|
Report Date : |
05.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. CHEIL JEDANG INDONESIA |
|
|
|
|
Registered Office : |
Menara Jamsostek, 21st Floor Jalan Jend. Gatot Subroto Kav. 38 Jakarta Selatan, 12710 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
31.12.2010 (Consolidated) |
|
|
|
|
Date of Incorporation : |
28.10.1996 |
|
|
|
|
Com. Reg. No.: |
No. AHU-AH.01.10-25528 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
MSG, Lysine and L-Threonine and Nucleid Acid Manufacturing |
|
|
|
|
No. of Employees : |
1,280 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
P.T. CHEIL JEDANG
INDONESIA
Head Office
Menara Jamsostek,
21st Floor
Jalan Jend. Gatot Subroto Kav. 38
Jakarta Selatan, 12710
Indonesia
Phones -
(62-21) 5299 5000 (Hunting)
Fax - (62-21) 5299 5192-4
Building Area - 28 storey
Office Space - 400 sq. meters
Region - Commercial
Status - Rent
Factory I
Jalan Raya Brantas Km. 3.5
Desa Jati Gedong, Kecamatan Ploso
Kabupaten Jomang
61453
East Java
Indonesia
Phones -
(62-321) 887700 (Hunting)
Fax - (62-321) 887711
Land Area - 320,000 sq.
meters
Building Area - 220,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory II
Desa Arjosari, Kecamatan Rejoso
Pasuruan 67101, East Java
Indonesia
Phones -
(62-343) 482333 (Hunting), 401333
Fax - (62-343) 482768, 482788
Land Area - 310,600 sq.
meters
Building Area - 180,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
28 October 1996
Legal Form :
P.T. (Perseroan Terbatas) or Limited
Liability Company
Company Reg. No. :
The Ministry of Law and Human Rights
- No. C-230871.HT.01.04.TH.2004
Dated 22 December 2004
- No. AHU-54920.AH.01.02.TH.2008
Dated 25 August 2008
- No. AHU-AH.01.10-03817
Dated 16 April 2009
- No. AHU-29907.AH.01.02.Tahun 2011
Dated 15 June 2011
- No. AHU-43620.AH.01.02.Tahun 2011
Dated 26 August 2011
- No. AHU-AH.01.10-25528
Dated 13 July 2012
Company Status :
Foreign Investment Company (PMA)
Permit by the Government Department
:
a. The Department of Finance
NPWP No. 01.071.816.1-057.000
b. The Capital Investment Coordinating Board
- No. 739/I/PMA/1996
Dated 2 October 1996
- No. 463/III/PMA/1999
Dated 26 April 1999
- No. 172/II/PMA/2000
Dated 26 July 2000
- No. 1211/III/PMA/2004
Dated 6 December 2004
- No. 120/II/PMA/2005
Dated 11 May 2005
- No. 65/II/PMA/2006
Dated 9 March 2006
Holding Company :
CJ CHEIL JEDANG Corp., of South
Korea (Investment Holding)
Affiliated/Associated Companies :
a. P.T. AGROBIS PANCA EKATAMA (Day
Old Chicks Farming)
b. P.T. BUMI TAPIOKA JAYA (Tapioca
Manufacturing)
c. P.T. CHEIL JEDANG SUPERFEED
(Animal Feed Milling)
d. P.T. CJ FEED JOMBANG (Animal Feed
Milling)
e. P.T. SUPER UNGGAS JAYA (Poultry)
Capital
Structure :
Authorized Capital - US$ 107,911,000.-
Issued Capital - US$ 107,911,000.-
Paid up Capital - US$ 107,911,000.-
Shareholders/Owners
:
a. CJ CHEIL JEDANG CORP., of Korea - US$ 107,910,000.- (99,999%)
Address : 12 Floor, CJ Building
500,
5-GA,
Namdaemoon-Ro, Ciang-Ku
South Korea
b. CJ CHINA LTD., of China - US$
1,000.- ( 0.001%)
Address : Suite 1 R/F New Henry
House
10 Ice House
Street
China
Lines of
Business :
a. MSG, Lysine
and L-Threonine and Nucleid Acid Manufacturing
b. Investment
Holding
Production
Capacity :
a. MSG/GA - 20,000 tons p.a.
