MIRA INFORM REPORT

 

 

Report Date :

13.07.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. BENTOEL PRIMA

 

 

Registered Office :

Jalan Raya Karanglo, Singosari Malang 65153 East Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2010 (Company and Subsidiaries)

 

 

Date of Incorporation :

07.02.1992

 

 

Com. Reg. No.:

No. AHU-AH.01.10-37701

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Clove and White Cigarettes Manufacturing

 

 

No. of Employees :

5,824 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. BENTOEL PRIMA

 

 

Address

 

Head Office & Factory

Jalan Raya Karanglo, Singosari

Malang 65153

East Java, Indonesia

Phones             - (0341) 490000, 841707-09, 491614-15

Fax                   - (0341) 495710

Land Area         - 60,500 sq. meters

Building Space  - 32,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Factory 2

Jalan Susanto No. 2-A

Malang 65148

East Java, Indonesia

Phones             - (0341) 326321 (hunting), 320353

Fax                   - (0341) 491660

Land Area         - 40,000 storey

Factory Space   - 27,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Registration data

 

Date of Incorporation :

7 February 1992

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-44039.AH.01.02.Tahun 2008

    Dated 23 July 2008

b. No. AHU-AH.01.10-13841

    Dated 20 April 2012

c. No. AHU-AH.01.10-37701

    Dated 22 October 2012

 

 

Company Status :

Domestic Investment Company (PMDN)

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.586.692.4-092.000

 

b. The Department of Industry

    - No. 014/Reg/Kanwil 1.13/AI/IUT/IX/1989

       Dated 5 October 1989

     - No. 402/DJAI/IUT-D5/Non PMA-PMDN/XII/1992

       Dated 3 December 1992

 

 c. The Capital Investment Coordinating Board 

     No. 544/PMDN/1997

     Dated 6 October 1997

 

Holding Company :

PT. BENTOEL INTERNASIONAL INVESTAMA Tbk, (Investment Holding)

 

Subsidiary Companies :

a. PT. Perusahaan Dagang dan Industri TRESNO (White Cigarette Manufacturing)

b. PT. Perusahaan Dagang dan Industri SUBURAMAN (White Cigarette Manufacturing)

c. PT. Perusahaan Dagang dan Percetakan AMISETA (Cigarette Distribution)

d. PT. TAMAN BENTOEL (Recretation Park Development and Management)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                - Rp. 600,000,000,000.-

Issued Capital                      - Rp. 462,500,000,000.-

Paid up Capital                    - Rp. 462,500,000,000.-

 

Shareholders/Owners :

a. P.T. Bentoel Internasional Investama Tbk.     - Rp.  462,499,999,000.-  (99.9999%)

    Address : Menara Rajawali, 23th Floor

                   Jalan Mega Kuningan Lot 5-1

                   Jakarta Selatan - Indonesia    

b. P.T. Kencana Cipa Batja                               - Rp.                    1,000.-  (  0.0001%)

    Address :Jalan Raya Karanglo, Singosari

                    Malang 65153

                    East Java – Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Clove and White Cigarettes Manufacturing

b. Plastic and Carton Packaging Manufacturing

c. Sole Agent and Distributor of:

     - INTER BIRU White and Clove Cigarettes from P.T. SUBURAMAN

     - STARMILD White Cigarettes from P.T. LESTARIPUTRA WIRASEJATI

d. Investment Holding

 

Production Capacity :

a. Hand Clove Cigarettes            -    2,200.0 million pcs. p.a.

b. Machine Clove Cigarettes        -    8,177.4 million pcs. p.a.

c. Carton Packaging                   -  24,000.0 tons p.a.

d. Laminated                             -    4,800.0 tons p.a.

e. Rotogravure                           -    9.072.0 tons p.a.

f.  Flexo                                                -  11,400.0 tons p.a.

