MIRA INFORM REPORT

 

 

Report Date :

24.12.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. SUSILIA INDAH SYNTHETIC FIBERS INDUSTRIES

 

 

Registered Office :

Jalan Imam Bonjol No. 133 Km. 2 Karawaci, Tangerang, 15115 Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

26.01.1978

 

 

Com. Reg. No.:

No. AHU-AH.01.10-08806

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Polyester Chips, Staple Fiber, Filaments and Textured Yarns

 

 

No. of Employees :

3,200 persons

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

Indonesia - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.

 

 

Source : CIA

 

 


 Name of Company

 

P.T. SUSILIA INDAH SYNTHETIC FIBERS INDUSTRIES

 

 

Address

 

Head Office & Factory I

Jalan Imam Bonjol No. 133 Km. 2

Karawaci, Tangerang, 15115

Banten Province

Indonesia

Phones - (62-21) 552 5821, 552 5953

Fax                   - (62-21) 552 4190

E-mail               - mkt@sulindafin.com

Website            - http://www.shinta.co.id

Land Area         - 151,967 sq. meters

Building Space  - 75,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jalan Hos Cokroaminoto No. 133, Km. 51

Kalijaya, Cikarang Barat

Bekasi, 17520

West Java

Indonesia

Phones             - (62-21) 890 0606 (Hunting)

Fax                   - (62-21) 890 0617

Land Area         - 77,935 sq. meters

Building Space  - 55,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

26 January 1978

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. Y.A.5/11/18

            Dated 8 January 1980

-           No. C-25549.AH.01.04.TH.2000

            Dated 21 December 2000

-           No. AHU-12775.AH.01.02.TH.2012

            Dated 8 March 2012

-           No. AHU-AH.01.10-08806

            Dated 13 March 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.120.405.4-415.000

 

The Capital Investment Coordinating Board

- No. 05/V/PMA/2001

  Dated 29 January 2001

- No. 143/II/PMA/2001

  Dated 21 May 2001

- No. 805/III/PMA/2002

  Dated 30 July 2002

- No. 234/II/PMA/2002

  Dated 01 November 2002

 

Related Company :

A Member Company of the SHINTA Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 1,000,000,000,000.-

Issued Capital   : Rp.    590,000,000,000.-

Paid up Capital : Rp.    590,000,000,000.-

 

Shareholders/Owners :

a. P.T. SULINDA INVESTAMA                                                               - Rp. 558,585,771,500.-

    Address : Jl. K.H. Zainul Arifin

                    Komplek Ketapang Indah, Taman Sari

                    Jakarta Barat

                    Indonesia

b. UNITED ASIA OVERSEAS PTE, LTD.                                               - Rp.   28,000,000,000.- 

    Address : 111 North Bridge Road 24-01

                    Singapore, 179098

c. Mr. Toto Hermijanto                                                                         - Rp.     2,800,000,000.-

    Address : Jl. Imam Bonjol 133, RT. 004 RW. 001

                    Karawaci, Tangerang

                    Banten Province

                    Indonesia

 

 

d. Mr. Hendra Hermijanto                                                                     - Rp.        214,228,500.- 

    Address : Jl. Imam Bonjol 133, RT. 004 RW. 001

                    Karawaci, Tangerang

                    Banten Province

                    Indonesia

e. Mr. Suryadi Hermijanto                                                                    - Rp.        200,000,000.-

    Address : Jl. Imam Bonjol 133, RT. 004 RW. 001

                    Karawaci, Tangerang

                    Banten Province

                    Indonesia

f. Mr. Indra Hermijanto                                                             - Rp.        200,000,000.-

    Address : Jl. Imam Bonjol 133, RT. 004 RW. 001

                    Karawaci, Tangerang

                    Banten Province

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Line of Business :

Manufacturing of Polyester Chips, Staple Fiber, Filaments and Textured Yarns

 

Production Capacity :

a.         Knitted Fabrics                                      - 1,250,000 meters p.a.

