|
Report Date : |
25.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. GUNUNG GARUDA |
|
|
|
|
Registered Office : |
Kawasan Industri Baja Indonesia Jalan Imam Bonjol IV Warung Bangkok, Sukadanau Cikarang Barat Bekasi, 17520 West Java |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
18.07.1986 |
|
|
|
|
Com. Reg. No.: |
No. AHU-30838.AH.01.02.TH.2009 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Structure Steel Products and Hot Rolled Steel Manufacturing |
|
|
|
|
No. of Employees : |
1,653 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.
GUNUNG GARUDA
Head Office & Factory
Kawasan
Industri Baja Indonesia
Jalan
Imam Bonjol IV
Warung
Bangkok, Sukadanau
Cikarang
Barat
Bekasi,
17520
West
Java
Indonesia
Phones - (62-21) 89838111, 89838113, 89838121,
89838129, 8901564, 8900 222
Fax - (62-21) 89108030, 8908031, 8900 555
E-mail - sales@grdsteel.com
Website - http://www.grdsteel.com
Land Area - 150 hectares
Building Space - 8 hectares
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
18
July 1986
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Ministry of Law and Human Rights
- No. C2-2605.HT.01.01.TH.87
Dated 1 April 1987
- No. AHU-30838.AH.01.02.TH.2009
Dated 6 July 2009
Company
Status :
Foreign
Investment (PMA) Company
Permit
by the Government Department :
a.
The Department of Finance
NPWP No. 01.062.098.7-431.000
b.
The Capital Investment Coordinating
Board
- NPWP No. 95/V/PMA/2008
Dated 19 May 2008
-
No.
1739/III/PMA/2008
Dated
6 November 2008
Related
Company :
A
Member Company of the GUNUNG STEEL Group (see attachment)
Capital
Structure :
Authorized
Capital : Rp.
1,400,000,000,000.-
Issued
Capital :
Rp. 1,400,000,000,000.-
Paid
up Capital :
Rp. 1,400,000,000,000.-
Shareholders/Owners
:
a. MARVEL WAY PTE. LTD. - Rp.
1,399,990,000,000.-
Address : Singapore
b. DR. Chairuddin AKA Lie Then Hwat - Rp. 10,000,000.-
Address : Kampung Tangsi RT. 004/06
Sukadanau, Cikarang Barat
Bekasi, West Java
Indonesia
Lines
of Business :
Structure
Steel Products and Hot Rolled Steel Manufacturing
Production
Capacity :
a.
Steel Products - 200,000 tons p.a.
b.
Steel Blooms - 400,000 tons p.a.
c.
Steel Billets High Carbon -
25,000 tons p.a.
d.
Alloy Steel Billets - 75,000 tons p.a.
e.
Steel Rails -
50,000 tons p.a.
f.
Steel Billets - 250,000 tons p.a.
g.
Steel Bars - 480,000 tons p.a.
h.
Plate Strips -
50,000 tons p.a.
i.
Bridge Construction and Trans
mission Towers - 150,000 tons p.a.
j. Repairing and Maintenance
of Rolling Machines - US$ 1.8 millions
Total
Investment :
a.
Equity Capital -
Rp. 220.0 billion
b.
Loan Capital -
Rp. 135.5 billion
c.
Total Investment -
Rp. 354.5 billion
Started
Operation :
August
1989
Brand
Name :
Gunung
Garuda
Technical
Assistance :
Marvel
Way Pte. Ltd., Singapore
Number
of Employee :
1,653
persons
Marketing
Area :
Local -
80%
Export - 20%
Main
Customers :
a.
P.T. MENARA MADJU (Distributor)
b. P.T. SRIREJEKI ADITAMA (Distributor)
c.
Steel Building Material Shops
d.
Toko Besi TJAYAKO
e.
Etc.
Market
Situation :
Very
Competitive
Main
Competitors :
a.
P.T. BLUE SCOPE INDONESIA
b.
