MIRA INFORM REPORT

 

 

Report Date :

26.02.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. MECHMAR JAYA INDUSTRIES

 

 

Registered Office :

Jalan Kolonel Yos Sudarso Km. 10 Kawasan Industri Medan Mabar, Medan, 20242 North Sumatera

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.03.1987

 

 

Com. Reg. No.:

No. AHU-AH.01.10-03264

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Boiler Manufacturing

 

 

No. of Employees :

80 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

 

P.T. MECHMAR JAYA INDUSTRIES

 

 

Address

 

Head Office & Factory

Jalan Kolonel Yos Sudarso Km. 10

Kawasan Industri Medan

Mabar, Medan, 20242

North Sumatera

Indonesia

Phones             - (62-61) 6850306 (Hunting)

Fax                   - (62-61) 6850307

E-mail               - ptmji@mechmar.com.my

Land Area         - 6,500 sq. meters

Building Space  - 4,500 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Branch Office

Gedung Jamkrindo, 9th Floor

Jalan Angkasa Block B-9 Kav. 6

Jakarta Pusat, 10610

Indonesia

Phones             - (62-21) 3019 1828, 3019 1838, 3019 1868

Fax                   - (62-21) 654 2567

Building Area     - 6 storey

Office Space      - 80 sq. meters

Region              - Commercial

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

12 March 1987

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-8375.HT.01.01.TH.93

  Dated 4 September 1993

- No. AHU-90167.AH.01.02.TH.2008

  Dated 26 November 2008

- No. AHU-AH.01.10-03264

  Dated 1 February 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.452.821.0-123.000

 

  b.  The Capital Investment Coordinating Board

      - No. 17/V/PMA/1997

        Dated 11 March 1997

      - No. 136/II/PMA/1997

        Dated 21 August 1997

 

Holding Company :

MAXX CAPITAL LTD., Seychelles (Investment Holding)

 

Related/Affiliated Companies:

a. MECHMAR CORPORATION (Malaysia) Bhd., Malaysia

b. MECHMAR COCHRAN BOILERS Sdn. Bhd., Malaysia

c. MECHMAR COCHRAN LANKA (Pvt) Ltd., Sri Lanka

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 3,000,000,000.-

Issued Capital                                  - Rp. 3,000,000,000.-

Paid up Capital                                - Rp. 3,000,000,000.-

 

Shareholders/Owners :

a. MAXX CAPITAL LTD                                                     - Rp. 2,850,000,000.-

    Address : Room3, Dekk House, Rue De Zippora

                    Providence Mahe

                    Seychelles

b. Mr. Heffy Hartono                                                         - Rp.    150,000,000.-

    Address : Jl. Malibu Indah Permai Block G No. 1

                    Medan, North Sumatera

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Boiler Manufacturing

 

 

Production Capacity :

a.   Package Boilers                        - 45 unit p.a.

b.   Industrial Boilers                        - 15 unit p.a.

 

Total Investment :

a.   Equity Capital                   - Rp. 3.0 billion

b.   Loan Capital                     - Rp. 2.0 billion

c.   Total Investment                - Rp. 5.0 billion

 

Started Operation :

1 9 8 7

 

Brand Name :

Mechmar Boiler

 

Technical Assistance :

Mechmar Cohran Boilers Sdn Bhd., Malaysia

 

Number of Employee :

80 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Industrial Manufacturing

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BOUSTEAD MAXITHERM INDUSTRIES

b. P.T. CILEGON FABRICATORS

c. P.T. GRAND KARTECH

d. P.T. HITACHI CONSTRUCTION MACHINERY INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Medan Main Branch

North Sumatra

Indonesia

 

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 31.8 billion

2010 – Rp. 32.2 billion

2011 – Rp. 35.0 billion

2012 – Rp. 42.5 billion

 

Net Profit (estimated) :

2009 – Rp. 2.5 billion

2010 – Rp. 2.8 billion

2011 – Rp. 3.0 billion

2012 – Rp. 3.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Tan Keng Ooi

Director                                           - Mr. Loh Kiat Loon

 

Board of Commissioners :

Commissioner                                 - Mr. Datuk Baharudin Bin Abd Majid

 

Signatories :

President Director (Mr. Tan Keng Ooi) or the Director (Mr. Loh Kiat Loon) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. MECHMAR JAYA INDUSTRIES (P.T. MJI) was established in Medan, North Sumatra in March 1987 with the authorized capital of Rp. 3,000,000,000 of which Rp. 1,000,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Jansen and Mr. Heff Hartono, both are indigenous businessmen. The company notary deed has frequently been amendments. In March 1997, into the company entered MECHMAR BOILER SDN, BHD of Malaysia and concurrently, the status of the company was changed from non Domestic Capital Investment/Foreign Capital Investment (Non PMDN/PMA) to Foreign Capital Investment (PMA) facility. Then in August 1997, Mr. Jansen withdrew and concurrently the issued capital was raised to Rp. 3,000,000,000 fully paid up. Then according to the latest revision of notary documents of Mr. Eddy Samin, SH., No. 40 dated 12 December 2011, MECHMAR BOILER SDN BHD of Malaysia withdrew and replaced by MAXX CAPITAL LTD of Seychelles as new shareholder. With this time the composition of its shareholders has been changed to become MAXX CAPITAL LTD (95%) and Mr. Heffy Hartono (5%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its Decision Letter No. AHU-AH.01.10-03264 dated December 12, 2012.

