|
Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T.
KORINDO HEAVY INDUSTRY |
|
|
|
|
Registered Office : |
Wisma
Korindo, 11th Floor, Jl. M.T. Haryono Kav.
62,
Jakarta 12780 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
16.07.1986 |
|
|
|
|
Com. Reg. No.: |
No. AHU-AH.01.10-02694 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Automotive Assembling Industry |
|
|
|
|
No. of Employees : |
120 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 |
Name
of Company :
P.T.
KORINDO HEAVY INDUSTRY
A
d d r e s s :
Head
Office
Wisma
Korindo, 11th Floor
Jl. M.T. Haryono Kav. 62
Jakarta
12780
Indonesia
Phones -
(62-21) 797 5959 (Hunting)
Fax - (62-21) 7918 3673
E-mail - simpak@korindo.co.id
Website - http://www.korindo.co.id
Land Area - 18 Storey
Building Area - 120 sq. meters
Region - Commercial
Status - Owned by the
Korindo Group
Factory
Jl.
Raya Serang Km. 31
Desa
Balaraja, Tangerang
Banten
Province
Indonesia
Phones -
(62-21) 595 0088 (hunting)
Fax - (62-21) 595 1943
Land Area - 19.5 hectares
Building Space - 2.8 hectares
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
16
July 1986 as P.T. INTERNATIONAL FOOTWEAR Inc., changed to P.T. KOSTRA MAS JAYA
on March 6, 1987 and changed again to P.T. KORINDO HEAVY INDUSTRY on January
15, 2007.
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Minister of Law and Human Rights
a. No. AHU-83631.AH.01.02.Tahun 2008
Dated 10 November
2008
b. No.
AHU-40719.AH.01.02.Tahun 2012
Dated 27 June 2012
c. No.
AHU-AH.01.10-02694
Dated 01 February 2013
Company
Status :
Foreign
Investment (PMA) Company
Permit
by the Government Department :
a. The
President of the Republic of Indonesia
No. B-51/Pres/12/1985
Dated 16 December 1985
b. The
Capital Investment Coordinating Board
- No. 37/I/PMA/1985
Dated 24 December 1985
- No. 1078/III/PMA/2006
Dated 08 August 2006
- No. 1634/III/PMA/2006
Dated 12 December 2006
c. The
Department of Finance
NPWP No. 01.061.613.4-055.000
Related
Company :
A
member of the KORINDO Group of South Korea
Capital
Structure :
Authorized Capital - Rp. 20,831,000,000
Issued Capital - Rp. 20,831,000,000
Paid up Capital - Rp. 20,500,000,000
Shareholders/Owners
:
a. PANWELL INDUSTRIAL Ltd., - Rp. 17,092,680,000
(82.05%)
Address : Wickhams Cay, Road Town
Tortola, British Virgin Islands
b. P.T. BALIKPAPAN FOREST INDUSTRIES - Rp. 360,320,000 ( 1.73%)
Address :
Wisma Korindo
Jl. MT. Hartyono Kav. 62
Jakarta Selatan - Indonesia
c. P.T. KORINDO ABADI -
Rp. 3,378,000,000 (16.22%)
Address :
Wisma Korindo
Jl. MT. Hartyono Kav. 62
Jakarta Selatan - Indonesia
Lines
of Business :
Automotive
Assembling Industry (inactive since mid-2012)
Production
Capacity :
a. Trucks - 2,400 units p.a.
b. Buses - 1,580 units p.a.
c. Farm Tractors - 60 units p.a.
d. Battery Carts - 360 units p.a.
Total
Investment :
a. Owned Capital - US$ 13.50 million
b. Loan Capital - US$ 14.75 million
c. Total Investment - US$
28.25 million
Started
Operation :
a.
1987 in sport shoe manufacturing (inactive)
b.
2005 in commercial vehicle assembling industry (inactive since mid-2012)
Brand
Name :
None
Technical
Assistance :
None
Number
of Employee :
120
persons
Marketing
Area :
Local
(Domestic) - 100%
Main
Customers :
No
Comment
Market
Situation :
Very
Competitive
Main
Competitors :
a.