b. L-lysine HCL - 140,000 tons
p.a.
c. Liquid Organic
Fertilizers - 594,090 tons
p.a.
d. Solid Organic
Fertilizers - 279,000 tons
p.a.
e. Cell Protein - 30,000 tons p.a.
f. Gypsums - 8,600 tons p.a.
g. Humus - 4,000 tons p.a.
h. Animal Feeds - 240,000 tons
p.a.
i. L-Threonine - 40,000 tons p.a.
j. Food Seasoning - 1,500 tons p.a.
k. Guanosine
Monophospats - 2,500 tons p.a.
l. Inosine
Monophospats - 1,000 tons p.a.
m. Dextrose (SOD) - 890,000 tons p.a.
Total
Investment :
a. Equity Capital - US$ 102.2
million
b. Loan
Capital -
US$ 298.5 million
c. Total
Investment - US$
400.7 million
Started
Operation :
1998
Brand Name :
JCITIDE
Technical
Assistance :
CHEIL JEDANG
CORPORATION of South Korea
Number of
Employee :
1,280 persons
Marketing Area
:
Export -
90%
Local -
10%
Main Customers
:
Buyers in Asia
Pacific, Europe Union and the USA
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. AJINOMOTO
INDONESIA
b. P.T. AJINEX INDONESIA
c. P.T. MIWON INDONESIA
d. P.T. SASA INTERNATIONAL
e. Etc.
Business Trend
:
Growing
B a n k e r s
:
a. P.T. Bank WOORI INDONESIA
Jalan Jenderal Sudirman Kav.
52-53
Jakarta
Selatan
Indonesia
b. P.T. Bank DANAMON INDONESIA Tbk
Jalan Raya Darmo No. 59
Surabaya,
East Java
Indonesia
c. P.T. Bank KEB INDONESIA
Jalan Jend. Sudirman No. 28
Jakarta Pusat
Indonesia
Auditor :
Tanudiredja,
Wibisana & Rekan (a member of PWC)
Litigation :
No litigation
record in our database
Annual Sales :
2009 – US$. 801.4 million
2010 – US$.
1,344.3 million
2011 – US$.
1,550.0 million (Estimated)
2012 – US$.
1,740.0 million (Estimated)
Net Profit
(Loss) :
2009 – US$. 41.0
million
2010 – US$. 72.7
million
2011 – US$. 83.0
million (Estimated)
2012 – US$. 92.5
million (Estimated)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Song Young
Vice President Directors -
Mr. Lee Dong Hyuk
Directors -
a. Mr. Kim Hansu
b. Mr. Kim Wonyoung
c. Mr. Kim Bong Joo
d. Mr. Kim Hak Yun
e. Mr. Shin Hee Sung
f. Mr.
Agus Sutijono
Board of Commissioners :
President Commissioner -
Mr. Kim Chul Ha
Commissioners -
a. Mr. Lee Jay Hyun
b. Mrs. Man Jo Kim
c. Mr. Bernard Kent Sondakh
d. Mr. Ha Dae Joong
Signatories :
President Director (Mr.
Song Young) or Vice President Directors (Mr. Lee Dong Hyuk) or one of the
Directors (Mr. Kim Hansu, Mr. Kim Wonyoung, Mr. Kim Bong Joo, Mr. Kim Hak Yun,
Mr. Shin Hee Sung or Mr. Agus Sutjijono ) which must be approved by President
Commissioner (Mr. Kim Chul Ha) and one of the Commissioners (Mr. Lee Jay Hyun,
Mrs. Man Jo Kim, Mr. Bernard Kent Sondakh or Mr. Ha Dae Joong)
Management Capability :
G o o d
Business Morality :
G o o d
Credit Risk :
Below average
Credit Recommendation :
Credit can be proceeded normally
Proposed
Credit Limit :
Moderate amount
P.T.
