MIRA INFORM REPORT

 

 

Report Date :

12.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. CASTROL INDONESIA

 

 

Formerly Known As :

P.T. PANCA CENTRAL MEKANIKA

 

 

Registered Office :

Perkantoran Hijau Arcardia, Gedung B, 9th Floor Jl. TB Simatupang Kav. 88 Kel. Pasar Minggu Jakarta 12520

 

 

Country :

Indonesia

 

 

Date of Incorporation :

26.09.1985

 

 

Com. Reg. No.:

No. AHU-AH.01.10.46073

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Lube Oil Blending Industry

 

 

No. of Employees :

425 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. CASTROL INDONESIA

 

 

Address

 

Head Office

Perkantoran Hijau Arcardia, Gedung B, 9th Floor

Jl. TB Simatupang Kav. 88

Kel. Pasar Minggu

Jakarta 12520

Indonesia

Phones             - (62-021) 7884 3878 (hunting)

Fax.                  - (62-021) 7884 3875, 7884 3876

Email                - castrolindonesia@castrol.com

Website            - http://www.castrol.com

Building Area     - 12 storey

Office Space      - 1,200 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jl. Raya Merak Km. 117

Desa Gerem, Merak

Banten Province

Indonesia

Phones             - (62-021) 571614 (hunting)

Fax.                  - (62-021) 570740

Land Area         - 100,000 sq. meters

Building Space  -   42,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

 

Registration data

 

Date of Incorporation :

a. 26 September 1985 as P.T. PANCA CENTRAL MEKANIKA

b. 01 July 1998 as P.T. CASTROL INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-60865.AH.01.02.Tahun 2008, dated 10 September 2008

b. No. AHU-AH.01.10.22899, dated 20 July 2011

c. No. AHU-AH.01.10.46073, dated 28 December 2012

 

Company Status :

Foreign Investment Company (PMA)

           

Permit by the Government Department :

a. The Department of Finance

   NPWP No. 01.374.698.7-056.000

 

b. The Capital Investment Coordinating Board

    - No. 282/I/PMDN/1995

      Dated 3 April 1995

    - No. 89/III/PMDN/1997

      Dated 11 March 1997

    - No. 298/III/PMDN/1998

      Dated 8 September 1998

    - No. 24/V/PMA/2002

      Dated 23 April 2002

    - No. 102/II/PMA/2004

      Dated 12 July 2004 

 

Affiliated/Associated Companies :

a. CASTROL Ltd., of the United Kingdom (Investment Holding)

b. P.T. ASTRON LAMTORO BAHANA of Indonesia (General Trading and Investment Holding) 

c. P.T. POLINDO SETYATAMA of Indonesia (General Trading and Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - Rp. 79,160,000,000.-

Issued Capital                      - Rp. 79,160,000,000.-

Paid up Capital                    - Rp. 79,160,000,000.-

 

Shareholders/Owners :

a. CASTROL Ltd., of the United Kingdom                        - Rp. 54,066,300,000.- (68.30%)

b. P.T. ASTRON LAMTORO BAHANA of Indonesia         - Rp. 13,504,700,000.- (17.06%)

c. P.T. POLINDO SETYATAMA of Indonesia                   - Rp. 11,589,000,000.- (14.64%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Lube Oil Blending Industry

 

Production Capacity :

Lubricating Oil               - 200 million liters p.a.

