MIRA INFORM REPORT

 

 

Report Date :

23.08.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. MULTISTRADA ARAH SARANA TBK

 

 

Formerly Known As :

P.T. MULTISTRADA ARAH SARANA

 

 

Registered Office :

Jl. Raya Lemah Abang Km. 58,3 Desa Karangsari Kec. Cikarang Timur Bekasi – 17550 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.06.1988

 

 

Com. Reg. No.:

No. AHU-11635.AH.01.02.Tahun 2012

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Tire Manufacturing

 

 

No. of Employees :

3,863 persons  

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 more than 6% annually in 2010-12. 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 fiscal deficit below 3%, 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 2013 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 high oil prices.

Source : CIA


Name of Company

 

P.T. MULTISTRADA ARAH SARANA TBK

 

 

Address

 

Head Office & Factory

Jl. Raya Lemah Abang Km. 58,3

Desa Karangsari Kec. Cikarang Timur

Bekasi - 17550

West Java

Indonesia

Phone               - (62-21) 8914 0333 (Hunting)

Fax                   - (62-21) 8914 0758

Email                - info@multistrada.co.id

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

Land Area         - 367,095 sq. meters

Building Space  -   22,869 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

20 June 1988 as P.T. OROBAN PERKASA, changed its name to P.T. MULTISTRADA ARAH SARANA, on December 9, 1996 and changed its name again to P.T. MULTISTRADA ARAH SARANA Tbk., on May 30, 2005.

 

Legal Form :

P.T. Tbk. (Perseroan Terbatas Terbatas) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a. No. C2-8932.HT.01.01.TH.88

      Dated 20 September 1988

  b. No. AHU-49709.AH.01.02.Tahun 2008

      Dated 11 August 2008

  c. No. AHU-11635.AH.01.02.Tahun 2012

      Dated 2 March 2012

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.330.132.0-055.000

 

 

  b.  The Capital Investment Coordinating Board

      - No. 110/V/PMA/2004

        Dated 27 October 2004

      - No. 164/II/PMA/2005

        Dated 23 June 2005

      - No. 1044/III/PMA/2008

        Dated 26 June 2008

 

  c.  The Capital Market Supervisory Agency

      - No. S-1377/PM/2005 (Initial Public Offering)

        Dated 30 May 2005

      - No. S-2350/BL/2007 (Limited Public Offering I)

        Dated 16 May 2007

      - No. S-13573/BL/2011 (Limited Public Offering II)

        Dated 16 December 2011

 

Holding Companies :

a. P.T. CENTRAL SOLE AGENCY (Investment Holding)

b. PVP XVIII Pte., Ltd., of Singapore (Investment Holding)

c. LUNAR CRESCENT INTERNATINAL Inc. (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - US$ 198,918,780 (Rp. 1,862,000,000,000

Issued Capital                                 - US$ 137,342,902 (Rp. 1,285,613,000,000

Paid up Capital                               - US$ 137,342,902 (Rp. 1,285,613,000,000

 

Latest Shareholders (as of 31 Dec. 2012) :

a. P.T. CENTRAL SOLE AGENCY            - Rp. 22,890,496 (16.7%)

b. PVP XVIII Pte. Ltd., of Singapore        - Rp. 21,910,978 (16.9%)

c. LUNAR Crescent International Inc.       - Rp. 20,751,865 (15.1%) 

d. Others (less than 5% each)                  - Rp. 71,789,563 (52.3%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Tire Manufacturing

 

Production Capacity :

  a. Car Tires                  - 10,000,000 units per annum

  b. Motorcycle Tires      -   6,000,000 units per annum

 

Actual Production :

  2010

  a. Car Tires                  - 5,600,000 units per annum

  b. Motorcycle Tires      - 2,500,000 units per annum

 

  2011

  a. Car Tires                  - 7,100,000 units per annum

  b. Motorcycle Tires      - 3,200,000 units per annum

 

  2012

  a. Car Tires                  - 6,700,000 units per annum

  b. Motorcycle Tires      - 3,300,000 units per annum

 

Total Investment :

  a. Equity Capital            - Rp.    856.6 billion

  b. Loan Capital               - Rp. 1,076.0 billion

c. Total Investment         - Rp. 1,932.6 billion

 

Started Operation :

August 1995

 

Brand Name :

ACHILLES, CORSA and STRADA

 

Technical Assistance :

None

 

Number of Employee :

3,863 persons                                

 

Marketing Area :

Domestic   - 28%

Export                                                                 - 72%

 

Main Customers :

a. Tire Distributor and Dealers in the country

b. Overseas buyer in Middle East, Europe, Japan, Hong Kong and Taiwan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Goodyear Indonesia

b. PT. Bridgestone Tire Indonesia

c. PT. Gajah Tunggal Tbk

d. PT. Elangperdana Tire Industry

 

Business Trend :

Growing

 


BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank INTERNASIONAL INDONESIA (BII) Tbk

      Plaza BII Menara 2

      Jl. M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk

      GRAHA NIAGA Tower

      Jl. Jend. Sudirman Kav. 58

      Jakarta Selatan

      Indonesia

c.   The Hongkong and Shanghai Bank Corp.

