MIRA INFORM REPORT

 

 

Report Date :

16.04.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. DOW AGROSCIENCES INDONESIA

 

 

Formerly Known as:

P.T. PACIFIC CHEMICALS INDONESIA

 

 

Registered Office :

Wisma GKBI, 20th Floor Suite 2001, Jalan Jend. Sudirman Kav. 28, Jakarta Pusat, 10210

 

 

Country :

Indonesia

 

 

Financials (as on) : 

31.12.2011

 

 

Date of Incorporation :

26.06.1973

 

 

Com. Reg. No.:

No. AHU-AH.01.10-27498

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Pesticides Manufacturing

 

 

No. of Employees :

48

 

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. DOW AGROSCIENCES INDONESIA

 

 

Company Address

 

Head Office

Wisma GKBI, 20th Floor Suite 2001

Jalan Jend. Sudirman Kav. 28

Jakarta Pusat, 10210

Indonesia

Phones             - (62-21) 5742020 (Hunting)

Fax                   - (62-21) 5742121

E-mail               - info@dowagro.com

Building Area    - 28 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Tanjung Morawa Km. 9.5

Medan, 20150

North Sumatra

Indonesia

Phones             - (62-61) 7867060 (Hunting)

Fax                   - (62-61) 7864202

Land Area         - 20,000 sq. meters

Building Space  - 12,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

a.   26 June 1973 as P.T. PACIFIC CHEMICALS INDONESIA

b.   8 November 2001 as P.T. DOW AGROSCIENCES INDONESIA

 

 

Legal Form

 

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


Company Reg. No.

 

The Ministry of Law and Human Rights

- No. Y.A.5/107/18

  Dated 30 March 1974

- No. AHU-83563.AH.01.02.2008

  Dated 10 November 2008

- No. AHU-26422.AH.01.02.TH.2010

  Dated 25 May 2010

- No. AHU-AH.01.10-27498

  Dated 26 July 2012

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.001.714.3-052.000

 

The President of the Republic of Indonesia

No. B-56/Pres/5/1973

Dated 22 May 1973

 

The Capital Investment Coordinating Board

- No. 44/III/PMA/1979

  Dated 24 December 1979

- No. 52/III/PMA/1984

  Dated 29 October 1984

- No. 18/II/PMA/1985

  Dated 25 May 1985

- No. 166/III/PMA/1986

  Dated 7 July 1986

- No. 108/III/PMA/1987

  Dated 4 May 1987

- No. 630/III/PMA/1993

  Dated 26 October 1993

- No. 16/A.5/1998

  Dated 2 January 1998

- No. 329/II/PMA/2001

  Dated 14 December 2001

- No. 556/III/PMA/2002

  Dated 10 June 2002

- No. 253/III/PMA/2003

  Dated 13 March 2003

 

 

Related Companies

 

a.   P.T. DOW CHEMICALS INDONESIA (Industrial Chemical Processing)

b.   P.T. LUHUR GUNA SEJAHTERA (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 1,930,230.-

Issued Capital                                 : US$ 1,930,230.-

Paid up Capital                               : US$ 1,930,230.-

 

 

Shareholders/Owners :

a. DOW AGROSCIENCES B.V.                                          - US$ 1,833,715.-

    Address : HH Dowweg 5

                    4542 NM, The Netherlands    

b. P.T. LUHUR GUNA SEJAHTERA                         - US$      96,515.-

    Address : Menara Imperium 30th Floor

                    Jl. Rasuna Said Kav. 1

                    Kuningan, Setibudi

                    Jakarta Selatan

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Pesticides Manufacturing

 

Production Capacity :

a.   Dowpon M                                - 2,300 tons p.a.

b.   Garlon 480 EC                           -    200 tons p.a.

c.   Tordon 101                               -    300 tons p.a.

d.   DMA 6                                      -    800 tons p.a.

e.   Dusrban                                    - 4,540 kilo liters p.a.

f.    Chlorpyrifos                              -    700 tons p.a.

g.   Trading Export of Pesticides     - US$ 14,000,000

h.   Import of Pesticides                  - US$ 3,000,000

 

Total Investment :

a.   Equity Capital                           - US$ 1,939,230.-

b.   Loan Capital                              - US$ 6,050,000.-

c.   Total Investment                        - US$ 7,989,230.-

 

Started Operation :

1975

 

Brand Name :

Dow Agrosciences Indonesia

 

Technical Assistance :

Dow Agrosciences B.V., Netherlands

 

Number of Employee :

48 persons

 

Marketing Area :

Export    - 68.42%

Local       - 31.58%

 

Main Customer :

Buyers in Asian countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. DUPONT AGRICULTURAL PRODUCTS INDONESIA

b. P.T. GOAUTAMA CAHAYA ASIAN

c. P.T. PETROKIMIA KAYAKU

d. P.T. SYGENTA INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   CITIBANK N.A.