 

 

Total Investment :

a. Equity Capital            - Rp   79.2 billion

b. Loan Capital              - Rp    --     billion

c. Total Investment        - Rp   79.2  billion

 

Started Operation :

1985 when its was named P.T. PANCA CENTRAL MEKANIKA

 

Brand Name :

CASTROL

 

Technical Assistance :

CASTROL Ltd., of the United Kingdom

 

Number of Employee :

425 persons

 

Marketing Area :

Domestic (Local)   - 100%

                                                       

Main Customer :

a. Wholesalers and Distributors of Lubricating Oil and Motor Vehicles

b. Supermarkets, Motor Vehicle Shops, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. PERTAMINA

b. P.T. WIRASWASTA GEMILANG

c. P.T. NUSARAYA PUTRAMANDIRI

d. P.T. AGIP LUBRINDO PRATAMA

e. P.T. DIRGA BUANA NUSANTARA

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

    Wisma BCA

    Jl. Jend. Sudirman Kav. 22-23

    Jakarta Seatan

    Indonesia

b. STANDARD CHARTERED Bank

    Wisma Standard Chartered Bank

    Jl. Jend. Sudirman Kav. 33A

    Jakarta 10220

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2008 – Rp. 480.0 billion

2009 – Rp. 560.0 billion

2010 – Rp. 640.0 billion

2011 – Rp. 730.0 billion

2012 – Rp. 820.0 billion

 

Net Profit (estimated) :

2008 – Rp. 33.2 billion

2009 – Rp. 38.0 billion

2010 – Rp. 42.5 billion

2011 – Rp. 48.4 billion

2012 – Rp. 52.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Strong and Sound

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Gan Soon Kiat

Director s                                  - a. Mr. Umi Kalsum

                                                  b. Mr. Dicky Saelan

 

Board of Commissioners :

President Commissioner             - Mr. Ir. Antonius Setyadi

Commissioners                          - a. Mrs. Jeannie Tai  AKA Tai Kim Nee

                                                  b. Mr. Michael Patrick Rodwell

 

Signatories :

President Director (Mr. Indrasena Patmawidjaja) or one of the Directors (Mrs. Umi Kalsum or Mr. Dicky Saelan) which must be approved by  the President Commissioner (Mr. Ir. Antonius Setyadi) or the Commissioners (Mrs. Jeannie Tai AKA Tai Kim Nee and Mr. Michael Patrick Rodwell)

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below Average

 

Credit Recommendation :

Credit should be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Originally named P.T.PANCA CENTRAL MEKANIKA established on 26 September 1985 with an authorized capital of Rp. 200,000,000.- issued capital of Rp. 40,000,000.- wholly paid-up. Founders and original shareholders are Mr. Eddy Supit and his two younger brothers Mr. Jan Maginda Supit, Mr. Sonny Maginda Supit, Mr. Jeffrey Saleh and Mr. Kardi Bardiman. They are wholly indigenous businessmen. Its articles of association have subsequently been changed for a couple of times both in term of its shareholding composition and capital structure. In March 1994, Mr. Eddy Supit, Mr. Jeffrey Saleh and Mr. Kardi Bardiman withdrew as the shareholders and replaced by Dr. Kanjen Raden Mas Haryo Ibnu Hardjanto, Mr. Sri Winarno, SE and Mr. Alexander Gee.

 

On 1 July 1998, the company was renamed to P.T. CASTROL INDONESIA (P.T.CI) and concurrently the whole shareholders pulled-out and replaced by CASTROL LTD of the United Kingdom (61%), P.T. ASTRON LAMTORO BAHANA (19.5%) and P.T. POLINDO SETYATAMA (19.5%), national private companies of Indonesia.  On the same occasion, the authorized capital was increased to Rp. 19,500,000,000.- wholly issued and paid-up. Later in May 1999, the authorized capital was increased to Rp. 79,160,000,000.- wholly issued and paid-up.   Since September 2008 to now, the shareholders of the company are CASTROL LTD., (68.30%), P.T. ASTRON LAMTORO BAHANA (17.06%) and P.T. POLINDO SETYATAMA (14.64%).  The deed of latest amendment was made by Tjong Sendrawan, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-46073 dated 28 December 2012.

 

The local partners respectively P.T.ASTRON LAMTORO BAHANA and P.T. POLINDO SETYATAMA both are general trading companies and investment holding whose majority business stakes is controlled by Mr. Ir. Antonius Setyadi.  He is also founder and majority business stakes owner of the SUGIRON Group, a small-size business group in Indonesia.