P.T. TOYOTA ASTRA MOTORS
b.
P.T. HINO INDONESIA
c.
P.T. KRAMA YUDHA TIGA BERLIAN MOTORS
d. P.T. HARTONO RAYA MOTOR
e. P.T. TEXMACO PERKASA
Business
Trend :
Declining
B
a n k e r s :
a. The Bank of TOKYO-MITSUBISHI UFJ Ltd.
Midplaza Building
Jalan Jend. Sudirman Kav. 10-11
Jakarta 10227
b. P.T. Bank MANDIRI Tbk.
Bumi Daya Building
Jalan Imam
Bonjol No. 61
Jakarta 10310
Indonesia
Auditor :
Internal Auditor
Litigation
:
No
litigation record in our database
Annual
Sales (estimated) :
2009
– Rp. 380.0 billion
2010
– Rp. 220.0 billion
2011
– Rp. 180.0 billion
2012
– Rp. 110.0 billion
Net
Profit (Loss) :
2009
– Rp. 46.0 billion)
2010
– (Rp. 80.0 billion)
2011
– (Rp. 55.0 billion)
2012
– (Rp. 62.0 billion)
Payment
Manner :
Sometime
delay
Financial
Comments :
Weak
Board of Management :
President Director - Mr. Seung Beom Soo
Vice President Director - Mr. Kim Ki Seok
Directors -
a. Mr. Mun Jin Seok
b. Mr. Yi Sun Hyeong
c. Mr. Yoon Sang Jin
d. Mr. Seo Jeong Sik
e. Mr. Kim Doo Young
Board of Commissioners :
Commissioner - Mr. Seung Eun Ho
Signatories :
President
Director (Mr. Kim Beom Soo) or Vice President Director (Mr. Kim Ki Seok) or one
of the Directors (Mr. Mun Jin Seok, Mr. Yi Sun Hyeong, Mr. Yoon Sang Jin, Mr.
Seo Jeong Sik or Mr. Kim Doo Young) which must be approved by Board of Commissioner
(Mr. Seung Eun Ho)
Management Capability :
Weak
Business Morality :
Prudent
Credit Recommendation :
Credit should be extended under guarantee
Proposed
Credit Limit :
C.O.D.
To small amount
Initially
named P.T. INTERNATIONAL FOOTWEAR INC. it was established in Jakarta in July
1986 with the authorized capital of US$ 1,600,000.- of which US$ 800,000.- was
issued and fully paid-up. The founding shareholders of the company are TECHWIN
TRADING CO., LTD. of Hong Kong and P.T. GARUDA INDAWA of Indonesia. In March
1987, the company renamed to P.T. KOSTRA MAS JAYA and the issued capital was
raised to US$ 1,600,000.- fully paid up. The articles of association of the
company have frequently been revised. In August 2006, the authorized capital
was raised to US$ 13,500,000.- entirely issued and paid up and concurrently
TECHWIN TRADING CO., LTD. withdrew and into the company entered a new
shareholder PANWELL INDUSTRIAL LTD. of British Virgin Island.
In
December 2006, P.T. GARUDA INDAWA withdrew and into the company entered P.T.
BALIKPAPAN FOREST INDUSTRIES and P.T. KORINDO ABADI, both are private company.
In January 2007, the name of the company was changed to P.T. KORINDO HEAVY
INDUSTRY (P.T. KHI). In November 2008,
the authorized capital was converted to IDR, namely Rp 20,831,000,000 entirely
issued and paid up. Since at the time,
the shareholders of the company are PANWELL INDUSTRIAL Ltd., of BVI (82.05%),
P.T. KORINDO ABADI (16.22%) and PT. BALIKPAPAN FOREST INDUSTRIES (1.73%), both
of Indonesia. The deed of amendment was made by a public notary in Jakarta
under Company Registration Number AHU-83631.AH.01.02.Tahun 2008, dated November
10, 2008.
