MIRA INFORM REPORT

 

Report Date :

10.08.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. PRIMA MITRAJAYA MANDIRI

 

 

Registered Office :

Gedung Graha Aktiva, Suite 1001, Jl. HR. rasuna Said, Blok X-1, Kav. 03, Jakarta 12950

 

 

Country :

Indonesia

 

 

Date of Incorporation :

13.09.2005

 

 

Com. Reg. No.:

No. AHU-AH.01.10-19705

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Oil Palm Plantation

 

 

No. of Employees :

2,540 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

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. PRIMA MITRAJAYA MANDIRI

 

 

company Address

 

Head Office

Gedung Graha Aktiva, Suite 1001

Jl. HR. rasuna Said, Blok X-1, Kav. 03

Jakarta 12950

Indonesia

Phone               - (62-21) 5292 0338

Fax.                  - (62-21) 5292 0339

Building Area     - 26 storey

Office Spare      - 160 sq. meters

Region              - Commercial

Status               - Rent

 

Samarinda Office

Jl. Gamelan No. 2A, RT.034

Kel. Dadi Mulya, Kec. Samarinda Ulu Kota

Samarinda 75123

East Kalimantan

Indonesia

Phones             - (62-541) 739242, 739587

Fax.                  - (62-541) 739597

Building Area     - 2 storey

Office Spare      - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Plantation Location

Rantau Hempang Bulsing

Desa Rantau Hempang

Kec. Muara Kaman, Kota Bangun, Muara Wis

Kabupaten Kutai Kertanegara

East Kalimantan - Indonesia

Land Area         - 21,500 hectares

Building Area    - 1.2 hectares

Region              - Plantation Zone

Status               - Rent

 

 

Date of Incorporation

 

13 September 2005

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Laws and Human Rights

  a.  No. C-16441.HT.01.01.TH.2006

      Dated 06 June 2006

  b.  No. AHU-49088.HT.01.02.TH.2008

      Dated 07 August 2008

  c.  No. AHU-AH.01.10-19705

      Dated 01 June 2012

 

 

Company Status

 

Foreign Investment Company (PMA)

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.504.354.8-058.000

 

 

Holding Companies

 

M.P. EVANS & Co. Ltd., of United Kingdom (Investment Holding)

 

 

Affiliated Companies

 

a. P.T. AGRO MUKO (Oil Palm Plantation)

b. P.T. KERASAAN INDONESIA (Oil Palm Plantation)

c. P.T. TEGUH JAYAPRIMA ABADI (Oil Palm Plantation)

d. P.T. GUNUNG PELAWAN LESTARI (Oil Palm Plantation)

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital    - Rp. 45,000,000,000.-

Issued Capital          - Rp. 45,000,000,000.-

Paid up Capital        - Rp. 45,000,000,000.-

 

Shareholders/Owners :

a. M.P. EVANS & Co. Ltd., of United Kingdom        - Rp. 41,625,000,000.- (92.5%)

b. Mr. Halim Jawan of Indonesia                             - Rp.   3,375,000,000.- (  7.5%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Oil Palm Plantation

 

Production Capacity :

Fresh Fruits Bunches   - 23,100 ton p.a.

 

Total Investment :

Equity Capital                - Rp. 45.0 billion

 

Started Operation :

2010

 

Brand Name :

PRIMA MITRAJAYA

 

Technical Assistance :

MP Evans & Co. Ltd., of United Kingdom

 

Number of Employee :

2,540 persons                                 

 

Marketing Area :

Local (Domestic)     - 100%

 

Main Customers :

a. Palm Oil Refinery Industries

b. Cooking Oil Industries, Etc

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. AMP Plantation

b. PT. Mukti Swadaya Lestari

c. PT. Permata Hijau Sawit

d. PT. Tapian Gayor Langkat

e. PT. Tanjung Siram

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   STANDARD CHARTERED Bank

      Menara Standard Chartered Bank

      Jl. Prod. DR. Satrio No. 164

      Jakarta Selatan

b.   P.T. Bank  CIMB NIAGA Tbk.

      Plaza CIMB NIAGA

      Jl. Jend. Sudirman Kav. 56

      Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No detrimental filling in our database

 

 

FINANCIAL FIGURE

 

Total Sales/Income (estimated) :

2010 – Rp. 11.0 billion

2001 – Rp. 45.6 billion

 

Net Profit (Loss) – estimated :

2010 – (Rp.12.5 billion)

2011 – (Rp.  6.3 billion)

 

Payment Manner :

Almost promptly

 

Financial Comments :

Fairly good

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Krisnan Chandra Sekaran K.V. Nair

Directors                                         - a. Mr. Sivabalan Subbiah

                                                        b. Mr. Satheesan Al T.A. Menon

                                                        c. Mr. Markian Gunawan

                                                        d. Mr. Halim Jawan

 

Board of Commissioners :

President Commissioner                   - Mr. Peter Edwin Hadsley Chaplin

Commissioners                                - a. Mr. Philip Anthony Fletcher

                                                        b. Mr. Owen David Wilkinson

                                                        c. Mr. Sudihugeng Hardjojo

 

Signatories :

