MIRA INFORM REPORT

 

 

Report Date :           

23.02.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. KAO INDONESIA CHEMICALS

 

 

Formerly Known As :

P.T. POLEKAO INDONESIA CHEMICALS

 

 

Registered Office :

Jalan Raya Tambun Km. 42, Bekasi 17510, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

14.06.1977

 

 

Com. Reg. No.:

No. AHU-AH.01.10-11188

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Industrial Chemical Processing

 

 

No. of Employees :

677

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

US$ 5,000,000

Status :

Good

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 – 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. KAO INDONESIA CHEMICALS

 

 

company Address

 

Head Office & Factory

Jalan Raya Tambun Km. 42

Bekasi 17510

West Java

Indonesia

Phones             - (62-21) 8832 6188, 8832 4883 (Hunting)

Fax                   - (62-21) 8832 4452, 8832 7276

E-mail               - mujib@kaochem.co.id

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

Land Area         - 15,000 sq. meters

Building Space  - 10,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branch

Wisma Kyoei Prince, 17th Floor

Jalan Jend. Sudirman Kav. 3-4

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 5723 363 (Hunting)

Fax                   - (62-21) 5723 364

Building Area     - 22 storey

Office Space      - 300 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Date of Incorporation

 

a. 14 June 1977 as P.T. POLEKAO INDONESIA CHEMICALS

b. 25 April 1996 as P.T. KAO INDONESIA CHEMICALS

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-09554.HT.01.04.TH.2004

  Dated 19 April 2004

- No. C-UM.02.01.13040

  Dated 28 July 2006

- No. AHU-AH.01.10-7782

  Dated 3 April 2008

- No. AHU-21234.AH.01.02.TH.2009

  Dated 15 May 2009

- No. AHU-AH.01.10-11188

  Dated 14 April 2011

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.001.727.5-407.001

 

The President of the Republic of Indonesia

No. B-21/Pres/4/1977

Dated 28 April 1977

 

The Capital Investment Coordinating Board

-No. 09/II/PMA/1984

  Dated 6 June 1984

- No. 04/II/PMA/1992

  Dated 24 January 1992

- No. 234/II/PMA/1996

  Dated 8 November 1996

- No. 1814/III/PMA/2000

  Dated 28 April 2000

- No. 231/II/PMA/2001

  Dated 19 September 2001

- No. 137/II/PMA/2007

  Dated 27 April 2007

 

The Department of Industry

No. 595/T/Industri/2000

Dated 4 September 2000

 

Related Company

 

A Member Company of the RODAMAS Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 11,600,000.-

Issued Capital                                  : US$ 11,600,000.-

Paid up Capital                                : US$ 11,600,000.-

 

Shareholders/Owners :

a. KAO CORPORATION                                          - US$ 11,020,000.-

    Address : 14-10, Nihonbashi Kayabacho

                    1-Chome, Chuo-Ku, Tokyo

                    Japan           

b. P.T. RODAMAS                                                  - US$      580,000.- 

    Address : Jl. Letjend. S. Parman 32-34

                    Jakarta Barat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Industrial Chemical Processing

 

Production Capacity :

a.   Alkyl Sulfate Powders                                     -   17,500 tons p.a.

b.   Alkyl Aryl Ether Sulfates                                  -     5,300 tons p.a.

c.   Alkyl Aryl Sulfonates                                       -   24,000 tons p.a.

d.   Surface Active Chemicals                                -     1,000 tons p.a.

e.   Alkyl Ether Sulfates                                        -     3,000 tons p.a.

f.    Emulsifier for Agro Chemicals                          -        700 tons p.a.

g.   Anti Caking Agent for Fertilizers                       -        400 tons p.a.

h.   Special Formulated (Anionic Surfactant)            -          10 tons p.a.

i.    Special Alkylated Sulfonates                            -          10 tons p.a.

j.    Alkyl Succinate                                              -          12 tons p.a.

k.   Alkyl Methyl Ether                                          -        129 tons p.a.

l.    Ethoxylated Alkyl Phenyl Ethers                         -        359 tons p.a.

m.  Ethoxylated Alcohol                                        -          10 tons p.a.

n.   Sorbitol Ethoxylate Alcohols                            -          60 tons p.a.

o.   Coconut Ethanol Amide                                   -     1,990 tons p.a.

p.   Fatty Acid Ether                                             -     1,200 tons p.a.

q.   Fatty Acid Amide                                            -        600 tons p.a.

r.    Emanon 3299R/Emanon 3201 M          -        480 tons p.a.

s.   Emasol 410/Rheodol SPS 10                           -        540 tons p.a.

t.    SBN/SAB                                                       -        180 tons p.a.

u.   Imidazoline L 55                                              -        210 tons p.a.

v.    Exeparl IPM/IPP                                             -        190 tons p.a.

w.   Rheomide                                                       -        240 tons p.a.

x.   Sodium Laury Sultated Email Zero                    - 150,000 KG p.a.

