MIRA INFORM REPORT

 

 

Report Date :

06.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PEROXIDA INDONESIA PRATAMA

 

 

Registered Office :

Graha Purna Bakti Building, Jalan Jend. A. Yani No. 39, Cikampek, 41373, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

28.10.1987

 

 

Com. Reg. No.:

No. AHU-AH.01.10-29896

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Hydrogen Peroxide (H2O2) Industry

 

 

No. of Employees :

127

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 an estimated 6.2% and 6.5% 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 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. PEROXIDA INDONESIA PRATAMA

 

 

Company Address

 

Head Office & Marketing

Graha Purna Bakti Building

Jalan Jend. A. Yani No. 39

Cikampek, 41373

West Java

Indonesia

Phones             - (62-264) 313383, 313387

Fax                   - (62-264) 318577, 313386

E-mail               - info@ptpip.co.id

                          marketing@ptpip.co.id

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

Building Area    - 1 storey

Office Space    - 100 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Plant Site

Kawasan Industri Kujang Cikampek (KIKC)

Jalan Jend. A. Yani

Dawuan, Karawang

Cikampek, 41373

West Java

Indonesia

Land Area         - 20 hectares

Building Space  - 10,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

 

Date of Incorporation

 

28 October 1987

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C2-4865.HT.01.04.TH.89

  Dated 1 June 1989

- No. AHU-30342.AH.01.02.TH.2009

  Dated 2 July 2009

- No. AHU-AH.01.10-29896

  Dated 10 August 2012

 

 

Company Status

 

Foreign Investment (PMA) Company

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.061.661.3-052.000

 

The President of the Republic of Indonesia

No. B-71/Pres/10/1987

Dated 10 October 1987

 

The Capital Investment Coordinating Board

- No. 56/I/PMA/1987

  Dated 16 October 1987

- No. 400/III/PMA/1991

  Dated 24 June 1991

- No. 99/II/PMA/1994

  Dated 14 June 1994

- No. 1086/III/PMA/1996

  Dated 12 December 1996

- No. 121/II/PMA/1997

  Dated 15 July 1997

- No. 338/III/PMA/2001

  Dated 27 March 2001

- No. 554/III/PMA/2001

  Dated 11 May 2001

 

The Department of Industry

No. 265/T/INDUSTRI/1997

Dated 12 June 1997

 


Related Companies

 

a.   MITSUBISHI CORPORATION, Japan (Investment Holding)

b.   NITSUBISHI GAS CHEMICAL COMPANY INC., Japan (Investment Holding)

c.   P.T. PUPUK KUJANG (Ammonia and Urea Fertilizer Industry and Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 10,000,000.-

Issued Capital                                 : US$ 10,000,000.-

Paid up Capital                               : US$ 10,000,000.-

 

Shareholders/Owners :

a. MITSUBISHI GAS CHEMICAL COMPAN, INC.                - US$ 6,000,000.-

    Address : Mitsubishi Building 5-2,

                    Marunouchi 2-chome Chiyoda-ku

                    Tokyo, Japan               

b. MITSUBISHI CORPORATION                                         - US$ 2,000,000.-

    Address : Mitsubishi Building 5-2,

                    Marunouchi 2-chome Chiyoda-ku

                    Tokyo, Japan               

c. P.T. PUPUK KUJANG (Perser)                                       - US$ 2,000,000.- 

    Address : Jl. Jend. A. Yani No. 39

                    Karawang, Cikampek

                    West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Hydrogen Peroxide (H2O2) Industry

 

Production Capacity :

Hydrogen Peroxide (H2O2)              - 84,160 tons p.a.

 

Total Investment :

a.   Equity Capital                           - US$ 10.0 million

b.   Loan Capital                              - US$ 79.3 million

c.   Total Investment                        - US$ 89.3 million

 

Started Operation :

January 1991

 

Brand Name :

Peroxide Indonesia Pratama (PIP)

Technical Assistance :

Mitsubishi Gas Chemical Company, Inc., Japan

 

Number of Employee :

127 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Pulp and Paper Industry, Pharmaceutical Industry, Textile Industry, Rubber Industry

 

Market Situation :

Very Competitive

 

 

Main Competitors :

a. P.T. DEGUSSA PEROXIDE INDONESIA

b. P.T. SAMATOR INTI PEROXIDE

c. P.T. SINDOPEX PETROTAMA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank NEGARA INDONESIA Tbk

      Jalan Jend. A. Yani

      Cikampek, West Java

      Indonesia

b.   The Bank of Tokyo – Mitsubishi UFJ Ltd.