 

P.T. MJI has been in operation since 1987 dealing with boiler manufacturing. The plant is located at Jalan Kol. Yos. Sudarso Km. 10, Kawasan Industri Medan, North Sumatera standing on 6,500 square meters land.  The plant has annual production capacity of 60 units of boilers including titan towler water tubes, titan bi drums water tubes, water tube packages, titan verticals, titan thermal fluid heaters and others. Each boiler being produced by the company has capacities ranging from 15 HP to 1,800 HP. In producing the products, the company used British Standard, ASME (USA), DIN (Germany) and JIS (Japan). Some 50% of the company products is exported to Malaysia, Honduras, Africa and others while the rest is locally marketed. The operation of P.T. MJI is strongly supported by its sister company of Malaysia. The whole boiler supplied to various industries such as P.T. TOBA PULP LESTARI Tbk, P.T. SINAR OLECHEMICALS, P.T. FLORA MAS SAWITA, P.T. MEDAN OLEOCHEMICALS, P.T. MUSIM SEMI MAS, P.T. WILMAR NABATI ASAHAN, WILMAR Group, P.T. MEDAN CANNING, P.T. AGRINDO INDOJAYA and other crude palm oil refinery in Medan, Riau and other cities. The operation of the company has been running smoothly in the last five years.

 

      Generally outlook, the demand for industrial boilers had kept on rising by 7% to 9% per annum in the last five year in line with the rapid growth of industrial sectors as users, but later declined under the impact of global economic crisis since October 2008. The crisis caused the imported basic materials and operation cost to sky rocket amid the sluggish purchasing power. Amidst unstable global economic conditions, Indonesia is estimated to be able to record an economic growth of over 6% in 2012. The solid and steady domestic economy, increased government activity in infrastructure development and improving investment climate in Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.

 

      The global economic turmoil 2011 has not provided a very significant impact on the Indonesian economy.  The country could grow 6.5% in the year.  The challenge in 2012 will be even tougher as the European economic situation appears to be worsening.  It can be seen from Indonesia's economic growth as described in the table below.

 

Indonesia’s economic growth in 2007 to 1st half 2011 (%)

 

Sector

2007

2008

2009

2010

2011

1st half

Agriculture, livestock, forestry and fisheries

3.47

4.84

3.98

2.86

3.73

Mining and quarrying

1.93

0.71

4.44

3.48

2.51

Manufacturing

4.67

3.66

2.16

4.48

5.56

a. Oil and gas industry

-0.06

-0.34

-2.19

-2.31

-1.88

b. Non-oil and gas industry

5.15

4.05

2.56

5.09

6.20

     - Food, beverage and tobacco

5.05

2.34

11.22

2.73

6.73

     - Textile, leather & footwear

-3.68

-3.64

0.60

1.74

9.22

     - Timber & other forestry products

-1.74

3.45

-1.38

-3.50

1.23

     - Paper & printing

5.79

-1.48

6.34

1.64

4.04

     - Fertilizer, chemical & rubber

5.69

4.46

1.64

4.67

3.31

     - Cement & non-metallic minerals

3.40

-1.49

-0.51

2.16

5.02

     - Basic metals (iron & steel)

1.69

-2.05

-4.26

2.56

16.88

     - Transport, machinery & equipment

9.73

9.79

-2.87

10.35

6.58

     - Other goods

-2.82

-0.96

3.19

2.98

3.70

Electricity, gas and clean water

10.33

10.93

14.29

5.31

4.11

Construction

8.53

7.55

7.07

6.98

6.38

Trade, hotel and restaurant

8.93

6.87

1.30

8.69

8.75

Transportation and communication

14.04

16.57

15.50

13.45

12.14

Finance, leasing & corporate services

7.99

8.24

5.05

5.65

7.08

Services

6.44

6.24

6.42

6.01

6.34

Gross Domestic Product (GDP)

6.35

6.01

4.58

6.10

6.48

GDP, excluding oil and gas

6.95

6.47

4.96

6.56

6.97

Source: Central Agency of Statistic (BPS), processed by the Ministry of Industry

 

Until this time P.T. MJI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MJI 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. 32.2 billion rose to Rp. 35.0 billion in 2011 increased to Rp. 42.5 billion in 2012 and projected to go on rising by at least 8% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 3.6 billion and the company has an estimated total net worth of at least Rp. 16.0 billion. We observe that P.T. MJI 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 management of P.T. MJI is led by Mr. Tan Keng Ooi (37) a professional manager of Malaysia with experience in boiler manufacturing. Daily operation he is assisted by Mr. Loh Kiat Loon (63) also a professional manager of Malaysia 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. MECHMAR JAYA INDUSTRIES is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.04

UK Pound

1

Rs.81.80

Euro

1

Rs.71.41

 

 

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.