 

Total Investment :

a. Equity Capital                              - US$ 11.6 million

b. Reinvested Profit                          - US$   5.0 million

c. Loan Capital                                - US$ 13.5 million

d. Total Investment                           - US$ 30.1 million

 

Started Operation :

1982

 

Brand Name :

Kao Indonesia Chemicals

 

Technical Assistance :

Kao Corporation Japan

 

Number of Employee :

677 persons                                   

 

Marketing Area :

Export      - 50%

Local      - 50%

 

Main Customers :

a. P.T. KAO INDONESIA

b. P.T. LION WINGS

c. P.T. MANDOM INDONESIA TBK

d. P.T. MUSTIKA RATU

e. P.T. SAYAP MAS UTAMA

f.  P.T. SINAR ANTJOL

g. P.T. WING SURYA

h. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BASF INDONESIA Tbk

b. P.T. BOZZETTO INDONESIA

c. P.T. MATSUMOTOYUSHI INDONESIA

d. P.T. SNOGEN INDONESIA

e. Etc.

 

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   The Bank of TOKYO-MITSUBISHI UFJ Ltd.

      Jalan Jend. Sudirman Kav. 10-11

      Jakarta Selatan

      Indonesia

b.   P.T. Bank NEGARA INDONESIA Tbk.

      Jalan Jend. Sudirman Kav. 1 

       Jakarta Pusat

      Indonesia

c.   The STANDARD CHARTERED Bank

      Jalan M.H. Thamrin No. 53

      Jakarta Pusat

      Indonesia

d.   The HONGKONG Bank

      Jalan Jend. Sudirman Kav. 29-31

      Jakarta Selatan, Indonesia

f.    CITIBANK N.A

      Jalan M.H. Thamrin No. 55

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 392.0 billion

2010 – Rp. 405.0 billion

2011 – Rp. 412.0 billion

 

Net Profit (estimated) :

2009 – Rp. 31.4 billion

2010 – Rp. 34.8 billion

2011 – Rp. 35.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Hideyuki Nishio

Vice President Director                     - Mr. Seiji Tamaki

 

Board of Commissioners :

President Commissioner                   - Mr. Shoji Kobayashi

 

Signatories :

President Director (Mr. Hideyuki Nishio) or Vice President Director (Mr. Seiji Tamaki) 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$ 5,000,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

Initially named P.T. POLEKAO INDONESIA CHEMICALS, it was established in Bekasi, West Java, in June 1977 with an authorized capital of US$ 1,000,000 entirely was issued and paid up. The original founding shareholders are KAO CORPORATION CO.LTD., of Japan, P.T. POLEKO TRADING COY and P.T. TJIBITUNG, both of Indonesia and subsidiaries of the POLEKO Group, a business group headed by and the majority business stake is controlled by the late Dr. Arnold Baramuli, SH., a prominent businessman and former state high-official. The company notary deed has been changed a couple of times. In 1991 the authorized capital was raised to US$ 4,500,000 entirely issued and paid up.

 

In April 1996 the company was renamed P.T. KAO INDONESIA CHEMICALS (P.T. KIC). By the same time its local partner pulled out and joined in a new shareholder P.T. Perusahaan Dagang RODAMAS COMPANY LIMITED, abbreviated P.T. RODAMAS. Then in September 2001 its authorized capital was raised to US$ 11,600,000 entirely issued and paid up. This development the composition of its shareholders has been changed to become KAO CORPORATION (95%) and P.T. RODAMAS (5%). Then in April 2008, the Board of Management and Board of Commissioner had been changed. However, the capitalization structure of the company remained the same. The revision of notary deed was made by Mrs. Silvia Veronica, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-7782, dated April 03, 2008. The latest according to the latest revision of notary documents of Mrs. Silvia Veronica, SH., No. 110 dated 29 March 2011 the board of director and the board of commissioner has been changed (see profile of this report). The latest revision of notary document was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-11188 dated April 14, 2011.

 

The local partner namely P.T. RODAMAS is a sister company of the RODAMAS Group, a large national private business group headed by and the majority business stake is controlled by Mr. Tan Siong Kie. The main business of the Group are among others in sheet glass and flat glass manufacturing, food seasoning, G.I. sheet manufacturing, industrial chemicals processing, modern office block rental and management, detergent and cosmetic industry, etc.