CHEIL JEDANG INDONESIA (P.T. CJI) was established in October 1996 in Surabaya,
East Java with the authorized capital of US$ 15,000,000 entirely issued and
paid up. The founding shareholders are CHEIL JEDANG CORPORATION (90%) of South
Korea and P.T. CHEIL SAMSUNG INDONESIA (10%). The articles of association of
the company have frequently been revised. In December 2004, its holding company
P.T. CHEIL SAMSUNG INDONESIA was merged into P.T. CJI and concurrently the
authorized capital of the company was raised to US$ 102,225,000 wholly issued
and paid up. Since the merging of P.T. CHEIL SAMSUNG INDONESIA into P.T. CJI,
whole properties, assets, liabilities, employees and businesses of P.T. CHEIL
SAMSUNG INDONESIA ware taken over by P.T. CHEIL JEDANG INDONESIA and since that
time P.T. CHEIL SAMSUNG INDONESIA was dispersed by law without prior
liquidation. At the same time, whole shares of the company were controlled by
CHEIL JEDANG CORPORATION of South Korea (99.99%) and CHEIL JEDANG CHINA LIMITED
of China (0.01%).
In
May 2011, the authorized capital was raised again to US$ 107,911,000.- (Rp.
961,442,726,000.-) entirely was issued and paid up. Concurrently, the shareholders of the company
are CJ CHEIL JEDANG CORPORATION of South Korea (99.999%) and CJ CHINA LIMITED
of China (0.001%). The amendment to articles of association was made by Mr. I
Gede Buda Gunamanta, SH., a public notary in Jakarta and it was approved by the
Minister of Law and Human Right in its Decision Letter No. AHU-AH.01.10-03817,
dated April 16, 2009 and No. AHU-29907.AH.01.02.Tahun 2011 dated June 15, 2011.
Later
according to the latest revision of notarial Deed No. 61 dated 29 June 2012 of
I Gede Buda Gunamanta, SH., the company board of directors and the board of
commissioners had been changed. But, no changes have been effected in term of
its shareholding composition and capital structures to date. The amendment to
Articles of Association has been approved by the Minister of Law and Human
Rights through Decision Letter No. AHU-AH.01.10-25528 dated 13 July 2012.
P.T.
CJI obtained a Foreign Capital Investment (PMA) facility issued by the Capital
Investment Coordinating Board (BKPM) to deal with food seasoning and animal
feed processing. P.T. CJI the first CJ Group`s investment in Indonesia has
demonstrated itself as one of the biggest producer of Lysine, MSG and
L-Threonine in the world. Located in Pasuruan, East Java, the area`s abundant
natural resources and good infrastructure add to the growing success of P.T.
CJI, with four times lysine production capacity expansion ended in 1995 and
1998. Located in Jombang of East Jawa region, P.T.CJI is the second largest
manufacturer of nucleic acid in the world. Nucleic acids have put Cheil Jedang
on the globe, and its manufacturing technology has been further refined and
developed in PT.CJI.
The plant is equipped with the most modern and sophisticated facilities
and hopes to add amino acid, a promising product for the future, to its product
portfolio. Thus, in the near future, it will become CJ Indonesia’s second amino
acids complex, following P.T.CJI in Pasuruan. Currently, P.T.CJI manages a
massive manufacturing complex, armed with latest technology practices and the
most skillful resources. Its plant is located at Jalan Raya Brantas Km. 3.5,
Jati Gedong Village, Ploso, Jombang on a land of 32.0 hectares. According to its license, the plant has
annual production capacity of 1,500 tons of food seasoning, 2,500 tons of
guanosine and 1,000 tons of inosine monophospats. The plant has been in operation
since July 1998 with an investment of US$ 75.4 million coming from own capital
of US$ 15.0 million and the rest from loans. Mr. Heri, a staff of the company
said that the company just produces food seasoning such as IMP, GMP and I &
G.
