|
Report Date : |
04.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDAH KIAT PULP & PAPER TBK |
|
|
|
|
Formerly Known As : |
P.T. INDAH KIAT PULP and PAPER CORPORATION |
|
|
|
|
Registered Office : |
Plaza BII Menara II, 7th Floor Jalan M.H.Thamrin No. 51 Jakarta Pusat, 10350 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
31.12.2011 (Consolidated) |
|
|
|
|
Date of Incorporation : |
07.12.1976 |
|
|
|
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Com. Reg. No.: |
No. AHU-AH.01.10-12100 |
|
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Legal Form : |
Public Listed Company |
|
|
|
|
Line of Business : |
Integrated Paper Making and Pulp Processing |
|
|
|
|
No. of Employees : |
17,668 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
P.T. INDAH
KIAT PULP & PAPER Tbk
Head Office
Plaza BII Menara
II, 7th Floor
Jalan M.H.Thamrin No. 51
Jakarta Pusat,
10350
Indonesia
Phone -
(62-21) 3929001-3 (Hunting)
Fax - (62-21) 3928875, 3926179
E-mail - info@asiapulppaper.com
Website - http://www.asiapuppaper.com
Building Area - 28 storey
Office Space - 2,600 sq.
meters
Region - Commercial
Building
Status -
Owned
Factory Unit Serang
Jalan Raya Serang Km 76
Desa Kragilan, Serang 42186
Banten Province
Indonesia
Phone -
(62-254) 280088, 281988
Fax - (62-254) 401490-91
Building Area - 62,000 sq.
meters
Office Space - 50,600 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory Unit
Perawang, Riau
Jalan Raya Minas Km. 26
Perawang, Desa Pinang Sebatang
Siak, Riau
Province
Indonesia
Phone -
(62-761) 91039, 91088
Fax - (62-761) 91373, 91376
Land Area - 210,600 sq.
meters
Building Space - 82,000 sq. meters
Region - Industrial
Zone
Status - Owned
Factory Unit
Serpong
Jalan Raya Serpong Km. 8
Tangerang
Banten Provinve
Indonesia
Phone -
(62-21) 53120222
Fax - (62-21) 53120220
Land Area - 120,800 sq.
meters
Building Space - 50,000 sq. meters
Region - Industrial
Zone
Status - Owned
Date of
Incorporation :
07 December 1976 as P.T. INDAH KIAT PULP and PAPER CORPORATION, changed
its name to P.T. INDAH KIAT PULP & PAPER Tbk, on June 30, 1998.
Legal Form :
P.T. Tbk (Perseroan Terbatas Terbuka) or Public Listed Company
Company Reg.
No. :
The Ministry of Law and
Human Rights
- No. Y.A.5/50/2
Dated 9 February 1978
- No. AHU-72836.AH.01.02.TH.2008
Dated 13 October 2008
- No. AHU-AH.01.10-12100
Dated 03 August 2009
Company Status
:
Foreign Investment (PMA) Company
Permit by the
Government Department :
The Department of Finance
NPWP No. 01.000.566.8-092.000
The President of the
Republic of Indonesia
No. B-364/Pres/9/1976
Dated 23 September 1976
The Capital Investment
Coordinating Board
- No. 115/III/PMA/1987
Dated 15 May 1987
- No. 04/II/PMA/1988
Dated 26 January 1988
- No. 28/II/PMA/1994
Dated 21 February 1994
- No. 80/II/PMA/1994
Dated 10 May 1994
- No. 73/III/PMA/1995
Dated 22 February 1995
- No. 64/II/PMA/1997
Dated 22 April 1997
- No. 111/III/PMA/1999
Dated 22 June 1999
- No. 154/II/PMA/1999
Dated 5 August 1999
- No. 110/II/PMA/2000
Dated 19 May 2000
- No. 176/II/PMA/2001
Dated 27 June 2001
- No. 884/III/PMA/2002
Dated 19 August 2002
- No. 75/II/PMA/2005
Dated 29 March 2005
- No. 560/III/PMA/2006
Dated 4 May 2006
- No. 58/II/PMA/2007
Dated 26 February 2007
- No. 59/II/PMA/2007
Dated 26 February 2007
- No. 438/III/PMA/2007
Dated 2 April 2007
The Department of Industry
- No. 75/II/PMA/21005
Dated 29 March 2005
- No. 560/III/2006
Dated 4 May 2006
- No. 92/T/INDUSTRI/2007
Dated 26 February 2007
Related
Company :
A member of the SINAR MAS Group
Capital
Structure :
Authorized Capital -
Rp. 20,000,000,000,000.-
Issued Capital -
Rp. 5,470,982,941,000.-
Paid up Capital -
Rp. 5,470,982,941,000.-
Shareholders/Owners
:
a. P.T. PURINUSA EKAPERSADA of Indonesia - Rp. 2,884,302,206,500.- (52.72%)
b. Publics -
Rp. 2,586,680,734,500.- (47.28%)
Lines of
Business :
a. Integrated Paper Making and Pulp Processing
b. Investment Holding
Production
Capacity :
A. Initial Plant
a. Cultural Papers - 49,500 tons p.a.