 

P.T. CI obtained a foreign investment (PMA) license for dealing with lube oil blending whose plant located at Jalan Raya Merak Km. 117, Desa Gerem, Serang (West Java) with the area of  10 hectares land. The plant started with trial production in September 1998 by producing lubricating oil with a capacity of 24,000 tons per annum. P.T. CI produces lubricating oil for various needs including industrial oils, engine oils, automotive oils and hydraulic oils wholly under CASTROL brands.  The brand first entered the Indonesian market in 1970.  P.T. CI adopts technology from its foreign partner CASTROL LIMITED of the United Kingdom with extensive experiences and good reputation in lubricating oil blending industry. Its products are entirely distributed domestically through its sister companies P.T. ASTRON LAMTORO BAHANA and P.T. POLINDO SETYATAMA as well as directly to other lubricating oil distributor companies.  Now, P.T. CI’s operation in lube oil blending is classified as a major company with a capacity 200,000 MT per annum.  Products marketed in Indonesia include: Castrol 2T Low Smoke, Castrol Power 1, Castrol Activ and Castrol Go.   P.T. CI is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

We find that the domestic demand for lubricating oil was running into quite big volumes and was rising in the last five years, in close correlation with the expanding assembling industries and growing population of motor vehicles, from motorcycles to various types of motorcars, trucks and heavy equipment in Indonesia. According to the Indonesia Car Manufacturers Association (GAIKINDO) explained that the total of car sales in 2007 amounted to 434 thousand units increased to 608 thousand units in 2008  and declined to 486 thousand units in 2009.  The total of car sales in 2010 rose again to 765 thousand units and to 894 thousand units in 2011 and to 1,116 thousand units in 2012.  The growth of car and motorcycle sales in Indonesia in 2007 to 2012 is pictured on the following table:

 

 

Year

Domestic Car Sales

(‘000 units)

Domestic Motorcycle Sales (‘000 units)

2007

434

4,688

2008

608

6,216

2009

486

5,852

2010

765

7,383

2011

894

8,034

2012

1,116

7,141

                             Source: GAIKINDO and the Indonesian Motorcycle Manufacturer Association (AISMI)

 

Meanwhile, competition is quite heavy in the lubricating oil trade on account of the many companies operating in the same type of business in Indonesia, offering for sale such brands as MESRAN, TOP-1, PENNZOIL, EVALUBE, CASTROL, SHELL, AGIP, MOTUL, Etc.  P.T. CI is considered to be doing quite well for having already established a wide marketing network in several big cities of the country.

 

      The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. The management of the company strongly rejected to disclose its financial condition, but we estimated that total sales turnover of P.T. CI in 2009 amounted to Rp. 560.0 billion increased to Rp. 640.0 billion in 2010 to Rp. 730.0 billion in 2011 to Rp. 820.0 billion in 2012 and estimated to be rising again at least 8% in 2013. The operation of the company in 2012 is estimated to have gained a net profit of Rp. 52.0 billion with a networth of Rp. 465.0 billion.  We did not hear that the company having been black listed by Bank Indonesia (Central Bank) and registered in the court for detrimental cases being settled in the local court.

 

Since December 2012, P.T. CI's management is headed by Mr. Gan Soon Kiat (43) replacing Mr. Indrasena Patmawidjaja (45) as president director.  Mr. Gan Soon Kiat is a Malaysian businessman of Chinese extraction who was born in Pahang, on 18 May 1970 and graduated from National University of Malaysia.  In day-to-day operations he is assisted by Mrs. Umi Kalsum (50) and Mr. Dicky Saelan (41) both as director respectively.  The management, which is evaluated quite creative and dynamic, also has succeeded in expanding their overseas marketing network. We consider the management is quite capable of further developing business in the future. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

By all available information, we appraise P.T. CASTROL INDONESIA is considered to be good for normal business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.64

UK Pound

1

Rs.90.14

Euro

1

Rs.77.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.