MIRA INFORM REPORT

 

 

Report Date :

21.03.2013

 

IDENTIFICATION DETAILS

 

Correct Name 

P.T. CITILINK INDONESIA

 

 

Formerly Known as:

PT. GARUDA INDONESIA

 

 

Registered Office :

Menara Citicon, 16th Floor, Jl. S. Parman Kav. 72, Slipi, Jakarta Barat 11410

 

 

Country :

Indonesia

 

 

Date of Incorporation : 

06.01.2009

 

 

Com. Reg. No.:

No. AHU-AH.01.10-34590

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Scheduled Air Transportation Services

 

 

No. of Employees :

140

 

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 :

Good

 

 

Payment Behaviour :

Regular 

 

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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 6.1% and 6.4% 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 small current account surplus, a fiscal deficit below 2%, 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 2012 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 rising oil prices.

 

 

Source : CIA

 


Correct Name of Company

 

P.T. CITILINK INDONESIA

 

 

compaNY Address

 

Head Office

Menara Citicon, 16th Floor

Jl. S. Parman Kav. 72, Slipi

Jakarta Barat 11410

Indonesia

Phones             - (62-812) 1035538 (John Natal)

E-mail               - john.natal@citilink.co.id

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

Building Area    - 22 storey

Office Space    - 480 sq. meters

Region              - Commercial

Status               - Rent

 

Operational Office

a.   Bandara International Soekarno Hatta

Gedung GMF, 3rd Floor, Pajang Airport Cengkareng

Jakarta 15126

Phones       - (62-21) 5508662, 5508709

Fax.            - (62-21) 5501615

 

b.  Juanda Business Centre Blok C/2

Jl. Ir. H. Juanda Raya No. 2, Waru

Surabaya 61256

East Java

Phones       - (62-31) 8549860, 8554914, 8554934

Fax.            - (62-31) 5340165

 

 

Date of Incorporation

 

2001 as CITILINK is a subsidiary of PT. GARUDA INDONESIA, and changed its name to P.T. CITILINK INDONESIA, on January 6, 2009.

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a.  No. AHU-14555.AH.01.01.Tahun 2009

      Dated 22 April 2009

 

  b.  No. AHU-47100.AH.01.02.Tahun 2012

      Dated 04 September 2012

 

  c.  No. AHU-AH.01.10-34590

      Dated 29 September 2012

 

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

  a.  The Department of Finance

      NPWP No. 02.827.597.2-643.000

 

  b.  The Department of Communication

      SIUAU/NB-027, dated 27 January 2012

 

 

Holding Company

 

P.T. GARUDA INDONESIA (Scheduled Airlines Services and Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital            - Rp. 1,700,000,000,000

Issued Capital                  - Rp.    431,710,000,000

Paid up Capital                - Rp.    431,710,000,000

 

Shareholders/Owners :

 

a. P.T. GARUDA INDONESIA Tbk    - Rp. 406,960,000,000.- (94.27%)

    Address : Garuda Indonesia Building

                    Jl. Kebon Sirih No. 44

                    Jakarta Pusat

                    Indonesia

 

b. P.T. AEROWISATA                     - Rp.   24,750,000,000.- (  5.73%)

    Address : Aerowisata House, 3rd Floor

                    Jl. Prapatan No. 32, Kwitang

                    Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Scheduled Air Transportation Services

 

Production Capacity :

a. Airbus A320 jets                          - 14 units

b. Boeing 737-300 Airplanes            -   6 units

c. Boeing 737-400 Airplanes             -   1 unit

 

Total Investment :

a.   Equity Capital               - Rp.  75.0 billion

b.   Loan Capital                  - Rp.  25.0 billion

c.   Total Investment            - Rp.100.0 billion

 

Started Operation :

2001

 

Brand Name :

CITILINK

 

Technical Assistance :

None

 

Number of Employee :

140 persons

 

Marketing Area :

Domestic (Local)    - 100%

 

Main Customer :

Corporate and Publics

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. SRIWIJAYA AIR

b. P.T. LION MENTARI AIRLINES

c. P.T. PELITA AIR SERVICES

d. P.T. AIRASIA AIRLINES

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Mandiri Plaza

      Jalan Imam Bonjol No. 61

      Jakarta Pusat

      Indonesia

b.   P.T. Bank NEGARA INDONESIA Tbk

      Wisma BNI Kota 46

      Jalan Jend. Sudirman Kav. 1

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Income/Revenue (estimated) :

2009 – Rp.    830.0 billion

2010 – Rp.    920.0 billion

2011 – Rp. 1,160.0 billion

2012 – Rp. 1,820.0 billion

 

Net Profit (estimated) :

2009 – Rp. 37.0 billion

2010 – Rp. 42.0 billion

2011 – Rp. 53.0 billion

2012 – Rp. 85.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 


KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Muhammad Arif Wibowo

Director                                          - a. Mr. Ir. Albert Burhan, MM

                                                        b. Mr. Hadinoto Soedigno

IT Support Senior Manager              - Mr. John Natal

 

Board of Commissioners :

President Commissioner                  - Mr. Elisa Lumbantoruan

Commissioner                                 - Mr. Alexander Maria Tae Maneklaran

