MIRA INFORM REPORT

 

 

Report Date :           

15.11.2011

 

IDENTIFICATION DETAILS

 

Name :

P.T. JKJ INDONESIA

 

 

Registered Office :

Desa Tegal Sari RT. 26 RW. 15, KeL. Dompyongan, Kec. Jogonalan Klaten, Jawa Tengah

 

 

Country :

Indonesia

 

 

Date of Incorporation :

19.05.2010

 

 

Com. Reg. No.:

No. AHU-30270.AH.01.01.Tahun 2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Textile Garment and Leather Glove Manufacturing

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

US$ 395,000

Status :

New business

Payment Behaviour :

No Complaints

Litigation :

----

 

 

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)

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. JKJ INDONESIA

 

 

Company Address

 

Head Office & Factory

Desa Tegal Sari RT. 26 RW. 15

KeL. Dompyongan

Kec. Jogonalan Klaten,

Jawa Tengah

Indonesia

Phone               - (62-274) 303 3077, 313 6342

Fax                   - (62-274) 701 5877

Land Area         - 5,000 sq. meters

Building Space  - 3,800 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

19 May 2010

 

 

Legal Form

 

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

 

 

Company Reg.No.

 

The Ministry of Law and Human Rights

No. AHU-30270.AH.01.01.Tahun 2010

Dated 15 June 2010

 

 

Company Status

 

Foreign Investment Company (PMA)

           

Permit by the Government Department

 

The Department of Finance 

NPWP No. 31.196.055.3-525.000

 

The Investment Coordinating Board

No. 00871/1/PPM/PMA/2010

Dated 10 May 2010

 

 

Affiliated/Associated Company

 

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                   - US$. 300,000.-

Issued Capital                         - US$. 300,000.-

Paid up Capital                       - US$. 300,000.-

 

Shareholders/Owners :

a. Mr. Kim Jong Bum                      - US$. 210,000.- (70%)

   Address : Room 101-101, Bamsun Hyundai Apartment

                   Hyueon Seok Dong, mapo-Ku, Seoul Korea

                   South Korea

b. Mr. Lee Jun Ho                            - US$.   75,000.- (25%)

   Address : 77-26, Jung-Dong, Mapo-Ku

                   Seoul Korea,

                   South Korea                  

c. Mrs. Susiyati                                - US$.   15,000.- (  5%)

   Address : Pugeran, RT.09, RTW.65

                   Desa Maguuwohardjo, Kec. Depok

                   Yogyakarta, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Textile Garment and Leather Glove Manufacturing

 

Production Capacity :

a. Textile Garment                     -    400,000 pieces p.a.

b. Leather Gloves                       - 1,200,000 pieces p.a.

 

Total Investment :

a. Equity Capital                  - US$. 300,000.-

b. Loan Capital                    - US4.            0.-

c. Total Investment               - US$. 300,000.-

 

Started Operation :

May 2011

 

Brand Name :

JKJ INDONESIA

 

Technical Assistance :

None

 

Number of Employee :

300 persons                                     

 

Marketing Area :

Export         - 100%

 

Main Customers :

Overseas buyers in South Korea

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Eagle Glove Indonesia

b. PT. Java Gloves Perdana

c. PT. Kiho Bali Korin

d. PT. Lezax Nesia Jaya

e. PT. Indoglove Industries

f.  PT. Prasasti Karya Sentosa

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Klaten Branch

    Jl. Pemuda Selatan No. 42

    Klaten, Central Java

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Klaten Branch

    Jl. Pemuda Tengah No. 54

    Klaten, Central Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 28.5 billion (May – December)

 

Net Profit (estimated) :

2011 – Rp. 1.6 billion (May – December)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Lee Jun Ho

Director                                     - Mrs. Susiyati

 

Board of Commissioner :

Commissioner                           - Mr. Kim Jong Bum

 

Signatories :

