MIRA INFORM REPORT

 

 

Report Date :

09.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. LANGGENG JAYA PLASTINDO

 

 

Registered Office :

Jalan Raya Kedamean 16, Desa Kedamean, Gresik, Surabaya, 61175, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

06.03.2008

 

 

Com. Reg. No.:

No. AHU-AH.01.10-15825

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in plastic recycling industry

 

 

No. of Employees :

76

 

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 :

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 – September 30th, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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. LANGGENG JAYA PLASTINDO

 

 

company Address

 

Head Office & Factory

Jalan Raya Kedamean 16

Desa Kedamean, Gresik

Surabaya, 61175

East Java

Indonesia

Phones             - (62-31) 7914412 (Hunting)

Mobile Phone    - 83111222 Mr. Christian Pranata

Mobile Phone    - 34569777 Mrs. Popy

Fax                   - (62-31) 7914413

Land Area         - 8,000 sq. meters

Building Space  - 3,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Date of Incorporation

 

6 March 2008

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. AHU-48164.AH.01.01.TH.2008

  Dated 6 August 2008

- No. AHU-AH.01.10-15825

  Dated 26 April 2013

 


Company Status

 

Private National Company

 

 

Permit by the Government Department

 

The Department of Finance

Not Available

 

 

Related Company

 

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 10,000,000,000.-

Issued Capital                                  : Rp.   2,500,000,000.-

Paid up Capital                                : Rp.   2,500,000,000.-

 

Shareholders/Owners :

a. Mrs. Christine Halim                                                     - Rp. 1,250,000,000.-

    Address : Jl. Donorejo No. 60

                    Surabaya, East Java

                    Indonesia

b. Mr. Pamungkas                                                            - Rp.    750,000,000.-

    Address : Dusun Krajen RT. 07 RW. 01

                    Kelurahan Gentengkulon, Banyuwangi

                    East Java

                    Indonesia

c. Mr. Christian Pranata                                                   - Rp.    500,000,000.-

    Address : Desa Kedamean RT. 005 RW. 002

                    Kedamean, Gresik

                    East Java

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Plastic Recycling Industry

 


Production Capacity :

Plastic Scraps Granulated (ABS & Hips Scrap)       - 100 tons per month

 

Total Investment :

Owned Capital                                 - Rp. 10.0 billion

 

Started Operation :

2009

 

Brand Name :

Langgeng Jaya Plastindo

 

Technical Assistance :

None

 

Number of Employee :

76 persons

 

Marketing Area :

Local       - 20%

Export      - 80%

 

Main Customer :

Plastic Products Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. ANUGERAH KEMAKMURAN PLASTIK

b. P.T. DUTABUDI TULUSREJO

c. C.V. GALUH INDAH SENTOSA

d. C.V. LAZUARDI PRIMA SEJAHTERA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Raya Darmo No. 5

      Surabaya, East Java

      Indonesia

b.   P.T. Bank DANAMON INDONESIA Tbk

      Jalan Raya Darmo No. 59

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp.   8.2 billion

2011 – Rp.   9.5 billion

2012 – Rp. 11.0 billion

2013 – Rp.   6.5 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 0.7 billion

2011 – Rp. 0.8 billion

2012 – Rp. 1.0 billion

2013 – Rp. 0.6 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Christian Pranata

Director                                           - Mrs. Christine Halim

 

Board of Commissioners :

Commissioner                                 - Mr. Pamungkas

 

Signatories :

President Director (Mr. Christian Pranata) or the Director (Mrs. Christine Halim) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

P.T. LANGGENG JAYA PLASTINDO (P.T. LJP) was established in Gresik, Surabaya, East Java based on notary deed of Mr. Wahyudi Suyanto, SH., No. 018 dated 6 March 2008 with the authorized capital of Rp. 10,000,000,000 issued capital of Rp. 2,500,000,000 entirely paid up. The founding and shareholders of the company are Mrs. Christine Halim AKA Christine Lin (50), Mr. Christian Pranata (20%) and Mr. Pamungkas (30%), they are Indonesian businessmen of Chinese extraction. Based on our knowledge up to writing the report the notary documents of the company have not undergone any changes. The company notary document was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-48164.AH.01.01.TH.2008 dated August 6, 2008. The company notary deed had been changed and according to the latest revision of notary deed Mr. Satria Amiputra Amimakmur, SH., M.Kn., No. 78 dated 14 March 2013 the company board of director and the board of commissioner reappointed to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-15825 dated April 26, 2013.

