MIRA INFORM REPORT

 

 

Report Date :

02.02.2013

 

IDENTIFICATION DETAILS

 

Name :

DKT INDONESIA (YAYASAN DKT INDONESIA)

 

 

Registered Office :

Graha Sucofindo, 12th Floor Jalan Raya Pasar Minggu Kav. 34 Jakarta Selatan, 12780

 

 

Country :

Indonesia

 

 

Year of Incorporation :

1996

 

 

Legal Form :

Social Foundation

 

 

Line of Business :

Social Marketing

 

 

No. of Employees :

30 persons

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

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 an estimated 6.1% and 6.4% in 2010 and 2011, respectively. 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 small current account surplus, a fiscal deficit below 2%, 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 2012 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 rising oil prices.

Source : CIA


Name of Company

 

DKT INDONESIA (YAYASAN DKT INDONESIA)

 

 

Address

 

Head Office

Graha Sucofindo, 12th Floor

Jalan Raya Pasar Minggu Kav. 34

Jakarta Selatan, 12780

Indonesia

Phones   - (62-21) 7986569, 7986571

Fax                   - (62-21) 7986570

E-mail               - dkt@dktindonesia.org

  dktindonesia@rad.net.id

Website            - http://www.dktindonesia.org

Building Area    - 14 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

1996

 

Legal Form :

Social Foundation

 

Company Reg. No. :

Not Required

 

Company Status :

National Foundation

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

DKT INTERNATIONAL, USA (International Social Foundation)

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Capital                                            : Rp. 1.0 billion

 

Owners (Founders):

DKT INTERNATIONAL                    - 100%

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Social Marketing

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

1996

 

Brand Name :

DKT Indonesia

 

Technical Assistance :

DKT International, USA

 

Number of Employee :

30 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Health Centre (Puskesmas), Pharmacies, Hospitals, Midwives

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank NEGARA INDONESIA Tbk

      Jalan Raya Pasar Minggu No. 8

      Jakarta Selatan

      Indonesia

 

b.   P.T. Bank INTERNATIONAL INDONESIA Tbk

      Jalan Ampera Raya No. 8

      Pasar Minggu

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 15.0 billion

2011 – Rp. 16.2 billion

2012 – Rp. 17.5 billion

 

Net Profit (estimated) :

2010 – Rp. 1.2 billion

2011 – Rp. 1.4 billion

2012 – Rp. 1.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Country Director                              - Mr. Todd Callahan

General Manager                             - Mr. Toto Budiono

Deputy GM Sales Marketing             - Mr. Freddy Kapuangan

Head of Distribution Development   - Mr. Bambang Hartanto

Head Dr. & Institutional Sales           - Mr. Renatus Onga

 

Board of Commissioners :

None

 

Signatories :

Country Director (Mr. Todd Callahan) or General Manager (Mr. Toto Budiono) which must be approved by partners meeting.

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

 

Based on investigation the correct name of the Subject is YAYASAN DKT INDONESIA abbreviated (DKT INDONESIA) not DKT INDONESIA as stated in your order ref. no. 208840 dated 28 January 2013.

 

YAYASAN DKT INDONESIA also known as DKT INDONESIA is a social foundation which was incorporated in Indonesia by DKT INTERNATIONAL, an international social foundation was founded in 1989 in New York by German Government thorough KfW and the Bill Gates and his wife Melinda Gates Foundation.  The organization is now one of the largest private providers of contraceptives and family planning services in the developing world, operating programs in 20 countries worldwide. DKT INTERNATIONAL operates with the generous support of our donors.

 

Yayasan DKT Indonesia or DKT Indonesia is a non-profit organization established in 1996 and has been contracted by the Ministry of Health, Government of Indonesia, to design and implement the Social Marketing component of the “HIV/AIDS Prevention, and Family Planning Program.”  DKT INDONESIA is a social marketing foundation started to be operating since 1996 in social marketing company which includes the top selling Sutra, Fiesta and Andalan products. DKT Indonesia became an independent non-governmental social marketing organization in 1996. Since that time, the program has expanded dramatically, and now serves nearly 6 million couples throughout the Indonesian archipelago, making it one of the largest family planning programs in the world. The program focuses on prevention of sexually transmitted infections, especially HIV/AIDS, and promotion of family planning in Indonesia, and is funded jointly by the Government of the Federal Republic of Germany through the Kreditstanstalt für Wiederaufbau (KfW), the Government of Indonesia (Directorate General for Communicable Disease Control/MOH), The Bill and Melinda Gates Foundation, and DKT International, Washington. In 1996 DKT began a social marketing program in Indonesia that has grown to become the largest DKT affiliate in the world, supplying 25 percent of the privately provided modern contraception in the country.

