MIRA INFORM REPORT

 

 

Report Date :

05.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SUMI RUBBER INDONESIA

 

 

Registered Office :

Wisma Indomobil, 12th Floor Jalan Letjend. M.T. Haryono Kav. 8 Kelurahan Bidara Cina, Kecamatan Jatinegara Jakarta Timur, 13330

 

 

Country :

Indonesia

 

 

Date of Incorporation :

17.07.1995

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·            Tire and Golf Ball Manufacturing

·            Investment Holding

 

 

No. of Employees :

3,081

 

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 :

Regular

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. SUMI RUBBER INDONESIA

 

 

Address

 

Head Office

Wisma Indomobil, 12th Floor

Jalan Letjend. M.T. Haryono Kav. 8

Kelurahan Bidara Cina, Kecamatan Jatinegara

Jakarta Timur, 13330

Indonesia

Phones             - (62-21) 851-2561 (Hunting)

Fax                   - (62-21) 851-5893

E-mail               - marketing@dunlop.co.id

Website            - www.dunlop.co.id

Building Area     - 12 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Kawasan Industri Indotaisei Block H Sektor 1 A

Kota Bukit Indah Cikampek

Karawang, Cikampek, 41373

West Java

Indonesia

Phones             - (62-264) 351 346, 351 346

Fax                   - (62-264) 351 345

Land Area         - 237,245 sq. meters

Building Space  - 180,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Date of Incorporation :

17 July 1995

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. C2-2260 HT.01.01.TH.96

            Dated 16 February 1996

 

 

 

-           No. AHU-60178.AH.01.02.TH.2008

            Dated 8 September 2008

-           No. AHU-AH.01.10-20581

            Dated 28 May 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.071.152.1-052.000

The President of the Republic of Indonesia

No. B-303/Pres/6/1996

Dated 7 June 1996

The Capital Investment Coordinating Board

-           No. 318/I/PMA/1995

            Dated 20 June 1995

-           No. 470/III/PMA/1998

            Dated 6 April 1998

-           No. 499/III/PMA/1999

            Dated May 1999

-           No. 782/III/PMA/1999

            Dated 23 June 1999

-           No. 145/II/PMA/2000

            Dated 7 July 2000

-           No. 629/III/PMA/2003

            Dated 11 June 2003

-           No. 1244/III/PMA/2003

            Dated 24 October 2003

 

Related Companies :

a.         A Member Company of the INDOMOBIL Group

b.         SUMITOMO CORPORATION Group, Japan (Sogo Sosha)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 100,000,000.-

Issued Capital                : US$ 100,000,000.-

Paid up Capital              : US$ 100,000,000.-

 

Shareholders/Owners :

a. SUMITOMO RUBBER INDUSTRIES LTD.                               - US$ 72,500,000.-

    Address : 3-6-9 Wakinohama-cho, Chuo-ku

                    Kobe, Hyogo 651-0072

                    Japan

b. SUMITOMO ELECTRIC INDUSTRIES LTD.                            - US$ 10,000,000.-

    Address : 5-33, Kitahama 4-chome, Chuo-ku

                    Osaka 541-0041, Japan

 

c. P.T. IMG SEJAHTERA LANGGENG                                      - US$ 10,000,000.-

    Address : Wisma Indomobil 4th Floor

                    Jl. M.T. Haryono Kav. 12

                    Kelurahan Bidara Cina, Kecamatan Jatinegara

                    Jakarta Timur

                    Indonesia

d. P.T. INDOMOBIL SUKSES INTERNASIONAL Tbk                  - US$   5,000,000.-

    Address : Wisma Indomobil 4th Floor

                    Jl. M.T. Haryono Kav. 12

                    Kelurahan Bidara Cina, Kecamatan Jatinegara

                    Jakarta Timur

                    Indonesia

e. SUMITOMO CORPORATION                                                 - US$  2,500,000.-

    Address : Harumi Island Triton Square Office Tower Y, 8-11

                    Harumi 1-chome, Chuo-ku

                    Tokyo 104-8610, Japan

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.         Tire and Golf Ball Manufacturing

b.         Investment Holding

 

Production Capacity :

a.         Motorcar Tires   - 12,184,000 pieces p.a.

b.         Motorcycle Tires-   2,000,000 pieces p.a.

c.         Inner Tubes       -      150,000 pieces p.a.

d.         Flaps                -      150,000 pieces p.a.

e.         Golf Balls          -   7,000,000 dozens p.a.

