MIRA INFORM REPORT

 

 

Report Date :

29.09.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDO CAFCO

 

 

 

Registered Office :

Jalan P. Tirtayasa, Kp. Galih Lk. II RT. 02 Kelurahan Campang Raya, Kecamatan Tanjung Karang Timur Bandar Lampung, 35122

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.11.2000

 

 

Com. Reg. No.:

No. AHU-AH.01.10-36009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading and Exporter of Coffee Bean

 

 

No. of Employees :

87 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 – 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. INDO CAFCO

 

 

Address

 

Head Office & Warehouse

Jalan P. Tirtayasa, Kp. Galih Lk. II RT. 02

Kelurahan Campang Raya, Kecamatan Tanjung Karang Timur

Bandar Lampung, 35122

Indonesia

Phones             - (62-721) 350737, 350736

Fax                   - (62-721) 351491

E-mail               - icc_lampung@cbn.net.id

Land Area         - 10,000 sq. meters

Office Space      - 8,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Branch Office & Warehouse

Jalan Pertanahan 89

Medan, North Sumatera

Indonesia

Phones             - (62-61) 7883434 (Hunting)

Fax                   - (62-61) 7850361

E-mail               - iccmdn@ino.net.id

Land Area         - 10,000 sq. meters

Office Space      - 7,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

3 November 2000

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-AH.01.10-03906

  Dated 17 April 2009

- No. AHU-01884.AH.01.02.TH.2009

  Dated 12 January 2009

- No. AHU-AH.01.10-36009

  Dated 9 November 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.868.999.2-058.000

The Capital Investment Coordinating Board

- No. 2/I/PMA/2000

  Dated 20 October 2000

- No. 02/II/PMA/2003

  Dated 31 January 2003

- No. 04/II/PMA/2003

  Dated 31 January 2003

- No. 84/II/PMA/2005

  Dated 5 April 2005

- No. 75/II/PMA/2007

  Dated 13 March 2007

The Department of Industry and Trade

- No. 011/T/Perdagangan/Industri/2001

  Dated 31 October 2001

- No. 02/12/1218/T/Industri/2004

  Dated 7 April 2004

 

Related Company :

P.T. TANAH MAS CELEBES INDAH (Trading and Exporter of Cocoa Bean)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 150,000.-

Issued Capital                                  : US$ 150,000.-

Paid up Capital                                : US$ 150,000.-

 

Shareholders/Owners :

a. MULCORD TRADING LLC                                   - US$ 148,500.-

    Address : 1209 Orange Street, Wilmington

                    New Castle

                    Ireland    

b. ECOM AGROINDUSTRIAL CORP. LTD.               - US$     1,500.-

    Address : Avenue Etienne Guillemin 16,

                    Casa Postale 64, CH-1009 Pully

                    Switzerland

 

 


BUSINESS ACTIVITIES

 

Lines of Business :

Trading and Exporter of Coffee Bean

 

Production Capacity :

a.   Coffee Beans                             - 21,500 tons p.a.

b.   Cocoa Beans                             -   5,000 tons p.a.

 

Total Investment :

a. Equity Capital                              - US$    150,000.-

b. Loan Capital                                - US$ 1,120,000.-

c. Total Investment                           - US$ 1,270,000.-

 

Started Operation :

2001

 

Brand Name :

Indo Cafco

 

Technical Assistance :

None

 

Number of Employee :

87 persons                                     

 

Marketing Area :

Export    - 100%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. COFFEEBROS INDONESIA

b. P.T. SARIMAKMURTUNGGAL MANDIRI

c. P.T. TOARCO JAYA

d. P.T. VOLKOPI INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 


BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Bandar Lampung Main Branch

      Lampung Province

      Indonesia

 

b.   DEUTCHE Bank AG

      Wisma Deutsche Bank

      Jalan Imam Bonjol No. 81

      Jakarta Pusat

      Indonesia

c.   JP MORGAN CHASE Bank

      Chase Plaza

      Jalan Jend. Sudirman Kav. 20-21

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 368.0 billion

2010 – Rp. 375.0 billion

2011 – Rp. 385.0 billion

2012 – Rp. 199.5 billion (January – June)

 

Net Profit (estimated) :

2009 – Rp. 18.2 billion

2010 – Rp. 19.2 billion

2011 – Rp. 20.5 billion

2012 – Rp. 11.9 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 


KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Peter Richard Macgregor

Directors                                         - a. Mr. Nicholas David Watson

                                                        b. Mr. John Benny

 

Board of Commissioners :

President Commissioner                   - Mr. Renaud Charles B.N.G.C. Kerchove D’Exaerde

Commissioners                                - a. Mr. Andrew David Hay Falconer

                                                        b. Mr. Choong Nam Ng

 

Signatories :

President Director (Mr. Peter Richard Macgregor) or one of the Directors (Mr. Nicholas David Watson or Mr. John Benny) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. INDO CAFCO (P.T. IC) was established in Lampung on November 3, 2000 with the authorized capital of US$ 150,000 wholly issued and paid up. The company was founded by ECOM AGROINDUSTRIAL CORP. LTD., of Switzerland (99%) and Mr. Ramon M. Esteve of Spain (1%). The company notary deed has been changed a couple of times. In August 2004 Mr. Ramon M. Esteve pulled out and the whole share sold to MULCORD TRADING LLC of Ireland as new shareholder. Later in November 2008, the composition of its shareholders has been changed to become MULCORD TRADING LLC of Ireland (99%) and ECOM AGROINDUSTRIAL CORP. LTD., of Switzerland (1%). Then in March 2009 the board of management and the board of commissioners of the company had been changed (see profile of this report). The deed of amendment was made by Mrs. Dheasy Suzanti, SH., M.Kn was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-03906, dated April 17, 2009. Then according to the latest revision of notary documents of Mrs. Etty Roswitha Moelia, SH., No. 17 dated 26 September 2011 the company’s board of director and the board of commissioner had been changed to lead and runs of the company’s operation. The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-36009 dated November 9, 2011.

