MIRA INFORM REPORT

 

 

Report Date :

20.12.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PELITA CENGKARENG PAPER

 

 

Formerly Known as: 

P.T. PELITA CENGKARENG PAPER CO.

 

 

Registered Office :

Jalan Daan Magot Km. 18, Batuceper, Kebon Besar, Tangerang, 15122, Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

09.01.1974

 

 

Com. Reg. No.:

No. AHU-20570.AH.01.02.TH.2013

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         producer of various kinds of papers such as kraft liner, corrugating medium, duplex board, chipboard and wrapping papers

Subject also engaged in Electric Steam Power Plant Development and Management

 

 

No. of Employees :

1,700

 

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 – 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. PELITA CENGKARENG PAPER

 

 

company Address

 

Head Office & Factory

Jalan Daan Magot Km. 18

Batuceper, Kebon Besar

Tangerang, 15122

Banten Province

Indonesia

Phone               - (62-21) 6194428, 6194791, 6197012-14, 6197522, 5522592

Fax                   - (62-21) 5522593, 5408028, 6197021

E-mail               - info@pcp.co.id

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

Land Area         - 10,700 sq. meters

Building Area     - 9,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Subang Factory

Jalan Raya Pabuaran Km. 1.8

Desa Karang Mukti, Kecamatan Cipeundeuy

Subang, 41211

West Java

Indonesia

Phone               - (62-260) 7613598 (Hunting)

Fax                   - (62-260) 7613599

Land Area         - 331,000 sq. meters

Building Area     - 250,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

a. 9 January 1974 as P.T. PELITA CENGKARENG PAPER CO.

b. 29 December 2006 as P.T. PELITA CENGKARENG PAPER

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. W7-HT.01.04-5522

  Dated 20 April 2007

- No. AHU-AH.01.10-12357

  Dated 21 May 2008

- No. AHU-AH.01.10-02586

  Dated 27 March 2009

- No. AHU-42710.AH.01.02.TH.2012

  Dated 7 August 2012

- No. AHU-AH.01.10-29574

  Dated 9 August 2012

- No. AHU-20570.AH.01.02.TH.2013

  Dated 17 April 2013                       

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.215.917.4-415.000

 

The Capital Investment Coordinating Board

- No. 136/V/PMA/2001

  Dated 27 November 2001

- No. 489/III/PMA/2004

  Dated 25 May 2004

- No. 1736/III/PMA/2006

  Dated 29 December 2006

- No. 110/II/PMA/2007

  Dated 4 April 2007

 

The Department of Industry

No. 168/T/Industri/2004

Dated 11 June 2004

 

 

Related Companies

 

a. P.T. SARI RASA (Tea Manufacturing)

b. P.T. SUMBER PELITA (Nylon Rope Manufacturing)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 2,000,000,000,000.-

Issued Capital                                  : Rp.    500,702,400,000.-

Paid up Capital                                : Rp.    500,702,400,000.-

 

Shareholders/Owners :

a.   P.T. ASIAMAKMUR SEJAHTERA                    - Rp. 250,000,000,000.-

b.   ALLIED SMART LIMITED., Jersey                    - Rp.   75,341,998,000.-

c.   P.T. SARIRASA SEJAHTERA                          - Rp.   64,799,182,000.-

d.   P.T. WIJAYARAYA SEJAHTERA                     - Rp.   58,896,125,000.-

e.   P.T. ASIAPACIFIC INVESTINDO                      - Rp.   28,886,638,000.-

f.    P.T. SINARINTI WIJAYAKARYA                       - Rp.     6,270,569,000.-

g.   P.T. GOLDENMITRA KARYATAMA                  - Rp.     5,118,659,000.-

h.   P.T. GOLDENMITRA SEJAHTERA                   - Rp.     4,764,871,000.-

i.    P.T. ASIAPACIFIC INVESUTAMA                    - Rp.     4,416,239,000.-

j.    P.T. METROMAS ABADITAMA                        - Rp.     2,208,119,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Paper Making

b.   Electric Steam Power Plant Development and Management

 

Production Capacity :

A.   Initial Plant

      a. Wrapping Papers                   - 153,000 tons p.a.

      b. Corrugated Medium Papers     -   27,000 tons p.a.

      c. Electric Steam Power Plant    - 11 MW        

 

B.   Expansion Plant (Subang)

      a. Medium Liner, Kraft Liner,

          In Liner                                  - 350,000 tons p.a.

      b. Electric Steam Power Plant    - 25 MW        

 

Total Investment :

A.   Initial Plant

      a. Equity Capital                        - Rp. 381.0 billion

      b. Loan Capital                          - None

      c. Total Investment                     - Rp. 381.0 billion

 

B.   Expansion Plant (Subang)

      a. Equity Capital                        - Rp. 1,000.0 billion

      b. Loan Capital                          - None

      c. Total Investment                     - Rp. 1,000.0 billion

 


Started Operation :

a.   1976 (Cengkareng)

b.   Subang (January 2013)