 

Signatories :

President Director (Mr. Muhammad Arif Wibowo) or one of Directors (Mr. Ir. Albert Burhan, MM or Mr. Hadinoto Soedigno) which must be approved by Board of Commissioners (Mr. Elisa Lumbantoruan and Mr. Alexander Maria Tae Meneklaran)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named CITILINK, it was established in 2001 as a subsidiary of PT. GARUDA INDONESIA Tbk., a scheduled airline services.  The company's shares are entirely controlled by the Indonesian government.  CITILINK provides daily low-cost airline services to exciting destination within Indonesia.  On January 6, 2009 the company’s name was changed to P.T. CITILINK INDONEISA, with an authorized capital of Rp 100,000,000,000 of which Rp. 75,000,000,000 was issued and fully paid up. The founding shareholders of the company are PT. GARUDA INDONESIA
Tbk. (67%) and P.T. AEROWISATA (33%).  The Articles of Association was made by Arikanti Natakusumah, SH., a notary in Jakarta and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-14555.AH.01.01.Tahun 2009 dated April 22, 2009. 

 

The articles of association of the company have frequently been revised, most recently by notarial deed of Jose Dima Satria, SH., No. 27 dated August 29, 2012 the authorized capital was raised again to Rp. 1,700,000,000,000.- of which Rp. 431,710,000,000.- was issued and fully paid up.  Since the time, the shareholders of the company are PT. GARUDA INDONESIA Tbk (94.27%) and P.T. AEROWISATA (5.73%).  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-34590 dated September 24, 2012. No changes have been effected in term of its shareholding composition and capital structures to date. 

 

P.T. CITILINK INDONESIA (CITILINK) is engaged in low-cost airline services which have been operating since 2001.  CITILINK originally commenced operation using 5 Fokker F28 being the remnants of the F28 fleet operated by Garuda Indonesia.  Then, CITILINK ceased operations on 15 January 2008 with plans to consolidate and recommence operations with a new format and new services in the first quarter of 2008, CITILINK was subsequently re-inaugurated on August 8, 2008 by Emirsyah Satar, CEO of Garuda Indonesia.  In August 2008 it was announced that CITILINK would resume services with flights starting in September 2008.  Issued investment reached US$ 10 million with detail of 60% for fuel, 17% for aircraft maintenance and the rest for other expenses.  Under new management CITILINK operates from a base Surabaya with also services as a hub for their operations.

 

At present, CITILINK operates 6 units new Boeing B737-300 airplanes, each with a 148 seats capacity, 14 units modern Airbus A320-200 jets which seat up to 180 passengers and one Boeing 737-400 with 130 passengers.  CITILINK’s daily network serves Surabaya, Batam, Banjarmasin, Denpasar, Balikpapan, Medan and Makassar from their two hubs in Jakarta and Surabaya.  As of the last 2013, CITILINK plan to quadruple the number (15 units) of Airbus A320-200s in their fleet, from 5 to 20.  CITILINK’s national network will offer far more destination by the end of the year.  Other new destinations already on the lists for this year are Yogyakarta, Padang, Semarang, Pekanbaru and Lombok.

 

To participate in the fast growing low fares segment of the market and provide the tradition of quality, safety and security of the Garuda Indonesia group for this segment, The company plans to spin off CITILINK as a new business entity from their corporate parent. CITILINK will commence operations as a separate company within the first semester of this year.  We noticed that the operation CITILINK continues to develop quite rapidly in the last five years.

 

In general we noticed that the demand for air transportation services (aircraft) increased during the past five years. It can be seen from the development of domestic flight air traffic. According to Central Bureau of Statistics, the number of domestic air passenger departure, in the year 2008 as many as 31,911,400 passengers rose to 35,659,207 people in 2009 and increased to 43,779,723 people in 2010. While the number of domestic air passengers arrivals, in the year 2008 as many as 28,312,958 peoples, increased to 34,320,813 peoples in 2009 rose to 39,383,172 people in 2010 to 44,109,153 peoples in 2011 and it estimated to rose again to 47,220,740 peoples in 2012.  We observed that this increase also accompanied by the increasing number of passenger for overseas flight traffic. Business position of CITILINK is pretty good because it represents one of low-cost airline service that has a good performance and very satisfying.

 

Until this time P.T. CITILINK INDONESIA or CITILINK has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of CITILINK is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total income/revenue of the company in 2010 amounted to Rp. 920.0 billion increased to Rp. 1,160.0 billion in 2011 rose again to Rp. 1,820.0 billion in 2012 and projected to go on rising by at least 12% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 85.0 billion and the company has an estimated total asset of at least Rp. 1,560 billion. We observe that CITILINK is supported by PT. GARUDA INDONESIA Tbk., 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 management of CITILINK is led by Mr. Muhammad Arif Wibowo (47) a professional manager with experience in schedule airline services.  In his daily activity he is assisted by Mr. Ir. Albert Burhan, MM (46) and Mr. Hadinoto Soedigno (61), respectively as director.  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. CITILINK INDONEISA or CITILINK is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.38

UK Pound

1

Rs.82.07

Euro

1

Rs.70.37

 

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%)

 

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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.