 

Total Investment :

a. Equity Capital                     - Rp.   462.5 billion

b. Loan Capital                       - Rp.   632.0 billion

c. Total Investment                  - Rp.1,094.5 billion

 

Started Operation :

September 1996

 

Brand Names :

a. BENTOEL BIRU

b. BENTOEL MILD

c. STAR MILD

d. INTER BIRU

 

Technical Assistance :

None

 

Number of Employee :

5,824 persons

 

Marketing Area :

Domestic    - 90%

Export         - 10%                            

 

Main Customers :

The Publics

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. GUDANG GARAM Tbk

b. P.T. DJARUM

c. P.T. HM SAMPOERNA Tbk

d. P.T. Pabrik Rokok DJARUM

e. P.T. PHILIP MORRIS INDONESIA

f.  P.T. NOJORONO

g. P.T. MINAK JINGGO

h. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank RAKYAT INDONESIA Tbk

    BRI Plaza

    Jalan Jend. Sudirman Kav. 44-46

    Jakarta Selatan

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Bank Mandiri Building

    Jalan M.H. Thamrin No. 5

    Jakarta Pusat

    Indonesia

c. P.T. Bank CENTRAL ASIA Tbk

    Wisma BCA

    Jalan Jend. Sudirman Kav. 22-23

    Jakarta Selatan

    Indonesia

 

Auditor :

Tanudiredja, Wibisana & Rekan

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2009 – Rp. 4,420.2 billion

2010 – Rp. 4,975.2 billion

2011 – Rp. 5,570.0 billion (estimated)

2012 – Rp. 6.015.0 billion (estimated)

 

Net Profit (Loss) :

2009 –  Rp.   64.5 billion  

2010 –  Rp. 105.6 billion

2011 –  Rp. 118.0 billion (estimated)

2012 –  Rp. 124.0 billion (estimated)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Jason Fitzgerald Murphy

Director s                                  - a. Mr. Kho Kusuma Widjaja

                                                  b. Mr. Tang Chung Leong

                                                  c. Mrs. Dian Paramita

 

Board of Commissioners :

President Commissioner - Mr. Andre Willem Jaubert

Commissioner                           - Mr. Prijunatmoko Sutrisno

 

Signatories :

President Director (Mr. Jason Fitzgerald Murphy) or one of the Directors (Mr. Kho Kusuma Widjaja, Mr. Tang Chung Leong or Mrs. Dian Paramita) which must be approved by Board of Commissioners (Mr. Andre Willem Jaubert and Mr. Prijunatmoko Sutrisno)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Above Average

 

Credit Recommendation :

Credit should be extended under guarantee

 

Proposed Credit Limit :

C.O.D. To small amount

 

 

OVERALL PERFORMANCE

 

      The company was established in February in 1992 with an authorized capital of Rp. 500,000,000.- issued capital of Rp. 200,000,000.- wholly paid-up. Founders and shareholders of P.T. BENTOEL PRIMA (P.T. BP) are P.T. RAJAWALI CORPORATION (originally named P.T. RAJAWALI WIRA BHAKTI UTAMA) and Mr. Budhy Gunawan Wibisono Budhyarto, an Indonesian businessman of Chinese extraction. Its articles of association has frequently been revamped for a couple of times. Later in September 1997, the authorized capital was increased to Rp. 600,000,000,000.- billion issued capital to Rp. 185,000,000,000.- wholly paid-up. On the same occasion, Mr. Budhy Gunawan Wibisono Budhyarto pulled-out and replaced by P.T. Perusahaan Rokok TJAP BENTOEL. By the end of January 2000 P.T. RAJAWALI granted its 2.5% shares to Koperasi Karyawan P.T. BENTOEL PRIMA TUNAS HARAPAN.

 

      The Articles of Association has been frequently changed for a couple of times. In December 2002, P.T. BP's whole shares were taken over by P.T. BENTOEL INTERNASIONAL INVESTAMA Tbk., (99.999%) and P.T. RAJAWALI CORPORATION (0.001%).    In December 2008, an issued capital was raised to Rp. 462,500,000,000 entirely paid up.  Concurrently, P.T. RAJAWALI CORPORATION pulled out and the whole share is sold to P.T. KENCANA CIPA BATJA, a private company. The amendment Articles of Association was made by Mrs. Diah Guntari L. Soemarwoto, SH., a public notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-44039.AH.01.02.TH.2008 dated 23 July 2008 and No. AHU-AH.01.10-37701 dated 22 October 2012.

 

      P.T. BENTOEL INTERNASIONAL INVESTAMA Tbk, a public listed company whose shares ware originally owned by Bella Sapphire Ventures Limited (41.73%), Eagle High Consumer Products Pte Ltd (14.48%), Citibank N.A. (9.66%), and Publics (34.13%). But, as of 31 March 2010, the above shareholders pulled out and the whole shares are sold to BRITISH AMERICAN TOBACCO (PCA 2009) Ltd., of the USA (99.14%) and Publics (0.86%).

