MIRA INFORM REPORT

 

 

Report Date :

06.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PIPA MAS PUTIH

 

 

Registered Office :

Gedung Cipta Graha Jalan Kramat Asem Raya No. 1 Utan Kayu Utara Jakarta Timur, 13120

 

 

Country :

Indonesia

 

 

Date of Incorporation :

27.09.1984

 

 

Com. Reg. No.:

Limited Liability Company

 

 

Legal Form :

No. AHU-24140.AH.01.02.TH.2008

 

 

Line of Business :

Pipe Screen Manufacturing

 

 

No. of Employees :

365 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 – 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 more than 6% annually in 2010-12. 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. PIPA MAS PUTIH

 

 

Address

 

Head Office

Gedung Cipta Graha

Jalan Kramat Asem Raya No. 1

Utan Kayu Utara

Jakarta Timur, 13120, Indonesia

Phones             - (62-21) 8194370 (Hunting)  

Fax                   - (62-21) 8563363

E-mail               - contact@pipamas.com

Website            - http://www.pipamas.com

Building Area    - 3 storey

Office Space    - 400 sq. meters

Region              - Commercial

Status               - Owned

 

Repairshop

Jalan Duri Dumai Km. 4 Point 5

Pekanbaru, Riau Province

Indonesia

Phone               - (62-765) 91730

Fax                   - (62-765) 91730

E-mail               - sec.pdfi@pipamas.com

Land Area         - 2,000 sq. meters

Building Space  - 1,200 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory

Jalan Tenggiri No. 1

Batu Ampar Industrial Estate

Batam Island

Kepulauan Riau Province

Indonesia

Phones             - (62-778) 412522 (Hunting)  

Fax                   - (62-778) 412557

E-mail               - pbfi@pipamas.com

Land Area         - 24,500 sq. meters

Building Space  - 17,600 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Registration data

 

Date of Incorporation :

27 September 1984

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-20168.HT.01.04.TH.1999

  Dated 16 December 1999

- No. AHU-24140.AH.01.02.TH.2008

  Dated 9 May 2008

 

Company Status :

National Private and Domestic Investment (PMDN) Company

           

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.062.048.2-001.000

b. The Capital Investment Coordinating Board

    - No. 53/I/PMDN/1985

      Dated 4 May 1985

-  No. 45/II/PMDN/1991

  Dated 26 February 1991

c. The Department of Industry

    No. 117/Industri/1986

    Dated 30 September 1986

 

Related Company :

A Member Company of the PIPA MAS Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 16,000,000,000.-

Issued Capital                                 : Rp. 16,000,000,000.-

Paid up Capital                               : Rp. 16,000,000,000.-

 

Shareholders/Owners :

a. DR. Sopar Pandjaitan                                         - Rp. 14,498,000,000.-

    Address : Jl. Tegal No. 4 RT. 010/007

                    Menteng, Jakarta Pusat

                    Indonesia 

b. Mrs. Tiolan Sopar Pandjaitan                             - Rp.   1,500,000,000.-

    Address : Jl. Tegal No. 4 RT. 010/0

                    Menteng, Jakarta Pusat

                    Indonesia

 

c. Mr. Yusuf Ginting Munthe                                  - Rp.          1,000,000.-

    Address : Jl. Camat Gabun No. 1

                    Lenteng Agung, Jagakarsa

                    Jakarta Selatan

                    Indonesia

d. Mr. Bambang Eko Agus Soenarko                      - Rp.          1,000,000.-

    Address : Jl. Rasamala RT. 008/006

                    Utan Kayu Selatan, Matraman

                    Jakarta Timur

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Pipe Screen Manufacturing

 

Production Capacity :

a. Pipe-Base Screens                      -   9,100 unit p.a.

b. Rod-Base Screens                      -      120 unit p.a.

c. Pre-Pack Base Screens                -        20 unit p.a.

d. Tell-Tale Base Screens                 -        20 unit p.a.

e. Pup-Joints                                  -   1,200 unit p.a.

f.  Down Hole Tool Repairs              - 15,200 unit p.a.

g. Waterwell Screens                       -   1,800 unit p.a.

i.  Tubing Repairs                            -   9,000 unit p.a.