      Mid Plaza 1 Building, 1st & 3rd Floor

Jalan Jend. Sudirman Kav. 10-11

Jakarta Pusat, 10227

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 325.0 billion

2011 – Rp. 337.0 billion

2012 – Rp. 348.0 billion

 

Net Profit (estimated) :

2010 – Rp. 26.0 billion

2011 – Rp. 27.0 billion

2012 – Rp. 28.5 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Yasushi Hiramatsu

Directors                                         - a. Mr. Jumpei Kato

                                                        b. Mr. Adhi Susetyo

                                                        c. Mr. Shinjiro Sawamoto

 

Board of Commissioners :

President Commissioner                  - Mr. Yuni Suryanto

Commissioners                               - a. Mr. Ryoichi Kakiki

                                                        b. Mr. Mitsuaki Sonohara

                                                        c. Mr. Yoshiyuki Morikawa

 

Signatories :

President Director (Mr. Yasushi Hiramatsu) or one of the Directors (Mr. Jumpei Kato, Mr. Adhi Susetyo or Mr. Shinjiro Sawamoto) which must be approved by Board of Commissioner.

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

OVERALL PERFORMANCE

 

P.T. PEROKSIDA INDONESIA PRATAMA (P.T. PIP) was established in Cikampek, West Java on 28 October 1987 with an authorized capital of US$ 12,930,000 entirely issued and paid-up. Founders and original shareholders of P.T. PIP were P.T. PUPUK KUJANG (a state-owned enterprise BUMN) as the local partner and MITSUBISHI GAS CHEMICAL COMPANY INC., of Japan. The company notary deed has been changed In January 1989 the company had been joined by new shareholders namely Mr. Sigit Harjojudanto (the first son of the late Mr. Soeharto, the former President of the Republic of Indonesia), E.I. DU PONT DE  NEMOURT of USA and MITSUBISHI CORP., of Japan. In the early of 1990 Mr. Sigit Harjojudanto pulled out and then was replaced by P.T. TALANG GUMBALA ANDHIKA, a national private company. Later in June 2009 the authorized capital was reduced US$ 10,000,000 wholly issued and paid up. On the same occasion the composition of its shareholders has been changed to become MITSUBISHI GAS CHEMICAL COMPANY, INC., Japan (60%), MITSUBISHI CORPORATION, Japan (20%) and P.T. PUPUK KUJANG (20%). Then according to the latest revision of notary documents of Mrs. Poerbaningsih Adi Warsito, SH., No. 42 dated 24 July 2012 the company board of director and the board of commissioner had been changed (see profile). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-29896 dated August 10, 2012.

 

P.T. PIP has obtained Foreign Capital Investment (PMA) license to be engaged in hydrogen peroxide processing. Its plant located in the village of Dawuan, Cikampek, West Java, stands over 20 hectares wide land. The plant started up with operation in January 1991 by using the technology of its holding company MITSUBISHI GAS CHEMICAL COMPANY INC., of Japan. Since its establishment in 1987, company has participated in development of Indonesia and contributes the thing through its activity in construction, production and marketing of its product. Hydrogen Peroxide (H2O2). Hydrogen peroxide is an environmental-friendly chemical.  Hydrogen peroxide is a strong oxidizer that is used as bleaching agent for pulp, paper, textile, wood and rattan, de-inking process on the recycling process of used paper, raw materials for other chemicals (detergent, epoxy, etc.), metal etching in electronic industry, disinfectant for food and drink packaging process, water treatment, etc.Currently, PIP produces 35%, 50% and 60% hydrogen peroxide. PIP provides several types of packaging, i.e. 35Kg PE-Can, 230Kg PE-Drum, 1MT Container and 18MT Container. Hydrogen peroxide is produced by reacting hydrogen gas with working solution through hydrogenation process. Hydrogenated working solution is then oxidized by oxygen to produce hydrogen peroxide, which is still mixed with working solution. The mixture of hydrogen peroxide and working solution is then extracted by water, purified and concentrated through distillation process.