 

Total Investment :

a.         Equity Capital    - US$ 100.0 million

b.         Loan Capital      - US$ 220.8 million

c.         Total Investment - US$ 320.8 million

 

Started Operation :

a.         April 1997 Tires

b.         April 1998 Golf Ball

 

Brand Name :

DONLOP Tires and Srixon Golf Balls

 

Technical Assistance :

Sumitomo Rubber Industries Ltd., Japan

 

Number of Employee :

3,081 persons

 

Marketing Area :

Local    - 65%

Export    - 35%

 

Main Customer :

Automotive Assembling, Tires Distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BRIDGENSTONE TIRE INDONESIA

b. P.T. ELANG PERDANA TYRE INDUSTRY

c. P.T. GAJAH TUNGGAL Tbk

d. P.T. GOODYEAR INDONESIA Tbk

e. P.T. HANKOOK TIRE INDONESIA

f.  P.T. INDUSTRI KARET DELI

g. P.T. MULTISTRADA ARAH SARANA Tbk

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         P.T. Bank CENTRAL ASIA Tbk

                        Menara BCA Grand Indonesia

                        Jalan M.H. Thamrin No. 1

                        Jakarta Pusat

                        Indonesia

b.         The Bank of TOKYO-MITSUBISHI-UFJ LTD

                        Midplaza Building

                        Jalan Jend. Sudirman Kav. 10-11

                        Jakarta 10220

                        Indonesia

c.         P.T. Bank SUMITOMO MITSUI INDONESIA

                        SUMMITMAS II Building

                        Jalan Jend. Sudirman Kav. 61-62

                        Jakarta 12190

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – US$ 275.5 million

2011 – US$ 286.9 million

2012 – US$ 312.0 million

2013 – US$ 167.5 million (January – June)

 

Net Profit (estimated) :

2010 – US$ 16.5 million

2011 – US$ 17.2 million

2012 – US$ 18.7 million

2013 – US$ 10.4 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Matsuru Nagai

Vice President Director               - Mr. Jusak Kertowidjojo

Directors                                   - a. Mr. Michihito Kobayashi

                                                  b. Mr. Akihito Makino

                                                  c. Mr. Minoru Kimura

                                                 d. Mr. Erwin Chandra

                                                  e. Mr. Minoru Nishi

                                                  f.  Mr. Kenji Onga

                                                  g. Mr. Masashi Fukui

                                                 h. Mr. Josef Utamin

 

Board of Commissioners :

President Commissioner             - Mr. Anthony Salim AKA Liem Hong Sien

Vice President Commissioner     - Mr. Tetsuji Mino

Commissioners                          - a. Mr. Ikuji Ikeda

                                                  b. Mr. Yasutaka Ii

                                                  c. Mr. Soebronto Laras

                                                  d. Mr. Uray Sjaiful Hamid

 

Signatories :

