MIRA INFORM REPORT

 

 

Report Date :

30.08.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. INTERNATIONAL PAINT INDONESIA

 

 

Formerly Known As :

P.T. INTERNATIONAL COATING

 

 

Registered Office :

Gedung Intiland Tower 5th Floor, Jalan Jend. Sudirman Kav. 32, Kelurahan Karet Tengsing, Kecamatan Tanah Abang, Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.10.1992

 

 

Com. Reg. No.:

No. AHU-AH.01.10-05872

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of industrial paint

 

 

No. of Employees :

155

 

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 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. INTERNATIONAL PAINT INDONESIA

 

 

company Address

 

Head Office

Gedung Intiland Tower 5th Floor

Jalan Jend. Sudirman Kav. 32

Kelurahan Karet Tengsing, Kecamatan Tanah Abang

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 5700075 (Hunting)

Fax                   - (62-21) 5701135

Building Area    - 32 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Cikarang Industrial Estate

Jalan Jababeka Raya Block E 9-11

Cikarang, Bekasi, 17530

West Java

Indonesia

Phones             - (62-21) 8934270 (Hunting)

Fax                   - (62-21) 8934275

Land Area         - 34,000 sq. meters

Building Space  - 10,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Branches

a.   Jalan Arief Rahman Hakim No. 24 A

      Surabaya

      East Java

      Phone        - (62-31) 5965188

      Fax             - (62-31) 5965199

b.   Jalan Gunung Krakatau No. 9 G

      Medan, 20731

      North Sumatera

      Phone        - (62-61) 6610938

      Fax             - (62-61) 6632775

 

c.   Jalan Urip Sumoharjo 172

      Makassar

      South Sulawesi

      Phone        - (62-411) 447095

      Fax             - (62-411) 447069                      

d.   Jalan Letjend. S. Parman No. 12

      Gunung Guntur, Balikpapan

      East Kalimantan

      Phone        - (62-542) 730700

      Fax             - (62-542) 418134                        

e.   Jalan R. Sukamto RT. 037/RW. 010 20 Ilir

      Palembang

      South Sumatera

      Phone        - (62-711) 7939788

      Fax             - (62-711) 365166                      

f.    Jalan Hang Tuah No. 97 D

      Duri 28884

      Riau

      Phone        - (62-765) 94197

      Fax             - (62-765) 94198                          

g.   Komplek Ruko Batu Aji Centre Block A No. 01-03

      Batu Aji, Batam

      Kepulauan Riau Province

      Phone        - (62-788) 395007

      Fax             - (62-788) 394940

 

 

Date of Incorporation

 

a. 20 October 1992 as P.T. COURTAULDS COATING INDONESIA

b. 9 December 1998 as P.T. INTERNATIONAL COATING

c. 15 March 2004 as P.T. INTERNATIONAL PAINT INDONESIA

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. AHU-AH.01.10-21313

  Dated 10 September 2008

- No. AHU-AH.01.10-05872

  Dated 21 February 2013

 

Company Status

 

Foreign Investment (PMA) Company

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.070.635.6-052.000

 

The President of the Republic of Indonesia

No. B-229/Pres/10/1992

Dated 1 October 1992

 

The Capital Investment Coordinating Board

- No. 206/I/PMA/1992

  Dated 14 October 1992

- No. 43/II/PMA/1997

  Dated 19 March 1997

- No. 769/III/PMA/1998

  Dated 16 June 1998

- No. 50/III/PMA/1999

  Dated 15 January 1999

- No. 104/III/PMA/2002

  Dated 28 January 2002

- No. 1112/III/PMA/2002

  Dated 9 October 2002

 

 

Related Company

 

A Member Company of the AKZO NOBEL Group, Netherlands

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 14,499,609.-

Issued Capital                                 : US$ 14,499,609.-

Paid up Capital                               : US$ 14,499,609.-

 

Shareholders/Owners :

a. AKZO NOBEL © HOLDINGS B.V.                        - US$ 13,774,629.-

    Address : Strawinskylaan 2555

                    1077 ZZ Amsterdam

                    The Netherlands

b. PANTER B.V.                                                     - US$      724,980.-

    Address : Aelbrechtskade 122

                    3023 JE Rotterdam

                    The Netherlands

 

BUSINESS ACTIVITIES

 

Lines of Business :

Paint Manufacturing

 

Production Capacity :

a. Emulsion Paints                          - 7,683 tons p.a.

b. Powder Paints                             -    300 tons p.a.

