MIRA INFORM REPORT

 

 

Report Date :

04.05.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. PACIFIC INDOPALM INDUSTRIES

 

 

Registered Office :

Jalan Raya Dumai - Basilam Baru Km. 14, Kelurahan Lubuk Gaung, Kecamatan Sungai Sembilan Dumai, 28882 Riau Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

26.11.2004

 

 

Com. Reg. No.:

No. AHU-19122.AH.01.02.TH.2009

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Edible Vegetable Oil and Fats Manufacturing

 

 

No. of Employees :

215 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 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

 

 


BASIC SEARCH

 

Name of Company :

P.T. PACIFIC INDOPALM INDUSTRIES

 

Address :

Head Office & Factory

Jalan Raya Dumai - Basilam Baru Km. 14

Kelurahan Lubuk Gaung, Kecamatan Sungai Sembilan

Dumai, 28882

Riau Province

Indonesia

Phones             - (62-765) 438615, 438616

Fax                   - (62-765) 438607, 438605

E-mail               - sudari@pacificindopalm.com

                          info@pacificindopalm.com

Land Area         - 15,000 sq. meters

Building Space  - 10,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Jakarta Representative Office

Menara Kadin Indonesia, 17th Floor Unit D&E

Jalan H.R. Rasuna Said Block X-5 Kav. 2&3

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5790 3777 (Hunting)

Fax                   - (62-21) 5790 3733

E-mail               - salah@pacificindomas.com

Building Area    - 37 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

26 November 2004

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. C-13448 HT.01.01.TH.2005

            Dated 18 May 2005

-           No. AHU-19122.AH.01.02.TH.2009

            Dated 7 May 2009

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.365.427.0-212.000

 

Related Company :

A Member Company of the HAYEL SAEED ANAM Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : US$ 15,000,000.-

Issued Capital               : US$ 10,000,000.-

Paid up Capital             : US$ 10,000,000.-

 

Shareholders/Owners :

a. COMMODITIES HOUSE DEVELOPMENT LTD.                      - US$ 9,500,000.-

    Address : Cayman Island

                    British West Indies

b. Mr. Fouad Hayel Saeed Anam                                              - US$    500,000.-

    Address : Bangsar Puteri Apartment Block 41-16-2

                    Jl. Medang Serai Bukit Bandaraya

                    Kuala Lumpur

                    Malaysia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Edible Vegetable Oil and Fats Manufacturing

 

Production Capacity :

a. RBD Palm Oil                        - 450,000 tons p.a.

b. Vegetable Oil                        - 20,000 tons p.a.

c. Cooking Oil               - 18,000 tons p.a.

d. Shortening Margarine             - 10,000 tons p.a.

 

Total Investment :

a.         Equity Capital   - US$ 10.0 million

b.         Loan Capital      - US$ 15.0 million

c.         Total Investment            - US$ 25.0 million

 

Started Operation :

2009

 

Brand Name :

Pacific Indopalm Industries

 

Technical Assistance :

None

 

Number of Employee :

215 persons

 

Marketing Area :

Export              - 100%

 

Main Customer :

Buyers in Middle East, Asian countries, Africa etc

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASIANAGRO AGUNGJAYA

b. C.V. SINAR LAUT

c. P.T. BUKIT KAPUR REKSA

d. P.T. SINAR ALAM PERMAI

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.         P.T. Bank MANDIRI Tbk

                        Dumai Main Branch

                        Riau Province

                        Indonesia

b.         STANDARD CHARTERED Bank

                        Menara Standard Chartered Bank

                        Jalan Prof. Dr. Satrio No. 164

                        Jakarta Selatan

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 198.0 billion

2011 – Rp. 204.0 billion

2012 – Rp. 212.0 billion

 

Net Profit (estimated) :

2010 – Rp. 14.2 billion

2011 – Rp. 15.5 billion

2012 – Rp. 16.9 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Fouad Hayel Saeed Anam

Directors                                   - a. Mr. Salah Ahmed Hayel Saeed Anam

                                                 b. Mr. Abdul Gabbar Hayel Saeed

                                                 c. Mr. Marwan Ahmed Hayel Saeed

 

Board of Commissioners :

Commissioner                           - Mr. Abdul Rahman Hayel Saeed Anam

 

Signatories :

President Director (Mr. Fouad Hayel Saeed Anam) or one of the Directors (Mr. Salah Ahmed Hayel Saeed Anam, Mr. Abdul Gabbar Hayel Saeed or Mr. Marwan Ahmed Hayel Saeed) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. PACIFIC INDOPALM INDUSTRIES (P.T. PII) was incorporated in Dumai, Riau Province based on notary deed of Mr. Zainal Baharuddin, SH dated 26 November 2004 with the authorized capital of US$ 10,000,000 issued capital of US$ 5,000,000 entirely paid up. The founding shareholders of the company are COMMODITIES HOUSE INVESTMENT LTD., Cayman Island, British Virgin Island and Mr. Fouad Hayel Saeed Anam of Yemen. The company notary deed has been changed and according to the revision of notary document of Mrs. Sastriany Josoprawiro, SH., No. 11 dated 26 February 2009 the company authorized capital was increased to US$ 15,000,000 issued capital to US$ 10,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become COMMODITIES HOUSE INVESTMENT LTD (95%) and Mr. Fouad Hayel Saeed Anam (5%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-19122.AH.01.02.TH.2009 dated May 7, 2009.