President Director (Mr. Kris Chandra Sekaran K.V. Nair) or one of Directors (Mr. Sivabalan Subbiah, Mr. Satheesan Al T.A. Menon, Mr. Markian Gunawan, Mr. Halim Jawan) which must be approved by President Commissioner (Mr. Peter Edwin Hadsley Chaplin) and one of the Commissioners (Mr. Philip Anthony Fletcher, Mr. Owen David Wilkinson and Mr. Sudihugeng Hardjojo)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. PRIMA MITRAJAYA MANDIRI (P.T. PMM) was incorporated in Jakarta on September 13, 2005 with the authorized capital of Rp. 1,000,000,000.- of which Rp. 250,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mr. Halim Jawan (85%) and Mr. Sudihugeng hardjojo (15%), both are indigenous businessmen. The deed of company was made by Ni Putu Sri Sunardewi, SH., a public notary in Jakarta and it was approved by the Minister of Law and Human Right through Decision Letter No. C-16441 HT.01.01.TH.2006 dated June 6, 2006.  The company's notarial act was since revised a number of times.   In January 2007, Mr. Sudihugeng Hardjojo pulled out and the whole shares are sold to M.P. Evans & Co. Limited of United Kingdom.


Latest, in July 2008, the authorized capital was raised to Rp. 45,000,000,000.- entirely was issued and fully paid up.  Since then, the shareholders of the company are M.P. Evans & Co. Limited (92.5%) and Mr. Halim Jawan (7.5%). The deed of amendment was made by Dr. Misahardi Wilamarta, SH., a public notary in Jakarta and it was approved by the Minister of Law and Human Right in its Decision Letter No. AHU-49088 HT.01.02.Tahun.2008 dated August 7, 2008 and No. AHU-AH.01.10-19705 dated June 1, 2012.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. PMM is engaged in oil palm plantation in East Kalimantan.  Pursuant to Kutai Kertanegara Regency, the company owns a oil palm plantation area of 21,500 hectares in District of Muara Kaman, Kota Bangun and Muara Wis, Kutai Kertanegara Regency, East Kalimantan.

 

We observed that P.T. PMM is a member of the M.P. Evans Group PLC (incorporated in England & Wales) is listed on AIM. The Group's assets consist of oil-palm plantations (both majority and minority held) in Indonesia, beef-cattle interests in Australia and property development in Malaysia.

 

In 2006 agreements were signed with two Indonesian partners, both members of the same Indonesian family, Messrs. Halim Jawan and Sudihugeng Hardjojo. Mr Jawan is a 7.5% shareholder in PT Prima Mitrajaya Mandiri; Mr Sudihugeng is a 7.5% shareholder in PT Tegu Jayaprima Abadi. Together, the two companies are developing 16,000 hectares of land near Samarinda in East Kalimantan. The largely open land is deemed highly suitable for oil-palm cultivation in terms of soil conditions, terrain and climate. As part of the agreement smallholders' co-operatives, comprising approximately 4,600 hectares (part of the 16,000 hectares referred to above), will be developed on the project and will be managed by the Group. 

 

As with the Bangka project, the co-operatives’ fruit will be processed by the Group’s mills, the first of which was commissioned at the end of 2011.  At 31 December 2011, 12,800 hectares had been planted of which 3,600 hectares have been allocated to the smallholder schemes.

 

In 2005 the Group invested in a 90% share of an Indonesian company, PT Gunung Pelawan Lestari ("GPL"), which, it is planned, will develop 10,000 hectares of environmentally-suitable land into oil palm over the next three to four years, of which 4,000 hectares will be allocated to the smallholders’ co-operative schemes. The other 10% of GPL is owned by an Indonesian businessman, Mr Karli Boenjamin. As at 31 December 2011, 4,400 hectares had been planted. Of these 1,400 hectares have been allocated to the smallholder co-operatives. These will be developed and managed by GPL and the co-operatives’ fruit will, one day, be processed by GPL’s mill.

 

Source: http://mpevans.co.uk/mpevans/en/operations/oil

 

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. But, the increase did not follow by a good market prices even caused the drastically decline of the market price in the middle of 2008. Besides that, the increase in Indonesian and Malaysian oil palm production was also followed by relatively unstable world market prices for edible oil which caused an over supplies and dropped world price of CPO. Such condition is estimated to continue on remaining unchanged until 2009. Details on Indonesian last five years CPO production and export value is listed below:

 

National CPO Production, Export and Consumption, 2004-2008

 

Year

Production (000 Tons)

Exports

(000 Tons)

Consumption

(000 Tons)

2004

12.380

8.996

3.347

2005

14.100

10.436

3.546

2006

16.050

12.540

3.711

2007

17.100

12.650

4.105

2008

19.330

14.470

4.430

                   Source: Central Research of Oil Palm Plantation

 

P.T. PMM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  We observed that total sales/income of the company in the first year operation in 2010 amounted to Rp. 11.0 billion rose to Rp. 45.6 billion in 2011 with a net loss of Rp. 6.3 billion and projected to go on rising by at least 15% in 2012.  The company has an estimated total asset of at least Rp. 65.0 billion.   We observe that P.T. PMM 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 management of P.T. PMM is headed by Mr. Krisnan Chandra Sekaran K.V. Nair (56), a professional manager of Johor (Malaysia) with broad experience in oil palm plantation and refinery. In his daily activities, he is assisted by four directors namely Mr. Sivabalan Subbiah (54), Mr. Satheesan AL T.A.. Menon (59), both are of Malaysia, Mr. Markian Gunawan (42) and Mr. Halim Jawan (64), both are of Indonesia. The management is also handled by professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors.   So far, we did not hear that the company’s management involved in the 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.

 

Since this company (PT. MPP) just about two years 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.55.17

UK Pound

1

Rs.86.43

Euro

1

Rs.68.27

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.