MIRA INFORM REPORT

 

 

Report Date :

05.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. MULTI NITROTAMA KIMIA

 

 

Formerly Known As :

P.T. MULTI NITRO KIMIA

 

 

Registered Office :

Equity Tower, 40th Floor, Suite E Sudirman Central Business District, Jl. Jend. Sudirman Kav. 52-53 Lot 9, Jakarta 12190

 

 

Country :

Indonesia

 

 

Date of Incorporation :

10.04.1987

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

a. Chemical (Ammonium Nitrate and Nitric Acid) Industry,

b. Mining Explosive and Blasting Services

 

 

No. of Employees :

510

 

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

 


BASIC SEARCH

 

Name of Company : 

 

P.T. MULTI NITROTAMA KIMIA

 

A d d r e s s :

Head Office

Equity Tower, 40th Floor, Suite E Sudirman Central Business District, Jl. Jend. Sudirman Kav. 52-53 Lot 9

Jakarta 12190, Indonesia

Phones             - (62-21) 2903 5022 (hunting)

Fax                   - (62-21) 2903 5021

Email                - info@mnk.co.id

Website            - www.mnk.co.id

Building Area     - 48 storey

Office Space      - 450 sq. meters

Region              - Commercial

Status               - Rent

 

Plant Site

Kawasan Industri Kujang Cikampek, Jl. Jend. A. Yani, Dawuan – Cikampek, Jawa Barat 41373, Indonesia

Phones             - (62-264) 313 700 (hunting)

Fax                   - (62-264) 313 389

Land Area         - 50,000 sq. meters

Building Space  - 38,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Operational Office

Gedung BRI Balikpapan, 8th Floor, Jl. Jend. Sudirman No. 37, Balikpapan 76112, East Kalimantan, Indonesia

Phones             - (62-21) 415 258 (hunting)

Fax                   - (62-21) 415 626

Building Area     - 12 storey

Office Space      - 220 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

a. 10 April 1987 as P.T. MULTI NITRO KIMIA

b. 18 July 1987 as P.T. MULTI NITROTAMA KIMIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

            a.         No. AHU-30635.AH.01.02.Tahun 2009

                        Dated 11 December 2009

            b.         No. AHU-AH.01.10-15100

                        Dated 19 April 2013

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

            a.         The Department of Finance

                        NPWP No. 01.438.045.5-431.000

 

            b.         The Department of Finance

                        - No. 357/I/PMDN/1987

                          Dated 07 September 1987

                        - No. 108/II/PMDN/1997

                          Dated 24 June 1997

 

Related/Affiliated Companies :

a. P.T. INTI IDOLA SEJATI (Investment Holding)

b. P.T. TARUNA DINAMIKA CITRINDO (Investment Holding)

c. P.T. PERKA CIPTA TERANG (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 33,000,000,000.-

Issued Capital                - Rp. 28,296,000,000.-

Paid up Capital              - Rp. 28,296,000,000.-

 

Shareholders/Owners :

a. P.T. PUPUK KUJANG                                                           - Rp.   7,074,000,000.- (25%)

    Address : Kawasan Pupuk Kujang Cikampek

                    Jl. Jend. A. Yani, Cikampek

                    West Java, Indonesia

b. P.T. ANCORA INDONESIA RESOURCES Tbk.                        - Rp. 14,148,000,000.- (50%)

    Address : Jl. Imam Bonjol No. 61

                    Cikini, Central Jakarta

                    Indonesia

 

 

c. YAYASAN DANA ABADI KARYA BAKTI                                 - Rp    7,074,000,000.- (25%)

    Address : Gedung Granadi, 6th Floor

                    Jl. HR Rasuna Said Blok X-1

                    South Jakarta, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Chemical (Ammonium Nitrate and Nitric Acid) Industry,

b. Mining Explosive and Blasting Services

 

Production Capacity :

a. Ammonium Nitrates    - 140,000 tons p.a.

b. Nitric Acids                -   55,000 tons p.a.

