MIRA INFORM REPORT
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Report Date : |
02.11.2011 |
IDENTIFICATION DETAILS
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Name : |
THE SUNGAI BUDI GROUP |
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Registered Office : |
Wisma Budi, 8th – 9th Floor, Jl. H.R. Rasuna Said Kav. C-6, Jakarta Selatan 12940 |
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Country : |
Indonesia |
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Year of Establishment : |
1947 |
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Legal Form : |
Group Company or Unlimited Liability Company |
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Line of Business : |
Subject is engaged in Agribusiness and Food Division |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
Usually Correct |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Indonesia |
b1 |
b1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
The SUNGAI BUDI Group
Year of Establishment
1947
Business Headquarter
Jakarta
Legal Status
Group Company or Unlimited Liability Company
Legalization
Not Required
Government Permits
Not Required
Capitlaization
Not Required
Founders and Owners
a. Mr. Widarto AKA Oey Kim Tjing
b. Mr. Santoso Winata AKA Oey Thik
Seng
Business Operation Area
a. Through-out Indonesia
b. Singapore, Malaysia, Philippines, China, Japan, South Korea, India, Thailand, Taiwan, Australia, Saudi Arabia, Bahrain, Belgium, Canada, France, Italy, the USA, etc
Business Activities
- Agribusiness and Food Division
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Pulp and Paper Product Division
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Developer and Real Estate Division
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Financial Services Division
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Energy and Mining Division
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Telecommunication
-
Trading and Other Activities
Ultimate Investment Holding
- P.T. SUNGAI BUDI
- P.T. BUDI DELTA SWAKARYA
- P.T. BUDI ACID JAYA Tbk.
- P.T. TUNAS BARU LAMPUNG Tbk.
Number of the Group Members
- 36 Companies
Major Members of the Group
a. P.T. INDO BANGNA PRIMA
(Investment Holding)
b. P.T. BUDI STARCH INTERNATIONAL
(Modified Tapioca Starch Manufacturing)
c. P.T. BUDI LUMBUNG CIPTAN (Tapioca
Manufacturing)
d. P.T. BUDI SAKURA STARCH (Modified
Tapioca Starch Manufacturing)
e. P.T. VE WONG BUDI INDONESIA
(Monosodium Glutamate Manufacturing)
f.
P.T. BANGUN NUSA INDAH LAMPUNG (Oil Plam Plantation)
g. P.T. BUMI SENTOSA ABADI (Oil Palm
Plantation)
h. P.T. BUDI DWIYASA PERKASA (Oil
Palm Plantation)
i.
P.T. BUDINUSA CIPTAWAHANA (Oil Palm Plantation and Horticulture)
j.
P.T. ADIKARYA GEMILANG (Pineapple Plantation)
k. P.T. BANGUN TATALAMPUNG ASRI (Oil
Palm Plantation)
l.