b. Pulps - 100,000 tons p.a.
c. Wood Chips - 200,000 tons p.a.
d. Soda Ashes - 10,000 tons p.a.
e. Chlorines - 8,800 tons p.a.
f.
Oxygen - 1,814,400 tons p.a.
B. Expansion Plant
Expansion Units Serang and Units
Serpong
a. Test Liner/ Fluiting
Medium/ Corrugated/Medium
Core Paper/ Wrapping Kraft
Paper/ Uncoated Duplex/
White Lined Kraft/ White
Lined Chipboards - 380,000 tons p.a.
b. Duplex/ Manila/ Ivory
Art Board/ Solid
Bleached Boards - 420,000 tons p.a.
c. CPT Computer Paper/HVS
Writing Paper/ PPC Copy
Paper/ Web Off Set Pig-
mentized/ LWC Wood
Containing Papers - 253,000 tons p.a.
d. Chipboard/ Carton/
White Lined Chipboard/
White Lined Test-Liners - 84,000 tons p.a.
e. Printed Packaging
Products - 125,000 tons p.a.
f.
Flexible Packaging
Products - 50,000 tons p.a.
g. Display Packaging
Products - 50,000 toms p.a.
h. Cups From T.D. Pulp
Boards - 25,000 tons p.a.
i.
HVS Paper/Woodfree -
40,000 tons p.a.
Expansion Unit Bengkalis, Siak, Riau
a. Woodfree Paper, Photocopy
Paper, Computer Print Out
Continous Business Form,
HVS, HPS & Film Coated
Offset Pigmentireds - 2,560,000 tons p.a.
b. Chipboard/Carton,
Wrapping Paper and
Core Paperboards - 380,000 tons p.a.
c. Component and Equipment of
Pulp and Paper Machines - 6,000 units p.a.
d. Pulps -
1,400,000 tons p.a.
e. Caustic Soda - 109,000 tons p.a.
f.
Caustic Soda Flakes - 36,000 tons p.a.
g. Chlorines - 95,000 tons p.a.
h. Polyaluminium
Chlorides - 351,000 tons p.a.
i. Acid Chlorides - 188,000 tons p.a.
j. Sulfur Dioxides - 7,000 tons p.a.
k. Oxygen - 43,000 tons p.a.
l.
Nitrogen - 64,000 tons p.a.
m.
Argons - 650 tons p.a.
n. Sulfuric Acid - 59,000 tons p.a.
o. Calcium
Carbonates - 280,000
tons p.a.
p. Hydrogen Peroxides - 43,000 tons p.a.
q. Chlorine Dioxides - 40,000 tons p.a.
r. Ozones -
7,000 tons p.a.
s. Chloroparaffins - 14,000 tons p.a.
t. Sodium Chlorates - 73,000 tons p.a.
u. Methanols - 7,500 tons p.a.
v. Sodium Sulfates - 22,000 tons p.a.
w. High Strength Hypochlorides/
Bleacing Powders - 36,000 tons p.a.
x. Crate - 400,000 pcs p.a.
y. Testliner/Corrugated Medium -
700,000 tons p.a.
