MIRA INFORM REPORT

 

 

Report Date :

30.10.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. LUMBUNG NASIONAL FLOUR MILL

 

 

Registered Office :

Kawasan Industri MM2100, Jalan Selayar Block D-9, Cibitung, Bekasi 17524, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

05.07.2007

 

 

Com. Reg. No.:

No. AHU-AH.01.10-25052

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Wheat Flour Mills

 

 

No. of Employees :

167 employees

 

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 :

Satisfactory

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 – 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. LUMBUNG NASIONAL FLOUR MILL

 

 

company Address

 

Head Office & Factory

Kawasan Industri MM2100

Jalan Selayar Block D-9

Cibitung, Bekasi 17524

West Java

Indonesia

Phones             - (62-21) 8998 3483 (Hunting), 8998 3482

Fax                   - (62-21) 8998 3480, 8998 3479

E-mail               - info@lumbungnasional.com

Website            - http://www.lumbungnasional.com

Land Area         - 7,500 sq. meters

Building Space  - 6,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

5 July 2007

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. W7-09720 HT.01.01.TH.2007

  Dated 4 September 2007

- No. AHU-59414.AH.01.02.TH.2008

  Dated 5 September 2008

- No. AHU-AH.01.10-25052

  Dated 10 December 2008

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.193.193.6-057.000

 

The Capital Investment Coordinating Board

No. 830/I/PMA/2007

Dated 27 June 2007

 

 

Related Company

 

A Member Company of the NAPAN Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 10,000,000.-

Issued Capital                                  : US$   8,100,000.-

Paid up Capital                                : US$   8,100,000.-

 

Shareholders/Owners :

a. WHITE PEARL INVESTMENTS PTE, LTD.           - US$ 4,050,000.-

    Address : 1 Rafles Place, # 28-02, OUB Centre

                    Singapore           

b. P.T. PRISMATAMA PERMAI                               - US$ 4,050,000.-

    Address : Wisma Indosement

                    Jl. Jend. Sudirman Kav. 70-71

                    Jakarta Selatan

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Wheat Flour Mills

 

Production Capacity :

Wheat Flours                                   - 365,000 tons per annum

 

Total Investment :

a.   Equity Capital                            - US$   8.1 million

b.   Loan Capital                              - US$ 15.0 million

c.   Total Investment                         - US$ 23.1 billion

 

Started Operation :

August 2010

 

Brand Name :

Lumbung Nasional Flour Mill

 

Technical Assistance :

None

 

Number of Employee :

167 persons                                   

 

Marketing Area :

Local    - 100%

 

Main Customer :

Food Processing Industry

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CERESTAR FLOUR MILLS

b. P.T. EASTERN PEARL FLOUR MILLS

c. P.T. PUNDI KENCANA

d. P.T. SRIBOGA RATURAYA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Ir. H. Juanda No. 12

      Jakarta Pusat

      Indonesia

b.   P.T. Bank PANIN Tbk

      Komplek Yos Sudarso Ruko Cikarang Plaza Block B/15

      Cikarang, Bekasi

      West Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 12.0 billion (August – December)

2011 – Rp. 55.0 billion

2012 – Rp. 31.0 billion (January – June)

 

Net Profit (estimated) :

2010 – None

2011 – Rp. 3.8 billion

2012 – Rp. 2.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Hui Suen Tit

Directors                                         - a. Mr. Tejo Utomo

                                                        b. Mr. Gabriel Pribadi

                                                        c. Mr. Barnabas Boentoro

 

Board of Commissioners :

President Commissioner                   - Mr. Wilson Pribadi

Commissioners                                - a. Mr. Surya Widjaja

                                                        b. Mr. Hendrianto Winata

 

Signatories :

President Director (Mr. Hui Suen Tit) or one of the Directors (Mr. Tejo Utomo, Mr. Gabriel Pribadi or Mr. Barnabas Boentoro) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

Based on investigation the complete address of the Subject is located at Kawasan Industri MM2100, Jalan Selayar No. D-9, Cibitung, Bekasi, West Java not at Jalan Ir. H. Juanda II No. 6, Central Jakarta as stated in your order ref. no. 198411 dated 25 October 2012. However on the above address registered on P.T. MURNICIPTA SENTOSA a private national company in general trading and export import services with also member company of the NAPAN Group.

