MIRA INFORM REPORT

 

 

Report Date :

20.09.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. LOTTE INDONESIA

 

 

 

 

Registered Office :

Jalan Jend. Ahmad Yani No. 78 Pulomas Jakarta Timur, 10150

 

 

 

 

Country :

Indonesia

 

 

 

 

Date of Incorporation :

09.06.1993

 

 

 

 

Com. Reg. No.:

No. AHU-03893.AH.01.02.TH.2009

 

 

 

 

Legal Form :

Limited Liability Company

 

 

 

 

Line of Business :

Chewing Gum and Candy Manufacturing

 

 

 

 

No. of Employees :

734 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 :

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 – 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

 

 

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. LOTTE INDONESIA

 

 

Address

 

Head Office

Jalan Jend. Ahmad Yani No. 78

Pulomas

Jakarta Timur, 10150

Indonesia

Phones             - (62-21) 4251077 (Hunting)

Fax                   - (62-21) 4243527

E-mail               - info@lotte.co.id

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

Building Area     - 2 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

MM2100 Industrial Town Block E-3

Cikarang Barat, Cibitung

Bekasi, 17520

West Java

Indonesia

Phones             - (62-21) 898 0029 (Hunting)

Fax                   - (62-21) 898 0516

Land Area         - 30,000 sq. meters

Building Space  - 12,500 sq. meters

Region              - Industrial Estate

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

9 June 1993

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-5403.HT.01.01.TH.93

  Dated 30 June 1993

- No. AHU-03893.AH.01.02.TH.2009

  Dated 19 January 2009

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.081.595.9-431.000

The President of the Republic of Indonesia

No. B-71/Pres/5/1993

Dated 7 May 1993

The Capital Investment Coordinating Board

- No. 69/I/PMA/1993

  Dated 21 May 1993

- No. 170/II/PMA/1994

  Dated 4 October 1994

- No. 158/II/PMA/2000

  Dated 14 July 2000

- No. 369/III/PMA/2001

  Dated 2 April 2001

- No. 766/III/PMA/2001

  Dated 21 July 2001

The Department of Industry

No. 201/T/Industri/1996

Dated 26 March 1996

 

Related Company :

A Member Company of the GUDANG GARAM Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 30,000,000.-

Issued Capital                                  : US$ 22,500,000.-

Paid up Capital                                : US$ 22,500,000.-

 

Shareholders/Owners :

a. LOTTE COMPANY LTD.                                                - US$ 12,600,000.-

    Address : 20-1, Nishi-shinjuku 3-chome

                    Shinjuku-ku, Tokyo

                    Japan

b. P.T. SURYA INWESTINDO PERKASA                            - US$   8,910,000.-

    Address : Jl. Achmad Yani No. 78

                    Pulomas, Jakarta Timur

                    Indonesia

c. MARUBENI CORPORATION                                           - US$      990,000.-

    Address : 1-4-2 Ohtemachi, Chiyoda-ku

                    Tokyo

                    Japan

BUSINESS ACTIVITIES

 

Lines of Business :

Chewing Gum and Candy Manufacturing

 

Production Capacity :

a.   Chewing Gum                            - 10,200 tons p.a.

b.   Bubble Gum                              -   3,780 tons p.a.

 

Total Investment :

a.   Equity Capital                            - US$ 22.5 million

b.   Loan Capital                              - US$   9.2 million

c.   Total Investment                         - US$ 31.7 million

 

Started Operation :

1994

 

Brand Name :

Lotte Indonesia

 

Technical Assistance :

Lotte Co., Ltd., Japan

 

Number of Employee :

734 persons                                   

 

Marketing Area :

Local       - 80%

Export      - 20%

 

Main Customer :

Snack and Food Distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. HAWAI CONFECTIONERY FACTORY

b. P.T. MUSTIKA MANIS UTAMA

c. P.T. PERFETTI VAN MELLE INDONESIA

d. P.T. PUSAN MANIS MULIA

e. Etc.

 

Business Trend :

Growing

 


BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Menara BCA Grand Indonesia

      Jalan M.H. Thamrin No. 1

      Jakarta Pusat

      Indonesia

b.   The Bank of Tokyo – Mitsubishi Ufj Ltd.