      Citibank Tower Plaza Bapindo

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan

      Indonesia

b.   Hongkong and Shanghai Banking Corp. Ltd.

      World Trade Centre

      Jalan Jend. Sudirman Kav. 29-31

      Jakarta Selatan

      Indonesia

 

Auditor :

Oesman Bing Satrio & Rekan (Deloitte)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2010 – Rp. 1,139.3 billion

2011 – Rp. 1,156.7 billion

2012 – Rp. 1,210.0 billion (estimated)

 

Net Profit :

2010 – Rp. 119.0 billion

2011 – Rp. 225.2 billion

2012 – Rp. 232.0 billion (estimated)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Hideki Horito

Directors                                         - a. Mrs. Fenny Wangsaputri

                                                        b. Mr. Prasanta Kumar Patra

                                                        c. Mrs. Renita Nge

 

Board of Commissioners :

Commissioner                                 - Mr. Eddy Setiawan

 

Signatories :

President Director (Mr. Hideki Horito) or one of the Directors (Mrs. Fenny Wangsaputri, Mr. Prasanta Kumar Patra or Mrs. Renita Nge) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Initially named P.T. PACIFIC CHEMICALS INDONESIA, it was established in Jakarta on 26 June 1973 with the authorized capital of US$ 1,074,000 entirely issued and paid up. The founding shareholders of the company are DOW CHEMICALS N.V of the Netherlands and Mrs. Dian Paramita Tamzil of Indonesia. The articles of association of the company have frequently been revised. In May 1985, the authorized capital was raised to US$ 6,033,715 of which US$ 4,200,000 was issued and fully paid up and concurrently the shareholders of the company were THE DOW CHEMICALS COMPANY of the USA and P.T. MUTUAL INTERNATIONAL FINANCEC ORPORATION of Indonesia. In November 2001, the company renamed to P.T. DOW AGROSCIENCES INDONESIA (P.T. DAI).

 

On the same occasion the whole share had been controlled by DOW AGROSCIENCES B.V., of Netherlands and P.T. REMAJA BANGUN KENCANA CHEMICAL of Indonesia. Concurrently the company authorized capital was reduced to US$ 1,883,715 entirely issued and paid up. In June 2002, whole shareholders of P.T. DAI withdrew and replaced by DOW AGROSCIENCES B.V. of the Netherlands and DOW TECHNOLOGY GmbH of Germany. In March 2003, P.T. DOW CHEMICAL INDONESIA of Indonesia entered into the company as a new shareholder replacing DOW TECHNOLOGY of Germany. After that in July 2008 the company authorized capital was increased to US$ 1,930,230 wholly issued and paid up. On the same occasion the whole shares had been controlled by DOW AGROSCIENCES B.V., of Netherlands (95%) and P.T. LUHUR GUNA SEJAHTERA (5%). Then according to the latest revision of notary documents of Mr. Mala Mukti, SH., No. 138 dated 20 July 2012 the company 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.01.10-27498 dated July 26, 2012.

 

P.T. DAI is obtained Foreign Investment (PMA) facility to deal with manufacturing and trading of pesticides. The plant is located at jalan Tanjung Morawa Km. 9.4, Medan, North Sumatera standing on a land of 20,000 sq. meters. The plant has been operating since 1975 by produces of pesticides with various types such as Dowpon M, Garlon 480 EC, Tordon 101, DMA 6, Dusrban, and Chlorpyrifos. Besides, some of the pesticides is also exported and then is also imported from DOW AGEOSCIENCES Group. The plant has frequently been expanded to increase the annual production capacity. The pesticides being produced by P.T. DAI include insecticides, meticides, herbicides, fungicides and others being marketed using brands of GAVEL, INDAR, PROAXIS, NURELLED, TRACER, DMA, MAMBA, CLIPPER, GARLON, TORDON and others. Besides, the company is also dealing with import – export trading of pesticide products, hand sprayers and others. The company is also in cooperation with P.T.BINGEI AGUNG to market agricultural equipment products. Some 68.42% of the products exported to China, Malaysia, Taiwan, Thailand and others Asian countries. The operation of P.T. DAI has been running smoothly in the last five years in line with the steadily increasing production and export of the national agricultural products.

