MIRA INFORM REPORT

           

 

Report Date :

17.05.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. KALTIM NITRATE INDONESIA

 

 

Registered Office :

Central Senayan I, 6th Floor, Jalan Asia Afrika No. 8, Jakarta 10270

 

 

Country :

Indonesia

 

 

Date of Incorporation :

27.09.2001

 

 

Com. Reg. No.:

No. AHU-AH.01.10-43488

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Ammonium Nitrate Manufacturing

 

 

No. of Employees :

160

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Recently Commenced Production

 

 

Payment Behaviour :

Unknown

 

 

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 6.2% and 6.5% 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 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. KALTIM NITRATE INDONESIA

 

 

company Address

 

Head Office

Central Senayan I, 6th Floor

Jalan Asia Afrika No. 8

Jakarta 10270

Indonesia

Phone               - (62-21) 5723070 (Hunting)

Fax                   - (62-21) 5723080

Building Area    - 22 storey

Office Space    - 800 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan James Simandjuntak No. 1

Bontang, 75313

East Kalimantan

Indonesia

Phones             - (62-548) Withheld

Fax                   - (62-548) Withheld

Land Area         - 100,000 sq. meters

Building Space  - 50,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

27 September 2001

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-02350 HT.01.01.TH.2002

  Dated 12 February 2002

- No. AHU-13797.AH.01.02.TH.2012

  Dated 15 March 2012

- No. AHU-AH.01.10-43488

  Dated 6 December 2012

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 02.026.497.4-077.000

 

The Department of Industry and Trade

TDP No. 090512442696

Dated 8 February 2002

 

The Capital Investment Coordinating Board (BKPMD East Kalimantan)

- No. 014A/64/I/PMA/2001

  Dated 15 March 2001

- No. 014A/64/III/PMA/2001

  Dated 29 May 2001

- No. 570/64/III/PMA/2001

  Dated 25 September 2001

- No. 473/III/PMA/2007

  Dated 11 April 2007

 

 

Related Companies

 

a.   P.T. ARMINDO MITRA PRAKARSA (Investment Holding)

b.   P.T. ARMINDO PRIMA (Trading of Shot Gun, Explosion and Investment Holding)

c.   ORICA INVESTMENTS (INDONESIA) PTY LTD., Australia (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 100,000,000.-

Issued Capital                                 : US$ 100,000,000.-

Paid up Capital                               : US$ 100,000,000.-


Shareholders/Owners :

a. ORICA INVESTMENTS (INDONESIA) PTY LTD.             - US$ 49,000,000.-

    Address : L 31 Nicholson Street

                    Melbourne East, VIC 3002

                    Australia

b. P.T. ARMINDO MITRA PRAKARSA                                - US$ 41,000,000.-

    Address : Komplek Gading Bukit Indah Block B No. 26

                    Jl. Bukit Gading Raya, Kelapa Gading

                    Jakarta Utara

                    Indonesia

c. P.T. ARMINDO PRIMA                                                   - US$   5,000,000.-

    Address : Komplek Gading Bukit Indah Block B No. 26

                    Jl. Bukit Gading Raya, Kelapa Gading

                    Jakarta Utara

                    Indonesia

 

 

d. YAYASAN ARMINDO SEJAHTERA UMMAT                   - US$   5,000,000.-

    Address : Komplek Gading Bukit Indah Block B No. 26

                    Jl. Bukit Gading Raya, Kelapa Gading

                    Jakarta Utara

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Ammonium Nitrate Manufacturing

 

Production Capacity :

Ammonium Nitrate (Prilled)               - 300,000 tons per annum

 

Total Investment :

a.   Equity Capital                           - US$ 100.0 million

b.   Loan Capital                              - US$ 350.0 million

c.   Total Investment                        - US$ 450.0 million

 

Started Operation :

April 2012 (Commenced Production)

 

Brand Name :

Kaltim Nitrate Indonesia

 

Technical Assistance :

Orica Group, Australia

 

Number of Employee :

160 persons


Marketing Area :

Local       - 100%

 

Main Customer :

Coal and Gold Mining

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. DAHANA (Persero)

b. P.T. MEXIS

c. P.T. MULTI NITROTAMA KIMIA

d. P.T. SUMA ENERGI NUSANTARA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank ANZ INDONESIA

      Panin Bank Center

      Jalan Jend. Sudirman Kav. 1

      Jakarta Selatan

      Indonesia

b.   STANDARD CHARTERED Bank

      Wisma Standard Chartered Bank

      Jalan Jend. Sudirman Kav. 33A

      Jakarta Selatan

      Indonesia

c.   P.T. Bank PERMATA Tbk.

      Permata Bank Tower

      Jalan Jend. Sudirman Kav. 27

      Jakarta Selatan

      Indonesia

 

Auditor :

KPMG Indonesia

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 726.0 billion (April – December)

 

Net Profit (estimated) :

2012 – None

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Ir. Antung Pandoyo

Directors                                         - a. Mr. Ir. Josef Mursidi, MM

                                                        b. Mr. Chrisna Deva Priyapratama

                                                        c. Mr. Gregory George Patching

                                                        d. Mr. Robert Geoffrey Mossop

 

 

 

Board of Commissioners :

President Commissioner                  - Mr. Letjend. TNI (Retired) Sugiono

Commissioners                               - a. Mr. Brigjend. TNI (Retired) Mazni Harun

                                                        b. Mr. Tan Soo Mong

                                                        c. Mr. Andrew Philpotts

                                                        d. Mr. Rodney Robert Marchand

 