 

P.T. KIC is engaged in the manufacturing of various active agents and chemical substance used for various industrial purposes for sulnafation, drying and blending. Its plant located in Bekasi region, West Java started-up with operation in 1982. P.T. KIC's major production are alkyl sulfates (powder, needle, liquid), alkyl ether sulfates (liquid, paste), alkyl sulfonates, scouring agents, leveling agents, penetrating agents, coning oil, softening agents, etc. The above products are mostly used for cosmetic industry, household equipment cleaning agents, textile industry, paper making, steel foundry, pal, oil refinery, etc. In the production of the above products, P.T. KIC get license and technical know how from the above parent company named KAO Corporation, a leading company of Japan engaged in the production of  similar products. Some 50% of P.T. KIC's products are exported to Japan, the USSR, the People's Republic of China, Pakistan Bangladesh, India, Australia, Singapore, etc.

 

Meanwhile, the rest 50% are marketed domestically. Its major customers in Indonesia are P.T. KAO INDONESIA, P.T. SINAR ANTJOL, P.T. WINGS SURYA, P.T. LION WINGS, P.T. SAYAP MAS UTAMA (all of them are soap manufacturers), P.T. MUSTIKA RATU, P.T. MANDOM INDONESIA Tbk, P.T. UNILEVER INDONESIA, P.T. SARI AYU (the four of them are cosmetic manufacturers), etc. Besides that, part of its products is distributed through a number of its distributors spread out in several Indonesian major cities.

 

In November 1996, P.T. KIC obtained a license issued by the Capital Investment Coordinating Board (BKPM) for expanding its production capacity of 3,000 tons of alkyl sulfates powder/liquid, 20,000 tons of alkyl aryk sulfonates and 5,000 tons of alkyl ether sulfates respectively per annum. P.T. KIC is classified as a large sized company in the country dealing with industrial chemical processing of which the operation had been running smoothly and growing steadily in the last three years. Later in April 2007, P.T. KIC also obtained permit from Capital Investment Coordinating Board (BKPM) for expanding its production capacity of 150,000 KG of Sodium Laury Sultated Email Zero per annum with an investment of US$ 2.9 million. However, the global economic crisis since October 2008 and tight money policy imposed by the government had caused the operation and production cost of the company has been increasing significantly.

 

In overall we find the demand for various chemicals in the country had been rising in volume by 7% to 8% on the average per year within the last five years. It was in line with the rapid growth of industrial sectors like textile, soap, cosmetic, paper, etc., in that period. However, the global economic crisis since October 2008 and tight money policy imposed by the government had caused the demand to fluctuate up to end 2008 and started increasing since mid of 2009 in line with the amelioration of the economic condition in the country. The competition is very tight on account of lots of similar company operating in the country. Business position of P.T. KIC in this case is not so bad for it has controlled regular customers and a wide marketing network at home and overseas. Its business prospect in the long run is quite well for it has a potential market at once unstable economic condition starts recovery.

 

P.T. KIC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. KIC 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. 392.0 billion rose to Rp. 405.0 billion in 2010 increased to Rp. 412.0 billion in 2011 and projected to go on rising by at least 4% in 2012. It’s estimated the company has yielded a total net profit by at least Rp. 35.8 billion in 2011. The company has an estimated total net worth of at least Rp. 108.0 billion.

 

We observe that P.T. KIC 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 of P.T. KIC is led by Mr. Hideyuki Nishio (53) a professional manager of Japan with experience in trading and industrial chemical processing. Daily activities, he assisted by Mr. Seiji Tamaki (50) as Vice President Director. The management is also supported by many other professional managers of local and expatriates, having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors.

 

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. KAO INDONESIA CHEMICALS is sufficiently fairly good for business transaction.

