MIRA INFORM REPORT

 

 

Report Date :

14.04.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. CARGILL INDONESIA

 

 

Registered Office :

Wisma 46-Kota BNI 28th Floor Suite 2801 Jalan Jend. Sudirman Kav. 1 Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.10.1973

 

 

Com. Reg. No.:

No. AHU-AH.01.10-27477

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Animal Feed Milling

 

 

No. of Employees :

471 persons

 

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$ 10,000,000

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 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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. CARGILL INDONESIA

 

 

Address

 

Head Office

Wisma 46-Kota BNI 28th Floor Suite 2801

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 574 6868 (Hunting)

Fax                   - (62-21) 574 5757

Building Area     - 32storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Cocoa Processing Factory

Jalan Kima 9 Kav. L 7 B Daya

Makassar, 90241

South Sulawesi

Phone               - (62-411) 514361

Fax                   - (62-411) 514370

 

Cattle Feed Factories

a.   Jalan Raya Telajug Udik

      Gunung Putri, Bogor 16962

      West Java

            Phones             - (62-21) 8672521, 8672263, 8672856

            Fax       - (62-21) 8672533

b.   Jalan Raya Balongwatu, Desa Cangring Malang

      Kecamatan Beji, Pasuruan, 67154

      East Java

            Phones - (62-343) 656034-35, 656604

            Fax      - (62-343) 656036, 657214

c.   Kawasan Industri Modern Cikande

      Jalan Raya Jakarta Serang Km. 68

      Cikande, Serang 42156

      Banten Province

            Phones - (62-254) 400417 (Hunting), 404038

            Fax                   - (62-254) 400603

 

d.   Jalan Walisongo No. 395 A Km. 9,6

      Kel. Tugurejo, Kec. Tugu

       Semarang

      Central Java

            Phones - (62-24) 8664212 (Hunting), 8665138

            Fax                   - (62-24) 8664211

e.   Jalan Medan Tanjung Morawa Km. 13.5

      Desa Limau Manis, Deli Serdang, 20362

      North Sumatera

            Phones - (62-61) 7941333 (Hunting), 7946467, 7946468

            Fax                   - (62-61) 7946465, 7941236

f.    Jalan Kapasa Raya No. 22

      KP. Bina, Kec. Tamalanrea

      Makassar, 90244

      South Sulawesi

            Phones - (62-411) 510140, 514365, 513183

            Fax                   - (62-411) 510138

 

Grain & Vegetable Oil Factories

a.   Jalan Hang Jebat No. 2

      Medan

      North Sumatera

            Phones             - (62-61) 4562722 (Hunting)

            Fax       - (62-61) 4562533

b.   Jalan Trans Sulawesi

      Kel. Kawangkoan Bawah Lingk. 10

      Kec. Tombasian, Amurang, 95354

      North Sulawesi

            Phones - (62-430) 22688

            Fax      - (62-430) 22677

 

 

Registration data

 

Date of Incorporation :

3 October 1973

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-25884.HT.01.04.TH.2003

  Dated 30 October 2003

- No. AHU-49939.AH.01.02.TH.2009

  Dated 15 October 2009

- No. AHU-AH.01.10-27477

  Dated 24 August 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.002.071.7-057.000

The President of the Republic of Indonesia

No. B-79/Pres/9/1972

Dated 12 September 1972

The Capital Investment Coordinating Board

- No. 26/II/PMA/1983

  Dated 5 September 1983

- No. 37/II/PMA/1983

  Dated 28 November 1983

- No. 25/II/PMA/1986

  Dated 2 October 1986

- No. 20/II/PMA/1988

  Dated 9 June 1988

- No. 64/II/PMA/1991

  Dated 24 May 1991

- No. 11/II/PMA/1992

  Dated 17 February 1992

- No. 217/II/PMA/1994

  Dated 28 November 1994

- No. 80/II/PMA/1996

  Dated 11 April 1996

- No. 109/II/PMA/1998

  Dated 18 August 1998

- No. 103/II/PMA/1999

  Dated 11 June 1999

- No. 141/II/PMA/2000

  Dated 5 July 2000                          

- No. 1611/III/PMA/2001

  Dated 3 December 2001

- No. 203/III/PMA/2003

  Dated 28 February 2003

- No. 177/II/PMA/2004

  Dated 15 October 2004

- No. 328/II/PMA/2005

  Dated 10 November 2005

 

Related Companies :

a.   P.T. BUMI TAPIOKA JAYA (Tapioca Starch Manufacturing)

b.   P.T. CARGILL FOODS INDONESIA (General Trading and Management Trust)

c.   P.T. CARGILL LESTARI AGROSENTRA (Oil Palm Plantation and Palm Oil Refinery)

d.   P.T. HARAPAN SAWIT LESTARI (Oil Palm Plantation and Palm Oil Refinery)

e.   P.T. HINDOLI (Oil Palm Plantation and Palm Oil Refinery)

f.    P.T. SARITANAM PRATAMA (Tapioca Starch Manufacturing)

g.   P.T. SORINI TOWA BERLIAN CORPORATION (Liquid and Powder Sorbitol Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 4,100,000.-