In
December 2004, since the merging of P.T. CHEIL SAMSUNG INDONESIA into P.T. CJI,
the company operates a plant of P.T. CHEIL SAMSUNG INDONESIA located in
Arjosari Village, Rejoso, Pasuruan, West Java on a land of 31.6 hectares. The
plant has been in commercial operations in 1990 and expanded for a couple of
times to increasing production capacity. The plant produces of 20,000 tons of
monosodium glutamate (MSG)/glutamate acid (GA), 140,000 tons of L-Lysine HCL,
10,000 tons of L-Threonine, 594,000 tons of Liquid Organic Fertilizer, 279,650
tons of Solid Organic Fertilizer, 240,000 tons of chicken feed mill, 30,000
tons of cell protein, 8,600 ton of gypsum and 4,000 ton of humus. The main
products are Lysine, MSG/GA and chicken feed. The company's product in the form
of Lysine uses the L-Lysine HCL brand, its MSG uses the MIPUNG brand for the
local market and MIPOONG for the export market, while its chicken feed uses the
SUPERFEED brand. Some 90% of the company products is exported to Asia, Europe
and the USA using JCITIDE brand and the remaining 10% being marketed in the
country. Meanwhile, chicken feed, liquid and solid organic fertilizer are
entirely marketed in the country.
P.T.
CJI is also engaged in vestment holding by controlling 99.99% shares of CJ Do
Brasil Industria Commercio de Produtos Alimenticios (Brazil) dealing with
production and sale of foodstufts and other chemical products, and 100% shares
of CJ International Asia Pte., Ltd., (Singapore) dealing with trading. We observed that P.T. CJI 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 demand for MSG (Monosodium Glutamate) has fluctuated in the last
five years in line with the fluctuating domestic animal feed production under
the impact of the economic and monetary crisis in Indonesia since end 1997. Up
to now the domestic MSG production has been largely for the consumption of the
animal feed industry. Competition is very tight in the MSG business on account
of the many brands of this commodity being available in the domestic market,
including Ajinomoto, Sasa, Miwon, Mikimoto, Indomoto, Intimoto and others.
Meanwhile, the company's Lysine production faces strong competition from
comparable products of the USA and Japan. Generally, the business position of
P.T CJI is favorable for having wide marketing networks in the country. The company is the largest animal feed
industry in Indonesia. The operation of
the company is backed up by the CHEIL JEDANG Group based in South Korea.
According
to the financial statement of the company being audited by Tanudiredja,
Wibisana & Rekan, a Public Accountant, that sales turnover of the company
in 2009 amounted to US$ 801.4 million with a net profit of US$ 41.0 million increased
to US$ 1,334.3 million with a net profit of US$ 72.7 million in 2010. The company’s balance sheets and statement of
income in fiscal 2009 and 2010 are attached below. Up to present, we have yet to gain the
statement of income of P.T. CJI in fiscal 2011 and 2012. However, we estimated the total sales
turnover in 2011 amounted to US$ 1,550.0 million with a net profit of US$ 83.0
million and rose again to US$. 1,740.0 million with a net profit of US$. 92.5 million
in 2012. We note that P.T. CJI is
supported by a financially strong and healthy foreign partner. So far, we have
never heard of the company having been black listed by the Central Bank
(Central Bank) and registered in the court for detrimental cases. The company usually pays its debts punctually
to suppliers
Since
June 2012, the Company's management is headed by Mr. Song Young (49) replacing
Mr. Jeong Tae Jin (54) as president director.
He is a professional manager of South Korea with more than 18 years
experience in food seasoning processing and animal feed milling. In daily operation, he is assisted by Mr. Lee
Dong Hyuk (56) as vice president director and six directors namely Mr. Kim
Hansu (44), Mr. Kim Wonyoung (38), Mr. Kim Bong Joo (44), Mr. Kim Hak Yun (45),
Mr. Shin Hee Sung (44), all of South Korea and Mr. Agus Sutijono (56) of
Indonesia. The management is having wide relation with home and overseas
private businessmen as well as with government sectors. So far, we did not hear
that the company’s management involved in a business malpractice 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.
P.T.
CHEIL JEDANG INDONESIA is sufficiently fairly good for business transaction.
However, in view of the political situation in the country is warming we
recommend to treat prudently in extending a loan to the company.
