to go on rising by at least 6% in 2011. The operation in 2010 yielded an estimated net profit of at least Rp. 30.3 billion and the company has an estimated total networth of at least Rp. 312.0 billion. We observe that P.T. SR is supported by the SAMPOERNA STRATEGIC Group, a big-sized business group with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

The management of P.T. SR is led by Mr. Chang Poh Sang (60) a businessman and professional manager of Malaysia with experience in oil palm plantation and palm oil refinery. Mr. Chang Poh Sang was appointed as the Managing Director of Kalimantan since 2007. He has extensive experience in palm oil industry for more than 30 years. Previously, he served as a Plantation Director for Kencana Group and Plantation General Manager for Dutapalma Nusantara Group. He also helped to develop oil palm plantations for Oriental Holding Bhd in Bangka Island. Prior to working in Indonesia, he worked for Plantation Agencies Sdn Bhd for 5 years and Kuala Lumpur Kepong Bhd. for 18 years. He received Master degree in Management from University of Honolulu, Hawaii. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. SUNGAI RANGIT is sufficiently fairly good for business transaction.

Attachment:

List of the SAMPOERNA STRATEGIC Group Members

1. ADI SAMPOERNA, P.T. (Tobacco Trading)

2. AEK TARUM, P.T. (Oil Palm Plantation ad Palm Oil Refinery)

3. BINASAWIT MAKMUR, P.T. (Oil Palm Plantation and Palm Oil Refinery)

4. BINASAWIT MAKMUR, P.T. (Oil Palm Plantation and Palm Oil Refinery)

5. BUANA SAKTI, P.T. (Office Building Management Services)

6. ESA KERTAS NUSANTARA, P.T. (Culture Paper Manufacturing)

7. GUNUNG TUA ABADI, P.T. (Oil Palm Plantation)

8. GLOBAL PTE. LTD., Singapore (Holding Company)

9. KARYA WIJAYA SUKSES, P.T. (Forestry Concession)

10. MUTIARA BUNDA JAYA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

11. PALMA AGRO LIMTED (Investment Holding and Management Trust)

12. PAPERPRO INDONESIA, P.T. (Trading and Distribution of Paper)

13. PERTIWI LENGGARA AGROMAS, P.T. (Oil Palm Plantation and Palm Oil Refinery)

14. SAMPOERNA STRATEGIC, P.T. (Investment Holding and Holding Company)

15. SAMPOERNA TELECOM, P.T. (Fixed Cellular Communication and CDMA Cellular Telephone Operating Services)

16. SAMPOERNA AGRO Tbk, P.T. (Oil Plam Plantation and Refinery and Investment Holding)

17. SAWIT SELATAN, P.T. (Oil Palm Plantation and Palm Oil Refinery)

18. SELATANJAYA PERMAI, P.T. (Oil Palm Plantation and Palm Oil Refinery)

19. SUMALINDO MITRA RESINDO, P.T. (Formaldeyde and Resin Processing Manufacturing)

20. SUMALINDO LESTARI JAYA Tbk, P.T. (Integrated Woodbased Industry and Investment Holding)

21. SUNGAI MENANG, P.T. (Oil Palm Plantation and Palm Oil Refinery)

22. SUNGAI RANGIT, P.T. (Oil Palm Plantation)

23. TELAGA HIKMAH, P.T. (Oil Palm Plantation

24. TANIA BINATAMA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

25. USAHA AGRO INDONESIA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

Etc.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

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	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

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.