      Midplaza building

      Jalan Jend. Sudirman Kav. 9-10

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 137.0 billion

2010 – Rp. 142.0 billion

2011 – Rp. 157.0 billion

2012 – Rp.   81.0 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 10.7 billion

2010 – Rp. 11.4 billion

2011 – Rp. 12.6 billion

2012 – Rp.   6.6 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Atsushi Sakai

Vice President Director                     - Mr. Heru Budiman

Directors                                         - a. Mr. Makoto Tokiwa

                                                        b. Mr. Edijanto

                                                        c. Mr. Yasuyuki Kojima

 

 

Board of Commissioners :

President Commissioner                   - Mr. Kyuk Ho Shin

Vice President Commissioner           - Mr. Susilo Wonowidjojo

 

Signatories :

President Director (Mr. Atsushi Sakai) or Vice President Director (Mr. Heru Budiman) or one of the Directors (Mr. Makoto Tokiwa, Mr. Edijanto or Mr. Yasuyuki Kojima) 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. LOTTE INDONESIA (P.T. LI) was established in June 1993 with an authorized capital of US$ 10,000,000 of which US$ 4,500,000 was issued and paid up. The founding shareholders of the company are P.T. SURYA INWESTINDO PERKASA as the home partner and two Japanese companies, namely LOTTE Co. Ltd., and MARUBENI Corporation, as foreign partners. He company notary documents had been changed a couple of times. In October 1994 the company's issued and paid up capital was increased to US$ 7,600,000. Then according to the latest revision of notary deed of Mr. Buntario Tigris Darmawa Ng., SH., No. 94 dated 11 December 2008 the company authorized capital was increased to US$ 30,000,000 issued capital to US$ 22,500,000 fully and paid up. Wit this development the composition of its shareholders has been changed to become LOTTE CO., LTD., Japan (56%), P.T. SURYA INWESTINDO PERKASA (39.6%) and MARUBENI CORPORATION, Japan (4.4%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-03893.AH.01.02.TH.2009 dated January 19, 2009.   

 

We note that the home partner, P.T. SURYA INWESTINDO PERKASA, is a member company of the GUDANG GARAM Group, the biggest business group in Indonesia at present in the clove cigarette industry and trade.

 

 

P.T. LI operates under Foreign Investment (PMA) facilities issued by Capital Investment Coordinating Board (BKPM) to deal with chewing gum industry with its plant located in the MM2100 Industrial Town Block E.3, Cibitung, Bekasi (West Java), standing on a 3 hectare land. The plant has been in operation since 1994 produces of chewing gums and bubble gums. The plant has been expanding frequently to increasing production capacity. Development of the plant has cost an investment of US$ 31.7 million, with US$ 22.5 million having come from company capital and US$ 9.2 million from loans. P.T. LI's production consists of various types and tastes, including gum, candy, biscuits, snack, chocolate, juicy & fresh, breath refreshing, blueberry, cool mint (giving a cool feeling), bubble  gums,  etc., all marketed under the now  well-known LOTTE trademark. Most of basic material being imported from Japan, South Korea, Spain and other countries. P.T. LI is a leading chewing gum manufacture in Indonesia with many kind of product range such as Chewing Gum, Bubble Gum, Novelty Gum, Hard Candy, Soft Candy and Lollipop Candy. At present, the company's production is entirely marketed in the country. Besides, P.T. LI also accept private label basis where design/artwork must be provided by buyer. All of the product are adapting to the newest technology. Most of the product can be supplied with centre filling, solid or in liquid form. Also their product can be value added as well using their significant protective coating in maintaining the freshness and having longer shelf life in the market. Besides, some 20% of the products exported to Asian countries as of now also we have been servicing these markets for at least 19 years. P.T. LOTTE INDDONESIA is classifiable as major company in Indonesia and its business operation has kept evidently on running smoothly to date.

 

Generally, local demand for candies had been increasing by 6% to 7% on the average per annum up in the last five years having close relation with the economic growth and the increasing population in the country. Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company had plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost from Japan, etc. Stop production of products which do not reach profit target. Reduction finishing cost and transportation cost with transferring product. Improvement of internal production such reducing NG product, increasing cycle time and increasing machine running time. In spite of the adverse economic conditions, management believes that the Company will be able to continue operating as going concern for the foreseeable future.

 

Until this time P.T. LI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. LI 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. 137.0 billion rose to Rp. 142.0 billion in 2010 increased to Rp. 157.0 billion in 2011. As from January to June 2012 the sales turnover has reached at Rp. 81.0 billion with a net profit of Rp. 6.6 billion and projected to go on rising by at least 6% in 2013. The company has an estimated total networth of at least Rp. 120.0 billion.

 

We observe that P.T. LI 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. LI is led by Mr. Atsushi Sakai (57) a businessman and professional manager of Japan with experience in chewing gum and bubble gum manufacturing and trading. 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. LOTTE INDONESIA is sufficiently fairly good for business transaction.