Later
according to the latest revision of notary Deed No. 15 dated October 18, 2012
of Rina Utami Djauhari, SH., the company board of director and the board of
commissioner had been changed. Concurrently, the authorized capital was raised
again to Rp. 312,591,000,000.- entirely was issued and fully paid up. Since at the time, the shareholders of the
company are PANWELL INDUSTRIAL Ltd., of BVI (77.23%), P.T. KORINDO ABADI
(5.13%) and PT. PELAYARAN KORINDO (17.64%), both of Indonesia. The deed of
amendment was made by a public notary in Jakarta under Company Registration Number
AHU-AH.01.10-02694 dated February 1, 2013.
We
observe that P.T. KHI is a subsidiary company of the KORINDO Group, a company
group based in South Korea. This group established lots of companies in
Indonesia dealing with integrated wood-based industry, newsprint making, sport
shoe manufacturing and others.
P.T. KHI obtained a Foreign
Capital Investment (PMA) facility issued by the Capital Investment Coordinating
Board (BKPM) to deal with sport shoe manufacturing having been in operation
since 1987. Previously, the company produced sport shoes under popular brands
of PUMA, REEBOK and ADIDAS. Whole products of the company were exported. The
operation of the company up to end 1996 had been growing well. However, since
the economic crisis in the country in 1997, the operation of the company has
started declining and its stopped operation in mid-2006.
In December 2005, P.T. KHI
obtained a license from the Capital Investment Coordinating Board (BKPM) to
turn its business into commercial vehicle assembling industry by establishing a
plant located at Jalan Raya Serang Km. 31, Balaraja, Tangerang, Banten Province
on a land of 19.5 hectares. The company gets technology assistance and agency
license from HYUNDAI MOTOR COMPANY of South Korea. According
to its license, the plant has annual production capacity of 2,400 units of
trucks 1,588 units of buses, 60 units of farm tractors and 360 units of battery
carts. The development of the plant has absorbed an investment of US$ 28.25
million coming from own capital of Rp. 13.5 million and the rest from
loans. P.T. KHI signed a
commercial vehicle CKD (Complete-Knock-Down) contract on June 16 2006, which is
Hyundai’s largest supply contract in the Asian region. With the launch of the commercial
vehicle business with Hyundai, Korindo plans to promote the automobile business
in earnest, by establishing production facilities capable of producing 5,000
trucks and 2,000 buses annually. The plant
has been in commercial operation since 2007 and only trucks and buses have been
realized by the company.
Initially, P.T. KHI has
successfully launched various types of trucks and buses including Hyundai HD
Mighty 136 L and 136 B, Hyundai Mighty 125 MH and gas powered Aero Space buses.
This year, P.T. KHI will launch six variants of new truck chassis and a bus
model with capacity of 40 seats. The products of P.T. KHI are locally marketed
and supplied to transportation companies like P.T. MAYASARI BHAKTI, P.T.
PERUSAHAAN PENGANGKUTAN DJAKARTA (PPD), Trans Jakarta (busway) and others. The
marketing of its products is carried out by its sister company P.T. KORINDO
MOTORS.
We
note that since its operation in 2007, sales of bus and truck mobiles of
Hyundai in Indonesia do not improve smoothly, especially it has hard competition
from other brands such as Mistsubishi Fuso, Toyota Hyna, or from Europe such as
Mercedes Benz and others. In the month
of March 2012, HYUNDAI MOTOR COMPANY cut
off/terminated its contract with P.T KHI as the sole agent holder business vehicle brands (bus &
truck) Hyundai in Indonesia. To make it
clearer it can be seen in local media we quote below:
Hyundai Korea terminates its contract
with Korindo
Writer: Agung Kurniawan (Wednesday, 21 March 2012) at
19:38 West Indonesia Time
Jakarta, KompasOtomotif – Hyundai Motor
Company terminated its contract with PT. Korindo Heavy Industry (KHI) as sole
agent holder of business vehicle brand Hyundai in Indonesia. Termination of contract done by HMC caused loss
to KHI up to Rp. 1,2 trillion. The act
done by this Hyundai causes us experience loss of great deal and loss of
costumers’ trust upon Hyundai business vehicle, said Director of KHI, Seo Jeong
Sik in official information received by KompasOtomotif, Wednesday (21/3/2012).