 

Total Investment :

a. Owned Capital           - Rp. 28.3 billion

b. Loan Capital              - Rp. 42.5 billion

c. Total Investment         - Rp. 70.8 billion

 

Started Operation :

July 1990

 

Brand Name :

MNK

 

Technical Assistance :

a. Kaltenbach Thuring of France (for Ammonium Nitrate)

b. DM Weatherly of the USA (for Nitric Acid)

 

Number of Employee :

510 persons

 

Marketing Area :

a. Local             - 80%

b. Export           - 20%

 

Main Customers :

a. PT. Freeport Indonesia

b. PT. Chevron Pacific Indonesia

c. PT. Adaro Indonesia

d. PT. Indominco Mandiri

e. PT. Pamapersada Nusantara

f.  PT. Asmin Koalindo Tuhup

 

Market Situation :

Competitive

 

Main Competitors:

a. P.T. KALTIM NITRATE INDONESIA

b. P.T. DAHANA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

            a.         P.T. Bank PERMATA Tbk 

                        Gedung WTC

                        Jl. Jend. Sudirman Kav. 29-31

                        South Jakarta

            b.         P.T. Bank MANDIRI Tbk 

                        Gedung Bumi Daya

                        Jl. Imam Bonjol No. 61

                        Central Jakarta

            c.         P.T. Bank NEGARA INDONESIA Tbk 

                        Wisma 46 Kota BNI

                        Jl. Jend. Sudirman Kav. 1

                        South Jakarta

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2010 – US$ 136.9 million

2011 – US$ 115.6 million

2012 – US$ 156.3 million

2013 – US$   87.4 million (January – June)

 

Net Profit (estimated) :

2010 – US$ 15.0 million

2011 – US$ 12.8 million

2012 – US$ 17.2 million

2013 – US$   9.6 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director          - Mr. Dharma Hutama Djojonegoro

Directors                       - a. Mr. Ir. Sapto Ariyono, MM

                                      b. Mr. Ir. Alex Djajadi Sastra

                                      c. Mr. Antonius Nicholas Stephanus Kosasih

 

Board of Commissioners :

President Commissioner - Mr. Ir. Dana Sudjana, MM

Commissioners              - a. Mrs. Susan Narulita

                                      b. Mr. Yose Rizal effendi

                                      c. Mr. Aulia Mulki Oemar

 

Signatories :

President Director (Mr. Dharma Hutama Djojonegoro) or one of the Directors (Mr. Ir. Sapto Ariyono, MM, Mr. Ir. Alex Djajadi Sastra or Mr. Antonius Nicholas Stephanus Kosasih)  which must be approved by Board of Commissioner (Mr. Ir. Dana Sudjana, MM) and assisted by other commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Initially named P.T. MULTI NITRO KIMIA, it was established in April 1987 with the authorized capital of Rp. 33,000,000,000.- issued capital of Rp 23,100,000,000.- of which Rp 3,234,000,000.- was paid up.  The founding shareholders of the company are P.T. PUPUK KUJANG, a state owned company dealing with urea fertilizer manufacturing, P.T. BIMANTARA CITRA Tbk., and Mr. Hutomo Mandala Putra AKA Tommy Soeharto.  In July 1987, the company renamed to P.T. MULTI NITROTAMA KIMIA (P.T. MNK).  The articles of association of the company have frequently been revised. In November 1994, the paid up capital was raised to Rp. 8,220,000,000 and concurrently Mr. Hutomo Mandala Putra AKA Tommy Soeharto withdrew and into the company entered Yayasan DAKAB (Yayasan Dana Abadi Karya Bakti), a foundation being established and led by the former the late President Soeharto.  In June 2008, the paid up capital was raised to Rp. 23,100,000,000 and concurrently P.T. BIMANTARA CITRA Tbk withdrew and into the company entered a new shareholder P.T. ANCORA INDONESIA RESOURCES Tbk.