Total
Investment :
A. Initial Plant
a. Equity Capital - US$ 29.0 million
b. Loan Capital - US$ 70.0 million
c. Total Investment - US$ 99.0 million
B. Expansion Plant
a. Equity Capital - Rp. 2,214.5 billion
b. Reinvested Profit - Rp. 816.0 billion
c. Loan Capital - Rp. 7,780.5 billion
d. Total Investment - Rp. 10,810.8 billion
Expansion Plant
a. Equity Capital - None
b. Reinvested Profit - Rp. 1,841.5 billion
c. Loan Capital - Rp. 8,997.5 billion
d. Total Investment - Rp. 10,839.0 billion
Started
Operation :
1978
Brand Name :
Bola Dunia, Anchor Brand, Betet, Clean Coated Board, Evergreen, Globe
Brand, Golden Art,
Golden Coin, Golden Star, King
Kong, Logo, Lumba-Lumba, Linex, Pigeon, Etc
Technical
Assistance :
None
Number of
Employee :
17,668 persons
Marketing Area
:
Domestic - 45%
Export -
55%
Main Customer
:
P.T. SINAR DUNIA MAKMUR (Distributor)
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. KERTAS NUSANTARA
b. P.T. RIAU ANDALAN KERTAS
c. P.T. TANJUNG ENIM LESTARI PULP AND PAPER
d. P.T. TOBA PULP LESTARI Tbk, Etc
Business Trend
:
Fluctuating
B a n k e r s :
a. P.T. Bank INTERNATIONAL
INDONESIA Tbk
Wisma BII
Jalan
M.H. Thamrin 50
Jakarta
Pusat, Indonesia
b. P.T. Bank CIMB NIAGA Tbk
Graha
Niaga
Jalan
Jend. Sudirman Kav. 58
Jakarta
Selatan, Indonesia
c. P.T. Bank MANDIRI Tbk
Plaza
Mandiri
Jalan
Jend. Gatot Subroto Kav. 36-38
Jakarta
Selatan
Indonesia
d. P.T. Bank PERMATA Tbk
Plaza
Bank Permata
Jalan
Jend. Sudirman Kav. 27
Jakarta Pusat
Indonesia
e. P.T. Bank SINARMAS Tbk
Wisma Bank Sinarmas, 1st & 2nd
Floor
Jalan M.H. Thamrin No. 51
Jakarta Pusat
Indonesia
Auditor :
Tjiendradjaja & Handoko Tomo (Mazars)
Litigation :
The Subject was involved in litigation and claims (see litigation and
claims)
Annual Sales :
2008 – US$ 2,277.0 million
2009 – US$ 1,773.4 million
2010 – US$ 2,509.6 million
2011 – US$ 2,559.9 million
2012 – US$ 1,922.5 million (as per 30 September)
Net Profit
(Loss) :
2008 – US$ 202.4 million
2009 – (US$ 158.5 million)
2010 – US$ 13.0 million
2011 – US$ 16.0 million
2012 – US$ 21.8 million (as per 30 September)
Payment Manner
:
Sometimes delay
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Yudi Setiawan
Lin
Vice President Director - a. Mrs. Linda Suryasari
Wijaya Limantara
b. Mr. Hendra Jaya Kosasih
c. Mr. Suresh Kilam
Directors - a. Mr. Hasanuddin The
b. Mr. Didi Harsa
c. Mr. Kurniawan Yuwono
d. Mr. Suhendra Wiriadinata
e. Mr. Lieo Djohan AKA Djohan Gunawan
Director & Corporate Secretary - Mr. Agustian Rachmansjah
Partawidjaja
Board of Commissioners :
President Commissioner - Mr. Teguh Ganda Wijaya
Vice Pres. Commissioner - Mr. Ir. Gandi Sulistyanto
Suherman
Commissioners - a. Mrs. Indah Suryasari Wijaya
Limantara
b. Mr. Arthur Tahya
c. Mr. Frenky Loa
Independent Commissioners - a. Mr. DR. Ramelan, SH, MH
b. Mr. Mas Achmad Daniri
c. Mr. Drs. Pande Putu Raka, MA.
d. Mr. Letjend. TNI (Retired) Soetedjo
Signatories :
President Director (Mr. Yudi Setiawan Lin) or one of Vice President
Directors (Mrs. Linda Suryasari Wijaya Limatara, Mr. Hendra Jaya Kosasih or Mr.
Suresh Kilam) or one of the Directors (Mr. Hasanuddin The, Mr. Didi Harsa, Mr.
Kurniawan Yuwono, Mr. Suhendra Wiriadinata, Mr. Lioe Djohan AKA Djohan Gunawan
or Mr. Agustian R. Partawidjaja) which must be approved by the Board of
Commissioners.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small amount – periodical review
Initially named P.T.
INDAH KIAT PULP & PAPER CORPORATION was established in December 1976 with
an authorized capital of US$ 17,000,000 entirely was issued and paid up. The
original founding shareholders were P.T. BERKAT INDAH AGUNG, a national private company, CHUNG HWA PULP CORPORATION LTD and
YUEN FONG YU PAPER MANUFACTURING CO. LTD., both of Taiwan. The company notary
deed had been changed a couple of times. In 1990 the authorized capital was
converted to Rupiah and raised to Rp. 800,000,000,000 issued and paid up capital
to Rp. 458,282,168,000 and the above shareholders have quitted and they were
replaced by P.T. PURINUSA EKAPERSADA, a national private company, CHP
International BVI Corp., YFY Global Investment BVI Corp., of British Virgin
Island. In June 1990 it became a publicly listed company ('go public') in the
Jakarta Stock Exchange selling 13.09% shares to public. In June 1998 the
company was renamed P.T. INDAH KIAT PULP & PAPER Tbk (P.T. IKPPT).