It is said that the impact of this contract
termination caused the supply of spare parts for light truck is cut off and
loss for costumer very much. Even, there are some of businessmen that regular repairman and maintenance.
Rejection or termination of this spare
parts supply automatically decrease their revenue. It is because
damaged units and must be
replaced its spare parts cannot operate.
But in fact demand for spare parts
increases every day, said Seo Jeong Sik.
Management of Korindo s the principle
action of Hyundai and remain in big question.
It is because, since the agreement of agency (16 June 2006) KHI
confesses that they have made their best efforts to fulfill their duty to
increase sales of Hyundai truck and bus professionally. During 2007-2011 total sales of Hyundai
business vehicles noted for 7.361 units.
Legal Court
In order to have the answer, management of
KHI dispute this case to legal court in order to have certain answer from
HMC. Hotma Sitompul legal power of KHI
said that sales of Hyundai truck and bus had the opportunity to increase in
2010 not because of the company performance
but because of the economic effect.
Starting from 2007 up to 2008 sales of KHI
continually experience increasing and KHI had
award from Hyundai as the best Distributor. If it is said unperformed, it is supposed to
be informed. Do not suddenly and by one
party, said Hotma.
Up to the time this message released, Hyundai party does not give yet official
information against the suspect of KHI.
Source:
http://otomotif.kompas.com/read/2012/03/21/1381/Hyundai.Korea.Putus.Kontrak.dengan.Korindo
Mr.
Maryudi a production staff of PT. KHI when he was contacted said that since the
middle of 2012, P.T. KHI has terminated all its production activities. Now they just sell the rest of their product
of 50 units buses and trucks that are
still in the manufacture and unsold.
Furthermore, for the activity of selling spare parts, up to now it is
still handled by it company affiliation PT. KORINDO MOTORS.
The
company is neither public listed nor bond issued company. Therefore, the company has no obligation to
publish financial statements publicly. The
management of P.T. KHI is very reclusive towards outsiders and rejected to
disclose its financial condition. However, we estimated that total sales
turnover of the company in 2010 amounted to Rp. 220.0 billion declined to Rp.
180.0 billion in 2011 and dropped again to Rp. 110.0 billion in 2012. There is strong indication that the operation
of P.T. KHI in 2007 up to 2012 has yet to gain any profit due to being newly
operating in automotive assembling industry. It is estimated that the company
has a networth of Rp. 380.0 billion.
P.T. KHI is backed up by financially strong the KORINDO Group, a company
group based in South Korea. So far, we
did not hear that P.T. KHI having been
black listed by Bank Indonesia (Central Bank) and registered in district court
for detrimental cases.
The management
of P.T. KHI is headed by Mr. Kim Beom Soo (42), as president director of South
Korea with broad experience in industry and trading of automotives. In his
daily activities, he is assisted by Mr. Kim Ki Seok (63) as the vice president
director and five other directors namely Mr. Mun Jin Seok (57), Mr. Yi Sun
Hyeong (59), Mr. Yoon Sang Jin (56), Mr. Seo Jeong Sik (55) and Mr. Kim Doo
Young (60). The company's management is handled by basically experienced
professional managers in commercial vehicle assembling industry. But the global financial crisis since
mid-2008 has hampered the company in its operations. So far, we have never yet heard of the
company's management having been involved in business malpractices.
In
view of the above various negative factors, we recommend prudence in making
business transactions with P.T. KORINDO HEAVY INDUSTRY to extend a new loan to
the company, we recommend to get guarantee from third party.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.