 

Most recently by notarial Deed No. 40 dated 26 March 2013 made by Notary Sugih Haryati, SH., notary in Jakarta, the issued capital was raised again to Rp 28,296,000,000.- and the same of occasion, the shareholders of the company are P.T. PUPUK KUJANG (25%), P.T. ANCORA INDONESIA RESOURCES Tbk., (50%) and YAYASAN DANA ABADI KARYA BAKTI (25%).  The amendment to deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-15100 dated 19 April 2013.

 

P.T. MNK obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with ammonium nitrates and nitrate acids. Its plant is located in Pupuk Kujang Industrial Estate, Cikampek, West Java on a land of 5.0 hectares having been in commercial operation since July 1990.   According to its license issued by the BKPM, the plant has annual production capacity of  37,000 tons of ammonium nitrate and 55,000 tons of nitric acids with an investment of Rp. 70.8 billion coming from own capital of Rp. 28.3 billion and the rest from loans. Beside, P.T. MNK also engaged in mining explosive and blasting services.  In 2012, P.T. MNK has successfully completed the construction of the MNK-2 plant after 2 years of construction and commercial production form February 2012.  Thus P.T. MNK owns and operates MNK-2 and MNK-2 plants in Cikampek, West Java and has increased production capacity from 37,000 tons to 140,000 tons of ammonium nitrate per year.

 

Ammonium nitrate and Nitric Acid are compounds used as explosives to support activities in coal and mineral general, general works and cement industry.  The products of the company are wholly marketed in the country and supplied among mining companies.  Significant contracts which P.T. MNK have entered into with several parties such as PT. Freeport Indonesia, PT. Pama Persada Nusantara, PT. Adaro Indonesia, PT. Asmin Koalindo Tuhup and Kideco Jaya Agung shall be valid from 2013 to 1016.  By the end of 2013, a detonator assembly plant established through cooperation between P.T. MNK and third party is expected to commence production.  For this purpose, in 2012, P.T. MNK will introduce detonator products to both existing and new customers to ensure optimal marketing and sales.  We observed that P.T. MNK is the second largest company of its kind in the country (after PT. Kaltim Nitrate Indonesia) of which the operation has been fluctuating in the last three years.

 

Generally outlook the demand for ammonium nitrate has kept on rising by about 10% to 12% in line with the rapid growth of mining industry sector and other industrial sectors as its consumers in the country.  We observed that the most of ammonium nitrate (app. 65%) are sold in the domestic market are imported from Australia, China, the Philippines, Mexico and France.   P.T. MNK has to deal with competition from other companies marketing products similar to those offered by the Company.  More new entrants in the industry and the presence of a new plant in Bontang (PT. Kaltim Nitra Indonesia) with an annual capacity of roughly 300,000 tons shall result in a lower market share for P.T. MNK, particularly in areas close to the location of rival plants which in turn will bring down P.T. MNK sales and ultimately adversely affect company financial performance.

 

Until this time P.T. MNK has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MNK is very reclusive towards outsiders and rejected to disclose its financial condition.  According to PT. Ancora Indonesia Resources Tbk., (holding company of P.T. MNK) that P.T. MNK's sales turnover in 2010 reached US$ 136.9 million declined to US$ 115.6 million in 2011and rose again to US$ 156.3 million in 2012 and projected to go on rising by at least 10% in 2013.  The operation in 2012 yielded an estimated net profit of at least US$ 17.2 million and the company has an estimated total assets o US$ 179.3 million.  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.  

 

P.T. MNK's management is headed by Mr. Darma Hutama Djojonegoro (39) as president director and CEO of the Company.  He holds two Bachelor Degrees in Marketing and Finance with summa cum laude in 1996 from the University of Oregon, USA.  Beside, he was also appointed as President Director of P.T. ANCORA INDONESIA RESOURCES Tbk., holding company of P.T. MNK.   In daily activities, he is assisted by three directors namely Mr. Ir. Sapto Ariyono, MM (53), Mr. Ir. Alex Djajadi Sastra (60) and Mr. Antonius Nicholas Stephanus Kosasih (43).  The company's management is handled by professionals 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 fraudulent dealings. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. MULTI NITROTAMA KIMIA is appraised to be good for business transaction.  However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.102.18

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.