In 2003 the
authorized capital was converted to AS dollar again namely US$ 2,189,015,592
entirely issued and fully paid up. By the same time the shareholders had
changed and the latest shareholders of company ware P.T. PURINUSA EKAPERSADA of
Indonesia (52,72%), CHP INTERNATIONAL BVI Corp., of British Virgin Island (1.94%),
YFP GLOBAL INVESTMENT BVI of British Virgin Island (0.74%), YFP H.K. COMPANY
Ltd., of Hong Kong (0.05%) and the Publics (44,55%). Lastly, in July 2008 the authorized capital
was raised and converted to Rupiah again namely Rp. 20,000,000,000,000.- of which
Rp. 5,470,982,941,000.- was issued and fully paid up. Since that time,
shareholders of the company are P.T. PURINUSA EKAPERSADA of Indonesia (52.72%)
and the publics (47.28%). The latest
deed of amendment was made by Mrs. Linda Herawati, SH, a public notary in
Jakarta under Company Registration Number AHU-AH.01.10-12100, dated August 03,
2009.
It seems that
P.T. PURINUSA EKAPERSADA is a private company of which majority shares is
controlled by Mr. Eka Tjipta Widjaja AKA Oei Ek Tjhong and his family members.
P.T. IKPPT and P.T. PURINUSA EKAPERSADA are members of the SINAR MAS Group,
once over been as a large business group in the country.
P.T. IKPPT has
obtained a Foreign Investment (PMA) facility in integrated paper making and
pulp processing and the Company commenced its commercial operations in 1978. At
present the company is managing three factories, each of which is located at
Jalan Raya Serpong Km.8, Tangerang, and Jalan Raya Serang Km. 76, Desa
Kragilan, Serang, both in West Java, and Jalan Raya Minas Km. 26, Perawang,
Desa Pinang Sebatang, Siak, Bengkalis, Riau Province. The three factories
produce various kinds of papers products, including printing and writing paper,
and packaging products such as containerboard and boxboard. Its also produces
BHK pulp which is the key raw materials for paper products and is also used in
the production of packaging products. In August 1999 P.T. IKPPT unit Bengkalis,
Riau got an expansion permit to enhance its production capacity of pulp and
chemicals. The expansion plant has been operation in mid of 2002 with an
investment of Rp. 10,839.0 billion. Some 55% of the products is exported to
Asian countries, Hong Kong, Taiwan, P.R. China, Pakistan, India, Srilangka,
Bangladesh, Vietnam, South Korea,
Europe, the USA, the Middle East, Africa, etc. While the other 45% of the
products for local market.
Wood to produce
pulp is mainly supplied by P.T. Arara Abadi, an affiliated company, and other
business partners. If the wood supply is unsustainable, the Company’s business
activity will be affected. It has a fully integrated pulp and paper mill in
Riau, and two manufacturing facilities in West Java, which produce fine paper
and packaging products respectively. The total sales outside Indonesia
represent approximately 60% of total sales. The company currently produces
various types of paper products, including printing and writing paper, and
packaging products, such as containerboard and boxboard. It also produces BHK
pulp which is the key raw material for paper products and is also used in the
production of packaging products. The company’s principal printing and writing
paper products are uncoated free sheet and cut-sized photocopier paper. They
are sold under the following major brands: Paperline, Britex, Copy Paper, PPC
Paper, Paperon, IK-Plus, and e-Paper. The packaging products include: ivory
board, duplex board and containerboard. In recognition of the company’s
performance in Quality Management System and Environmental Management System,
it has been awarded the ISO 9002 and ISO 14001 certifications.
Besides, P.T.
IKPPT has also engaged in investment holding, it controls 100% shares of INDAH
KIAT INTERNATIONAL FINANCE COMPANY, 100% shares of INDAH KIAT FINANCE MAURITIUS
Ltd., 100% shares of INDAH KIAT FINANCE (III), 100% shares of IMPERIAL
INVESTMENT Ltd (all dealing with financing services), 100% shares of IK TRADING
Ltd., 100% shares of INDAH KIAT TRADING (II) Ltd., 100% shares of IK IMPORT
& EXPORT Ltd., (the three are dealing with distribution), 93.94% shares of
P.T. PARAMITRA ABADIMAS CEMERLANG in trading and 99.93% shares of P.T.