b.         Nylon Filament Yarns                             -        6,095 tons p.a.

c.         Nylon Textured Yarns                            -        1,850 tons p.a.

d.         Polyester Textured Yarns                       -      29,750 tons p.a.

e.         Polyester Filament Yarns                       -      35,000 tons p.a.

f.          Polyester Chips                                     -      67,375 tons p.a.

g.         Polyester Fiber                                      -      28,835 tons p.a.

h.         Partially Oriented Yarns                         -        8,750 tons p.a.

i.          Draw Texturizing Yarns                          -      11,000 tons p.a.

j.          Fully Drawn Polyester Filament Yarns     -        4,500 tons p.a.

 

Total Investment :       

a. Owned Capital           - Rp.    564.0 million

b. Loan Capital  - Rp.    767.7 million

c. Total Investment        - Rp. 1,332.6 million

 

Started Operation :

1979

 

Brand Name :  

Sulindafin

 

Technical Assistance :

United Asia Overseas Pte., Ltd., of Singapore

 

Number of Employee :

3,200 persons

 

Marketing Area :

Local    - 70%

Export              - 30%

 

Main Customers :

a. Distributors and textile industries

b. Buyers in Singapore, Australia, Europe Union, Middle East etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a.         P.T. INDONESIA TORAY SYNTHETICS

b.         P.T. INDORAMA SYNTHETICS Tbk

c.         P.T. INDORAMA VENTURES INDONESIA

d.         P.T. POLYCHEM INDONESIA Tbk

e.         P.T. POLYSINDO EKA PERKASA

f.          P.T. TIFICO FIBER INDONESIA Tbk

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :         

a.         P.T. Bank PERMATA Tbk

            Jalan Hayam Wuruk 84-85

            Jakarta Pusat

            Indonesia

b.         P.T. Bank MANDIRI Tbk

            Jalan Ir. H. Juanda No. 25

            Jakarta Pusat

                        Indonesia

c.         P.T. Bank CIMB NIAGA Tbk

            Jalan Gajah Mada No. 18

            Jakarta Pusat

            Indonesia

 

Auditor :

Internal Auditor

 

Litigation :      

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 2,752.0 billion

2010 – Rp. 2,830.0 billion

2011 – Rp. 2,980.0 billion

2012 – Rp. 1,550.0 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 192.6 billion

2010 – Rp. 226.4 billion

2011 – Rp. 238.4 billion

2012 – Rp. 124.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Toto Hermijanto AKA The Tjin Kim

Directors                                   - a. Mr. Suresh Khurana

                                                -  b. Mr. Tan Chee Weng

 

Board of Commissioners :

President Commissioner            - Mrs. Stacey Hermijanto

Commissioner                           - Mr. Liu Ing Ming

 

Signatories :

President Director (Mr. Toto Hermijanto) or one of the Directors (Mr. Suresh Khurana or Mr. Tan Chee Weng) 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

 

 

OVERALL PERFORMANCE

 

P.T. SUSILIA INDAH SYNTHETIC FIBRE INDUSTRIES abbreviated into P.T.SULINDAFIN was established in January 1978 by Mr. Toto Hermijanto AKA The Tjin Kim, his son named Mr. Hendra Hermijanto AKA Tjoa Eng Hok, and two other businessmen, namely Mr. Hasan Beninta Manoppo and Mr. Hengky Hardiman AKA The Heng Liong. The company had an initial authorized capital of Rp. 500,000,000 issued and paid up capital of Rp. 100,000,000. After having been revised several times, the company's authorized capital was in June 1985 increased to Rp. 15,000,000,000 issued capital to Rp. 13,250,000,000 fully paid up. In November 2000 its sister company P.T. SHINTANYLON UTAMA merged into this company and concurrently the authorized capital was increased to Rp. 1,000,000,000,000 issued capital to Rp. 536,969,907,000 entirely paid up. As from January 2001, the company was joined by new shareholder as the foreign partner of P.T. SULINDAFIN namely UNITED ASIA OVERSEAS Pte., Ltd., of Singapore. On the same occasion, the issued capital was increased to Rp. 564,969,907,000 wholly paid-up. The deed of amended was made by Mr. Sutjipto, SH, a public notary in Jakarta, under Company Registration Number C-25549.HT.01.04.2000, dated December 21, 2000.

