MIRA INFORM REPORT

 

 

Report Date :

02.10.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. PERKEBUNAN NUSANTARA VIII

 

 

Registered Office :

Jalan Sindangsirna No. 4 Bandung, 40153 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

11.03.1996

 

 

Com. Reg. No.:

No. AHU-AH.01.10-17855

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Tea, Rubber, Palm Oil, Cocoa and Quinine Plantation and Processing

 

 

No. of Employees :

59,291 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

(31.03.2011)

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. PERKEBUNAN NUSANTARA VIII

 

 

Address

 

Head Office

Jalan Sindangsirna No. 4

Bandung, 40153

West Java

Indonesia

Phones             - (62-22) 2038966 (Hunting)

Fax                   - (62-22) 2031455

E-mail               - ptpn8@pn8.co.id

Website            - http://www.pn8.co.id

Building Area    - 3 storey

Office Space    - 2,300 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branch Office

Jalan Raya Serang Km. 1

Desa Cilenggang RT. 012 RW. 04

Serpong, Tangerang, 15310

Banten Province

Indonesia

Phones             - (62-21) 5388041 (Hunting)

Fax                   - (62-21) 5387929

Building Area    - 3 storey

Office Space    - 600 sq. meters

Region              - Commercial

Status               - Owned

 

List of Plantation Site

- Pandeglang (Sanghyang Damar), Palm and Rubber

- Lebak (Kertajaya), Palm

- Lebak (Cisalak Baru), Palm and Rubber

- Lebak (Bojong Datar), Palm and Rubber

- Bogor (Cikasungka), Rubber

- Bogor (Cimulang), Rubber

- Bogor (Gunung Mas), Tea

- Bogor (Cianten), Tea

- Sukabumi (Sukamaju) Rubber

- Sukabumi (Parakan Salak) Tea

- Sukabumi (Cibungur), Rubber

 

 

- Sukabumi (Pasir Badak), Palm and Rubber

- Sukabumi (Cikaso), Rubber

- Sukabumi (Goapara), Quinine and Tea

- Cianjur (Gedeh), Tea

- Cianjur (Panyairan), Tea

- Cianjur (Pasirnangka), Tea

- Cianjur (Agrabinta), Rubber

- Bandung (Sinumbra), Quinine and Tea

- Bandung (Rancabali), Quinine and Tea

- Bandung (Rancabolang), Quinine and Tea

- Bandung (Pangheotan), Quinine and Tea

- Bandung (Bukit Tunggul), Quinine

- Bandung (Montaya), Tea

- Bandung (Pasirmalang), Quinine and Tea

- Bandung (Kertamanah), Quinine and Tea

- Bandung (Malabar), Tea

- Bandung (Purbasari) Tea

- Bandung (Sedep), Tea

- Bandung (Talun Santosa), Tea

- Subang (Jalupang), Rubber

- Subang (Wangunreja), Rubber

- Subang (Ciater) Tea

- Subang (Tambaksari), Cocoa, Quinine and Tea

- Purwakarta (Cikumpay), Rubber

- Garut (Papandayan), Tea

- Garut (Cisaruni), Tea

- Garut (Dayeuh Manggung), Tea

- Garut (Bunisari Lendra), Rubber

- Garut (Mira mare) Cocoa and Rubber

- Tasikmalaya (Bagjanagara), Cocoa and Rubber

- Ciamis (Batulawang), Cocoa and Rubber

- Banjar (Cikupa), Rubber

 

 

Registration data

 

Date of Incorporation :

11 March 1996

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-8336.HT.01.01.TH.96

  Dated 8 August 1996

- No. C-20857.HT.01.04.TH.2002

  Dated 25 October 2002

- No. AHU-54200.AH.01.02.TH.2008

  Dated 22 August 2008

- No. AHU-AH.01.10-17855

  Dated 16 May 2012

 

Company Status :

State Owned (BUMN) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No.01.061.134.1-051.000

The President Republic of Indonesia

PP No. 13 Tahun 1996

Dated 14 February 1996

 