 

We observe that COMMODITIES HOUSE INVESTMENT LTD., is a private national company dealing with investment and refinancing services which majority shares controlled by Mr. Fouad Hayel Saeed Anam. He is also founder and majority business stakes owners of the HAYEL SAEED ANAM Group, a small sized business group dealing with oil palm processing, RBD palm oil, glycerine, margarine, toilet soap manufacturing, trading, milk processing and spinning mills.

 

P.T. PII operates under Foreign Investment (PMA) facilities in integrated edible vegetable oil and pats manufacturing. Its refinery is located on Jalan Raya Dumai – Basilam Km. 14, Kelurahan Lubuk Gaung, Kecamatan Sungai Sembilan, Dumai, Riau Province standing on 10,000 sq. meters land. Already in operation since 2009, the plant has been producing RBD Palm Oil of 450,000 tons, Vegetable Oil of 20,000 tons, Cooking Oil of 18,000 tons, Shortening /Margarine of 10,000 tons respectively per annum. The raw materials like (crude palm oil/CPO and palm kernel oil/PKO) bought from the MUSIM MAS Group and the WILMAR Group. P.T. PII started its operation in December 2009 had invested in the latest state of the art technology in the Palm Oil refinery industry with a capacity of 1,500 metric tons/day extendable up to 1,800 metric tons/day refining and 1,400 metric tons/day fractionation. The plant is fully automated and no manual intervention takes place once the system is running. The company had already been awarded with the ISO 9001:2008, HACCP and HALAL certificates in a very short span of time. It is also a member of the RSPO. The company had also invested in a storage and bulking facility with a capacity of 41,000 metric tons to ensure the efficient logistics operations that will cater to the different requirements of the refinery. It has also bought a fleet of road tankers that ensures the continuous flow of CPO from the plantations to the refinery.

 

Since P.T. PII is located by the sea side, it had invested in its own Jetty. This investment has given the company a competitive edge since big vessels up to a loading capacity of 50,000 metric tons can berth in this jetty. The company had also invested in a high bumping capacity to load vessels with a maximum of 1,800 MT/HR.

 

These investments guarantee the minimum loading time amongst any other ports and therefore reducing the cost of loading of their customers. P.T. PII is also generating its own electricity by investing in high pressure boilers and steam turbines. This investment helped the company in supplying its own utility requirements (steam and electricity) consistently at law competitive cost. The company is proud to mention that it is using a non polluted environment friendly fuel (Palm Kernel Shell) to produce its power. According information from Mr. Sisyanto, export import staff of the company said the whole product is exported to Middle East, Africa and others countries. We observe the operation of P.T. PII has been growing and developing well in the last three years.

 

Generally, demand for palm cooking oil has kept on increasing in the last five years in line with the growing demand for palm cooking oil within and outside the country. According to research, total palm cooking oil industries operating in Indonesia are 53 units with production capacity 7.2 million tons but in 2005 reached 62 units with total production capacity of 9.7 million tons. The main business players in cooking oil business are SMART (SINAR MAS Group) under cooking oil brands of FILMA, KUNCI MAS; the SALIM Group through P.T. SALIM IVOMAS PRATAMA under cooking oil brand of BIMOLI; the KPN Group and others. The national cooking oil production has kept on increasing in the last five years in line with the changing of the publics’ consumption patterns from using coconut cooking oil to palm cooking oil. The business position of P.T. PMI is favorable some 75% of its product for export market. The growth of cooking oil production in the last five years is pictured on the following table:

 

The Production of Palm Cooking Oil, 2004 – 2011*

Year

Production (Ton)

2004

4,527,700

2005

4,980,470

2006

5,428,670

2007

5,808,670

2008

6,186,233

2009

6,619,269

2010

6,826,000

2011

7,250,000

                        *) Estimated

                        Source: Department of Industry, Processed by ICB

 

Until this time P.T. PII has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of the company is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to Rp. 198.0 billion rose to Rp. 204.0 billion in 2011 increased to Rp. 212.0 billion in 2012 and projected to go on rising by at least 5% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 16.9 billion and the company has an estimated total net worth of at least Rp. 121.0 billion. We observe that P.T. PII is supported by foreign partner 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 company usually pays its debts punctually to suppliers.

 

The management of P.T. PII is headed by Mr. Fouad Hayel Saed Anam (56) a businessman who experienced for more than 18 years in the integrated edible vegetable oil and fats manufacturing. We observed that management’s reputation in said business is fairly good. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. 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. PACIFIC INDOPALM INDUSTRIES is sufficiently fairly good for business transaction.

 

 

Attachment

 

List of the HAYEL SAEED ANAM Group Members

 

OLEOCHEM & SOAP INDUSTRI, P.T. (Glycerine and Toilet Soap Manufacturing)

PACIFIC AGRITAMA COMODITI, P.T. (Tea Processing)

PACIFIC INDO DAIRY, P.T. (Milk Powder Packaging)

PACIFIC INDOMAS, P.T. (Trading)

PACIFIC INDOPALM INDUSTRIES, P.T. (Oil Palm Plantation and Processing)

PACIFIC MEDAN INDUSTRI, P..T (Oil Palm Processing)

PACIFIC PALMINDO INDUSTRI, P.T. (Oil Palm Processing)

PACIFIC TEXTINDO INDUSTRY, P.T. (Spinning Mills)

Etc.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.83.80

Euro

1

Rs.70.49

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.