 

      P.T. BP is dealing with clove cigarettes and packaging industry operating as from July 1997. P.T. BP operates 2 units of factories respectively machine made clove cigarettes manufacturing located at Jalan Raya Karanglo and hand rolled clove cigarette manufacturing.  The above two factories were originally owned by its parent company P.T. Perusahaan Rokok TJAP BENTOEL.  Most of its other assets including the factories have already been handed over to P.T. BP. Some of the assets to have been shifted to P.T.BP are cigarette basic materials, warehouses, office buildings, branch office and marketing offices and marketing network, trademarks as well as patent, on suggestion from P.T. Bank RAKYAT INDONESIA and P.T. Bank MANDIRI (ex. P.T. Bank Bumi Daya) as part of debt restructuring P.T. Perusahaan Rokok TJAP BENTOEL to both state-owned banks.

 

      After the taking over of the above assets, P.T. BP controls 99.99% shares of P.T. Perusahaan Dagang dan Industri TRESNO (white cigarette manufacturing), 99.88% shares of P.T. TAMAN BENTOEL (recreation park development and management), 99.60% shares of P.T. Perusahaan Dagang dan Industri SUBURAMAN (white cigarette manufacturing) and controls indirect 99.99% shares of P.T. AMISETA (white cigarettes manufacturing). The table of P.T. BP’s subsidiary companies shall be as follows:

 

 

                       (In Rp million)

Name of Subsidiary

Business Activity

Start of Operations

% of Ownership

Total Assets

Direct Ownership

 

 

 

 

PT. Perusahaan Dagang dan Industri TRESNO (PDIT)

White cigarette manufacturing

1985

99.99

398,671

PT. TAMAN BENTOEL (TBL)

Recreation park development

1972

99.88

17,231

PT. Perusahaan Dagang SUBURAMAN (PDS)

White cigarette manufacturing

1993

99.60

447,106

Indirect Ownership through PDS

 

 

 

 

PT. AMISETA

White cigarette manufacturing

1957

99.99

67,624

Source: PT. Bentoel Prima

 

      According to the financial statement of the company having been audited by Tanudiredja, Wibisana & Rekan, a public accountant, the net revenues of P.T. BP in 2008 amounted to Rp. 4,741.9 billion with a net loss of Rp. 205.0 billion, declined to Rp. 4,20.2 billion with a net profit of Rp. 64.5 billion in 2009 and rose again to Rp. 4,975.2 billion with a net profit of Rp. 105.6 billion in 2010. Up to present, we have yet to gain the statement of income of P.T. BP in fiscal 2011 and 2012.  However, we estimated that net income of the company in 2011 rose again to Rp. 5,570.0 billion with a net profit of Rp. 118.0 billion and to Rp. 6,015.0 billion with a net profit of Rp. 124.0 billion in 2012.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The financial statement as per 31 December 2008, 2009 and 2010 is attached. So far we did not hear that the P.T. BP has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court. 


Descriptions of the terms of the loan agreements are as follows:

 

a.   Bank Rakyat Indonesia (BRI)

 

      Based on Deed No. 61 dated June 14, 2007, of Eko Handoko Widjaja, SH., PT. Bentoel Prima (BP) obtained an investment loan with maximum credit of Rp. 9,450,000,000 to build warehouse and marketing office facilities in Bekasi Regency, West Java Province.  The loan bears interest at 12.75% per annum, subject to regular review, and is due on June 14, 2012.  Based on Deed No. 16 dated December 5, 2007 of Siti Rayhana, SH., notary in Jakarta concerning Addendum of Investment Credit Agreement, this loan is secured by land and building of PT. Bentoel Prima, measuring 12,313 square meters located in Tambun, Bekasi Regency, west Java Province.

 

b.   Bank OCBC NISP

 

      Based on Deed No. 78 dated May 15, 2007 of Eko Handoko Widjaja, SH., PT. Bentoel Prima obtained a loan from Bank NISP with maximum credit of Rp. 5,000,000,000 to build a dormitory in Araya Malang.  The loan bears interest of 12.5% per annum which is subject to regular review. The credit facility from Bank NISP is divided into two parts which are Rp 1,750,000,000 due in May 15, 2014 and Rp. 3,250,000,000 due in May 15, 2015.  The loan is secured by two parcels of land of PT. Bentoel Prima measuring approximately 2,000 square meters with SHGB No. 522 and 523.