 

Total Investment :

a. Equity Capital                              - Rp. 16.0 billion

b. Loan Capital                                - Rp.   3.1 billion

c. Total Investment                          - Rp. 19.1 billion

 

Started Operation :

1986

 

Brand Name :

Pipa Mas Putih

 

Technical Assistance :

None

 

Number of Employee :

365 persons

 

Marketing Area :

Local       - 80%

Export     - 20%

 

Main Customers :

a. P.T. PERTAMINA

b. BEYOND PETROLEUM (BP)

c. P.T. CHEVRON PACIFIC INDONESIA

d. EXXONMOBIL OIL INDONESIA INC.

e. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CITRA TUBINDO Tbk

b. P.T. HI-TECH OILFIELD INDONESIA

c. P.T. PATRAINDO NUSA PERTIWI

d. P.T. WOOD GROUP INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank MANDIRI TBk

      - Jalan Thamrin No. 5

        Jakarta Pusat

      - Jalan R.E. Martadinata

        Sekupang, Batam

        Kepulauan Riau Province

        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp.   85.0 billion

2008 – Rp.   94.0 billion

2009 – Rp. 108.0 billion

 

Net Profit (estimated) :

2010 – Rp. 6.8 billion

2011 – Rp. 8.0 billion

2012 – Rp. 9.4 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - DR. Sopar Pandjaitan

Directors                                         - a. Mrs. Helena Tornauli Pandjaitan

                                                        b. Mr. Paul Iman Parasi Pandjaitan

                                                        c. Mr. Drs. Yusuf Ginting Munthe

Vice President & Business Dev.       - Mr. Saut Siahaan

 

Board of Commissioners :

President Commissioner                  - Mrs. Tiolan Sopar Pandjaitan

Commissioner                                 - Mr. Bambang Eko Soenarko

 

Signatories :

President Director (DR. Sopar Pandjaitan) or one of the Directors (Mrs. Helena Tornauli Pandjaitan, Mr. Paul Iman Parasi Pandjaitan or Mr. Drs. Yusuf Ginting Munthe) which must be approved by Board of Commissioner.

 

 

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

 

P.T. PIPA MAS PUTIH (P.T. PMP) was established in September 1984 with an authorized capital of Rp. 1,000,000,000 entirely issued, of which Rp. 100,000,000 was paid up. The company was founded by Mr. Leo Lopulisa (a retired Army Lieutenant General), his wife Mrs. Blondiene Lopulisa, DR. Sopar Pandjaitan and his wife Mrs. Tiolan Sopar Pandjaitan as the original shareholders. They are all indigenous businessmen and businesswomen. The company's articles of association were subsequently revised several times, lastly in August 1993 when the authorized capital was increased to Rp. 6,000,000,000 entirely issued and paid up. Meanwhile, the shareholders are comprised of DR. Sopar Panjaitan and his wife Mrs. Tiolan Sopar Panjaitan. The latest in April 2008 the authorized capital was raised to Rp. 16,000,000,000 entirely issued and paid up. On the same occasion Mr. Yusuf Ginting Munthe and Mr. Bambang Eko Agus Soenarko entered into the company as new shareholders. With this development the composition of its shareholders has been changed to become DR. Sopar Pandjaitan (90.61%), his wife Mrs. Tiolan Sopar Pandjaitan (9.37%), Mr. Yusuf Ginting Munthe (0.01%) and Mr. Bambang Eko Agus Soenarko (0.01%). The deed of amendment was made by Mr. Robert Purba, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-24140.AH.01.02.TH.2008, dated April 21, 2008.

 

We observe that DR. Sopar Pandjaitan is a young brother of the late Mr. D.I. Panjaitan, an Army Major General who was killed in 1965. P.T. PMP is a member company of the PIPA MAS Group, a small-sized business group headed by DR. Sopar Panjaitan.

 

P.T. PMP obtained a Domestic Investment (PMDN) permit issued by Investment Coordinating Board (BKPM) for dealing with the manufacturing of oil and gas drilling equipment and maintenance services by managing a plant located at Jalan Tenggiri No. 1, Batu Ampar Industrial Estate, Batam, Kepulauan Riau Province standing on 24,500 sq. meters land operating as from 1986 and expanded frequently for increasing its total production capacity. The plant produces pipe-base screens, rod-base screens, pre-back base screens, tell-tale base screens, pup-joints, down hole tool repairs, waterwell screens, pipe-base screens, repairs and tubing repairs. The construction of the plant absorbed an investment of Rp. 19.1 billion originating from own capital of Rp. 16.0 billion while the rest is loan. Most of the basic materials in the form of casing, tubing and others are imported from the USA, Japan and Singapore.

 

Some 80% of products is sold to P.T. PERTAMINA EP, P.T. PERTAMINA, state owned oil & gas company, the Department of Mines & Energy, government owned drinking water supplies utilities, P.T. CHEVRON PACIFIC INDONESIA, TOTAL E&P INDONESIE, EXXONMOBIL OIL INDONESIA INC., BEYOUND PETROLEUM (BP PLC), GULF RESOURCES INDONESIA and other contracting oil companies operating in Indonesia. Some 20% of products are exported to Singapore, Malaysia and Brunei Darussalam. In quality, P.T. PMP has been granted an API certificate from American Petroleum Institute Specification 6 A, 7 and 5 CT in 1993. P.T. PMP has been successful in penetrating the Saudi Arabian market after the company last week realized its firs export of steel pipeline to the Saudi Arabian oil industry through Batu Ampar ports, Batam Island on October 03, 2006. P.T. PMP ships three containers of 958-diameter pipes, each of which loads 141 pipes worth US$ 200,000. Previously, P.T. PMP has also exported its products to various countries like Libya, Australia, Bangladesh, and some other Middle Eastern countries.