P.T. CIGADING HABEAM STEEL
c. P.T. JAKARTA STEEL MEGAH UTAMA
d.
P.T. SARANA STEEL
e.
Etc.
Business
Trend :
Fluctuating
B a n k e r s :
a. P.T. Bank
MANDIRIT Tbk
Plaza
Mandiri
Jalan Jend.
Gatot Subroto Kav. 36-38
Jakarta Pusat
Indonesia
b. P.T. Bank CIMB
NIAGA Tbk
Niaga Tower
Jalan Jend. Sudirman Kav. 58
Jakarta
Selatan
Indonesia
Auditor
:
Internal
Auditor
Litigation
:
Record
indicate Subject was involved as defendants in the following civil claims
a.
The Company has ever declared bankrupt (pailit) by the Jakarta District Court
on 23 January
2002
b.
DR. Chairudddin AKA Lie Then Hwat was involved in controversial dispute and had
been
arrested by local police of Medan on 18
June 2007
Annual
Sales (estimated) :
2010
– Rp. 850.0 billion
2011
– Rp. 895.0 billion
2012
– Rp. 975.0 billion
Net
Profit (estimated) :
2010
– Rp. 61.0 billion
2011
– Rp. 71.6 billion
2012
– Rp. 78.0 billion
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Drs. Raden Endang Rasyid, MBA. MM
Directors -
a. Mrs. Siti Humayah
b. Mr. Sujono
c. Mr. Fuk Ken AKA Kenji Pangestu
d. Mr. Ir. Effendi Sudarsono
e. Mr. Ng Meng Hui
Board of Commissioners :
President Commissioner - Mr. Djamaluddin Tanoto
Commissioners - a. Mr. Ashari Taniwan
b. Mr. Suwanto Kamaruddin
c. Mr. Susanto Lie
d. Mrs. Suliana Taniwan
Signatories :
President
Director (Mr. Drs. Raden Endang Rasyid, MBA. MM) or one of the Directors (Mrs.
Siti Humayah, Mr. Sujono, Mr. Fuk Ken AKA Kenji Pangestu, Mr. Ir. Effendi
Sudarsono or Mr. Ng Meng Hui) which must be approved by Board of Commissioner.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
Proposed
Credit Limit :
Small
amount – periodical review
P.T.
GUNUNG GARUDA (P.T. GG) was established in 1986 with an authorized capital of
Rp. 2,000,000,000 issued capital of Rp. 1,000,000,000 of which Rp. 100,000,000
was paid up. The founding shareholders of the company are the LIE Family of
Medan, North Sumatra, consisting of Mr. Harun, Mr. Sulaiman, Mr. Djamaluddin
AKA Lie Chai Kie, Mr. Chairuddin AKA Lie Then Hwat, Mrs. Fihahati Taniwan, Mrs.
Sehati AKA Lie Tjoei Hoa, Mrs. Suliana Taniwan, Mr. Hasan AKA Lie Te Pie and
Mr. Lie Soei In. They are an Indonesia family of Chinese extraction. The
company's notarial act has frequently been amended both in capitalization and
shareholders. In 1993 its authorized capital was raised to Rp. 210,000,000,000
entirely issued but only Rp. 188,950,000,000 was paid up.
In
May 2006, the authorized capital of the company was raised to Rp.
220,000,000,000 of which Rp. 219,047,500,000 was issued and fully paid up. In
May 2008 all the shareholders of the company pulled out and whole shareholder
sold to MARVEL WAY PTE., LTD., of Singapore as new shareholder. On the same
occasion the company status was changed into Foreign Investment (PMA) status.
The latest in January 2009 the authorized capital was raised to Rp.
1,400,000,000,000 wholly issued and paid up. With this development the
composition of its shareholders bas been changed to become MARVEL WAY PTE.,
LTD., of Singapore (100%) and Mr. DR. Chairuddin AKA Lie Then Hwat of Indonesia
(0.0%)The deed of amendment was made by Mr. Zainal Abidin, SH., was approved by
the Ministry of Law and Human Right in its Decision Letter No.