PARAMITRA GUNAKARYA CEMERLANG in fabricating, 99.50% shares of P.T. GRAHA
KEMASINDO INDAH in trading and 50% shares of P.T. SINAR MAS SPECIALTY MINERALS
dealing with manufacturing of liquid chemical. P.T. IKPPT belongs to a major
company in integrated paper milling and pulp processing in the country and the
operation had been fluctuating in the last three years.
The Company
listed its Indah Kiat I 1999 Bonds of Rp 1 trillion on the Surabaya Stock
Exchange (now Indonesia Stock Exchange) dated October 20, 1999. These bonds are
participated in the Master Restructuring Agreement (MRA) signed on April 28, 2005.
The Company and several Subsidiaries also listed their Guaranteed Secured
Global Notes (GSGN) due in 2002, 2006 and 2007 totaling US$ 200 million, US$
150 million and US$ 600 million, respectively, on the Luxembourg Stock
Exchange. The GSGN due in 2002, 2006 and amounting to US$ 60 million due in
2007 were not participated in the Master Restructuring Agreement.
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 – 2011
(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 |
Sources: APKI (Indonesian Pulp and
Paper Association
According to
financial report audited by a public accountant the total sales turnover of
P.T. IKPPT in 2007 amounted to US$ 1,879.4 million with a net profit of US$
91.8 million increased to US$ 2,277.0 million with a net profit of US$ 202.4
million in 2008 and declined to US$ 1,773.4 million with a net loss of US$
158.5 million in 2009 rose to US$ 2,509.6 million with a net profit of US$ 13.0
million in 2010 increased to US$ 2,559.9 million with a net profit of US$ 16.0
million. As per 30 September 2012 the sales turnover of the company has reached
to US$ 1,922.5 million with a net profit of US$ 21.8 million. It is projected
that total sales turnover of the company will be higher by at least 6% in 2013.
Financial statement as f 31 December 2009, 2010, 2011 and per 30 June 2012 are
attached.
Significant Litigations and Claims
The following
were the significant litigation and claims directly and indirectly involving
the Company:
1. On February 15, 2007, the Company
filed a Notice of Arbitration under the Guarantee for enforcement of the
Guarantee against Crown Andersen. On March 1, 2007, Crown Andersen served a
response upon the notice which denying the Company’s contentions and reserving
their right to file their Statement of Defence. On February 15, 2007, the
Company filed a Notice of Arbitration under the Guarantee for enforcement of
the Guarantee against Crown Andersen. On March 1, 2007, Crown Andersen served a
response upon the notice which denying the Company’s contentions and reserving
their right to file their Statement of Defence.
2. On October 24, 2007, the Plaintiffs
obtained a Temporary Restraining Order (TRO) from the New York courts
restraining the Defendants from making any further payments to the creditors
under the MRA. As a result of the TRO, the defendants suspended payments to its
creditors under the MRA. The TRO was made permanent by the New York Courts
pursuant to an order of court dated May 16, 2008. Defendants have filed an
appeal from this restraining order. On January 15, 2009, the Appellate Division
affirmed the injunction which prohibits the Defendants from making payments in
accordance with the MRA. The Defendants have 30 days to file a motion for leave
to appeal to the New York Court of Appeals after the Plaintiffs serve the Notice
of Entry of the Appellate Division’s order upon the Defendants. Up to the date
of this report, the Plaintiffs have not served the Notice of Entry upon the
Defendants. On April 8, 2009, certain creditors under the MRA filed a motion
for leave to appeal, but up to the date of this report the court has not issued
a decision on the motion.
3. On or about September 10, 2008, the
Defendants, Oaktree and certain of its affiliates reached an agreement for a full
and final settlement of all litigation and disputes outstanding between them,
including in Indonesia, New York, California and Singapore. Following the
settlement above, on or about April 2, 2009, Gramercy Advisors, LLC, Gramercy
Emerging Markets Funds (Gramercy Parties) and the Defendants agreed to a full
and final global resolution of all litigation and disputes outstanding,
including in the respective jurisdictions listed above. With respect to the
proceedings in New York and California, the original Plaintiffs have
transferred their interests in relation to such proceedings (to the extent they
have such interests) to other companies.
4. On December 22, 2008, Judge Kapnick
has signed a turnover order in connection with the second New York Judgment and
the Defendants have 30 days to file a Notice of Appeal after the Plaintiffs
serve the Notice of Entry of the turnover order upon the Defendants. Up to the
date of this report, the Plaintiffs have not served the Notice of Entry upon
the Defendants.