 

We observe that P.T. IC is a member company of the ECOM Group, a business group dealing with trading, distribution and supplies of coffee beans, cocoa and cotton commodities. Besides, the company is also affiliate with P.T. TANAH MAS CELEBES INDAH dealing with trading and exporter of cocoa beans.

 

 

 

P.T. INDO CAFCO obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with trading, distribution and exporter of coffee beans. The company operates two warehouses located in Lampung and and Medan, North Sumatera. The types of coffee sells and export by the company including Arabica Coffee (Lintong, Java Arabica/private Estates and PTP) and Mandheling, Toraja Kalosi; Robusta Coffee including Regular EK Grades, Special EK Grades – Java/Celebes/High Grown, Flores EK and AP, Extra Large Beans (450/400/360 bean), Regular AP Grades (Polished), Java WIB (Private Estates and PTP), Excelsa Coffee such as Regular EK Grades Polished Grades and Special Coffee such as Bali Fully Mandheling (SKAL International – EC/USDA NDP/JAS) and Kopi Luwak. The whole coffee bean obtained from various farmers estates in Bali, Toraja, Aceh Nangroe Darusalam, Medan and Lampung. The whole coffee bean is exported to Singapore, Malaysia, South Africa, Australia, Belgium, Bulgaria, Italy and the USA. We observe the operation of P.T. IC has been growing and developing well in the last three years.

 

Indonesia exports 7% of world coffee production. Coffee represents 0.6% of total GNP and 17% of all agricultural products exports in Indonesia. Planted on 1.3 million hectares of land, coffee plantings yield approximately 600,000 tons of green coffees are broken down as follows: 85 – 90% Robusta (65% coming from Southern Sumatra), 10 – 13% Arabica and 1 – 2% others such as Liberica. As a share of agricultural exports from Indonesia, coffee is reported at 17%.

 

Coffee is produced by a total of 2.33 million household smallholder farmers cultivating an average holding of 1.0 to 1.5 hectares and deriving approximately $ 910.00/year per hectare (Robusta) and $ 1680.00/year per hectare (Arabica). Coffee represents 50 – 70% of coffee farmer’s income. It is estimated that Aceh is the largest Arabica production area in S.E. Asia. Exports of North Sumatra coffee (Aceh 60% and North Sumatra 40%) receive a premium of 30% over similar coffees grown in Indonesia. Owing to the unique character and body coffees of Northern Sumatra is in high demand from major specialty coffee buyers. Coffee provinces visited by the assessment team included: South Sulawesi (Tana Toraja and Enrekang), North Sumatra (Medan), Aceh (Banda Aceh) and Bali (Kintamani highland).

 

      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. IC to be in a quite favorable position for having already got hold of a steady clientele in the country and abroad.

 

 

 

 

 

 

 

Export Volume of Agricultural Products, 2007-2011

 

                                                                                                                            (Thousand Tons)

Products

2007

2008

2009

2010

2011

Tea

Rubber

Coffee

Spices

Cocoa Bean

Tobacco

55,6

8,7

315,5

114,1

381,9

25,6

83,8

9,6

467,9

114,8

382,5

30.0

82,9

10,0

510,1

110,4

440,3

32,8

79,2

13,8

432,7

130,3

433,5

28,0

68,1

10,8

345,9

97,9

214,7

18,8

 

Export Value of Agricultural Products, 2007-2011

                   

                                                                                                                                   (Million US$)

Products

2007

2008

2009

2010

2011

Tea

Rubber

Coffee

Spices

Cocoa Bean

Tobacco

73,2

12,3

633,7

258,5

623,1

56,6

125,1

16,3

989,0

283,7

856,2

73,7

144,3

12,8

822,1

239,6

1,088,2

93,7

149,4

33,5

812,3

407,4

1,191,3

73,7

103,2

26,4

817,6

320,4

478,2

49,3

            Source: Central Bureau of Statistic, processed by ICB

 

Until this time P.T. IC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. IC 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. 368.0 billion rose to Rp. 375.0 billion in 2010 increased to Rp. 385.0 billion in 2011. As from January to June 2012 the sales turnover has reached at least Rp. 199.5 billion with a net profit of at least Rp. 11.9 billion and projected to go on rising by at least 4% in 2013. The company has an estimated total networth of at least Rp. 410 billion. We observe that P.T. IC 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. IC is led by Mr. Peter Richard Macgregor (57) a professional manager of the United Kingdom with experience in trading, and distribution and exporter of coffee beans. Daily activities he is assisted by Mr. Nicholas David Watson (36) of Australia and Mr. John Benny (44) of Indonesia as Directors. 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. INDO CAFCO is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.69

UK Pound

1

Rs.85.71

Euro

1

Rs.68.15

 

 

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.