AHU-30838.AH.01.02.TH.2009, dated July 06, 2009.
We
see the founding owners of the company namely Mr. DR. Chairuddin (the Lie
family) are also the main founders, prime movers and minority business stakes
owners of the GUNUNG STEEL Group, a national private business group based in
Medan, North Sumatra and Jakarta. The Group controls a number of companies with
main business in steel making industry.
P.T.
GG is a domestic capital investment company (PMDN) dealing with steel foundry
and manufacturing of various steel products. Its plant is located at Jalan Imam
Bonjol No.4, Warung Bongkok, Desa Sukadanau, Cibitung, Bekasi, West Java, on a
land of some 150 hectares operating since 1989. It is in the same location with
its sister company plant P.T. GUNUNG RAJAPAKSI (in hot rolled steel plate
industry) and P.T. GUNUNG GAHAPI BAHARA (in steel fabricating and steel
rolling). P.T. GG has two mills and remains one of the largest and most
dominant companies in South East Asia due to advanced technological, starting
from the very inception of this company. The products produced by P.T. GUNUNG
GARUDA are wide flange shape (IWF – HB), unequal angle hot rolled, king cross,
cell form, angle shape, T-beam, queen cross, honey comb. Besides P.T. GG are also
provides steel service like steel cutting, drilling, punching, notching,
painting and galvanizing by using sophisticated machines. It also provides
engineering services like design, structural, shop drawing, erection drawing
and detailing with the newest soft-wares. Some 20% of the products are exported
to Japan, South Korea, Singapore and Hong Kong and the rest is marketed locally
and distributed by P.T. SRIREJEKI ADITAMA, P.T. MENARA MADJU and Toko Besi
TJAYAKO.
P.T.
GG produces heavy steel profile, with an annual production capacity of 300,000
tons. Today, P.T. GG remains one of the largest and most dominant steel
manufacturer in South East Asia due to advanced technological and human
investment made, starting from the very inception of the company. P.T. GG
maintains the same commitment to produce quality steels, ensuring continuous
customer satisfaction. P.T. GG also provides steel services centre (SSC) like
Optimization of steel-structures fabrications through CNC machineries, thus
minimizing time, labour and cost. Supply pre-fabricated steel structures in
different dynamic design ready for immediate site installations, thus help
contractors to reduce buildings times. It also provides engineering services
like Assistance in performing feasibility study, finalizing steel-structural
design with CAD (Computer Aided Design) drawings. Besides, global economic
crisis since October 2008 and tight money policy imposed by Bank Indonesia had
caused the operation of the company declined in 2008 and started increasing
since 2009. We observe that P.T. GG is classified as a large-sized company in
the country of which operation had been fluctuating in the last three
years.
We
have generally observed the demand for steel products had still been rising by
5% to 7% in the last five years. But the burden of the steel industry in the
country is constrained due to the falling raw material scrap. Besides, the
increased cost of production due to rising gas prices and the higher gas prices
and the higher cost of imported raw materials.
Starting in the second semester 2008, many markets in various parts of
the world experienced adverse economic condition. This condition was triggered
by, amongst others, the housing and mortgage loans crisis in the United States
of America (US) that spread to securities, structures products and commodity
markets. The volatility in the US markets coupled with the sharp appreciation
in the US Dollars and a series of corporate bankruptcies and takeovers enabled
the crisis to spread to other parts of the world. The impact of the global
economic crisis has also been felt in Indonesia as the Indonesian Rupiah
weakened, demand decrease, commodity prices decreased, securities market
declines, interest rate increased, followed by decreases, tightened liquidity
conditions, and increased credit risks. Up to this time, the Company has not
significantly suffered from the economic crisis. In response to these economic
events, during 2010 the Company has plans as follows: Negotiation with main
customer regarding increasing selling price. Cost reduction in business trip,
pantry needs, and technical support cost from Japan, etc. Stop production of
products which do not reach profit target. In spite of the adverse economic
conditions, management believes that the Company will be able to continue
operating as going concern for the foreseeable future.