President Director (Mr. Lee Jun Ho) or Director (Mrs. Susiyati) which must be approved by the Board of Commissioner (Mr. Kim Jong Bum)

 

 

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$ 395,000.- on the 90 days of payments

 

 

OVERALL PERFORMANCE

 

P.T. JKJ INDONESIA was established on May 19, 2010 with an authorized capital of US$. 2300,000.-, entirely was issued and paid up. The founding shareholders of  Mr. Kim Jong Bum (70%), Mr. Lee Jun Ho (25%), both are businessman of South Korea and Mrs. Susiyati (5%), a businesswoman of Indonesia. The Articles of Association was made by Lilian Sukendro, SH., a public notary in Sleman (Yogyakarta) and it was approved by the Ministry of Law and Human Right in its Decision Letter No.AHU-30270.AH.01.01.TH.2010, dated June 15, 2010. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. JKJ INDONESIA was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) on May 10, 2010 in the field of textile garment and leather glove manufacturing.  Its plant is located at Desa Tegal Sari RT.26, RW.15, Kec. Jogonalan Klaten, Jawa Tengah on a land of 5,000 square meters.  According to its license, the plant has annual production capacity of 400,000 pieces of textile garments and 1,200,000 pieces of leather gloves respectively per annum. The plant has absorbed an investment of US$ 300,000 entirely come from owned capital.

 

Mr. Benny, a marketing staff of P.T. JKJ INDONESIA when reached by phone said that they had been operating commercially since May 2011 and until now they've produced fashion gloves made ​​from leather. He added that its raw materials (leather) were imported from India and furry materials were imported from South Korea. Additionally P.T. JKJ INDONESIA also used Indonesian local skin leather. Mr. Benny also said that P.T. JKJ INDONESIA’s plant has a production capacity of 720,000 pairs of leather gloves per year.  But the realization of its new production reached 10,000 to 15,000 pairs per month. He added that entire production of the PT JKJ INDONESIA was exported to South Korea. We noticed that this company is still in the growth stage and its operations run smoothly.

 

In general we note that foreign market demand of leather gloves from Indonesia continuous experiencing fluctuations in the last five years. According to Central Bureau of Statistics (BPS), export volume of  national leather and leather goods in 2007 amounted to 12.1 thousand tons with a value of US$. 226.9 million, declined to 11.4 thousand tons with a value of US$. 226.8 million in 2008, dropped again to 10.8 thousand tons with a value of US$. 174.7 million in 2009 and rose again to 13.3 thousand tons with a value of US$. 207.0 million in 2010. Meanwhile, competition is very tight, because so many leather gloves factories operating in Indonesia.  The long-term marketing prospect of leather gloves is quite good and is expected to increase about 5% to 7% per annum in the next two years.

 

Until this time P.T.  JKJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. P.T. JKJ INDONESIA's management adopts very reclusive attitude towards outsiders and rejected to unveil its financial condition but we estimated that its operation in 2011 (May to December) posted a total sales turnover of Rp. 28.5 billion with a net profit of Rp. 1.6 billion.  It’s estimated that the company has a total networth of about Rp. 6.0 billion.  P.T. MSJ’s financial condition is supported by less strong financially Korean businessmen. So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

 

P.T. JKJ INDONESIA’ s management is led by Mr. Kim Jong Bum (46), a Korean businessman with more than 10 years experience in leather glove manufacturing and trading.  In daily activities, he is assisted by Mrs. Susiyati (36) of Indonesia as director.  The management is also handled by well-experienced by professional managers in the above business having wide relation with home and overseas private businessmen as well as with government sectors.  As far as business is concerned the management of P.T. MSJ has never involved in any fraudulent dealings.

 

Since this company (PT. JKJ INDONESIA) just about six months in operation commercially, so we recommend caution when going to provide fresh loans to them. Or it should obtain sufficient guarantees of all shareholders.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.85

UK Pound

1

Rs.80.36

Euro

1

Rs.68.83

 

 

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%)

 

 

 

 

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.