President Director (Mr. Matsuru Nagai) or Vice President Director (Mr. Jusak Kertowidjojo) or one of the Directors (Mr. Michihito Kobayashi, Mr. Akihito Makino, Mr. Minoru Kimura, Mr. Erwin Chandra, Mr. Minoru Nishi, Mr. Kenji Onga, Mr. Masashi Fukui or Mr. Josef Utamin) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. SUMI RUBBER INDONESIA (P.T. SRI) was established in July 1995 with an authorized capital of US$ 50,000,000 wholly issued and paid up. Founders and shareholders are SUMTOMO RUBBER INDUSTRIES LTD., SUMITOMO ELECTRIC INDUSTRIES LTD., SUMITOMO Corporation (entirely of Japan) and P.T. INDOMOBIL INVESTMENT CORPORATION of Indonesia. Its articles of association had frequently been changed for a couple of times. In August 1998, P.T. INDOMOBIL INVESTMENT CORPORATION withdrew and replaced by P.T. INDOMOBIL SUKSES INTERNATIONAL Tbk., and P.T. IMG SEJAHTERA LANGGENG, the later two of Indonesia. Later in October 1998, the authorized capital was increased to US$ 100,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become SUMITOMO RUBBER INDUSTRIES LTD., Japan (72.5%), SUMITOMO ELECTRIC INDUSTRIES LTD., Japan (10%), P.T. IMG SEJAHTERA LANGGENG (10%), P.T. INDOMOBIL SUKSES INTERNATIONAL Tbk (5%) and SUMITOMO CORPORATION, Japan (2.5%). Later according to the latest revision of notary deed of Mr. Buntario Tigris, SH., No. 49 dated 8 May 2013 the company board of director and the board of commissioner had been restructured, while the capitalization structure remained the same. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-20581 dated May 28, 2013.

 

The local partner P.T. INDOMOBIL SUKSES INTERNATIONAL Tbk and P.T. IMG SEJAHTERA LANGGENG are national private companies and member companies of the INDOMOBIL Group, a major business group led by Mr. Anthony Salim AKA Liem Hong Sien.

 

P.T. SRI obtained a foreign investment (PMA) license for dealing with tires, motorcycle tires and golf ball manufacturing whose plant located at Kawasan Industry INDOTAISEI Block  H Sector 1 A, Kota Bukit Indah Cikampek (West Java) standing on 237,245 square meters land. The plant produces tires, motorcycle tires, inner tubes, flaps and golf ball which are wholly manufactured under DUNLOP and SRIXON brands with international standard quality. The plant started with operation as from April 1997, motorcycle tires in 1998, golf ball in April 1998.

 

The manufacturing of its motorcycle tires is the measure in making horizontal harmonization in tires manufacturing industry.

 

P.T. SRI entered into a technical assistance and trademark license agreements with SUMITOMO RUBBER INDUSTRIES Ltd., a shareholder on 13 February 1996, amended on 17 December 2002. SUMITOMO RUBBER INDUTRIES Ltd., provides certain technology in respect of tires and golf ball and grants an exclusive license for certain trademarks in connection with the manufacturing of tires and golf ball. Some 65% of products is distributed domestically through 22 distributors as well as car assembling companies. DUNLOP brand car tire produced by P.T. SRI is the standard tire for Volvo 960, Nissan Infinity, Mazda Family, Suzuki Sidekick, and motorcycle tire for SUZUKI, YAMAHA, KAWASAKI and HONDA., etc. Besides that, P.T. SRI also exports its products to the USA, Germany, the United Kingdom, France, Australia, the Middle East, Japan and other Asian countries or more than 26 countries. Besides that, the whole products like golf ball is exported.

 

P.T. SRI increased tire installed production capacity from 4,380,000 units (12,000 units per day) to 6,935,000 units (19,000 units per day) in 2001 and to 8,030,000 units (22,000 units per day) in 2005. In July 2000, P.T. SRI launched its new DUNLOP brand product called SP Sport 2000 namely a new radial tire as the combination of DUNLOP technology of Japan, America and Europe. In July 2000 P.T. SRI got permit to increasing production capacity by producing tires. The expansion plant produces motorcar tires of 8,584,000 pieces and golf ball of 877,500 dozen respectively per years.

 

Later in June 2011 the company has been increasing production capacity by produces of 4,900,000 dozens golf ball per annum on the land of 37,245 sq. meters. The expansion plant has been commenced production since April 2012. Currently the company has production capacity of golf balls 20,000 dozens per day. The golf balls had been exported to Cleveland, USA by using SRIXON brand.