 

Then according to the latest revision of notary documents of Mr. Dr. Iriawan Soerodjo, SH., No. 345 dated 27 February 2012 the company issued capital was raised to Rp. 590,000,000,000 of which paid up. With this development the composition of its shareholders has been changed to become P.T. SULINDA INVESTAMA (94.675%), UNITED ASIA OVERSEAS PTE, LTD., Singapore (4.745%), Mr. Toto Hermijanto AKA The Tjin Kim (0.475%), Mr. Hendra Hermijanto AKA Tjoa Eng Hok (0.037%), Mr. Suryadi Hermijanto AKA Tjoa Eng Sin (0.034%) and Mr. Indra Hermijanto (0.034%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-08806 dated March 13, 2012.

 

We observed that Hermijanto family is major founder, prime mover and majority business stakes owner of the SHINTA Group, a medium-size business group whose major business activities are in textile industry and trade.

 

Originally P.T. SULINDAFIN obtained a Domestic Investment (PMDN) permit issued by Investment Coordinating Board (BKPM) for dealing with polyester synthetic fiber industry. But, as from January 2001 after the joining of its foreign partner UNITED ASIA OVERSEAS Pte. Ltd., of Singapore, its style was changed to a Foreign Investment (PMA). It originally managed a factory unit located at Jalan Imam Bonjol No. 133, Karawaci, Tangerang, Banten Province standing on 151,967 sq. meters commercially operating as from 1979. But, as from November 2000 after P.T. SHINTANYLON UTAMA merged into the company, automatically the company operates two factories of which the other is located at Jalan Hos Cokroaminoto Km. 51 No. 133, Kalijaya, Cikarang Barat, West Java standing on 77,935 sq. meters.

 

After the merger, both of the above factories own a total production capacity of Knitted Fabrics of 1,250,000 meters, Nylon Filament Yarns of 6,095 tons, Nylon Textured Yarns of 1,850 tons, Polyester Textured Yarns of 29,750 tons, Polyester Filament Yarns of 35,000 tons, Polyester Chips of 67,375 tons, Polyester Fiber of 28,835 tons, Partially Oriented Yarns of 8,750 tons, Draw Texturizing Yarns of 11,000 tons and Fully Drawn Polyester Filament Yarns of 4,500 tons per annum respectively. The above plant has absorbed an investment of Rp. 1,332.6 billion come from owned capital of Rp. 564.0 billion and the rest is loans. Their state of the art manufacturing facilities produce up to 80,000 tons of a wide range of polyester each year. P.T. SULINDAFIN also produce a comprehensive variety of specialty and performance yarns which features, among others, its exclusive SULSUITE Collection.

 

Specialty & Performance Yarns

Sulsuite Collection                                                                     Specific Yarns

SULCOOL – Moisture Absorbent                                                - Micro filament Yarns

SULNATURAL – Natural Feel                                                      - Bi-shrinkage Yarns

SULSHIELD – Flame Retardant                                                  - Nep Yarns

SULGUARD – Anti Bacterial                                                       - Cationic Yarns

 

Traditional Range

Polyester                                                                                  - Nylon 6

Partially Oriented Yarns                                                             - Textured Yarns

Draw Textured Yarns                                                                 - Flat Filament Yarns (Mono

Flat Filament Yarns

Staple Fiber (including dope dyed colored)

Textile Grade Chips

 

