MIRA INFORM REPORT

Report Date :

26.09.2011

IDENTIFICATION DETAILS

Name :	P.T. BANGUN ENERGY INDONESIA

Registered Office :	Menara Palma, 5^nd Floor Unit 5-01 Jl. H.R. Rasuna Said, Blok X2 Kav. 6 Kel. Kuningan Timur, Kec. Setiabudi Jakarta Selatan 12950

Country :	Indonesia

Date of Incorporation :	30.12.1998

Com. Reg. No.:	No. AHU-39646.AH.01.02.Tahun 2011

Legal Form :	Limited Liability Company

Line of Business :	Coal Mining

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	US$ 8,900,000

Status :	Moderate

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 – March 31^st, 2011

Country Name

Previous Rating

(31.12.2010)

Current Rating

(31.03.2011)

Indonesia

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. BANGUN ENERGY INDONESIA

Address

Head Office

Menara Palma, 5^nd Floor Unit 5-01

Jl. H.R. Rasuna Said, Blok X2 Kav. 6

Kel. Kuningan Timur, Kec. Setiabudi

Jakarta Selatan 12950

Indonesia

Phones - (62-021) 5795 7430 (hunting)

Fax - (62-021) 5795 7460

Email - bangun_energy@yahoo.com

Building Area - 25 storey

Office Space - 230 sq. meters

Region - Commercial

Status - Rent

Mining Location

Batanghari Regency

Jambi Province

Sumatra, Indonesia

Total Area – 4,333.6 ha

Registration data

Date of Incorporation :

30 December 1998

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C-20680 HT.01.01.TH.2003

Dated 02 September 2003

b. No. AHU-77890.AH.01.02.Tahun 2008

Dated 24 October 2008

c. No. AHU-39646.AH.01.02.Tahun 2011

Dated 05 August 2011

Company Status :

Foreign Investment Company (PMA)

Permit by the Government Department :

The Department of Finance

NPWP No. 02.238.470.5-027.000

The Investment Coordinating Board

a. No. 244/I/IP/I/PMA/2010

Dated 9 November 2010

b. No. 376/1/IP/III/PMA/2011

Dated 01 July 2011

The Batang Hari Regency Decree

No. 503/344/BPTSP/2011

Dated 22 June 2011

Holding Companies :

a. PT. NATUNA ENERGI INDONESIA (Investment Holding)

b. PT. BATUBARA ENERGY INDONESIA (Investment Holding)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 200,000,000,000.-

Issued Capital - Rp. 50,550,000,000.-

Paid up Capital - Rp. 50,550,000,000.-

Shareholders/Owners :

a. PT. NATUNA ENERGI INDONESIA - Rp. 25,750,000,000.- (50.94%)

Address: Menara Palma, 5^nd Floor Unit 5-01

Jl. H.R. Rasuna Said, Blok X2 Kav. 6

Kel. Kuningan Timur, Kec. Setiabudi

Jakarta Selatan 12950

b. PT. BATUBARA ENERGY INDONESIA - Rp. 24,800,000,000.- (49.06%)

Address: Menara Palma, 5^nd Floor Unit 5-01

Jl. H.R. Rasuna Said, Blok X2 Kav. 6

Kel. Kuningan Timur, Kec. Setiabudi

Jakarta Selatan 12950

BUSINESS ACTIVITIES

Lines of Business :

Coal Mining

Production Capacity :

Coals - 15,000,000 tons p.a.

Total Investment :

a. Equity Capital - Rp. 50,550 million

b. Loan Capital - Rp. 31,000 million

c. Total Investment - Rp. 81,550 million

Started Operation :

2003

Brand Name :

BANGUN ENERGY INDONESIA

Technical Assistance :

None

Number of Employee :

300 persons

Marketing Area :

a. Local - 20%

b. Export - 80%

Main Customers :

a. Power Plant Industries

b. Portland Cement Industries

c. Steel Making Industries

d. Etc.

Market Situation :

Very Competitive

Main Competitors :

a. PT. Nan Riang

b. PT. Inti Bara Nusalima

c. PT. Bubukan Multi Sejahtera

d. PT. Abadi Pertiwo Loka

e. PT. Bangun Obor Persada

f. PT. Bangun Wahana Lingkungan

g. PT. Karya Bumi Baratama

h. PT. Sarwa Sembada Karya Bumi

i. PT. Inti Tirta Prima Sakti

j. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank CIMB NIAGA Tbk

Graha Niaga Building

Jalan Jend. Sudirman No. 58

Jakarta 12190

Indonesia

b. Hongkong and Shanghai Banking Corp. Ltd.

World Trade Center

Jalan Jend. Sudirman Kav. 29-31

Jakarta 12920

Indonesia

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2008 – US$. 324.0 million

2009 – US$. 498.0 million

2010 – US$. 712.0 million

2011 – US$. 420.0 million (January – June)

Net Profit (estimated) :

2008 – US$. 15.4 million

2009 – US$. 23.8 million

2010 – US$. 34.0 million

2011 – US$. 20.0 million (January – June)

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Abhinav Mayank

Director - a. Mr. Tilak Pati

b. Mr. Sameer D’Souza

Board of Commissioner :

Commissioner - Mr. Jay Shankar Shukla

Signatories :

President Director (Mr. Abhinav Mayank) or one of the Directors (Mr. Tilak Pati and Mr. Sameer D’Sauza) which must be approved by Board of Commissioner (Jay Shankar Shukla)

CAPABILITIES

Management Capability :

G o o d

Business Morality :

G o o d

Credit Risk :

Below average

Credit Recommendation :

Credit should be proceeded normally

Proposed Credit Limit :