      World Trade Center

      Jl. Jend. Sudirman Kav. 29-31

      Jakarta Selatan

      Indonesia

 

Auditor :

Purwantono, Suherman and Surya (member of Ernst & Young Global Ltd)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Net Sales/Revenue :

2010 – US$. 221.3 million

2011 – US$. 326.0 million

2012 – US$. 320.9 million

 

Net Profit :

2010 – US$. 14.8 million

2011 – US$.   6.9 million

2012 – US$.   0.3 million

 

Total Assets :

2010 – US$. 360.9 million

2011 – US$. 538.1 million

2012 – US$. 624.5 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Pieter Tanuri

Vie President Director                      - Mr. Ir. Sukarman

Directors                                         - a. Mr. Yohannes Ade Bunian Moniaga

                                                        b. Mr. Hartono Setiabudi

                                                        c. Mr. Uthan M. Arief Sadikin

                                                        d. Mr. Andreas Handoyo Hutama

                                                        e. Mr. Wayah Surya Wiroto

 

Board of Commissioners :

President Commissioner                  - Mr. Eugene Cho Park

Commissioners                               - a. Mr. Mulyo Sutrisno

                                                        b. Mr. Paulus Ridwan Purawinata

                                                        c. Mr. Andi Solaiman

                                                        d. Mr. Glenn T. Sugita

 

Signatories :

President Director (Mr. Pieter Tanuri) or Vice President Director (Mr. Ir.  Sukarman) or one of the Directors (Mr. Johannes Ade Bunian, Mr. Hartono Setiabudi, Mr. Uthan M. Arief Sadikin, Mr. Andreas Handoyo Hutama and Mr. Wayah Surya Wiroto) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit :

C.O.D. To small amount

 

 

OVERALL PERFORMANCE

 

      Initially named P.T. OROBAN PERKASA, it was established in June 1988 with the authorized capital of Rp. 1,000,000,000 of which Rp. 200,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Mulianto Tanaga and his younger brother Mr. Hadiwidjaja Tanaga, an Indonesian business family of Chinese extraction. The articles of association of the company have frequently been revised. In December 1996, the company renamed to                                 P.T. MULTISTRADA ARAH SARANA and concurrently the authorized capital was raised to Rp. 300,000,000,000 of which Rp. 100,000,000,000 was issued and fully paid up.

 

      In April 2004, Mr. Mulianto Tanaga and Mr. Hadiwidjaja Tanaga withdrew and their shares were taken over by P.T. JAVAINDO ASETAMA and Mr. Yohannes Ade Munian Moniaga. In January 2005, the authorized capital was increased to Rp. 700,000,000,000 of which                                       Rp. 326,200,000,000 was issued and paid up. At the same time, whole shares of the company were controlled by P.T. INDOKEMIKA JAYATAMA (10%), PVP XVIII Pte Ltd of Singapore (90%).

 

      In March 2005, the company went public by carrying out IPO (Initial Public Offering) in Jakarta Stock Exchanges (JSE) and Surabaya Stock Exchanges (SSE) and selling 28.60% of its shares to the public being effective as of 30 May 2005.  Concurrently, the company’s name was changed to P.T MULTISTRADA ARAH SARANA Tbk., (P.T. MASA), as a public listed company

 

      In April 2007, the authorized capital of the company was raised again to Rp 1,862,000,000,000.- with the issued capital of Rp 489,510,000,000.- entirely paid up. In June 2008, the authorized capital was raised to Rp. 1,862,000,000,000 of which Rp. 856,642,535,000 was issued and fully paid up. The capital structures and shareholder composition of P.T. MAST are PVP XVIII Pte. Ltd., of Singapore (27.73%), P.T. INDOKEMIKA JAYATAMA of Indonesia (3.81%) and Publics (68.46%). The amendment to Articles of Association was made by Mr. Benny Kristianto, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No.AHU-49709.AH.01.02.TH.2008, dated August 11, 2008 and No. AHU-AH.01.10-11830 dated July 30, 2009.

 

      On June 2011, the issued capital was raised to Rp. 1,285,613,000,000.- and fully paid up.  Since that time, the shareholders of the company are PVP XVIII Pte. Ltd., of Singapore (27.72%), P.T. INDOKEMIKA JAYATAMA (3.81%), P.T. CENTRAL SOLE AGENCY (15.66%), P.T. BUANA CAPITAL (4.98%), P.T. EQUATOR CAPITAL PARTNERS (6.70%), P.T. SINARMAS SEKURITAS (2.87%) and Publics (38.27%).

 

      On December 31, 2012, the authorized capital was converted to US$ 198,918,780 of which US$ 137,342,902 was issued and fully paid up.  The latest shareholders of the company are P.T. CENTRAL SOLE AGENCY (16.7%), PVP XVII Pte. ltd., of Singapore (16.9%), LUNAR Crescent International Inc., of BVI (15.1%) and Publics (52.3%).  The latest amendment to Articles of Association has been approved by the Minister of Law and Human rights through its Decision Letter No. AHU-11635.AH.01.02.Tahun 2012 dated March 2, 2012. No changes have been effected in term of its shareholding composition and capital structures to date.