 

Total Investment :

a. Equity Capital                              - US$ 14.5 million

b. Loan Capital                                - None

c. Total Investment                          - US$ 14.5 million

 

Started Operation :

1993

 

Brand Name :

CHARTEK Fireproofing, CELLCOTE, ENVIROLINE

 

Technical Assistance :

AKZO NOBEL of Netherlands

 

Number of Employee :

155 persons

 

Marketing Area :

Local    - 100%

 

Main Customers :

a. Oil and gas industry

b. Pulp and paper

c. Power generation

d. Bridge

e. Petrochemical plants

f.  Distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CHUGOKU PAINT INDONESIA

b. P.T. HEMPEL INDONESIA

c. P.T. JOTUN POWDER PAINT INDONESIA

d. P.T. OTTOPAINTS COLOURS INDONESIA

e. P.T. OXYPLAS INDONESIA

f.  Etc.

 

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   ABN AMRO BANK NV.

      Jalan Ir. H. Juanda

      Jakarta Pusat

      Indonesia

b.   P.T. Bank RABOBANK INTERNATIONAL INDONESIA

      Plaza 89

      Jalan H.R. Rasuna Said Kav. X-7 No. 6

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 182.0 billion

2011 – Rp. 190.0 billion

2012 – Rp. 197.0 billion

 

Net Profit (estimated) :

2010 – Rp. 15.5 billion

2011 – Rp. 16.1 billion

2012 – Rp. 17.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Fong Vean Kieong

Director                                          - Mr. Graham Stephen George Morrison

 

Board of Commissioners :

Commissioner                                 - Mr. Victor Geza Fraser

 

Signatories :

President Director (Mr. Fong Vean Kieong) or the Director (Mr. Graham Stephen George Morrison) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. COURTAULDS COATING INDONESIA, it was established in October 1992 with the authorized capital of US$ 2,460,000 wholly issued and paid up. Founders and original shareholders are P.T. JAINDO METAL INDUSTRIES (20%) of Indonesia and INTERNATIONAL PAINT (Holding) Ltd., (80%) of United Kingdom. The company notary deed has frequently been revised. In December 1998, P.T. JAINDO METAL INDUSTRIES pulled out and its entire shares went into over COURTAULDS COATING (Holdings) Ltd., also of the UK. On the same occasion, the company renamed to P.T. INTERNATIONAL COATINGS but on 15 March 2004, the company was renamed again to P.T. INTERNATIONAL PAINT INDONESIA (P.T. IPI).

 

In December 2006, INTERNATIONAL PAINT (HOLDING) Ltd., and COURTAULDS COATING (HOLDING) Ltd., withdrew and its entire shares were taken over by AKZO NOBEL (C) HOLDINGS B.V., (95%) and PANTER B.V., (5%), both are from the Netherlands. Concurrently the company’s authorized capital was increased to US$ 14,499,609 entirely issued and paid up. Since then P.T. IPI becomes a member of the AKZO NOBEL Group, a large sized company group of the Netherlands. Then according to the latest revision of notary documents of Mr. Muchlis Patahna, SH., No. 13 dated 10 January 2013 the company board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-05872 dated January 10, 2013.

 

P.T. IPI is a Foreign Investment (PMA) company dealing with industrial paint manufacturing by managing a plant located in Cikarang Industrial Estate, Jalan Jababeka Raya Lot E 9-11, Bekasi, West Java standing on 3.4 hectares land operating as from March 1993. The plant has been expanding frequently to increasing production capacity in powder paint and emulsion paint. According to the license the plants has a total production capacity of 300 tons of powder paint and 7,683 tons of emulsion paint per annum. Total investment of the company is amounted to US$ 14.5 million originally coming from owned capital.