Some 70% of company production is marketed locally mostly to textile industry within its own group members and partly to other textile companies. Meanwhile, the rest 30% is for export to various Asian countries, Middle East and others. P.T. SULINDAFIN has been awarded an ISO 9002 for quality and management. The market for these products now is worldwide; the crisis of 2008/2009 has made it so that the USA is not the only market for these products. Asia is coming up in a big way and markets like Singapore, India and China are becoming big spenders on these products. So we feel market is not a limitation for these products it is a question of getting the right products and finding a suitable partner to develop garments from these products. They are already working with leading brands in the USA in Europe and Asia including Japan and they hope to place these products very soon onto the market. P.T. SULINDAFIN export markets span five continents and over 25 countries. Specifically in North America there is interest for exclusivity in the distribution of their specialty products. There is also great interest from China in seeking access to their specialty product as a raw material and also Middle East.

 

The global economic crisis followed by fast rising local bank interest rates has also had a negative impact on the company's finances for having resulted in a swelling of the company’s debts. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). It seems that P.T. SULINDAFIN belongs to a large company of its kind in the country and the operation has been running well as yet.

 

Generally, the demand for polyester chip, polyester filament yarns, and others textile products tended to be fluctuating within the last five years in line with the fluctuating of Indonesian textile industry in general. The country’s garment industry is facing serious marketing problem not only in the country but also abroad. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327.300 tons (US$ 4,351.9 million) in 2004 to 369.500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393.400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450.9 ton (7,801.5 million) in 2011. The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (5,563.3 million) in 2011.

 

The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2011 are pictured on the following table.

 

            Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

Source: Central Bureau of Statistic     

 

Until this time P.T. SULINDAFIN has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. SULINDAFIN 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. 2,752.0 billion rose to Rp. 2,830.0 billion in 2010 increased to Rp. 2,980.0 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 1,550.0 billion with a net profit of Rp. 124.0 billion and projected to go on rising by at least 5% in 2013. The operation in 2009 yielded an estimated net profit of at least Rp. 1.4 billion and the company has an estimated total networth of at least Rp. 612.0 billion. 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 of P.T. SULINDAFIN is led by Mr. Toto Hermijanto AKA The Tjin Kim (79) a businessman with 43 years experience in many type of businesses particularly within the SULINDAFIN Group. Hermijanto family is also majority founder, prime mover and majority business stakes owners of the SULINDAFIN Group. Daily activity he is assisted by Mr. Suresh Khurana (58) a professional manager of India and Mr. Tan Chee Weng (57) of Malaysia as Directors. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. SUSILIA INDAH SYNTHETIC FIBERS INDUSTRIES is sufficiently fairly good for business transaction.

 

 

Attachment

 

List of the SHINTA Group Members

 

INKOSINDO SUKSES, P.T.  (Garment Manufacturing and Exporting)

KORYO INTERNATIONAL, P.T. (Sport Shoes and Shoe Component Manufacturing)

SHINTA BUDHRANI INDUSTRIES, P.T. (Textile Weaving)

SHINTA FOREX, P.T. (Money Changer)

SHINTA INDAH DJAYA, P.T. (Textile Mills)

SHINTA INDONESIA, P.T. Bank., (Banking)

SHINTA INSERVE, P.T. (Insurance Brokerage)

SHINTA KORINTAMA, P.T. (Investment Holding)

SHINTANYLON UTAMA, P.T. (Nylon Filament Manufacturing)

SHINTA SAMYANG FIBRE, P.T. (Polyester Recycling Staple Fibre Manufacturing)

SHINTA WOOSUNG TEXTILE, P.T. (Integrated Textile Industry)

SITAL DJAYA INDUSTRIES, P.T. (Weaving, Printing, Dyeing and Finishing)

SULINDA INDAH TEXTILE, P.T. (Integrated Textile Mills)

SULINDA INVESTAMA, P.T. (Investment Holding)

SULINDAFIN PERMAI SPINNING MILLS., P.T. (Spinning Mills)

SUSILIA INDAH SYNTHETIC FIBER INDUSTRIES, P.T or P.T. SULINDAFIN (Polyester Synthetic Fiber Manufacturing and Investment Holding)

Etc


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.