Signatories :

President Director (Mr. Ir. Antung Pandoyo) or one of the Directors (Mr. Ir. Josef Mursidi, MM, Mr. Chrisna Deva Priyapratama, Mr. Gregory George Patching or Mr. Robert Geoffrey Mossop) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. KALTIM NITRATE INDONESIA (P.T. KNI) was incorporated in Jakarta on 27 September 2001 with an authorized capital of US$ 24,550,000 issued capital of US$ 6,137,500 fully and paid up. The founding and shareholders of the company are ORICA INVESTMENTS (INDONESIA) PTY LTD., Australia as foreign partner, P.T. ARMINDO MITRA PRAKARSA, P.T. ARMINDO PRIMA, and YAYASAN ARMINDO SEJAHTERA UMMAT, all of Indonesia as local partners. The company notary documents had been changed a couple of times. Later in February 2012 the company authorized capital was increased to US$ 100,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become ORICA INVESTMENTS (INDONESIA) PTY LTD., (49%), P.T. ARMINDO MITRA PRAKARSA (41%), P.T. ARMINDO PRIMA (5%) and YAYASAN ARMINDO SEJAHTERA UMMAT (5%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-13797.AH.01.02.TH.2012 dated March 15, 2012. Then according to the latest revision of notary documents of Mrs. Sugih Hayati, SH., No. 35 dated 29 November 2012 the company board of director and the board of commissioner had been changed (see profile). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-43488 dated December 6, 2012.

 

We observe the majority shareholder of P.T. KNI namely ORICA INVESTMENTS (INDONESIA) PTY LTD., is a member company of the ORICA Group. ORICA INVESTMENTS PTY LTD.,  is also shareholder of P.T. ORICA MINING SERVICES a foreign investment company dealing with mining contracting and consulting services.

 

P.T. KNI is a foreign capital investment company (PMA) dealing with ammonium nitrate manufacturing. The plant is located at Kaltim Industrial Estate, Jalan James Simandjuntak No. 1, Bontang, East Kalimantan, standing on a land of 10 hectares. The factory core production is designed to produce Ammonium Nitrate (Prilled) in the capacity of 300,000 metric tons per year that will be used as commercial explosive raw materials, 95% of which will be marketed in the country. The construction of the plant has absorbed an investment of US$ 450.0 million come from own capital of US$ 100.0 million and the rest is loans. The construction of the plant began in August 2009 with the main contractors P.T. REKAYASA INDUSTRY (Persero). In constructing this plant, P.T. REKAYASA INDUSTRY uses technology licensed from UHDE Germany. Basic design of the plant is done by UHDE Germany, while the main equipment manufactured by MAN Turbo from Germany. 

 

The main raw materials to produce ammonium nitrate are Ammonia and Nitric Acid. Ammonia has been supplied by P.T. PUPUK KALTIM Tbk, P.T. KALTIM PACIFIC AMMONIAK, while Nitric Acid from locals. P.T. KNI become the largest ammonium nitrate producer in Indonesia and will be instrumental in serving the mining industry in the country. P.T. KNI is built to meet the needs of ammonium nitrate that had been dependents on imports. Preparedness systems and factory operational procedures are 100%. The plant has been in commenced production since April 2012 with capacity of 190,000 tons and in 2013 will be increasing to 300,000 tons per year. Mr. Ir. Antung Pandoyo, President Director of the company explained that whole of the products marketed locally to coal and general mining in the country among others are P.T. KALTIM PRIMA COAL, P.T. INDOMINCO MANDIRI, P.T. JURONG BARUTAMA GRESTONE, P.T. ARUTMIN INDONESIA, P.T. ADARO INDONESIA, P.T. NEWMONT NUSA TENGGARA, P.T. FREEPORT INDONESIA, P.T. J RESOURSES BOLAANG MONGONDOW and other mining companies. Mr. Chrisna Deva Priyapratama, marketing director of the company said that some of 100,000 tons of ammonium nitrate each year supplied to P.T. KALTIM PRIMA COAL. We observe the operation P.T. KNI is still relatively new operation in the field of ammonium nitrate manufacturing.

 

Generally outlook the demand for ammonium nitrate has kept on rising by about 10% to 12% in line with the rapid growth of mining industry sector and other industrial sectors as its consumers in the country. The occurring of the crisis has affected badly to various industrial sectors particularly the ones whose major materials is imported. In the meantime, we realized that market competition is very tough on account of many other imported products are being offered in the domestic market. As from the end of 2001, its business operation started to arise in line with the amelioration of economic condition and the domestic mining business industry. In the long run, P.T. KNI has a quite good future business prospect once economic crisis starts recovery.

 

Until this time P.T. KNI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. KNI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in the first year production from April to December 2012 amounted to Rp. 726.0 billion and projected to go on rising by at least 6% in 2013. The company’s operations have not been profitable because they are relatively new operation.

 

We observe that P.T. KNI 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. KNI is led by Mr. Ir. Antung Pandoyo (64) a professional manager with experience in ammonium nitrate manufacturing. Prior he is a director of P.T. ORICA MINING SERVICES. Daily activity he is assisted by Mr. Ir. Josef Mursidi, MM (62), Mr. Chrisna Deva Priyapratama (47), Mr. Gregory George Patching (43) and Mr. Robert Geoffrey Mossop (50) as Directors. 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. KALTIM NITRATE INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.77

UK Pound

1

Rs.83.31

Euro

1

Rs.70.46

 

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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