 

Brand Name :

None

 

Technical Assistance :

ALLIED SMART Ltd., of Jersey

 

Number of Employee :

1,700 persons                                 

 

Marketing Area :

Local       - 55%

Export      - 45%

 

Main Customer :

Distributors and dealers

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. UNIPA DAYA

b. P.T. SURABAYA AGUNG INDSUTRY KERTAS

c. P.T. SOPANUSA TISSUE & PACKAGING SARANA SUKSES

d. P.T. THE UNIVENUS

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank UOB INDONESIA

    Jalan Asemka No. 34-35

    Jakarta Barat

    Indonesia

b. DEUTSCHE Bank AG

    Jalan Imam Bonjol 80

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

 


Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 592.0 billion

2011 – Rp. 637.0 billion

2012 – Rp. 650.0 billion

2013 – Rp. 340.0 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 53.3 billion

2011 – Rp. 57.3 billion

2012 – Rp. 58.5 billion

2013 – Rp. 30.6 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Jotje Wantah AKA Oei Sui Tjon

Vice President Director                     - Mr. Harijanto Widjaja

Directors                                         - a. Mr. Lie Sie Giem

                                                        b. Mr. Hendriko Wijaya

                                                        c. Mr. Tonny Wantah

                                                        d. Mr. Anwar Surya

                                                        e. Mr. Tommy Sumendap

 

 

Board of Commissioners :

President Commissioner                   - Mr. Tresno Gunarto Wijaya

Vice President Commissioner           - Mr. Hidayat Hasan

Commissioners                                - a. Mr. Herman Rusli

                                                        b. Mr. Rudiyanto Hadi

                                                        c. Mrs. Henny Susan Mokoginta

                                                        d. Mr. Suherman Tjutarwy

                                                        e. Mr. Darmawirya Ali Djaya

                                                        f. Mr. Segara Utama

                                                        g. Mrs. Ida Bagus Oka Nila

                                                        h. Mr. Edy Sugito         

 

Signatories :

President Director (Mr. Jotje Wantah) or Vice President Director (Mr. Harijanto Widjaja) or one of the Directors (Mr. Lie Sie Giem, Mr. Hendriko Wijaya, Mr. Tonny Wantah, Mr. Anwar Surya or Mr. Tommy Sumendap) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Initially named P.T. PELITA CENGKARENG PAPER CO was established in January 1974 with an authorized capital of Rp. 200,000,000 and an issued and paid up capital of Rp. 80,000,000. The founders and original shareholders of the company are Mr. Tan Jin Kwie, Mrs. Ma Way Lan, Mr. Ganda Kusuma, Mrs. Elfrida Djohari, Mr. Tan Malaka, Mr. Rudiyanto Hadi, Mr. Setiawan Mawardi, Mr. Oei Tiong Ham, Mr. Wantah Zewet, Mr. Tjotje Wantah, Mr. Lie Po Tjioe, Mr. Herman Rusli, Mrs. Lisnawati and Mr. Setiawan Martosuhardjo, all of them Indonesian business persons of Chinese extraction. The company notary deed has been changed a couple of times. In 1992 that it’s authorized capital was raised to Rp. 100,000,000,000 the issued and paid up capital to Rp. 35,000,000,000.

 

In November 2001, the whole shares has been controlled by ALLIED SMART Limited of Jersey, P.T. ASIAPACIFIC INVESTINDO, P.T. GOLDENMITRA SEJAHTERA, P.T. WIJAYARAYA SEJAHTERA, P.T. ASIAPACIFIC INVESUTAMA, P.T. SINARINTI WIJAYAKARYA, P.T. SARIRASA SEJAHTERA, P.T. GOLDENMITRA KARYATAMA, P.T. METROMAS ABADITAMA, all are private national company. On the same occasion the company status was converted to Foreign Investment (PMA) Company facility. Then in December 2006, the authorized capital was raised to Rp. 1,000,000,000,000 issued capital to Rp. 250,702,400,000 entirely paid up. Concurrently the company changed to P.T. PELITA CENGKARENG PAPER (P.T. PCP). Later in April 2008 Mr. Widianti Kusno Utomo withdrew and the whole shares sold to ALLIED SMART LIMITED of Jersey. Then according to the latest revision of notary documents of Mrs. Rini Yulianti, SH., No. 21 dated 28 July 2012 the company authorized capital was raised again to Rp. 2,000,000,000,000 issued capital to Rp. 500,702,400,000 fully and paid up. On the same occasion P.T. ASIAMAKMUR SEJAHTERA entered into the company as new shareholder. So the composition of its shareholders has been changed (see profile of report). The revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-29574 dated August 9, 2012.

 

Then based on notary deed Mrs. Rini Yulianti, SH., No. 16 dated 18 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-20570.AH.01.02.TH.2013 dated April 17, 2013.

 

We observe that majority of the company is controlled by Mr. Jotje Wantah AKA Oei Sui Tjon. He also founder and majority business stakes owner of P.T. SARI RASA dealing with tea manufacturing and P.T. SUMBER PELITA dealing with nylon rope manufacturing.  