 

Initially P.T. IPI obtained a license and technology from INTERNATIONAL PAINT (HOLDING) Ltd. of the United Kingdom. But since late 2006, it was changed to AKZO NOBEL (C) HOLDING B.V., of the Netherlands. Main products of P.T. IPI are paint and coating for ships, pipes and construction steels under the brands of INTERNATIONAL and INTERNA. Besides that, the company is also producing interior and exterior paint.

 

The company has established wide marketing network throughout the country.  Presently, P.T. IPI also owns several marketing offices located in Surabaya (East Java), Balikpapan (East Kalimantan), Medan (North Sumatra), Palembang (South Sumatera), Duri (Riau Province), Makasar (South Sulawesi) and Batam (Keplulauan Riau Province). Its major customers are including foreign companies operating in Indonesia, oil and gas industry, pulp and paper, power generation, bridge, port facility, petrochemical plants, shipbuilding industries, automotive plants and others. In April 2008, P.T. IPI was in cooperation with P.T. Dok & Perkapalan KODJA BAHARI (Persero) and P.T. PANCA MERAK SAMUDERA to apply nititiram painting of Queen Soya ship which could save 6% of fuel.

 

Mr. Hendrik Tjakra, a senior marine sales manager of P.T. IPI, said in Bisnis Indonesia daily newspaper that the new product of Intersleek 900 was used to paint ship body with smooth surface so the ship could run faster. “With the high smoothness, 6% of the fuel can be saved than other anti foulding products,” said Hendrik Tjakra. He added that the painting of a ship unit required Rp. 1 billion. Intersleek 900 is the newest ship painting products introduced by P.T. IPI besides Intersleek 900 (produced in 1996) and Intersleek 700 (produced in 1999). The whole products marketed in the country by using INTERNATIONAL, CHARTEK Fireproofing, CELLCOTE and ENVIROLINE brands.

 

Mr. Irwansyah, marketing executive of P.T. IPI explained the products protective coating sold to various projects such as Jakarta Refinery Marunda P.T. SMART Tbk; Tabang Coal Process, P.T. THIESS CONTRACTORS INDONESIA; Recoating Steam Generators P.T. CHEVRON PACIFIC INDONESIA; Tunu II TOTAL E&P INDONESIE; Coal Conveyor Recoating P.T. BUKIT ASAM Tbk; SSKIDDA Vessel Fireproofing; BP TANGGUH Tank; MATAK Fuel Tank CONOCOPHILIPS; Storage Tanks P.T. PERTAMINA; Chemical Tanks P.T. AKZO NOBEL EKA CHEMICAL; LPG Tank Leg Fireproofing CHEVRON SANTAN and other projects. P.T. IPI operation has kept on growing in the last three years.

 

Generally, demand for paint products has been increasing by 5% to 6% per annum in the last five years having close relation with the growth of various industrial sectors including property sectors like real estate, office buildings, apartments, shopping centers, manufacturing industrial sectors and fabrication, shipping sectors, automotive industrial sectors and other industrial sectors. The demand for paint is estimated to be rising by at least 5% in the coming five years. The competition is very tight on account of lots of similar company operating in the country. The business position of P.T. IPI is favorable being classified as one of large sized paint industries in the country.

 

National Paint Production, 2007-2012

 

Year

Production (Ton)

Growth %

2007

608,403

-

2008

632,739

4.0

2009

664,376

5.0

2010

697,595

5.0

2011

733,870

5.2

2012

772,765

5.3

Average growth % year

0.26

                 Source: Central Bureau of Statistic, processed     

 

P.T. IPI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. IPI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to Rp. 182.0 billion rose to Rp. 190.0 billion in 2011 increased to Rp. 197.0 billion in 2012 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 17.0 billion and the company has an estimated total networth of at least Rp. 100.0 billion. We observe that P.T. IPI 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. IPI is led by Mr. Fong Vean Kieong (56) a businessman and professional manager of Malaysia with experience in paint (protective coating) manufacturing and trading. Daily activity, he is assisted by Mr. Graham Stephen George Morrison (62) a professional of Australia as Director. 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. INTERNATIONAL PAINT INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.67.71

UK Pound

1

Rs.105.14

Euro

1

Rs.90.03

 

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.