 

Hydrogen peroxide produced by PIP is stabilized hydrogen peroxide. However, there are some factors that need to be taken into account when dealing with hydrogen peroxide storage. Here are the guidelines for storage of hydrogen peroxide. Types of materials used as packaging materials for tank, pipe, pump, valve, fitting, gasket and hose have to be compatible with hydrogen peroxide and will not cause decomposition reaction. Hydrogen peroxide will decompose into water and oxygen.

 

The following table shows standard specification of facilities used for handling and storage of hydrogen peroxide.

 

 

Facilities

Excellent

Good

Tank

Stainless steel
SUS304L / SUS306L

HDPE
(passed life test)

Small size tank

Stainless steel
SUS304L / SUS306L

HDPE
(passed life test)

Pipe and Fitting

Stainless steel
SUS304L / SUS306L

PVC

Pump

Casing : SCS14
Impeller : SCS14
Inner parts : SCS14
Shaft & sleeve : SUS316
Gasket : Viton/ Teflon
Bolt & nut : SS41

 

Valve

Main : SUS304 / SUS306
Seat : Teflon
Valve with disc hole

PVC

Gasket

Viton
Teflon (PTFE)

Teflon cushion
Silicon rubber
Uncompounded PVC

Hose

Reinforced vinyl hose

            Source: PIP

 

The whole products of P.T. PIP are marketed locally to a number of paper and textile industries in pulp and paper industries, wood & rattan industries, industrial chemicals, metal etching industries, packaging industries, water treatment industries in Jakarta, West Java, Central Java and East Java. The whole products is supplied to pulp and paper industry such as P.T. FAJAR SURYA WISESA Tbk, P.T. TOBA PULP LESTARI Tbk, P.T. RIAU ANDALAN PULP AND PAPER, P.T. LONTAR PAPYRUS SAKTI, P.T. INDAH KIAT PULP AND PAPER, P.T. TJIWI KIMIA, P.T. TANJUNG ENIM LESTARI PULP AND PAPER; textile industry such as P.T. PANAYSIA INDOSYNTEC, P.T. INDOGERMAN TECHNOLOGY; and others industries. We observe P.T. PIP is one the largest producer of hydrogen peroxide in the country which operation has been running and growing well.

 

In overall views we find the demand for hydrogen peroxide (H2O2) had been rising by 6% to 8% per year in the last five years, in line with the growth of pulp and paper industries, pharmaceutical industries, textile industries, foams and rubber industries as consumers. But, later dwindled as the global economic slowdown since October 2008, followed by tight money policy imposed by Indonesian Central Bank (Bank Indonesia) and also heated by political issue in the country. The demand growth started to awake in June 2009 in line with the amelioration of economic condition in the country. Expected growth of the chemical industry and rubber goods will increase by about 5.7% in the year 2013. Business position of P.T. PIP is quite well for the company has controlled a wide marketing in the country. Competition is very tight because lots of companies operating in the country. See the table below:

 

Ground Hydrogen Peroxide producers, and production capacity 2007

 

No.

Producers

Production Capacity (Tons/year)

1.

2.

3.

4.

P.T. SINDOPEX PEROXIDE

P.T. PEROXIDA INDONESIA PRATAMA

P.T. SAMATOR INTI PEROXIDA

P.T. DEGUSSA PEROXIDA INDONESIA

30,000

84,160

60,000

30,000

 

Total

204,000

         Source: The Department of Industry

 

Until this time P.T. PIP has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company 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. 325.0 billion rose to Rp. 337.0 billion in 2011 increased to Rp. 348.0 billion in 2012 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 28.5 billion and the company has an estimated total networth of at least Rp. 125.0 billion. We observe that P.T. PIP 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.  

 

The management of P.T. PIP is led by Mr. Yasushi Hiramatsu (56) a professional manager of Japan with experience in hydrogen peroxide industry and trading. 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. PEROXIDE INDONESIA PRATAMA is sufficiently fairly good for business transaction.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.90.79

Euro

1

Rs.77.81

 

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.