Related Companies :

a.   P.T. BIONUSA (Bio Fertilizer Manufacturing)

b.   INDOHAM GmbH, Germany (Trading)

c.   P.T. KHARISMA PEMASARAN BERSAMA NUSANTARA (Commissioned Manage of

      Marketing of Plantation Commodities)

d.   P.T. SINKONA INDONESIA LESTARI (Quinine Plantation and Processing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 600,000,000,000.-

Issued Capital                                 : Rp. 270,000,000,000.-

Paid up Capital                               : Rp. 270,000,000,000.-

 

Shareholders/Owners :

The Government of the Republic

of Indonesia                                                           - Rp. 270,000,000,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Tea, Rubber, Palm Oil, Cocoa and Quinine Plantation and Processing

b.   Investment Holding

 

Production Capacity :

a.   Crumb Rubber                           - 35,750 tons p.a.

b.   Tea                                           - 67,851 tons p.a.

c.   Cocoa Beans                            -     173 tons p.a.

d.   Crude Palm Oil                          - 75,392 tons p.a.

 

Total Investment :

Owned Capital                                 - Rp. 600.0 billion

 

Started Operation :

1996

Brand Name :

Perkebunan Nusantara VIII (PN8)

 

Technical Assistance :

None

 

Number of Employee :

59,291 persons

 

Marketing Area :

Export    - 70%

Local       - 30%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASIANAGRO AGUNGJAYA

b. P.T. ASTRA AGRO LESTARI Tbk

c. P.T. BAKRIE SUMATERA PLANTATIONS Tbk

d. P.T. PP LONDON SUMATERA PLANTATIONS Tbk

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Bandung Branch

      West Java,

      Indonesia

b.   P.T. Bank Negara Indonesia Tbk.

      Bandung Branch

      West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 1,644.6 billion

2010 – Rp. 1,805.0 billion

2011 – Rp. 1,947.2 billion

2012 – Rp. 1,072.5 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 131.5 billion

2010 – Rp. 144.5 billion

2011 – Rp. 155.8 billion

2012 – Rp.   85.8 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Dadi Sunardi

Directors                                         - a. Mr. Irwan Abdul Rahmat Lubis

                                                        b. Mr. Ir. Dikdik Koesnandi

                                                        c. Mr. Ir. Danu Rianto

                                                        d. Mr. Drs. Rahmat Slamet

 

Board of Commissioners :

President Commissioner                  - Mr. Mayjend. (Retired) Usman Basjah

Commissioners                               - a. DR. Ir. Alirahman

                                                        b. DR. Ir. Herry Suhardiyanto

                                                        c. Mr. Gunawan

                                                        d. Mr. Ir. Abang Firman Taufik

                                                        e. Prof. DR. Ir. Haji Musliar Kasim

 

Signatories :

President Director (Mr. Dadi Sunardi) or one of the Directors (Mr. Irwan Abdul Rahmat Lubis, Mr. Or. Dikdik Koesnandi, Mr. Ir. Danu Rianto or Mrs. Drs. Rahmat Saleh) 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. PERKEBUNAN NUSANTARA VIII (P.T. PN VIII) is one of the state-owned plantations established based on Peraturan Pemerintah (government regulation) No 13 Yahun 1996 dated 14 February 1996 as stated on the act of Notary Harun Kamil SH No 41 dated 11 March 1996, validated by The Ministry of Justice of the Republic of Indonesia on the Decree No C28336.NT.01.01.TH.96 dated 8 August 1996. The company authorized capital was amounted of Rp. 600,000,000,000 issued capital of Rp. 270,000,000,000 fully and paid. The whole share had been controlled by the Government of the Republic of Indonesia. The act of notary was reestablished by Nanda Fauz Iwan, SH., M.Kn No. 14 dated 12 August 2008, validated by The Ministry of Justice and Human Rights of the Republic of Indonesia on the Decree No. AHU-5420.AH.01.02.TH.2008 dated August 22, 2008. Then according to the latest revision of notary documents of Mrs. Yuliani Idawati, SH., No. 11 dated 6 March 2012 the company’s board of director and the board of commissioner had been changed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-17855 dated May 16, 2012.