 

The export realized after the company wins the tender for pipe procurement by beating its international competitors. DR. Sopar Panjaitan, President Director of the company explained that the initial export would ship three containers of steel pipelines and after the shipment would take place every month at various volumes based on demand. Besides, in May 2000, P.T. PIPA MAS PUTIH through Mr. DR. Sopar Panjaitan (33.3%) and ISOGAI Japan (66.7%) established P.T. ISOGAI INDONESIA to deal with a high precision bolt manufacturing plant worth US$ 3.5 million. Its plant is located in Delta Silicone Industrial Park, Lippo Cikarang, Bekasi, West Java operating as from the end of 2000 by producing precise screw, screw, nut & washer with 7,000 tons per annum.

 

We find that generally the demand for pipe screen has kept on rising by at least 6% to 8% per years in the last five years in line with the growth and developing of oil and natural gas exploration and production in the country as customer. But the market is very competitive in view of many brands of pipe screen products offered for sales in the market, including particularly imported ones. Besides that the growing crude oil price started as from the middle of 1999 and constantly rising within 2007 has blown fresh air to Indonesian government and oil companies. In the effort of stabilizing the world's crude oil price above US$ 90 per barrel in 2008 and sharply dropped to US$ 40 to US$ 100 per barrel in early 2011.

 

Despite crude oil price problem, Indonesia has kept on attempting to increase its crude oil and natural gas production including natural gas. The business position of P.T. PMP is favorable on account of having already established customers and wide marketing networks in the country. Details on production growth of Indonesian crude oil and natural gas as from 2000 to 2012 are pictured bellows.

 

Year

Petroleum

(000 barrels)

Gas

Gas (000 MSCF)

LNG (000 MMBTU)

LPG (MT)

2000

516,503

2,907,327

1,411,608

2,062,616

2001

490,145

2,803,034

1,257,446

2,190,120

2002

474,884

3,031,028

1,352,878

1,792,575

2003

420,995

3,142,605

1,347,349

1,921,757

2004

438,455

3,113,338

1,390,466

1,677,619

2005

387,698

3,036,195

1,338,782

1,581,727

2006

366,993

3,178,278

1,159,770

1,238,572

2007

357,143

2,949,506

1,258,951

1,671,715

2008

357,501

3,136,657

1,093,435

1,800,383

2009

346,312

3,023,944

   970,769

1,560,929

2010

341,228

3,291,912

   1,017,216

2,538,106

2011

332,752

4,811,814

1,373,829

n.a.

2012*

238,946

2,396,952

890,030

n.a

Source: Statistic of Central Board, 2012* (January – September)

 

Until this time P.T. PMP 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. 85.0 billion rose to Rp. 94.0 billion in 2011 increased to Rp. 108.0 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. 9.4 billion and the company has an estimated total networth of at least Rp. 80.0 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 company's management is led by DR. Sopar Panjaitan (78), who is well experienced in various business fields. The experienced management is supported by a team of professional managers who are skilled in the field of pipe screens manufacturing and distribution. The management has wide relations with high-ranking government officials and state-owned business enterprises (BUMN), attributable also to the fact that the company belongs to the family of national hero. They are also fairly widely connected with overseas private businessmen. 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. PIPA MAS PUTIH is sufficiently fairly good for business transaction.

 

 

Attachment:

 

 

List of the PIPA MAS Group Members

 

 

1.       ATLAS NUSANTARA EKA, P.T. (Trading, Supplier and Maintenance of Heavy Equipment)

2.       ASTEK INDOMAS, P.T. (Certification and Quality Assurance Consulting Services)

3.       BARITA TOR NAULI, P.T. (Daily Newspaper Publication)

4.       ISOGAI INDONESIA, P.T. (Bolt and Nuts Manufacturing)

5.       LAPISINDO PRATAMA, P.T. (Rockwool Thermal Insulation Specialist)

6.       LEADERSHIP MANAGEMENT INTERNATIONAL, P.T. (Management Consulting)

7.       NAGAOKA INDONESIA, P.T. (Waste Water Treatment Contracting)

8.       POLUSINDO UTAMA ENGINEERING, P.T. (Contracting Services)

9.       PIPA MAS PUTIH, P.T. (Pipe Screen Manufacturing)

10.    SOLUMAS OIL TOOL, P.T. (Trading, Supplier and Distribution of Oilfield Equipment)

11.    Etc

 

* * *


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.34

UK Pound

1

Rs.90.78

Euro

1

Rs.77.81

 

 

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%)

 

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.