Moderate amount

Maximum Credit Limit :

US$ 8,900,000.- on the 90 days of payments

OVERALL PERFORMANCE

P.T. BANGUN ENERGY INDONESIA was established in December 1998 with the authorized capital of Rp. 1,000,000,000 of which Rp. 600,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Abdul Azis, Mr. Abdul Malik, and Mrs. Zubaedah. They are indigenous businessmen/businesswoman. The Articles of Association was made by Mr. Sigit Siswanto, SH., a public notary in Bogor (West Java) under Company Registration No. C-20680 HT.01.01.TH.2003 dated September 2, 2003. The articles of association of the company have frequently been revised. In August 2008, the authorized capital was raised to Rp. 200,000,000,000 of which Rp. 50,550,000,000 was issued and fully paid up. Since that time, the shareholders of the company are PT. NATUNA ENERGI INDONESIA (98.91%), Mr. Abdul Azis (0.69%), Mr. Ir. Dwi Suwinarno (0.20%) and Mr. Abdul Malik (0.20%). The amendment Articles of Association was made by Mrs. Sumardilah Oriana Roosdilan, SH., a public notary in Jakarta under Company Registration No. AHU-77890.AH.01.02.Tahun 2008 dated October 24, 2008.

The latest, on July 2011, Mr. Abdul Azis, Mr. Ir. Dwi Suwinarno and Mr. Abdul Malik pulled out from the company. Since that time, the shareholders of the company are P.T. NATUNA ENERGI INDONESIA (50.94%) and PT. BATUBARA ENERGY INDONESIA (49.06%), both are private companies. The latest deed of amendment was made by Mr. Sugito Tedjamulja, SH., a public notary in Jakarta under Company Registration Number AHU-39646.AH.01.02.Tahun 2011 dated August 05, 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

P.T. BANGUN ENERGI INDONESIA (PT BEI) has been operating since 2003 in the field of coal mining. The company has 8 coals mining concessions, with total area of 4333,6 hectares in Batang Regency, Jambi Province, issued by the Regent of Batanghari, Jambi. Initially the company's operations were not running well, but since majority shares of the company was taken over by PT. NATUNA ENERGI INDONESIA (PT. NEI) in 2008, its activities were growing very rapidly. PT. NEI is a foreign company whose shares are owned by a number of businessmen who come from India. Since then the coal exploration activities continued to be improved. According to the Investment Coordinating Board (BKPM), PT BEI had production capacity permit of 15.0 million tons of coal per year, with a total investment of Rp 81.550 million consisted of the company's capital to Rp. 50,550 million and remainder sourced from loan capital. A total of 80% of the company's production was exported particularly to India and a number of other countries in Asia such as South Korea, Philippines, Taiwan, Thailand, Malaysia and Hong Kong. We observed that P.T. BEI is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

Generally, the mining activities for such minerals as copper, gold, silver, nickel ore, coal and etc. have fluctuated and for gold have been expanding in the country in the last five years. The trend has been in line with the weak prices of nickel and bauxite and with the firm price of gold on the international market. The mineral mining activities in Indonesia is seen from the total production of minerals as below.

Production Growth of Some Minerals

In Indonesia, 2005 – 2010*

Year	Tin Ore Concentrate (Ton)	Copper Ore Concentrate (Ton)	Nickel Ore (Ton)	Bauxite (Ton)	Coal (Ton)	Gold (Kg)	Silver (Kg)
2005	78,404	3,553,808	3,706,998	1,419,666	152,722,438	142,894	326,993
2006	80,933	2,938,009	4,353,833	1,501,937	181,060,907	93,176	270,153
2007	66,137	2,814,952	7,118,438	1,251,147	174,832,673	117,851	268,967
2008	47,626	2,340,100	6,557,103	1,594,196	181,569,985	62,695	302,292
2009	44,113	3,484,122	5,806,886	1,276,797	209,344,688	126,963	321,127
2010	36,574	3,199,562	5,324,822	939,544	210,896,926	93,076	247,314

Source: Central Bureau of Statistics (BPS)

*) January - November

The Export Volume and Value of Coal Products 2005 – 2010

Description

2005

2006

2007

2008

2009

2010

Volume

(000 tons)

129,044.1

184,008.9

195,785.8

201,021.7

234,793.1

298,844.5

Value

(million US$)

4,354.0

6,085.7

6,681.5

10,485.1

13,817.3

18,499.3

Source: Central Bureau of Statistic (BPS)

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statements publicly. P.T. BEI’s management adopted very reclusive attitude towards outsiders and rejected to unveil its financial condition but we estimated that P.T. BEI operation in 2008 gained a total sales turnover of US$. 324.0 million, increased to US$. 498.0 million in 2009 rose again to US$. 712.0 million in 2010 and projected to be rising by 12% in 2011. P.T. BEI operation in 2010 yielded a total net profit of US$. 34.0 million with a total networth of US$. 520.0 million. So far, we have never heard of P.T. DKSHI having been black listed by Bank Indonesia (Central Bank) and being not registered in district court for detrimental cases.

Pursuant to the company’s notary deed, the management is headed by Mr. Abhinav Mayank as president director from India, a professional manager with more than 12 years experience in coal mining and trading. Daily he is assisted by Mr. Tilak Pati and Mr. Sameer D’Souza, both as directors also from India. The management is also handled by a number of experienced professional managers in this business, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far we have never yet heard of the company’s management having been involved in business malpractices 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. We appraise that P.T.BANGUN ENERGY INDONESIA is quite feasible for business transaction.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.67
UK Pound	1	Rs.76.50
Euro	1	Rs.66.98

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%)

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