Issued Capital                                  : US$ 4,100,000.-

Paid up Capital                                : US$ 4,100,000.-

 

Shareholders/Owners :

a. CARGILL INCORPORATED                                 - US$ 3,895,000.-

    Address : 15407 McGinty Road West

                    Minetonka, Minnesota

                    USA

b. CARGILL ASIA PACIFIC LTD, LLC                      - US$    205,000.-

    Address : 15615 McGinty Road West

                    Minetonka, Minnesota

                    USA

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Animal Feed Milling

b.   Hybrid Corn Seed Farming and General Trading Agricultural Products

c.   Grain and Vegetable Oils

d.   Investment holding by controls 0.01% shares of P.T. CARGILL FOODS INDONESIA

 

Production Capacity :

a.   Hybrid Corn Seeds                         -     9,000 tons p.a.

b.   Animal Feeds                                 - 450,000 tons p.a.

c.   Cocoa Beans                                 -   30,000 tons p.a.

d.   Fish Milling                                    -   24,000 tons p.a.  

e.   Coconut Oil                                    - 100,000 tons p.a.

f.    Palm Kernel Oil (PKO)                    -   20,000 tons p.a.

g.   Copra Expeller                               -   60,000 tons p.a.

h.   Distribution and Exporting Services  - US$ 15.0 million

 

Total Investment :

a.   Equity Capital                            - US$   4.1 million

b.   Reinvested Profit                        - US$   6.5 million

c.   Loan Capital                              - US$ 47.8 million

d.   Total Investment                         - US$ 58.4 million

 

Started Operation :

1975

 

Brand Name :

Cargill Indonesia

 

Technical Assistance :

Cargill Inc., of the USA

 

Number of Employee :

471 persons

 


Marketing Area :

Export      - 100% Grain, Vegetable Oil and Agriculture Products

Local       - 100% Animal Feed

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CENTRAL PROTEINAPRIMA

b. P.T. GOLD COIN INDONESIA

c. P.T. JAPFA COMFEED INDONESIA Tbk

d. P.T. WELLGRO FEEDMILL INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   CITIBANK N.A.

      Bapindo Plaza Tower Citibank

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan, 12190

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk

      Graha Bank Niaga

      Jalan Jend. Sudirman Kav. 58

      Jakarta Selatan, 12920

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 2,185.0 billion

2010 – Rp. 2,212.0 billion

2011 – Rp. 2,256.0 billion

 

Net Profit (estimated) :

2009 – Rp. 152.9 billion

2010 – Rp. 154.8 billion

2011 – Rp. 169.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mrs. Lucy Tjahjadi

Director                                           - Mr. Akkarit Boontawee

 

Board of Commissioners :

President Commissioner                   - Mr. Jeral Sylvester Dsouza

Commissioner                                 - Mr. Syed Munirul Hasan

 

Signatories :

President Director (Mrs. Lucy Tjahjadi) or the Director (Mr. Akkarit Boontawee) 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$ 10,000,000 on 90 days D/A

 

 

 

OVERALL PERFORMANCE

 

P.T. CARGILL INDONESIA (P.T. CI) was established in 1973 with an authorized capital of US$ 300,000 issued and paid up capital of US$ 60,000. Previous founding shareholders were Mr. Hans Oloan Handoko and Mrs. Onny Ondra Siregar Handoko, and a foreign partner CARGILL INCORPORATED of the USA. The company notarial act has frequently been revised. In June 1976 both local partners pulled out and replaced by Mr. Harry Angkasa Tabaluyan. In January 1994 the authorized capital was raised to US$ 4,100,000 entirely issued and paid up and concurrently Mr. Hary Angkasa Tabaluyan was replaced by P.T. Bank PDFCI. Then in July 2000, P.T. Bank PDFCI pulled-out and replaced by CARGILL ASIA PACIFIC LTD, LLC., of the USA. With this time the composition of its shareholders has been changed to become CARGILL INCORPORATED (95%) and CARGILL ASIA PACIFIC LTD. LLC., (5%). Then according to the latest revision of notary documents of Mrs. Amelia Kasih, SH., M.Kn., No. 7 dated 11 August 2011 the board of directors and the board of commissioners has been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-27477 dated August 24, 2011.

 

We see that CARGILL INCORPORATED of the USA is also majority business stakes owner of P.T. HARAPAN SAWIT LESTARI, P.T. HINDOLI, P.T. CARGILL LESTARI AGROSENTOSA are engaged in palm oil plantation and palm oil refinery and other companies.