 

P.T. LJP is a private national company started to be operating since 2009 to deal with plastic recycling industry. The plant is located at Jalan Raya Kedamean 16, Desa Kedamean, Gresik, East Java standing on 8,000 sq. meters. Besides, all used plastic articles (plastic scraps) like jerry can, plastic pails and other plastic products are obtained from several collectors of used plastic goods in East Java. The used plastic products are recycled into plastic resin, virgin and recycle PE, Pet Resin Injection (Extrusion, Blowing, Coating), LDPE (Injection & Film Grade), PVC granular/PVC resin/PVC compound. According information the plants produces of plastic scrap granular (ABS 7 Hips Scrap) with capacity 100 tons per month. However since 21 September 2012 part plastic resin storage shed on fire. Mrs. Popy, marketing staff of P.T. LJP explained the barn was on fire about 40%, due to fire department official managed to localize the fire. However, Mrs. Popy explained that the current recycling plant is still in production to this day as the factory plastic recycling is not burned. Currently they have to rebuild the plastic seed storage and expected to be completed later this year.

 

Further Mrs. Popy explained the most of above merchandise is entirely sold in the ranks of plastic industries operating in Surabaya such as P.T. CIPTA PLASTINDO RAYA, P.T. YANASURYA BHAKTIPERSADA, P.T. PROFILIA INDOTECH, P.T. MULTIPLAST JAYA TATAMANDIRI, P.T. ISENFAK BERKAT ANUGERAH, P.T. KEMASELOK PLASTINDO and others. Besides, some of the products is exported to China, Southeast Asian countries, Mid East and others. We consider P.T. LJP’s operations to have been slow in growing in the last three years. The global economic crisis has affected the company’s business, due operational costs have much gone up while the intake capacity of consuming industries has decreased.

 

We find that generally the demand for plastic granular has been vacillating in the last five years in line with the development of plastic industries in the country. According information imports of plastic granular (PE, PP, PVC, PS, SAN, ABS) have fluctuated in the last five years. Potential of the consumption of plastic products in Indonesia is still quite large. Moreover, the national per capita consumption of only 10 pounds per years. This is relatively low compared to other ASEAN countries, such as Singapore, Malaysia, and Thailand, which reached 40 kilograms per capita per year. During this time, the consumption of plastic packaging products was driven by growth in the food and beverage industries to reach 60 percent. In Indonesia, the plastic packaging industry, there were 892 units. Plastic packaging products (rigid packaging), soft (flexible packaging) as well as thermoforming and extrusion market products spread across a number of regions in Indonesia.

 

The current installed capacity of the plastic packaging industry reached 2.35 million tons per year. However, utilization of 70 percent, so that the average production reached 1.65 million tons, while the labor absorption around 350,000 people. Although the structure of the national plastic industry is fairly complete or integrated from upstream to downstream, but there are still some obstacles and barriers, including import of plastic raw materials, such as polypropylene which reached 484,000 tons of total requirement of 976 000 ton per year. In addition, the plastic industry is still not supported upstream petrochemical industry that produces crude oil (naphtha) and condensate. Upstream petrochemical industry in Indonesia, many of which do not have oil refineries (oil refinery) to produces the basic raw material of plastic. Limitations of the processing makes the upstream petrochemical industry is importing naphtha feedstock of 1.6 million ton and 33 million barrels of condensate per year. Naphtha and condensate is the base material for plastic industry raw materials. To reduce the import of raw materials, the government continues to encourage the development of crude oil processing industries (oil refinery) that is integrated with the structure of the industry from upstream to downstream. In this case, the government is ready to provide incentive, such as the abolition of tax (tax holiday), tax relief (tax allowance), or exemption from import duty for capital goods. In addition, the government will also encourage the development of human resources required.

 

Until this time P.T. LJP has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. LJP 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. 8.2 billion rose to Rp. 9.5 billion in 2011 increased to Rp. 11.0 billion in 2012. As from January to June 2013 the sales turnover has reached at least Rp. 6.5 billion with a net profit of Rp. 0.6 billion and projected to go on rising by at least 5% in 2014. The company has an estimated total networth of at least Rp. 5.5 billion. 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. LJP is led by Mr. Christian Pranata (30) a young businessman and professional manager with experience plastic recycling industry and in trading. Daily activity he is assisted by Mrs. Christine Halim (38) 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. LANGGENG JAYA PLASTINDO is sufficiently fairly good for business transaction.

 

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.67

UK Pound

1

Rs.100.65

Euro

1

Rs.84.25

 

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%)

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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.