5. Since early December 2008, EXIM, in
its effort to enforce the summary judgment, has obtained various writs from the
court and has sent those writs and/or subpoenas to various companies. Up to the
date of this report, EXIM’s effort to enforce the summary judgment through such
writs and subpoenas is still ongoing.
6. On December 22, 2008, JP Morgan
filed a motion for summary judgment against the Company and Tjiwi Kimia and
also a separate motion against the Company. Defense counsel filed responses to
these motions on March 9, 2009, and JP Morgan filed its reply on April 6, 2009.
The Court ruled on JP Morgan’s motions on October 14, 2009. The Honorable James
F. Holderman granted JP Morgan’s motion against the Company and Tjiwi Kimia,
but indicated that JP Morgan’s motion for summary judgment against the Company
remained under advisement and strongly encouraged the parties to discuss
settlement.
7. On April 21, 2010, The Honorable
James F. Holderman has issued the Memorandum Opinion and Order which granted
the Summary Judgment in favor of JP Morgan. In relation to the summary
judgment, the Company, Tjiwi Kimia and APP have filed a notice of appeal
regarding The Honorable Holderman’s orders as to JP Morgan’s motions for
summary judgment.
Gryphon Domestic VI, LLC, OCM Opportunities Fund II,
L.P., OCM Opportunities Fund III, L.P., Columbia/ HCA Master Retirement Trust,
Gramercy Emerging Markets Fund and General Electric Capital Corporation (the
Plaintiffs) have commenced legal actions against the Company and certain
related companies. A brief description of these legal actions is set out below:
In the United States of America State Supreme Court
against the Company, Asia Pulp & Paper Company Ltd. (APP), PT Lontar
Papyrus Pulp & Paper Industry (Lontar), APP International Finance Company
B.V. (APP Finance) and Indah Kiat International Finance Company BV (Indah Kiat
BV) (collectively the Defendants) in respect of certain notes issued by APP
Finance (the Lontar Notes) and Indah Kiat BV (the Indah Kiat 02 and 06 Notes).
The claims in respect of the Indah Kiat 02 and 06 Notes amounted to USD78.8
million and USD92.9 million, respectively. The claim in respect of the Lontar
Notes amounted to USD147 million.
Significant Information
a. The Company, PT Pabrik Kertas Tjiwi
Kimia Tbk., and PT Pindo Deli Pulp And Paper Mills are currently facing dumping
and countervailing duties allegations by Appleton Coated LLC, NewPage
Corporation, S.D. Warren Company d/b/a Sappi Fine Paper North America, and
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union. The petition were filed on
September 23, 2009 before the International Trade Administration, United States
Departement of Commerce (DOC) and the United States International Trade
Commission (ITC).
On September 21, 2010, DOC rendered its final
determination on anti dumping and countervailing duties i.e. 20.1% and 17.9%
for the Company, PT Pabrik Kertas Tjiwi Kimia Tbk., and PT Pindo Deli Pulp And
Paper Mills. On October 22, 2010, ITC rendered an affirmative injury
determination. Therefore AD/CVD duties will continue.
b. On November 27, 2009, 2 paper
companies in South Korea: Hankuk Paper Manufacturing Co., Ltd. and Hongwon
Paper Manufacturing Co., Ltd. filed a petition to the Ministry of Strategy and
Finance (MOSF) of South Korea to initiate a review on the imposition of
Anti-Dumping Duty on imports of uncoated woodfree paper originating from the
Republic of Indonesia and the People’s Republic of China. On January 26, 2010,
MOSF initiate investigation against the Company, PT. Pabrik Kertas Tjiwi Kimia
Tbk (Tjiwi Kimia) and PT. Pindo Deli Pulp And Paper Mills (Pindo Deli).
Korea Trade Commission (KTC) has sent the
supplemental questionnaires which have to be replied and submitted by the
Company, Tjiwi Kimia and Pindo Deli to KTC. On July and August 2010, the
Company, Tjiwi Kimia and Pindo Deli have submitted their responds on the
supplemental questionnaire to KTC. And on August 26 to September 3, 2010, KTC
has conducted verification on the responds and the final determination will be
issued by KTC in October 2010.
c. On October 7, 2010, The Company and
ICBC signed credit agreement whereby ICBC provided fixed loan on demand with
the total amount of USD9,750,000 for the period of 1 (one) year. This facility
was secured by land and building at the secured amount of USD9,973,000 and also
machinery and equipment at the secured amount of USD8,381,000.
Source: Annual Report
per 30 September 2010
The company's management is now headed by Mr.