 

Generally, demand for pesticides, fungicides, herbicides, insecticides has kept on increasing in the last five years being inline with the growth and development of agro industries and plantation industries in the country. There are lots expansion plantation areas having been realized from expansion of agricultural companies or new investment. There is indication that the increased plantation areas are shown in the growth and development investment interest on plantation sectors and more realized of the development projects by plantation companies obtaining license. The increasing investment on plantation sector is also good impact to the agricultural commodities in international markets. Besides, the prices of agricultural commodities in international markets have started increasing.

 

According to financial statement of P.T. DAI which ended as per 31 December 2010 amounted at Rp. 1,139.3 billion with a net profit of Rp. 119.0 billion increased to Rp. 1,156.7 billion with a net profit of Rp. 225.2 billion in 2011. We estimated the sales turnover was amounted at Rp. 1,210.0 billion with a net profit of Rp. 232.0 billion in 2012 and estimated to go on rising by at least 5% in 2013. We observe that P.T. DAI 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 financial highlights as per 31 December 2010 and 2011 are attached below.

 

                                                                                            (In Million Rupiah)

 

Descriptions

31 December

 

2011

2010

A.  ASSETS

 

 

a.  Current Assets

 

 

       - Cash and cash equivalent 

18,102

31,865

       - Trade account receivable

 

 

          * Related parties

247,066

154,428

          * Third parties

95,514

143,523

       - Other account receivable

 

 

          * Related parties

602

17,960

          * Third parties

717

549

       - Inventories

276,283

229,482

       - Notes receivable

201,492

-

       - Prepaid tax

37,799

35,013

       - Prepaid expenses

1,254

1,735

       Total Current Assets

878,829

614,556

a.  Non Current Assets

 

 

       - Fixed Assets

18,067

20,317

       - Prepaid taxes

18,703

18,703

       - Refundable deposits

960

943

       - Deferred tax assets-net

955

2,868

       Total non current assets

38,686

42,832

       Total Assets

917,515

657,388

B.   LIABILITIES & STOCKHOLDERS’ EQUITY 

 

 

a.   Current Liabilities 

 

 

       - Trade account payable

 

 

          * Related parties

83,708

107,375

          * Third parties

28,331

22,560

       - Other accounts payable

 

 

          * Related parties

17,229

19,351

          * Third parties

2,233

493

       - Notes payable

-

24,804

       - Accrued expenses

19,068

17,872

       - Tax payable

18,966

3,303

       - Other current liabilities

745

659

       Total non current liabilities

170,281

196,418

b.  Non Current Liabilities 

 

 

      - Provision for Employee Benefit

2,229

7,717

      - Total Non Current Liability

-

-

      - Total Liability

-

-

c.  Stockholders Equity  

 

 

     -  Share Capital 

801

801

     -  Additional paid capital

93

93

     -  Difference arising from restructuring transact

66,520

-

     -  Retained earnings

677,591

452,359

     -  Total Equity

745,005

453,253

     -  Total Liability & Equity

917,515

657,388

 

 

 

C. INCOME STATEMENT

 

 

      a.  Sales – net 

1,156,722

1,139,293

      b.  Cost of goods sold 

806,264

853,071

      c.  Gross profit

350,458

286,222

      d.  Income before tax

302,086

161,276

      e.  Tax expenses

(76,854)

(42,293)

      f.   Net Profit

225,232

118,981

      Notes: Ended 31 December 2011 and 2010 Audited by KAP Oesman Bing Satrio & Rekan

 

The management of P.T. DAI is led by Mr. Hideki Horito (46) a professional manager of Japan with experience in pesticides manufacturing and trading. He graduated from Osaka University in Master Chemistry in 1986-1992. Daily activity he is assisted by Mrs. Fenny Wangsaputri (49), Mr. Prasanta Kumar Patra (44) and Mrs. Renita Nge (41) as Directors. 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. P.T. DOW AGROSCIENCES INDONESIA is sufficiently fairly good for business transaction.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.63

UK Pound

1

Rs.83.70

Euro

1

Rs.71.42

 

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.