P.T. AGRO BUMI MAS (Manufacturing of Crude Palm Oil)
Top Figures and Executives
a. Mr. Widarto AKA Oey Kim Tjing
b. Mr. Santoso Winata AKA Oey Thik
Seng
Contact Addresses
The SUNGAI BUDI Group
Wisma
Budi, 8th – 9th Floor
Jl. H.R. Rasuna Said Kav. C-6
Jakarta Selatan 12940
Indonesia
Phones - (62-21)
5213383 (hunting)
Fax -
(62-21) 5213282
Email - info@budiacidjaya.com
Website - http://www.budiacidjaya.com
Lampung
Office
Jl. Ikan Kakap 9/12
Teluk Betung, Bandar Lampung
Indonesia
Phones
- (62-721) 486122 (hunting)
Fax. -
(62-721) 486754, 482684
Contact
Persons
a. Mr. Widarto AKA Oey Kim Thjing
Chairman
b. Mr. Santosa Winata AKA Oey thik Seng
President
Director
OVERALL PERFORMANCE
The SUNGAI BUDI Group is a company group established in 1947 by the late Mr. Oey Liang Tjing and his wife. In 1960, the operation of the SUNGAI BUDI Group was shifted to the second generation namely to Mr. Handoko Winata AKA Oey Tjan Tong, and his brothers Mr. Ngadiman Winata AKA Oey Tjan Ng and Mr. Widarto AKA Oey Kim Tjing. In 1980 Mr. Ngadiman Winata died and his shares went over to his son Mr. Santoso Winata AKA Oey Thik Seng. In 1987, there was an internal dispute among them in which Mr. Handoko Winata finally withdrew. At that time, the majority business stakes of the SUNGAI BUDI Group were controlled by Mr. Widarto AKA Oey Kim Tjing and his nephew Mr. Santoso Winata AKA Oey Thik Seng. The parent company of the SUNGAI BUDI Group is P.T. SUNGAI BUDI, a company established in 1962 dealing with trading and exporting of agricultural products and essence oil refinery. Since that time its operation has kept on expanding to tapioca flour milling, chemical industries, plastic bags and others. At present P.T. SUNGAI BUDI as holding company of the SUNGAI BUDI Group.
The main business of the SUNGAI BUDI Group has been dealing with plantation and exporting of agricultural products such as coconut and palm oils, cocoas, rice, glutinous rice, tapioca flour and tapioca starch. Besides, the company group is also dealing with chemical industrial materials like citric acids and calcium citrate, property and housing development, natural marble mining and processing, mosquito repellent coil manufacturing, plastic woven bag manufacturing, corrugated carton box manufacturing and others.
There are two prominent company members of the SUNGAI BUDI Group having gone public namely P.T. BUDI ACID JAYA Tbk dealing with chemical industries and food materials and P.T. TUNAS BARU LAMPUNG Tbk dealing with palm and hybrid plantation and the manufacturing of palm cooking oil, coconut cooking oil and crude palm oil.
a. P.T. BUDI ACIDJAYA Tbk.
Originally named P.T. NORTH-ASPAC CHEMICAL INDUSTRIAL COMPANY, it was established in 1979 with an authorized capital of Rp. 600,000,000.- wholly issued and paid-up. Founders and original shareholders are Mr. Vincent Tanuwidjaja and Mr. Hendrawan Rusli both Chinese origin Indonesian businessmen. In May 1988, the company renamed to P.T. BUDI ACIDJAYA. In May 1995, it has gone public by floating its 30% shares to the public through Jakarta Stock Exchange (BEJ) and Surabaya Stock Exchange (BES). In the middle of 1997, the company renamed to P.T. BUDI ACIDJAYA Tbk (P.T. BAT) or public listed company. The company’s Articles of Association has frequently amended for a couple of times. As of 30 June 2011, the authorized capital of the company is Rp 525,000,000,000.- of which Rp. 471,383,000,000.- was issued and paid up. The latest shareholders of P.T. BAT are PT. SUNGAI BUDI (25.81%), PT. BUDI DELTA SWAKARYA (25.39%), Public (47.23%) and Treasury stock (1.57%).
P.T. BAT obtained a domestic investment (PMDN) license for dealing with industrial chemical processing. It originally managed a factory unit located at Jalan Manggala Km. 73-74, Terbanggi Besar, Central Lampung, standing on 7.0 hectares land and starting with operation in 1987 with a capacity to produce 7,500 tons of citrate per annum. In the early of the 1994, P.T. BAT took over all assets and the factories of its sister companies P.T. BUDI ALAM KENCANA, P.T. SUNGAI BUDI PERKASA (both are tapioca manioc manufacturers) and P.T. BUDI SULFAT JAYA (citrate acid and sulfate acid producer). As from that time on, P.T. BAT operates 4 factories wholly located in Lampung Province. Around 68% of its products is exported to the USA, Australia, South Korea, Japan, Taiwan and several other European countries while the rest is distributed domestically.