Yudi Setiawan Lin (65) as the president director. He has experienced for more
than 25 years in integrated paper making and pulp processing. He obtained his education at the Chinese
Culture Academy in Taiwan majoring in Pulp and Paper Technology. He started to
work with Ta Hung Paper Mills in Taiwan before joining PT. Pabrik Kertas Tjiwi
Kimia Tbk in 1978 and has been the President Director of PT. Pabrik Kertas
Tjiwi Kimia Tbk since 1994. He has been a Commissioner of PT. Pindo Deli Pulp
And Paper Mills since 1994 and Vice President Director of the Company
(2003-2005), President Commissioner of the Company (2005-2007). He was
appointed as President Director of the Company since June 2007.
But we are sure that prime-mover
of the company is Mr. Teguh Ganda Widjaja AKA Oei Tjie Goan (66), the eldest
son of Dr. Eka Tjipta Widjaja (the head of the SINAR MAS Group). He has held
various positions within the Sinar Mas group of companies including President
Director of the Company (1985-2007), Vice President Director of PT. SMART Tbk
(1992- 2002), Vice President Commissioner of PT. Duta Pertiwi Tbk (1994-2001),
President Commissioner of PT. Duta Pertiwi Tbk (2001-2004), Commissioner of PT.
Sinar Mas Multiartha Tbk (1996-1997), President Director of PT. Pindo Deli Pulp
And Paper Mills (1996-2006) and PT. Lontar Papyrus Pulp & Paper Industry
(2001-2006), President Commissioner of PT. Pabrik Kertas Tjiwi Kimia Tbk since
2002, President Commissioner of PT. Pindo Deli Pulp And Paper Mills and PT.
Lontar Papyrus Pulp & Paper Industry since January 2006. He has been
President Commissioner of the Company since June 2007.
The management of the company
is very experienced in the paper and pulp industry. They have very wide relations
with local and overseas business groups. They also have cultivated close
relations with many high-ranking officials of government institutions in
Jakarta, West Java, Riau and other provinces of Indonesia. 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. We observed that
management’s reputation in said business is fairly good. P.T. INDAH KIAT PULP
AND PAPER Tbk is sufficiently fairly good for business transaction.
Attachment:
PT. INDAH KIAT
PULP & PAPER Tbk
And Subsidiaries
FINANCIAL
STATEMENTS
Per 31 December
2009, 2010, 2011 and per 30 September 2012
(In
Thousand US Dollar)
|
DESCRIPTION |
30 September 2011 |
31 December |
||
|
2011 |
2010 |
2009 |
||
|
A. ASSETS |
|
|
|
|
|
a. Current Assets |
|
|
|
|
|
- Cash and Cash Equivalent |
43,592 |
58,898 |
61,615 |
55,924 |
|
- Trade Receivable |
|
|
|
|
|
* Third Parties |
191,185 |
166,795 |
184,848 |
109,849 |
|
* Related
Parties |
233,950 |
176,642 |
145,682 |
151,734 |
|
- Other Receivable |
17,518 |
7,224 |
12,149 |
9,243 |
|
- Inventories |
761,471 |
687,023 |
568,668 |
423,338 |
|
- Advance Purchases |
109,831 |
136,227 |
93,018 |
80,476 |
|
- Prepaid Taxes and Expenses |
26,021 |
18,330 |
6,840 |
24,370 |
|
- Other Current Assets |
189,281 |
216,628 |
18,808 |
29,703 |
|
Total Current
Assets |
1,572,849 |
1,467,767 |
1,091,628 |
884,637 |
|
b. Non Current Assets |
|
|
|
|
|
- Deferred Tax Assets - net |
236 |
236 |
155 |
538 |
|
- Due from related parties – net of
accumulated depreciation |
48,035 |
50,341 |
60,944 |
73,894 |
|
- Due to related Parties |
172,602 |
174,537 |
175,661 |
176,892 |
|
- Advance to related parties |
300,639 |
300,639 |
300,639 |
300,639 |
|
- Investment in shares of stock |
3,908 |
3,836 |
3,751 |
3,769 |
|
- Fixed Assets – net of accumulated
depreciation |
4,282,176 |
4,208,002 |
4,157,964 |
4,269,283 |