 

P.T. LUMBUNG NASIONAL FLOUR MILL (P.T. LNFM) was established in Jakarta in July 2007 with the authorized capital of US$ 10,000,000 issued capital of US$ 8,100,000 entirely paid up. The founding shareholders of the company originally are WHITE PEARL INVESTMENTS PTE, LTD., of Singapore and P.T. SETIA MAHAPUTRA of Indonesia. The company notary deed has been changed and in August 2008 P.T. SETIA MAHAPUTRA pulled out and the whole share sold to P.T. PRISMATAMA PERMAI as new shareholder. With this time the composition of its shareholders has been changed to become P.T. HEAT PEARL INNVESTMENTS PTE, LTD., (50%) and P.T. PRISMATAMA PERMAI (50%). Later in November 2008 the board of directors and the board of commissioners have been changed (see profile of this report).

 

The latest revision of notary documents was made by Mrs. Agnes Angelika, SH., MKn., a public notary in Jakarta and was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-25052 dated December 10, 2008. We observe the local partner namely P.T. PRISMATAMA PERMAI is a private national company dealing with investment holding and majority business stakes is controlled by Mr. Wilson Pribadi. Mr. Wilson Pribadi with Mr. Henry Pribadi is also founder and business stakes owner of the NAPAN Group, a large sized business group in the country.

 

P.T. LNFM started to be operating since August 2010 to deal with wheat flour mill which plants located at Jalan Selayar Block D-9, Kawasan Industri MM2100, Cikarang, Bekasi, West Java standing on a land of 7,500 sq. meters. The plant produces of wheat flour with capacity of 365,000 tons per year. The construction of the plant was begun in 2007 and has absorbed an investment of US$ 23.1 million come from owned capital of US$ 8.1 million while the rest is loans. P.T. LNFM is one of the flour mills in Indonesia which produce wheat flour with 6 brands in the market among others are CEMARA, AGATE, ONYX, KERANG, TOPAZ, SUNGAI, JADE, CEMARA, CITRINE and ZIRCON brands.

 

The whole products product marketed locally to various food and instant noodles manufacturing and the rest is also distributed through distributors of wheat flour in the country. Mr. Grant Lutz, marketing executive of the company went on to say that mostly of wheat flour supplied to P.T. NIPPON INDOSARI CORPORATION Tbk, P.T. MONDE MAHKOTA BISKUIT, P.T. KHONG GUAN, P.T. NESTLE INDONESIA, P.T. MAYORA INDAH Tbk, the ORANG TUA Group, P.T. KRAFT FOODS INDONESIA and others food processing industries. The wheat seed imported from Australia, Canada and the USA. We observe the operation of P.T. LNFM has been growing and running well in the last one year.

 

We note that generally the domestic demand for wheat flour has kept on increasing in the last five years. The increasing demand was in keeping with the development and growth of domestic industries processing food materials like instant noodles, bread, biscuit, etc. from wheat flour as the main raw material. However since 2008, the wheat flour industries have facing problem because there is lot of cheap wheat flour imports marketed in the country especially from Turkey.

 

Indonesian Flour Producers Association (APTINDO) has accused flour importers of intervening with the Government to avoid imposition of antidumping duties against flour from Turkey. Cheap flour imported from Turkey continued to flood the Indonesian market has brought bad impact to the Indonesian producer of wheat flour industries. 

 

Besides that, competition is very sharp in the wheat flour trade with 8 companies now operating in this industry in Indonesia, namely P.T. INDOFOOD SUKSES MAKMUR BOGASARI FLOUR MILLS Tbk., P.T. PANGANMAS INTI PERSADA, P.T. SRIBOGA RATURAYA, P.T. BERKAT INDAH GEMILANG, P.T. CARESTA FLOUR MILLS, P.T. FEDERAL FLOUR MILLS, P.T. FUGUI FLOUR & GRAIN INDONESIA, P.T. EASTERN FLOUR MILLS. See further table below for development of Indonesian wheat grain and wheat flour imports.

 

The Growth of Capacity, Production of Wheat Flour Mills in Indonesia

 

Year

Production (Million Ton)

2006

4.2

2007

4.8

2008

4.8

2009

5.7

2010*

5.8

                Source: Aptindo (Indonesian Flour Producer Association)    *) Projected

 

Until this time P.T. LNFM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. LNFM is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in the first year operation August to December 2010 amounted to Rp. 12.0 billion increased to Rp. 55.0 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 31.0 billion with a net profit of Rp. 2.1 billion. It is projected the sales turnover will be rising by at least 5% in 2013. We observe that P.T. LNFM 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. LNFM is led by Mr. Hui Suen Tit (73) a businessman and professional manager of China with experience in wheat flour mills industry. Daily activity he is assisted by Mr. Tejo Utomo (63), Mr. Gabriel Pribadi (30), and Mr. Barnabas Boentoro (42) as directors. The company's management is handled by professional managers 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. LUMBUNG NASIONAL FLOUR MILL is sufficiently fairly good for business transaction. However, in view of the company just newly been operation we recommend to treat prudently in extending a loan to the company.