 

      Initially, P.T. MASA obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with tire manufacturing. Its plant is located on Jalan Raya Lemahabang, Kedung Waringin District, Cikarang, Bekasi, West Java on a land of 367,095 square meters with the building width of 22,869 square meters. The operation of the company started in 1994 being in commercial operation since 1995. By the entering of foreign partner, the status of the company was changed to Foreign Investment Company (PMA). The plant is equipped with various modern production machines being mostly imported from European counties like the UK, Italy, Germany, and partly from the USA. Some 70% of the basic materials in the form of natural rubbers, synthetic rubbers, black carbons, sulfurs and other chemical materials such as polyesters, nylons, steel cords, bead wires and others are local products while the rest of 30% is imported from various European countries, the USA and Asia. The tire products being produced by the company are tires for passenger car radial and motorcycle radial type steel belled tubeless with brands of ARCHILLES, CORSA and STRADA being wholly certified by SNI, DOT, E-Marking and Gulf Standard.

 

      In the year of 2010, the Company was able to produce (actual production) a total  of 5.6 million units of car tires and 2.5 million units of motorcycle tires, increased to 7.1 million units of car tires and 3.2 million units of motorcycle tires in 2011 and declined to 6.9 million units of car tires and 3.3 million units of motorcycle tires in 2012. In addition to domestic marketed the production of P.T. MASA was also exported to various countries including America (19%), Asia (16%, Middle East (13%), Africa (8%), Europe 8%), Australia (8%) and Domestic market (28%). In general, the performance of P.T. MASA continues to improve in the last three years. 

 

Establishment of a New Subsidiary

 

      On February 28, 2011, P.T. MASA (the Company) established PT. Multistrada Agro International (MAI) which is intended to engage primarily in development and improvement of forestry industry. The capital contribution for the 95% equity ownership in PT. MAI was Rp. 23,750 million.  As of December 31, 2012, PT. MAI was involved as an investment holding company and the Company has ownership interest of more than 50% in the following subsidiaries which are engaged in improvement of forestry industry.    The table of PT. MAI’s subsidiary companies shall be as follows:

 

                       (In US Dollar)

Name of Subsidiary

Lines of Business

Start of Operations

% of Ownership

Investment in Associates

(31 Dec 2012)

PT. Multistrada Agro

International

Improvement of forestry Industry

Development stage

95.00

14,096,534

PT. Kawasan Industri

Multistrada

Industrial Estate

Non-operating

99.96

2,585,315

PT. Meranti Laksana

Improvement of forestry industry

Development stage

95.00

1,059,584

Meranti Lestari

Improvement of forestry industry

Development stage

95.00

792,540

PT. Mitra Jaya Nusaindah

Improvement of forestry industry

Development stage

95.00

99,227

Source: PT. MASA

 

 

      According to financial report audited by Purwantono, Suherman & Surya, a registered public accountant the total sales/income of P.T. MASA in 2010 amounted to US$ 221.3 million with a net profit of US$ 14.8 million, increased to US$ 326.0 million with a net profit of US$ 6.9 million in 2011 and rose again to US$ 320.9 million with a net profit of US$ 0.3 million in 2012. 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.    Financial highlights of the company, as of 31 December 2010, 2011 and 2012 (expressed in ‘000 US Dollar) are below:

 

Description

2012

2011

2010

Financial Highlights

 

 

 

- Net Sales

320,881

325,977

221,299

- Gross Profit

  47,788

  54,134

  44,103

- Net Profit

       320

    6,943

  14,789

- Total Assets

624,486

538,091

360,935

- Total Liabilities

252,503

327,553

156,722

- Total Equity

 

 

 

Operating Ratios (%)

 

 

 

- Gross Profit / Net Sales

15

17

20

- Net Income / Net Sales

0.1

  2

  7

- Gross Profit / Equity

13

26

22

- Net Profit / Equity

0.1

  3

  7

- Gross Profit / Assets

  8

10

12

- Net Profit / Assets

0.1

  1

  4

Source: PT. MASA

 

      The management of P.T. MASA is led by Mr. Pieter Tanuri (50) as President Director.  He earned a Bachelor of Economics from the University of Trisakti Jakarta in 1988.  He also served at President Director of PT. Multistrada Agro International PT. Meranti Laksana and PT. Meranti Lestari since 2011.  In his daily activities, he is assisted by Mr. Ir. Sukarman (earned a degree in Chemical Science from Gajah Mada Univeristy in 1973) as Vice President Director and Mr. Yohannes Ade Budian Moniaga, Mr. Hartono Setiabudi, Mr. Uthan M. Arief Sadikin, Mr. Andreas Handoyo Hutama and Mr. Wayah Suryo Wiroto,  respectively as director. The management has wide relation with overseas and national private businessmen as well as with the government sectors. 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. MASA is appraised to be quite feasible for business transaction.   But owing to economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.42

UK Pound

1

Rs.102.09

Euro

1

Rs.87.32

 

 

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.