Besides, P.T. BAT is also active in investment holding by controlling 94.50% shares of PT. INDO BANGNA PRIMA (investment holding company), 99.93% shares of PT. BUDI STARCH INTERNATIONAL (tapioca starch manufacturing), 99.98% shares of PT. BUDI LUMBUNG CIPTAN (tapioca manufacturing), 51% shares of PT. VE WONG BUDI INDONESIA (monosodium glutamate manufacturing), 99.97% shares of PT. BUDI SAKURA STARCH (modified tapioca starch manufacturing), 50.105 shares of PT. ASSOCIATED BRITISH BUDI (glucose and fructose manufacturing and 100% shares of PT. BUDI ACID JAYA SINGAPORE Pte. Ltd.(trading). The chart of P.T. BAT’s members shall be as follows:
Source: PT. Budi Acid Jaya Tbk.
b. P.T. TUNAS BARU LAMPUNG Tbk
P.T. TUNAS BARU LAMPUNG Tbk (P.T. TBL) was established in Tanjung Karang in December 1973 with the authorized capital of Rp. 100,000,000 of which Rp. 20,000,000 entirely issued and fully paid up. The founding shareholders of the company are Mr. Handoko Winata and Mr. Ngadiman Winata, both are Indonesian businessmen of Chinese extraction. The articles of association of the company have frequently been revised. On 14 February 2000, P.T. TBL went public by selling a large extent of its shares to the publics through Jakarta Stock Exchanges (BEJ). The company’s Articles of Association has frequently amended for a couple of times. As of 30 June 2011, the authorized capital of the company is Rp 800,000,000,000.- of which Rp. 592,198,884,000.- was issued and paid up. The latest shareholders of P.T. BAT are PT. SUNGAI BUDI (29.87%), PT. BUDI DELTA SWAKARYA (26.14%), PT. BUDI ACID JAYA Tbk. (0.62%) and Public (43.38%)
P.T. TBL is classified as a large sized fully integrated industry producing vegetable cooking oil and other vegetable oil derivatives operating six unit modern and complete processing plants. Some 90% of its products in the form of crude cooking oil is locally sold under brands of Tawon, Rose Brand and has controlled 70% of market shares in South Lampung, Riau, Bengkulu and Jambi and 10% of market shares in East Java. Besides, crude coconut cooking oil products are locally marketed under brands of Gunung Agung and Kompas; washing soap products under brands of Kompas, Bumi Waras and bathing soap products under Love and Segar brands. Some 90% of other products like palm expellers, copra expellers, palm chips and copra chips is exported as animal feed basic materials.
P.T. TBL began its operation in
Lampung in the early 1970’s, it have grown to become one of the largest and
lowest cost vegetable cooking oil producers.
The company has also entered into new markets in 1996 in East Java by
acquiring a cooking oil refinery. We see this as our gateway to other Eastern
Indonesian markets such as Kalimantan, Bali, Lombok, Maluku and Irian Jaya.
Since this acquisition, the company have improved the efficiency of their East
Java refinery and expanded production capacity in 1999. In addition to
vegetable cooking oil, the company also produces crude coconut oil, stearine,
crude palm oil, palm kernel oil and other consumer products such as cream soap
and laundry soap which utilize fatty acid, a by-product from CPO
production. P.T. TBL currently controls
a land bank of more than 50,000 hectares in Lampung, used mainly for oil palm
plantations. Oil palm is recognized as the highest oil producing crop per
hectare of all oil yielding vegetables. This means that at any given production
level, oil palm requires a smaller plantation area than any other oil producing
crop. Besides, P.T. TBL also engaged in electric steam power plant development
and management by establish electric steam power plant of 12 MW in Lampung.
Besides, P.T. TBL is also active in investment holding by controlling
99.99% shares of PT. BANGUN NUSA INDAH LAMPUNG (oil palm plantation), 99.97%
shares of PT. BUMI SENTOSA ABADI (oil palm plantation), 99.99% shares of PT.