 

Of these productions were judged to have stable quality and uniformity of the production process, P.T. SMI managed to get ISO 9002-1998 certification body Lloyd's Register and the Certificate of Indonesian National Standard ( SNI ) by PUSTAN in October 1999. Increased production capacity and stability of quality produce tangible results by successfully producing 10 million tires to pieces in May 2001. In August of the same year, P.T. Sumi Rubber Indonesia back to get ISO 9001 - 2000 certification body Lloyd's Register. Not only care about the quality of the tire, the tire production process also must pay attention to the environment. As a form of concern P.T. Sumi Rubber Indonesia to the environment, in August of 2003 P.T. Sumi Rubber Indonesia successfully obtained the ISO 14001 certificate issued by LLOYD 'S REGISTER Certification Institute. P.T. Sumi Rubber Indonesia has been a tire factory with an installed production capacity of 47.750 pcs per day by the number of employees in the factory as much as 3,081 people, working system 4 groups, 3 shifts, 7 days in 1 week and 350 working days within 1 year.

 

Sharp Rupiah deprectiation against the U.S. Dollar, Japanese Yen, EUR and other hard foreign currencies affected positively on P.T. SRI's business performance because some 35% of its products is exported. On the contrary, the incessant economic crisis battering Indonesia also affected badly on P.T. SRI's operation due to drastical increase of its production cost. In the meantime, the demand for tire from OEM (Oriented Export Manufactures) dropped by 80% to 85% due to the plunge down of automotive industry.

 

The demand growth from October 1999 improved in line with the improving stable of Rupiah exchange rate against the US Dollar and other hard foreign currencies. Besides, P.T. SRI also engaged in investment holding by controlling 35% shares of P.T. MITRA PERSADA NUSANTARA in trading and distribution of DUNLOP tires at Jabotabek and 49% shares of P.T. DIAMON MITRA SEJATI in trading and distribution of DUNLOP tires in Central Java.

 

In general, the demand for automotive tires, inner tubes, flaps and including vulcanize tires for motorcar, truck and heavy duty is in line with the progress achieved by Indonesian automotive manufacturing and heavy duty industries. We observe that automotive assembling and heavy duty assembling industries have kept on increasing in the last five years. However, the competition is very tight because automotive tires imported from the People Republic of Chinese are sold for cheaper compared with local made. P.T. GI's business position is still quite good for it has established extensive marketing networks in Jakarta and surroundings. The development of automotive tires industry in the country can be seen under table below.

 

Production and Export of National Tires, 2005 – 2013*

 

Year

Production

(units)

Export

( units)

2005

36,000,000

28,000,000

2006

38,000,000

32,000,000

2007

41,900,000

26,500,000

2008

42,840,000

29,900,000

2009

39,187,000

27,940,000

2010

50,000,000

35,100,000

2011

51,200,000

35,200,000

2012

52,000,000

35,900,000

2013*

53,200,000

36,300,000

 

Until this time P.T. SRI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SRI 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 US$ 275.5 million rose to US$ 286.9 million in 2011 increased to US$ 312.0 billion in 2012. As from January to June 2013 the sales turnover has amounted at US$ 167.5 million with a net profit of US$ 10.4 million and the sales is projected to go on rising by at least 6% in 2014. The company has an estimated total networth of at least US$ 121.0 million. We observe that P.T. SRI 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. SRI is led by Mr. Mitsuru Nagai (56) a professional manager of Japan with experience in tire and golf balls manufacturing. In his daily operation he is assisted by Mr. Jusak Kertowidjojo (56) as Vice President Director. Mr. Jusak Kertowidjojo serves as President Director of PT Indomobil Sukses Internasional Tbk since June 2011. He was Company's Vice President Director and Chief Operating Officer from June 30, 2005 to June 2011. He currently serves as either Commissioner or Director in various companies within the Indomobil Group. He started his professional career with Indomobil Group in 1982. He obtained his Bachelor degree in Economics and Accounting from the Universitas Katolik Parahyangan in Bandung in 1982.

 

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. SUMI RUBBER INDONESIA is sufficiently fairly good for business transaction.

 

 


 

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 :

NIS

 

 

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.