 

 

Attachment:

 

 

List of the GUDANG GARAM  Group Members

 

 

1.       ADHIGUNA  MULTI  PLANEXTRAK, P.T. (Chemical Products Processing)

2.       ADILAKSA  MANUNGGAL, P.T. (Trading and Investment Holding)

3.       AGUNG GUMELAR INTERNATIONAL, P.T. (Investment Holding)

4.       ANTANG CAHAYA BARU, P.T. (Sawmilling and Woodbased Industry)

5.       BHAKTI SURYAWANGSA, P.T. (Investment Holding)

6.       CENGKEH  ZANZIBAR, P.T. (Clove Distribution)

7.       ENSO SURYA PTE. LTD. of Singapore (Property Development)

8.       G ANDUM,  P.T.  (Clove Cigaratte Manufacturing)

9.       GUDANG  GARAM TBK., P.T. (Clove Cigarette Manufacturing & Investment Holding)

10.      HALIM  INDONESIA  Bank, P.T. (Banking)

11.      HALIM  WONOWIDJOJO, P.T. (White Cigarette Manufacturing)

12.      HARI  MAHARDIKA  USAHA, P.T. (Investment Holding)

13.      INDOALUM  INTIKARSA, P.T.  (Aluminum Sheet and Foil Manufacturing)

14.      INTISURYA  CORPORA, P.T. (Trading and Investment Holding)

15.      JATIPURNA ARTINDO DESIGN, P.T. (Woodworking Industry)

16.      KARYADIBYA MAHARDHIKA, P.T. (Clove Cigarette Manufacturing)

17.      KARYA MULIA INDAH, P.T. (Cigarette Manufacturing)

18.      KARYA NIAGA BERSAMA, P.T. (Clove Cigarette Manufacturing)

19.      LAKTA UTAMA, P.T. (Investment Holding)

20.      LIDJEN, P.T. Perkebunan (Clove Plantation)

21.      LOTTE  INDONESIA, P.T. (Chewing Gum Manufacturing)

22.      MADISTRINDO PRIMA, P.T. (Chewing Gum Trading and Distribution)

23.      MATAHARI  KATTURIPAN  INDONESIA, P.T. (Real Estate & Property Management)

24.      MENARA KARTIKA BUANA, P.T. (Property Development)

25.      PAMENANG PANCADHATU, P.T. (Cement Building Materials Industry)

26.      PANDIA  PRATAMA  NUSANTARA, P.T. (Real Estate & Property Management)

27.      PANDYA  PERKASA, P.T. (Paper Trading and Distribution)

28.      PANGLIMA PAMENANG, P.T. (Mineral Water Trading and Distribution)

29.      PANVERTA  CAKRAKENCANA, P.T. (Plastic Sheet, Rotogravure Printing)

30.      PARASIDHA  INTI  JAYA, P.T. (General Trading)

31.      PERFECTINDO  PRATAMA  PLASTIC,  P.T. (Plastic Products Industry)

32.      PRINTCOLOR INDONESIA, P.T. (Printing Ink Industry)

33.      SELOWARSIH, P.T. (Ice Making and Cold Storage Manufacturing)

34.      SURYA  BHAKTI  UTAMA, P.T. (Cigarette Distribution)

35.      SURYA  INWESTINDO PERKASA, P.T. (General Trading, Supplier and Investment Holding)

36.      SURYA  JAYA  BHAKTI, P.T. (Cigarette Distribution)

 

37.      SURYA  KERTA  BHAKTI, P.T. (Cigarette Distribution)

38.      SURYA  PAMENANG, P.T. (Cultural and Industrial Paper Manufacturing)

39.      SURYA  RAYA  INDAH, P.T. (Hotelry)

40.      SURYA  WISATA, P.T. (Recreation Centre Management)

41.      SURYA  ZIG ZAG, P.T. (Cigarette Paper Making)

42.      SURYADUTA  INVESTAMA, P.T. (Investment Holding)

43.      TAMAN  SRIWEDARI, P.T. (Clove Cigarette Manufacturing)

44.      TAMAN MALIBU INDAH, P.T. (Property Development)

45.      TIRTAMAS MEGAH, P.T. (Mineral Water Processing Industry)

46.      TRIAS  SENTOSA, P.T. (OPP Film Manufacturing)

47.      WIRA  DEDANA, P.T. (Trading)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.26

UK Pound

1

Rs.88.14

Euro

1

Rs.71.03

 

 

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%)

 

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.