 

Attachment:

 

List of the N A P A N Group Members

 

 

1.       ACRINDONUSA FIBRE PRATAMA, P.T. (Acrylic Fibre Manufacturing)

2.       ADHIKARA SANDIKA, P.T. (Rubber Thread Manufacturing)

3.       ADIKARSA RAYAPRIMA, P.T. (Trading and Suppliers)

4.       ADIKRIDA PRIMALESTARI, P.T. (Trading and Suppliers)

5.       AMCOL HOLDING (S) PTE. LTD., Singapore (Investment Holding)

6.       ANDALAN  PRIMULA, P.T. (Investment Holding)

7.       ARCOM PRIMANTARA SYSTEMS, P.T. (Agency and Distribution of Computers and Peripherals)

8.       ARGA INDAH PRATAMA, P.T. (Housing Development)

9.       ARGA MOLEK KENCANA, P.T. (Real Estate Development)

10.   ARGHA KARYA PRIMA INDUSTRY Tbk., P.T. (Oriented Polypropylene Film Manufacturing)

11.   ARGHA SEALINDOPRIMA INDUSTRY, P.T. (Automotive Seal Manufacturing)

12.   ASIAN CONRAD HOLDING Ltd., British Virgin Island (Investment Holding)

13.   ASTENIA, P.T. (Investment Holding)

14.   BAHANAJAYA ADISAKTI, P.T. (General Contracting, Trading and Transportation Service)

15.   BATAVIA CITY REALTY, P.T. (Properties Development and Management)

16.   BHASKARA DUNIAJAYA, P.T. (Investment Holding)

17.   BHUMANDALA AGUNG, P.T. (Investment Holding)

18.   BINA TAMBAK LESTARI, P.T. (Shrimp Culture)

19.   BRANTA MULIA Tbk., P.T. (Nylon Tyre Cord Manufacturing)

20.   BRANTA MULIA MALAYSIA, Malaysia (Nylon Tyre Cord Manufacturing)

21.   BRANTA MULIA TEIJIN INDONESIA, P.T. (Nylon Filament Yarns Manufacturing)

22.   BUMI LESTARI ABADI, P.T. (Housing Development)

23.   CATERISON SUKSES, P.T. (Country Club Management)

24.   CENTRALINDO PANCASAKTI, P.T. (Cellular Telephone Operator and Investment Holding)

25.   CITRA MARGA NUSAPHALA PERSADA, P.T. (Toll Road Management)

26.   DERMAGA PERKASA PRATAMA, P.T. (Coal Terminal Management)

27.   DJATI YUDHA CELLULAR, P.T. (Telecommunication Development)

28.   DUABANU INTERNUSA, P.T. (Granite Mining and Processing)

29.   DUTA NUSABINA LESTARI, P.T. (Property Management)

30.   DUTA PERKASA UNGGULESTARI, P.T. (Real Estate Management)

31.   ELANGMAS PERKASA SEJATI, P.T. (Industrial Estate Management)

32.   FOREVERGREEN INTERNATIONAL, P.T. (International Restaurant)

33.   GITANIRWANA MANDRASAKTI, P.T. (Investment Holding)

34.   HARTINDO CHEMICATAMA INDUSTRI, P.T. (Chemicals for Fire Extinguisher Manufacturing)

35.   INDOALUM INTIKARSA INDUSTRY, P.T. (Aluminum Sheet and Foil Industry)

 

36.   INDOCITRA GRAHABAWANA, P.T. (Property Management and Development)

37.   INDOFIRST NUSANTARA SYNTHETIC RUBBER, P.T. (Styrene Butadiene Rubber Industry)

38.   INDOPOLY SWAKARSA INDUSTRY, P.T. (BOPP Film Manufacturing)

39.   INTERNATIONAL RESOURCES CORPORATION, USA, (Trading)

40.   INTERNATIONAL REOURCES (HK) LTD., Hongkong, (Trading)

41.   INTINUSA SELAREKSA Tbk., P.T. (Integrated Natural Granite Processor)

42.   JANGGALA PRIMA, P.T. (Trading and Suppliers)

43.   JAPAN TRAVEL BUREAU INDONESIA, P.T. (Travel Agency)

44.   KARYA YUDHA SAKTI, P.T. (Housing Development)

45.   KEMAYORANLAND Corporation, P.T. (Property Management)

46.   KUNINGAN PROPERTAMA, P.T. (Property Development and Management)

47.   LAYANG KENCANA PRIMA, P.T. (Trading and Supplier)

48.   LONDON SUMATRA INDONESIA, P.T. Perusahaan Perkebunan (Integrated Cocoa, Palm Oil, Coffee, Tea and Rubber Plantation and Investment Holding)