 

      Initially, P.T. BP was headed by Mr. Nicolaas B. Tirtadinata (55), a professional manager as the president director.  Since October 2010 he has been replaced by Mr. Jeremy David Pike AKA David Pike (55).  However, since March 2012, Mr. David Pike has been replaced again by Mr. Jason Fitzgerald Murphy (43) as president director of the company.  Mr. Murphy had a career in WD & HO Wills and Rothmans of Pall Mall Australia before joining British American Tobacco in 1999.  In his daily activities, he is assisted by three directors namely Mr. Kho Kusuma Widjaja (57), Mr. Tang Chung Leong (54) and Mrs. Dian Paramita (39).  The management has wide relation with private businessmen of home and overseas as well as with the government sectors.  So far, we did not yet come across reports on involvement of P.T. BP’s management in any fraudulent dealings and recorded at the court for detrimental cases.

 

      Considering the company’s operation is fluctuating in the last five years and unstable economic condition in the country, we recommend to treat extra prudently in extending any new loans to P.T. BENTOEL PRIMA.

 

 

Attachment:

 


P.T. BENTOEL PRIMA AND SUBSIDIARIES

Financial Statement

Per 31 December 2008, 2009 and 2010

(Expressed in millions of Rupiah)

 

DESCRIPTION

31 December

2010

2009

2008

Current Assets

 

 

 

- Cash and cash equivalents

8,073

13,964

77,627

- Trade receivables – third parties, net

2,036

5,349

6,161

- Due from related parties

17,673

181,522

726

- Other receivables

--

--

1,116

- Inventories, net

2,041,630

1,550,652

1,989,888

- Prepaid taxes

87,195

91,519

138,648

- Prepayments and advances

22,546

9,393

13,715

- Advance purchase

--

--

7,651

Total Current Assets

2,179,153

1,852,399

2,232,532

Non-Current Assets

 

 

 

- Time deposit

--

--

32,000

- Advance payment

5,865

126,034

177,154

- Deferred tax assets

8,615

35,616

99,049

- Equity investment

--

--

718

- Fixed assets, net

1,490,092

1,364,430

1,011,422

- Other non-current assets

5,058

3,877

1,491

Total Non-Current Assets

1,509,630

1,529,957

1,321,834

Total Assets = Total Liabilities and Equity

3,688,783

3,382,356

3,554,366

Current Liabilities

 

 

 

- Trade receivable

--

--

173,039

- Short-term borrowings

26,935

29,296

--

- Trade payables – third parties

57,513

75,136

--

- Due to related parties

295,001

126,230

350,958

- Excise payables

205,703

295,004

8,432

- Other payables

4,247

10,128

--

- Taxes payable

47,327

22,273

397,759

- Accrued expenses

193,305

112,527

89,049

- Deferred income

--

--

157

- Bank loans

--

--

33,784

- Current portion of long-term, bank loans

--

3,714

2,714

Total Current Liabilities

830,031

674,308

1,055,892

Non-Current Liabilities

 

 

 

- Deferred income

--

--

21

- Long-term bank loans, net of current portion

--

6,866

10,580

- Deferred tax liabilities

18,965

796

--

- Subordinated loan

1,000,000

1,000,000

1,000,000

- Employee benefits obligation

159,301

125,987

123,587

Total Non-Current Liabilities

1,178,266

1,133,649

1,134,189

- Minority interest

1,371

924

763

Equity

 

 

 

- Issued and Paid up Capital

462,500

462,500

462,500

- Additional paid-in Capital

23,042

23,042

23,042

- Unappropriated retained earnings

1,193,573

1,087,933

877,981

Total Equity

1,679,115

1,573,475

1,363,522

 

 

 

 

Income Statement

 

 

 

- Net Revenue

4,975,171

4,420,188

4,741,893

- Cost of goods sold

(4,173,162)

(3,810,547)

(4,379,977)

- Gross Profit

802,009

609,641

361,916

- Operating Expenses

(532,016)

(437,498)

(566,307)

- Operating Income

269,993

172,143

(204,391)

- Other Income (Expenses)

(64,374)

(74,236)

(50,271)

- Profit before income tax

205,619

97,907

(254,662)

- Income tax expenses

(99,532)

(33,283)

49,642

- Income before minority interest

106,087

64,624

(205,020)

- Minority interest

(447)

(162)

(20)

- Net Profit

105,640

64,462

(205,040)

Remarks: As per 31 December 2008, 2009 and 2010 audited by Tanudiredja, Wibisana & Rekan

 

* * *


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.89

UK Pound

1

Rs.90.88

Euro

1

Rs.78.32

 

 

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.