 

  P.T. PN VIII was established to operate in the field of Agribusiness and Agroindustry, by optimizing the resources available to produce high quality and competitiveness products and service, and to generate profit by applying the principles of limited company. The business scope of the company including are cultivating plants, processing, and selling plantation commodity such as tea, rubber, and palm as the main commodity, and also quinine and cocoa. The head office is on Jalan Sindangsirna No. 4 Bandung, West Java, managing 41 plantations and 1 hospital. The plantations are spread in 11 districts/cities all around West Java (Sukabumi, Bogor, Cianjur, Bandung District, West Bandung District, Bandung City, Garut, Tasikmalaya, Purwakarta, Subang, and Ciamis) and 2 districts in Banten Province (Lebak and Pandeglang).

 

P.T. PN VIII is a state-owned company engaged in plantation sector with business activities include crop cultivation, processing, and sale of plantation commodities i.e. tea, rubber and palm oil as its main commodities, as well as cocoa and quinine as supporting commodities.

 

Ø  Tea Plantation

 

P.T. PN VIII manages 24 tea plantations on a 25.905,3 ha productive land. These plantations spread quite vastly in 6 districts, which are Sukabumi (2 plantations), Bogor (2 plantations), Cianjur (3 plantations), Subang (2 plantations), Bandung district and West Bandung district (12 plantations), and Garut (3 plantations).

 

The tea production keeps rising each year due to the endless effort of the P.T. PN VIII management in improving the technique of cultivation, picking method, and processing in order to meet the buyer requirements. The involvement of Pusat Penelitian Teh dan Kina (PPTK) (Tea and Quinine Research Center) Gambung in conducting some researches gives a contribution to production and quality improvement. There are two types of black tea produced by P.T. PN VIII, i.e. Orthodox and CTC.  Besides black tea, P.T. PN VIII also produces green tea.

 

P.T. PN VIII has its own special blending and teabag and bulk packing factory which is known as Industri Hilir Teh (IHT) (Tea Downstream Industry). This factory produces tea which are branded Malabar and Walini, and also exported tea based on the buyer’s order, either loose-leaf tea or bagged tea. The company also has other retail tea packing factories for the tea branded Gunung Mas, Sedep, and Goalpara to fulfill the domestic market demands. P.T. PN VIII also accepts the tea packing order based on the buyer requests.

 

Tea Bag and Loose Tea

Walini Tea is made from selected leaves processed without any mixture, through the combination of grades with export quality, and professionally packed to maintain the quality of tea. The excellence of Walini comes from its export quality raw materials and the combination of some grades made by Indonesian tea experts. Each type of products is packed in three kinds of package containing 1-25 bags each pack.

 

The Double Chamber packages are Black Tea Bag, Lemon Tea Bag, Ginger Tea Bag, Organic Tea bag and Japan Green Tea Bag. The Single Chamber Packages are: Black Tea Bag TB 1 and Black Tea Bag TB 5, while Walini Black Loose Tea and Walini Green Loose Tea are available in forms of loose leaf tea.

 

Gunung Mas Tea is distributed by PT. Putra Monang Sejati. Its products are Black Tea Bag and  Black Loose Tea 50 gr, 100 gr and 250 gr. Black tea bag uses single chamber package containing 30 bags in 1 pack. Goalpara Tea is distributed by P.T. Lautan Mutiara Sejati. Its products are Black Tea Bag 25’s and 100’s with double chamber package, and Black Tea Bag 30’s with single chamber package. It also produces Green Tea  Bag with double chamber package. Besides tea bag, Goalpara also produces Black Loose Tea and Green Loose Tea. Sedep Tea is distributed by CV. Anugrah. Its products are Black Tea Bag and Black Loose Tea 50 gr and 250 gr.

 

Ø   

Ø  Rubber Plantation

 

The rubber plantation areas managed by P.T. PN VIII is 25.536 ha which consists of 14 plantations. There are 13 factories producing RSS, 2 factories producing TPC, and 3 factories producing concentrated latex, with the installed capacity of 35.750 tons. 80% of the rubber production is marketed domestically, while the rest 20% is exported to Asia, Europe and America.