Attachment:
PT. CHEIL JEDANG
INDONESIA
And Subsidiaries
Consolidated Statement of Income
Years Ended
December 31, 2010 and 2009
(Expressed in US
Dollars)
(Expressed in US Dollars)
|
DESCRIPTION |
2010 |
2009 |
|
ASSETS |
|
|
|
Current Assets |
|
|
|
- Cash and cash equivalents |
114,871,878 |
49,593,064 |
|
- Trade receivables |
120,333,483 |
168,283,359 |
|
- Other receivables |
609,193 |
1,263,448 |
|
- Prepaid expenses and advances |
6,139,235 |
9,464,962 |
|
- Inventories |
98,787,648 |
47,902,715 |
|
- Derivative receivables |
220,611 |
1,182,063 |
|
- Prepaid taxes |
26,722,007 |
11,009,390 |
|
- Other current assts |
15,198 |
1,655,738 |
|
Total current Assets |
367,699,253 |
290,354,739 |
|
Non-current assets |
|
|
|
- Investment |
191,447 |
191,447 |
|
- Prepaid Taxes |
35,058,748 |
35,857,876 |
|
- Fixed assets |
364,419,395 |
344,600,430 |
|
- Refundable deposits |
1,962,424 |
1,873,745 |
|
- Other non-current assets |
1,109,448 |
1,619,060 |
|
Total Non-current Assets |
402,741,462 |
384,142,558 |
|
TOTAL ASSETS = TOTAL LIABILITIES
AND EQUITY |
770,440,715 |
674,497,297 |
|
LIABILITIES |
|
|
|
Current Liabilities |
|
|
|
- Trade payables |
151,994,532 |
131,776,450 |
|
- Other payables |
8,306,419 |
13,811,082 |
|
- Taxes payables |
20,552,632 |
3,371,638 |
|
- Accrued expenses |
18,386,419 |
26,885,529 |
|
- Derivative payable |
459,505 |
3,517,799 |
|
- Bank loans |
287,782,585 |
191,498,984 |
|
Total Current Liabilities |
487,482,092 |
370,861,482 |
|
Non-current Liabilities |
|
|
|
- Bank loans |
-- |
93,981,191 |
|
- Deferred tax liabilities, net |
36,851,890 |
34,101,654 |
|
- Derivative payable |
-- |
1,899,402 |
|
- Employee benefits obligation |
1,798,949 |
1,363,017 |
|
Total Non-current Liabilities |
38,650,839 |
131,345,264 |
|
- Minority Interest |
3,126 |
4,095 |
|
Equity |
|
|
|
- Issued and paid up capital |
107,911,000 |
102,225,000 |
|
- Additional paid-in capital |
7,914,000 |
-- |
|
- Difference from restructuring transactions |
285,965 |
766,811 |
|
- Foreign exchange translation of subsidiary’s f.s. |
14,216,000 |
13,252,645 |
|
Retained earnings |
113,977,693 |
56,042,000 |
|
Total Equity |
244,304,658 |
172,286,456 |
|
Income Statement |
|
|
|
- Net Sales/revenue |
1,344,321,762 |
801,386,115 |
|
- Cost of goods sold |
(1,026,112,031) |
(650,471,602) |
|
- Gross profit |
308,209,731 |
150,914,513 |
|
- Operating expenses |
(194,650,533) |
(101,015,027) |
|
- Operating income |
113,559,198 |
49,899,486 |
|
- Other (expenses) income |
(9,723,384) |
12,205,764 |
|
- Profit before income tax |
103,835,814 |
62,105,250 |
|
- Income tax expenses |
(31,113,0569) |
(21,053,863) |
|
- Profit before minority interest |
72,722,745 |
41,051,387 |
|
- Minority interest |
1,110 |
(682) |
|
- Net Profit |
72,723,855 |
41,050,705 |
Audited by Tanudiredja, Wibisana
& Rekan, a public accountant (a member of PWC)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.64 |
|
|
1 |
Rs.86.68 |
|
Euro |
1 |
Rs.73.97 |
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.