|
- Advance for Purchases Fixed Assets |
|
|
|
|
|
* Third Parties |
125,270 |
106,975 |
90,463 |
59,702 |
|
* Related
Parties |
- |
- |
- |
- |
|
- Other Non-current Assets |
6,315 |
6,502 |
6,670 |
6,910 |
|
Total Non Current
Assets |
4,939,181 |
4,851,068 |
4,833,484 |
4,928,863 |
|
TOTAL LIABILITIES TOTAL ASSETS = &
STOCKHOLDERS’
EQUITY |
6,512,030 |
6,318,835 |
5,925,112 |
5,813,500 |
|
B. LIABILITIES &
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
a. Current Liabilities |
|
|
|
|
|
- Short-Term Loan |
283,923 |
327,646 |
171,430 |
158,186 |
|
- Trade Liabilities |
|
|
|
|
|
* Third Parties |
151,811 |
108,915 |
132,990 |
154,583 |
|
* Related
Parties |
33,372 |
44,634 |
43,781 |
66,661 |
|
- Other Liabilities |
11,996 |
11,344 |
21,392 |
16,947 |
|
- Accrued Expenses |
267,594 |
228,586 |
193,032 |
224,667 |
|
- Tax Liabilities |
6,809 |
9,962 |
24,413 |
12,330 |
|
- Lease Liabilities |
- |
358 |
592 |
773 |
|
- Long Term Bank Loans |
39,479 |
62,142 |
29,140 |
20,426 |
|
- Loans, notes and bonds payable |
642,335 |
594,469 |
465,127 |
346,500 |
|
Total Current
Liabilities |
1,437,319 |
1,388,056 |
1,081,897 |
1,001,072 |
|
b. Non Current Liabilities |
|
|
|
|
|
- Payable to Related Parties |
16,440 |
23,536 |
13,367 |
2,758 |
|
- Deferred Tax Liabilities |
143,661 |
157,731 |
150,766 |
126,306 |
|
- Post employment benefit obligation |
71,452 |
69,929 |
61,081 |
51,097 |
|
- Current maturities of long term loan |
|
|
|
|
|
* Lease liabilities |
- |
358 |
1,001 |
2,291 |
|
* Bank loans |
443,588 |
279,801 |
78,971 |
73,617 |
|
* Bond payables
|
2,086,502 |
2,082,375 |
2,087,019 |
2,049,055 |
|
* Long term
loans |
949,986 |
950,916 |
936,822 |
883,010 |
|
- Long term liabilities – net of current
maturities |
|
|
|
|
|
* Lease
liabilities |
- |
(358) |
(592) |
(773) |
|
* Bank loans |
(39,479) |
(62,142) |
(29,140) |
(20,425) |
|
* Bond payables
|
(642,335) |
(594,469) |
(465,127) |
(346,500) |
|
Total Non Current
Liabilities |
3,029,815 |
2,907,676 |
2,836,168 |
2,820,436 |
|
Total
Liabilities |
4,467,134 |
4,295,732 |
2,007,047 |
1,991,992 |
|
c. Minority Interest |
- |
- |
- |
168 |
|
d. Stockholders’ Equity |
|
|
|
|
|
- Issued and Paid Up Capital |
2,189,016 |
2,189,016 |
2,189,016 |
2,189,016 |
|
- Additional Paid-up Capital |
5,808 |
5,808 |
5,808 |
5,808 |
|
- Retained Earnings (Accumulated Losses) |
(150,111) |
(171,868) |
(178,914) |
(203,000) |
|
Total Stockholders’
Equity |
2,044,896 |
2,023,103 |
2,007,047 |
1,991,824 |
|
C. INCOME STATEMENTS |
|
|
|
|
|
a.
Sales – Net |
1,922,537 |
2,559,942 |
2,509,631 |
1,773,400 |
|
b. Cost of Goods Sold |
(1,670,197) |
(2,232,099) |
(2.070,391) |
(1,597,895) |
|
c. Gross Profit |
252,340 |
327,843 |
439,240 |
175,505 |
|
d. Operating Expenses |
(195987) |
(249,386) |
(248,487) |
(179,856) |
|
e. Operating Profit |
56,353 |
78,457 |
190,752 |
(4,351) |
|
f. Other Income (Expenses) |
(48,630) |
(55,517) |
(117,372) |
(118,996) |
|
g. Profit before Income Tax |
7,723 |
22,940 |
73,381 |
(123,348) |
|
h. Income Tax |
14,070 |
(6,884) |
(60,382) |
(35,186) |
|
i. Profit Before Minority Interest |
21,757 |
16,046 |
12,999 |
(158,533) |
|
j.
Minority Interest |
36 |
10 |
(31) |
54 |
|
k.
Net Profit (Loss) |
21,793 |
16,056 |
13,030 |
(158,479) |
Note: - 31 December 2009, 2010, 2011 audited by
Tjiendradjaja & Handoko Tomo, a public accountant
(Member of Mazarsl)
- 30 September 2012 un audited
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.42 |
|
|
1 |
Rs.88.29 |
|
Euro |
1 |
Rs.71.49 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.