BUDI DWIYASA PERKASA (oil palm plantation), 98.0% shares of PT. BUDINUSA
CIPTAWAHANA (oil palm plantation and horticulture), 99.75% shares of PT.
ADIKARYA GEMILANG (pineapple plantation), 99.71% shares of PT. BANGUN
TATALAMPUNG ASRI (oil palm plantation), 90.0% shares of PT. AGRO BUMI MAS
(manufacturing of crude palm oil) and 86.98% shares of PT. MULYA MANDRA MUKTI
(investment company). The chart of P.T.
TBL’s members shall be as follows:
Source: PT. Tunas Baru Lampung Tbk.
So far, it is rare that company groups in Indonesia have a complete financial statement audited by a public accountant. We believed that the SUNGAI BUDI Group also has no complete financial statement above. However, we believed that the money machine of the SUNGAI BUDI Group is reflected from its two company members having gone publics namely P.T. BUDI ACID JAYA Tbk and P.T. TUNAS BARU LAMPUNG Tbk. The financial illustration of both companies in 2007 to as of 31 June 2011 is pictured on the following table:
P.T. BUDI ACID JAYA Tbk. (Rp
million)
|
Description |
2007 |
2008 |
2009 |
2010 |
2011 *) |
|
Total Sales |
1,350,298 |
1,551,987 |
1,782,132 |
2,124,381 |
1,276,816 |
|
Cost of Good Sold |
(1,136,511) |
(1,331,548) |
(1,520,875) |
(1,881,605) |
(1,087,643) |
|
Operating Profit |
213,787 |
220,439 |
261,257 |
242,605 |
189,173 |
|
Net Profit (Loss) |
46,177 |
32,981 |
146,415 |
46,130 |
81,819 |
|
Total Assets |
1,485,651 |
1,698,750 |
1,598,824 |
1,967,633 |
1,858,400 |
Source: Financial Statement of P.T. Budi
Acid Jaya Tbk. and (*) as of 30 June
2011
P.T. TUNAS BARU LAMPUNG Tbk. (Rp
million)
|
Description |
2007 |
2008 |
2009 |
2010 |
2011 *) |
|
Total Sales |
1,844.2 |
3,955.8 |
2,783.6 |
2,951.1 |
2,077.8 |
|
Cost of Good Sold |
(1,401.5) |
(3,143.2) |
(2,336.3) |
(2,310.1) |
(1,323.4) |
|
Operating Profit |
442.7 |
812.7 |
447.2 |
641.0 |
754.4 |
|
Net Profit (Loss) |
97.2 |
63.3 |
251.0 |
246.7 |
312.0 |
|
Total Assets |
2,457.1 |
2,802.5 |
2,786.3 |
3,651.1 |
3,821.7 |
Source: Financial
Statement of P.T. Tunas Baru Lampung Tbk.
and (*) as of 30 June 2011
We believed that the prime mover of the SUNGAI BUDI Group is Mr. Widarto AKA Oey Kim Tjing (64) and his nephew Mr. Santoso Winata AKA Oey Thik Seng (49), both are the second generation in the SUNGAI BUDI Group having more than 24 years experience in trading and exporting of agricultural products. In their daily activities, they are assisted by a number of professional managers including Mr. Sudarmo Tasmin, Mr. Tanto Nugroho, Mr. Winoto Prajitno, Mr. Sugandhi and others. The management of the SUNGAI BUDI Group has wide relation with private businessmen of home and overseas as well as with the government sectors. So far, we did not hear that the management of the SUNGAI BUDI Group has been involved in business malpractices and detrimental cases being settled in the court.
Based on the compiled information, it can be concluded that the SUNGAI BUDI Group is a company group focusing on trading and exporting of agricultural products. The SUNGA BUDI Group is appraised to be good for normal 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.08 |
|
UK Pound |
1 |
Rs.78.78 |
|
Euro |
1 |
Rs.67.76 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.