 

Attachment:

List of the RODAMAS Group Members

 

 

1.          AJINEX INTERNATIONAL, P.T. (Monosodium Glutamate and Glutamic Acids Industry)

2.          AJINOMOTO INDONESIA, P.T. (Monosodium Glumate and Glutamic Acids Industry)

3.          ALUMINDO  PERKASA, P.T. (Aluminum Extrusion and Aluminum Building Component)

4.          ASAHIMAS  FLAT  GLASS CO. LTD., P.T. (Sheet Glass Manufacturing)

5.          ASAHIMAS  CHEMICALS, P.T. (Industrial Chemical Processing)

6.          ASAHIMAS SUBENTRA CHEMICAL, P.T.

7.          BETAMAS  INTI  SEKURITAS, P.T (Securities Management)

8.          BETAMAS  MULIA  LEASING, P.T. (Leasing)

9.          BUANA  INDONESIA, P.T. Bank (Banking & Investment Holding)

10.      BUANA LAND, P.T. (Property Management and Development)

11.      COSMOS  FINANCE Corp., Hong Kong (Investment Banking)

12.      DAI NIPPON  PRINTING  INDONESIA, P.T. (Offset and Gravure Printing)

13.      D.B.S.  BUANA  TAT  LEE  BANK, P.T. (Banking)

14.      DICKY  METAL, P.T. (Office Equipment Manufacturing)

15.      DICKY  METALS  COMPANY  LIMITED,  P.T. (Metal Good Industry)

16.      DINO-KAO  INDONESIA, P.T. (Trading House Management)

17.      ERATEX DJAJA LTD. Tbk., P.T.

18.      FADJAR ELECTRIC WORKS, P.T. (Air Conditioning Assembling and Electrical Installation Manufacturing)

19.      FAJAR  MAS  SEJATI, P.T. (Plastic Bottles and Plastic Container Manufacturing)

20.      GELOMBANG TRANSKENCANA, P.T. (International Freight Forwarding Services)

21.      GESIT  ALUMAS, P.T. (Investment Holding)

22.      HEXPHARM  DJAJA  COMPANY  LTD., P.T. (Pharmaceutical Manufacturing)

23.      HO  HUA Co., (Pte) Ltd., Singapore (Trading)

24.      INDEPENDENT, P.T. (Maskapai Asuransi (Sea and Fire Insurance)

25.      KAO INDONESIA, P.T. (Consumer Goods Manufacturing (Detergent, Cosmetic, Sanitary Napkin)

26.      KAO INDONESIA CHEMICALS, P.T. (Industrial Chemicals Processing)

27.      KEPPEL TATLEE BUANA Bank, P.T. (B a n k i n g)

28.      KIMBALLMAS SEJATI, P.T. (Food Seasonings Processing)

29.      LIVERPOOL  INDONESIA, P.T. (Industrial Chemical Processing)

30.      MITRATAMA  MASSEJATI, P.T. (Food Product Manufacturing)

31.      MITSUBISHI  BUANA  BANK, P.T. (Banking)

32.      MULTI ARTHAMAS GLASS INDUSTRY, P.T. (Tempered and Bending Glass  Industry)

33.      NABISCO FOODS, P.T. (Food Processing Industry)

34.      OCEANIC  COTTON  MILLS  INDONESIA, P.T. (Spinning Mills)

35.      PANDA  RAYA  ELECTRONICS, P.T. (Air Conditioning Manufacturing)

36.      P E L I T A,  P.T. (Trading)

37.      RIKEN ASAHI PLASTICS INDONESIA, P.T. (Poly Vinyl Chloride Manufacturing)

38.      RODAMAS & Co. Ltd., P.T. (Investment Holding and Trading)

39.      SALONPAS  INDONESIA, P.T. (Pharmaceutical Manufacturing)

40.      SARITEBU  MURNI, P.T. (Trading and Supplier of Molasses)

 

41.      SASA  FERMENTATION, P.T. (Food Seasoning Processing)

42.      SASA  INTI, P.T. (Food Seasoning Processing)

43.      SINAR  REMBULAN, P.T. (Cosmetic Manufacturing)

44.      SOFCO  GRAHA, P.T. (Computer Software Programming Service)

45.      SOUNITEX  INDONESIA, P.T. (Textile Milling and Garment Manufacturing)

46.      SUMMITMAS  PROPERTY, P.T. (Modern Office Block Development and Rental)

47.      TUMBAKMAS, P.T. (G.I. Sheet Manufacturing)

48.      TUMBAKMAS  CIPTA, P.T. (G.I. Sheet Manufacturing)

49.      TUMBAKMAS  DJAJA, P.T. (G.I. Sheet Manufacturing)

50.      TUMBAKMAS  INTI  MULIA, P.T. (G.I. Sheet Manufacturing)

51.      TUMBAKMAS  MULIA, P.T. (G.I. Sheet Manufacturing)

52.      ULTRAMAS  BROKER  ASURANSI, P.T. (Brokerage Insurance Services)

53.      VIDEO DISPLAY GLASS INDONESIA, P.T. (Glass Funnel Manufacturing)

54.      Etc.

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.25

UK Pound

1

Rs.76.75

Euro

1

Rs.65.16

 

 

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.