 

P.T. CI is a Foreign Investment (PMA) corporation engaged in animal-feed milling, poultry breeding and hybrid corn seedling having been operating since 1975. It manages 6 plant units each located at Jalan Raya Telajung Udik, Gunung Putri, Bogor, West Java, of 15,000 sq. meters; Jalan Raya Jakarta – Serang Km. 6.8, Kawasan Industri Modern Cikande, Serang, Banten Province on 12,000 sq. meters; Jalan Raya Balongwatu, Desa Cangkring Malang, Pasuruan, East Java, of 15,000 sq. meters; Jalan Walisongo No. 395 A Km. 9.6, Semarang, Central Java on 15,000 sq. meters; Jalan Medan – Tanjung Morawa Km. 13.5, Deli Serdang, North Sumatera on 16,000 sq. meters and Jalan Kapasa, Makasar, South Sulawesi, of 20,000 sq. meters. The plants have frequently been expanded to increase production capacity. The plant produces hybrid corn seeds of 9,000 tons, animal feeds of 450,000 tons, Cocoa beans of 30,000 tons and fish milling of 24,000 tons respectively per year. The above plant has absorbed an investment of US$ 42.4 million coming from owned capital of US$ 4.1 million, reinvested profit of US$ 6.5 million and the rest is loan.

 

Over the years we enjoyed substantial growth, and today P.T. CI expansive operations comprise the origination, processing, handling, shipping and marketing of a wide range of agricultural and food products and related services. The products of animal-feed, poultry and hybrid corn seeds are marketed 100% locally, while the cocoa beans is exported to Australia, Hong Kong, Malaysia, Japan, the USA and other countries. In November 2005, P.T. CI obtained an expanding license for increasing the annual production capacity in coconut oil refinery (processing) industry. The expanded plant is located in South Minahasa Regency, Manado, North Sulawesi on a land of 34,000 sq. meters with annual production of 100,000 tons of coconut oil, 20,000 tons of palm kernel oil (PKO) and 60,000 tons of copra expeller with an investment of US$ 16.0 million entirely from loans. The expanded plant has been in operation in the end of 2008.

 

Since August 2003 and 2008, the bird influenza (avian influenza) diseases have attacked several chicken breeders in several regions in Indonesia. The disease has largely caused the poultry to die so the chicken raisers have suffered from a loss and even stopped their business.

 

 

Besides, the consumption of the chicken products has been declining because there is the consumers’ worry that most people fear for the bad effect when consuming chicken. The contagious bird influenza disease in the country has brought bad impact to the performance of the national animal feed industries. The prices of day-old chick (DOC) have also been significantly decreasing. The decline in DOC prices is influenced by the over supply of DOC. However, the growth of poultry business has been increasing as evidence from the increasing DOC prices, commercial chickens and animal feed. It seems that P.T. CI belongs to a large company and the operation has been running and growing slowly.

 

Generally, demand for hybrid corn seed has kept on increasing in the last five years having close relation with the increasing growth of agricultural sectors especially corn corps in the last five years. Besides, the corn import has also been going up. However, the increasing local corn products are not followed by the demand for corns by animal feed industries. This condition is caused by the difficulties especially the contagious bird influenza disease faced by animal feed industries causing thousands of poultry to die in several regions in the country. This case will also cause the public absorption power level in consuming poultry products to decline. This difficult situation has made many animal feed industries to suffer from a loss especially animal feed industry. However, animal feed production is still holding out. Besides that the competition is very tight due to a large number of similar companies operating in the country. It’s projected the demand for animal feed, fish meal, fish oil and feather meals will be rising in the future at least 5% per annum. The business position of P.T. CI is appraised to be favorable for having established wide marketing networks within and outside the country.

 

Until this time P.T. CI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. CI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2009 amounted to Rp. 2,185.0 billion rose to Rp. 2,212.0 billion in 2010 increased to Rp. 2,256.0 billion in 2011 and projected to go on rising by at least 5% in 2012. The operation in 2011 yielded an estimated net profit of at least Rp. 169.2 billion and the company has an estimated total net worth of at least Rp. 275.0 billion. We observe that P.T. CI is supported by foreign partner 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 is headed by Mrs. Lucy Tjahjadi Tan Ho Liat (43), a professional manager of graduate from Trisakti University majoring in economic. Daily activity she is assisted by Mr. Syed Munirul Hasan (59) as Director, a professional manager of CARGILL INC., of the USA. He is assisted by a number of experienced professional managers in this business. The company is sponsored by a financially quite strong shareholders and the management has maintained a wide business relation among private businessmen at home and abroad. So far, we did not hear that of the management of the company being filed to the district court for detrimental cases or involved in business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. We are convinced P.T. CARGILL INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

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.