Indonesia’s Steel Production and Consumption, 2008 –
2012*
|
Year |
Production (Million Ton) |
Consumption (Million Ton) |
|
2008 |
5.29 |
7.79 |
|
2009 |
3.71 |
5.65 |
|
2010 |
5.23 |
7.48 |
|
2011 |
6.01 |
8.6 |
|
2012* |
7.02 |
9.5 |
Source: Ministry of Industry,
Processed by ICB
*) Projected
P.T.
GG has not been registered with Indonesian Stock Exchange, so that they shall
not obliged to announce their financial statement. We observed that total sales
turnover of the company in 2010 amounted to Rp. 850.0 billion decrease to Rp.
895.0 billion in 2011 increased to Rp. 975.0 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. 78.0 billion and the company has an estimated total
net worth of at least Rp. 1.4 trillion. We observe that P.T. GG 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 company usually pays its debts punctually to suppliers.
Litigation
Record
1. On 23 January 2002 under decision number No. 04/PKPU/2001, Commercial
Court of Central Jakarta granted an appeal of P.T. Bank NIAGA Tbk to terminate
the permanent PKPU (postponement of obligation for paying debt) of P.T. GUNUNG
GARUDA and to state the debtor to bankrupt.
2. On 14 March 2002, P.T. GUNUNG GARUDA had been declared to be
bankrupted by Commercial Court of Central Jakarta under No.
04/PKPU/2001/PN.NIAGA/JKT PST jo No. 48/PAILIT/PN.NIAGA/JKT.PST. However, the
Supreme Court had announced that the cassation appeal no. Reg. No. 04 K/N/2002,
in the case of bankruptcy of P.T. GUNUNG GARUDA submitted by P.T. Bank NIAGA
Tbk as a creditor, had been won by P.T. GUNUNG GARUDA as a debtor and gave an
extendable period of permanent PKPU to debtor, P.T. GUNUNG GARUDA.
Later both dispute parties took peaceful decision
that the obligation to pay debt has been agreed to be postponed.
Besides, Mr. DR. Chairuddin has been detaining by
police based on accusation of Mr. Henry Wigin in 2006 that Mr. Chairuddin has
counterfeited power of attorney to withdraw deposit money worth Rp 7.5 billion
and US$ 4.1 million owned by P.T. BUMI MANSYUR PERMAI, their owned company.
The management
of P.T. GG is led by Mr. Drs. Raden Endang Rasyid, MBA. MM (70) a professional
manager with experience in structure steel products and hot rolled steel
manufacturing. He replaced Mr. DR. Chairuddin AKA Lie Then Hwat (57) as
President Director since May 2008. 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. GUNUNG GARUDA is sufficiently fairly good for business
transaction.
Attachment:
List of the GUNUNG STEEL Group Members
1.
FAUNA GRAHA KENCANA, P.T. (Hatchery and
Shrimp Farming)
2.
GUNUNG GAHAPI, P.T. (Investment Holding)
3.
GUNUNG GAHAPI BAHARA, P.T. (Steel
Fabricating)
4.
GUNUNG GAHAPI SAKTI, P.T. (Integrated Steels
Mining and Steel Goods Manufacturing and Ships Scraping)
5.
GUNUNG GARUDA, P.T. (Steel H-Beams and Rails
Making)
6.
MARGA KENCANA, P.T. (Steels Making)
7.
MEDIANTARA KENCANA GmbH, Germany (Trading)
8.
MEDIANTARA KENCANA, P.T. (Manufacturing and
Distribution of Micro Computers, Printers and Floppy Disks)
9. MEDIANTARA
Trading, P.T. (Trading)
10. SEMERU
SURYA STEEL, P.T. (Pig Iron Industry)
11. Etc.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
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.