 

Ø  Oil Palm Plantation

 

P.T. PN VIII develops the oil palm cultivation in Bojong Datar, Cikasungka, Tambaksari, Cisalak Baru, and Kertajaya Plantations which range about 18.848,63 ha. This palm is sold in the form of CPO (Crude Palm Oil) and kernel for domestic needs.

 

Ø  Cocoa Plantation

 

The cocoa cultivation is developed on a 1.343 ha land which consists of 12 plantations and produces 173 tons of cocoa beans per year. The cocoa sold is in the form of dried cocoa beans which is generally marketed domestically.

 

Ø  Quinine Plantation

 

The quinine plantation managed by P.T. PN VIII ranges 3.004,29 ha which consists of 13 plantations. The dried quinine bark is processed into SQ-7 or known as quinine salt which contains quinine sulphate, quinine bisulphate, and other materials. The production is managed by P.T. Sinkona Indonesia Lestari (PT SIL) as the subsidiary company of P.T. PN VIII. The product is exported to Europe, Canada, and America.

 

In order to generate profit, P.T. Perkebunan Nusantara VIII does not only rely on a variety of commodities as its core business. Beyond that, the management of the company seeks to develop agritourism potential in each unit of the estates. Moreover, almost the entire work area of the company is located in the mountains of West Java which has an exotic beauty as tourist attraction. There are several agritourism locations of P.T. Perkebunan Nusantara VIII which are well known, both by local society and abroad. Some 70% of the products is exported to Europe Union, America, Latin America, Southeast Asia, Middle East and other countries.

 

Besides, P.T. PN VIII is also engaged in investment holding by controls 25% shares of P.T. BIONUSA, a private national company engaged in bio fertilizer industry; 100% shares of INDOHAM GmbH in trading and marketing of agriculture commodities products; 6.67% shares of P.T. KHARISMA PEMASARAN BERSAMA NUSANTARA in commissioned manage of marketing of plantation commodity and 64.99% shares of P.T. SINKONA INDONESIA LESTARI in quinine plantation and processing. We observe the operation of P.T. PN VIII has been growing and developing well in the last three years.

 

      We have noticed that the demand for agricultural products had increased some 10% to 11% per annum in the last five years in line with the growth of industrial manufacturing in the country and international market. In the coming years, the growth rate of demand is estimated at about 6% to 7% per annum. The present market situation for agricultural products is very competitive for a large number of similar companies operating in the country.

 

 

      Meanwhile, competition is quite heavy in the export import of agricultural products with many companies now doing business in this field in Indonesia. We consider P.T. PN VIII to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.

 

The National Production of Agriculture Products, 2006-20011

 

Year

Production (Tons)

CPO

Rubber

Cocoa

Coffee Bean

Sugar Cane

2006

17,342,823

2,615,935

769,386

682,158

2,307,027

2007

17,647,823

2,732,814

740,006

676,476

2,623,786

2008

17,536,619

2,728,987

803,594

698,016

2,668,428

2009

19,331,332

2,420,459

809,583

682,690

2,517,374

2010

21,958,120

2,734,854

837,918

686,921

2,290,116

2011

22,508,011

3,088,429

712,231

633,991

2,228,140

Source, Ministry of Agriculture, Processes by ICB

 

Until this time P.T. PN VIII has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. PN VIII 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. 1,644.7 billion rose to Rp. 1,805.0 billion in 2010 increased to Rp. 1,947.2 billion in 2011. As from January to June 2012 the sales turnover amounted at least Rp. 1,072.5 billion with a net profit of Rp. 85.8 billion and projected to go on rising by at least 6% in 2013. The company has an estimated total networth of at least Rp. 600.0 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. PN VIII is led by Mr. Dadi Sunardi (51) a professional manager with experience in agriculture, cultivation and processing. 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. We are convinced P.T. PERKEBUNAN NUSANTARA VIII is sufficiently fairly good for business transaction.

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.78

UK Pound

1

Rs.85.16

Euro

1

Rs.67.78

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.