 

 

DKT Indonesia works in partnership with the Ministry of Health’s Center for Disease Control and BKKBN, the Indonesian Family Planning Board. DKT Indonesia’s activities are designed to help support national efforts in the areas of HIV prevention and family planning. In addition, DKT partners with localized government efforts where such opportunities exist. DKT is also committed to working closely with a range of NGOs in areas such as the contraceptive, condom programming, educational materials, research, and training. Finally, DKT actively seeks out opportunities to collaborate with other projects focusing on HIV prevention and family planning. Contraceptive Social Marketing – the use of commercial techniques and infrastructures to provide low-cost contraceptive and health information when and where people need it - has been a remarkable success. In Indonesia, DKT provides accessible, affordable birth control and condoms for HIV prevention to some 2 million couples each year through tens of thousand of neighborhood outlets – from pharmacies and supermarkets to midwives and kiosks. DKT strategies have been simple and sound: ensure wide availability of high-quality, affordable contraceptive products to those with the greatest needs, and change risk behavior such as too closely spaced pregnancies through education, information, and behavioral change marketing.

 

DKT uses research to better understand consumer attitudes and practices and implements effective campaigns designed to shift behavior towards safer practices. Using TV, radio, and print, DKT has been able to reach millions of Indonesians with much needed health information about HIV/AIDS, family planning and reproductive health. Because DKT is highly decentralized, it is able to adapt quickly to a changing environment and respond to opportunities with innovative and effective programming.

 

In 2000 DKT established the Andalan franchise, using midwives to distribute condoms and other family planning products. There are approximately 45,000 private midwives in Indonesia; they provide the vast majority of reproductive health and family planning care to lower- and middle-income women in the country. The Andalan franchise is a one-stop solution for family planning products, including IUDs, implants, injectables, oral contraceptives, emergency contraception, and condoms. DKT offers private midwives incentive-based sales contracts and, in return, supports the franchised midwives in the areas of promotion and capacity building. The network is currently made up of 4,144 franchisees located throughout Indonesia, with the highest concentrations on the islands of Java and Sumatra.

 

The Andalan franchise is unique in that it is customer and sales oriented, and has achieved financial sustainability through a well-defined strategy of offering high quality and low-cost branded products. It has avoided, where possible, offering products that compete with the basic line of products offered by the government. This strategy has allowed the organization to remain profitable while serving lower-middle-income women. In recent years, the franchise has prioritized shifting the method mix of contraception away from short-term contraception (e.g., injectables) to long-term contraception (e.g., IUDs and implants) by offering midwives financial incentives to stock IUDs and also providing training on long-term methods.

 

There are currently 4,144 franchisees participating in the Andalan network; franchisees are located in 19 of the 33 provinces in Indonesia, with the highest concentrations on the islands of Java and Sumatra. The majority of Andalan midwives are located in suburban or rural areas. Due to the limited health services available in such locations, midwives tend to have thriving practices in these areas, as opposed to in urban areas where there is more competition. As contracts with Andalan are nonexclusive, many midwives have relationships with other pharmaceutical providers of family planning products in addition to their sales contracts with Andalan.

 

 

The majority of franchisees run private clinics connected to their homes. The size of the clinics ranges from just one or two rooms to multiple rooms for deliveries and patient care. At the larger clinics, the franchised midwives typically have three or four staff supporting the business including other midwives, assistants, or an OBGYN who may visit the clinic once or twice a week. We observe that DKT INDONESIA has been growing and developing well in the last three years.

 

Until this time DKT INDONESIA has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of DKT INDONESIA 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. 15.0 billion rose to Rp. 16.2 billion in 2011 increased to Rp. 17.5 billion in 2012 and projected to go on rising by at least 6% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 1.6 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 DKT INDONESIA is led by Mr. Todd Callahan (45) as Country Director in Indonesia which has been experience in social marketing. 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. We are convinced that YAYASAN DKT INDONESIA or DKT INDONESIA is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.32

UK Pound

1

Rs.84.60

Euro

1

Rs.72.63

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.