 

P.T. PCP operates under the framework of Foreign Investment (PMA) facility to deal with paper making. The plant is located at Jalan Daan Mogot Km. 18, Tangerang, Banten Province on a land of 10,700 sq. meters. P.T. PCP is responsible for the production of Kraft Liner, Corrugating Medium, Duplex Board, Chipboard, and Wrapping Paper. Current total production capacity: 180.000 ton per year. P.T. PCP paper has grown to be one of the leading producers of industrial paper in Indonesia. We produce high quality industrial paper product using the latest and most modern technology and expertise available in the industry. The company primary inputs are derived from recycled paper to produce many of our products. However, often pulp paper is used as a secondary input to meet specializes needs in production, such as, Kraft Liner and Duplex Board.

 

The plant produces various kinds of papers such as kraft liner, corrugating medium, duplex board, chipboard and wrapping papers. The plant has been expanding frequently to increasing production capacity and produce high quality industrial paper product using the latest and most modern technology and expertise available in the industry. The plant produces packaging (wrapping paper) of 153,000 tons and corrugating medium papers of 27,000 tons respectively per annum. Development of the plant has absorbed an investment of Rp. 122.3 billion originally coming from owned capital. Then in April 2007, P.T. PCP got expansion permit from Capital Investment Coordinating Board (BKPM) to expanding its activity in power plant development with an investment of Rp. 130.3 billion. The construction of electric power is used for its own purposes the paper industry, given supply of electricity from P.T. PLN is considered expensive. Construction of the power plant began in late 2010 and is expected to be operational since the end 2012.

 

In January 2013, P.T. PCP has expanded its factory by build and developed Subang Plant will start commencing with total production capacity of 350.000 tons per annum. P.T. PCP provide the paper mill with sustainable energy independent by building an 11 MW gas turbine at Tangerang Mill and 25 MW at Subang Mill to secure its power needs. At the same time, PCP has used its waste heat as the feed for the boilers. Quality control is provided by professional technicians who closely monitor each production stage to maintain the highest quality standard. To ensure purity, both raw material and chemicals added are thoroughly checked, resulting in high paper strength. Some of 55% of its products is marketed domestically while the rest is exported to a number of Asian countries, the Middle East and Europe. We observe that the operation of P.T. PCP has been growing and had been yielded a net profit in the last three years on account of the increasing of paper prices in the global markets.

 

The national pulp and paper industries will be better in 2012 than in 2011. Market estimates of production and sales will be the norm. Additional capacity will continue price of pulp is still going up although with a slower rise in pulp price increases triggered by the low stock of pulp due to the hard efforts of pulp mills to reduce production, to balance the supply-demand, and the purchase of pulp on a large scale by China also triggered a rise in pulp prices. Ir. H. M. Mansur, Chairman of the Presidium APKI (Association of Indonesian Pulp and Paper) said the increased price of paper is not as big and as fast as the price of pulp, because the factories are not as intensive as paper pulp mills to reduce production, so that the paper stock in the world market is still quite great. Indonesia's pulp paper does not seem necessary to limit and reduce production because production will be absorbed by the market-domestic and export markets. Global crisis appears to have started over, things would be normal, production, consumption and prices will rise again. Indonesia has very good potential to be leader in the global pulp and paper industry due to its geographical location

                                                     

Indonesian Pulp and Paper Production, 2007 – 2012

                                                                                                                                                (Tons)

Year

Pulp Production

Paper Production

2007

5,200,000

11,000,000

2008

5,900,000

    9,7000,000

2009

6,500,000

12,200,000

2010

7,900,000

12,900,000

2011

7,900,000

12,900,000

2012

8,216,000

13,416,000

Sources: APKI (Indonesian Pulp and Paper Association

     

Until this time P.T.  PCP has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PCP 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. 592.0 billion, increased to Rp. 637.0 billion in 2011 to Rp. 650.0 billion in 2012. As from January to June 2013 the sales turnover has reached at least Rp. 340.0 billion with a net profit of Rp. 30.6 billion and projected to go on rising by at least 5% in 2014. We estimated the company has a total net worth of at least Rp. 800.0 billion. We observe that P.T. PCP is supported by foreign partner with has financially fairly strong and sound behind it. So far, we did not hear 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. PCP is led by Mr. Jotje Wantah AKA Oei Sui Tjon (79) a businessman with 35 years of experience in paper making and trading. In the operation of the company, he is assisted by Mr. Harijanto Widjaja (64) as Vice President Director, and other Directors namely Mr. Lie Sie Giem (58), Mr. Hendriko Wijaya (48) and Mr. Tonny Wantah (52). The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good.

 

So far, we did not hear that the company’s management involved in any business malpractice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PELITA CENGKARENG PAPER is sufficiently fairly good for business transaction.

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.38

UK Pound

1

Rs.102.15

Euro

1

Rs.85.29

 

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.