49.   LUMBUNG NASIONAL FLOUR MILL, P.T. (Wheat Flour Mill)

50.   MATAHARI LINTAS CAKRAWALA, P.T. (Direct Broadcasting Satellite Television Services)

51.   MAG INDONESIA CITRA, P.T. (Sub Assy and Electronic Component Manufacturing)

52.   MEGACITY DEVELOPMENT CORPORATION, P.T. (Apartment Developer Management)

53.   MEGATAMA RAYA, P.T. (Consulting)

54.   MULTI BATURA UTAMA, P.T. (General Trading, Exporters, Suppliers and Distributors)

55.   MULTI GRANITINDO UTAMA, P.T. (Granite Mining and Processing)

56.   MULTI HARAPAN UTAMA, P.T. (Trading)

57.   MULTI MEDIA NUSANTARA, P.T. (Pay TV Cable and Multimedia Provider)

58.   MURNICIPTA SENTOSA, P.T. (General Trading, Export Import)

59.   NALCO PERKASA, P.T. (Industrial Chemical Formulation)

60.   NAWA PANDUTA, P.T. (General Trading and Investment Holding)

61.   NUGRAHABUANA BUMINUSA, P.T. (Granite Mining and Processing)

62.   NUSATEL YUDHA BHAKTI, P.T. (Telecommunication Contracting)

63.   PAN LONDON SUMATRA PLANTATION, P.T. (Investment Holding)

64.   PANCA PURI PERKASA INDAH, P.T. (Industrial Estate Management)

65.   PERKASA STERILINDO, P.T. (Sterilization Service)

66.   PETRA NADA KENCANA, P.T. (Graphite Electrodes Manufacturing)

67.   POLYPRIMA KARYAREKSA, P.T. (Purified Terephthalic Acid (PTA) Processing)

68.   PRISMATAMA NUGRAHA, P.T. (Trading and Suppliers)

69.   POLYPET KARYAPERSADA, P.T. (Polyethylene Therephtalate Industry)

70.   PRAJA PURI INDAH, P.T. (Shopping Centre and Industrial Estate Development)

71.   PRIMA INTERLOKASI, P.T. (Trading and Suppliers)

72.   PRIMA CITRA ELOK, P.T. (Trading and Suppliers)

73.   PRIMANUSA INDONESIA, P.T. (Investment Holding)

74.   PRISMATAMA PERMAI, P.T. (Investment Holding)

75.   PUTRAMITA LUHURSEJATI, P.T. (Investment Holding)

 

76.   RAYAPRIMA LESTARI, P.T. (Trading and Suppliers)

77.   REXFORD PRATAMA, P.T. (Trading, Supplier and Distributor)

78.   RIAUALAM ANUGERAH INDONESIA, P.T. (Granite Mining and Processing)

79.   SAHAMAS ARTANUSA, P.T. (Stock Exchange Brokerage Services)

80.   SARILEMBAH TIRTA HIJAU, P.T. (Luxury Apartment Management)

81.   SAROTAMA PRIMA PERKASA, P.T. (Tourism Industry)

82.   SAYAPNUSA PRIMA, P.T. (Trading and Suppliers)

83.   SEMESTAKIMIA RAYA, P.T. (Trading of Industrial Chemicals)

84.   SINAR BENUAPRIMA, P.T. (Coal Mining and Destillation)

85.   STENTA FILMS (Malaysia) Sdn., Bdh., (BOPP Film Manufacturing)

86.   SUMATERA PRIMA FIBREBOARD, P.T. (Medium Density Fibreboard Manufacturing)

87.   SURYA CITRA TELEVISI, P.T. (Commercial Television Broadcasting Services)

88.   SURYANUSA PERKASA, P.T. (Hotelry and Recreation Centre Management)

89.   SWASTHI PARAMA MULYA, P.T. (Rubber Thread Manufacturing)

90.   THAI BRANTA MULIA CO., LTD., Thailand (Nylon Tyre Cord Manufacturing)

91.   TRANSINDO PUTRA PERKASA, P.T. (Land Transportation)

92.   WIRASWASTA GEMILANG INDONESIA, P.T. (Used Lubricating Oil Refinery)

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.81

UK Pound

1

Rs.86.52

Euro

1

Rs.69.50

 

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.