MIRA INFORM REPORT
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Report Date : |
27.05.2013 |
IDENTIFICATION DETAILS
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Name : |
THE SUNGAI BUDI GROUP |
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Registered Office : |
Wisma Budi, 8th – 9th Floor, Jl.
H.R. Rasuna Said Kav. C-6, Jakarta
Selatan 12940 |
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Country : |
Indonesia |
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Year of Establishments: |
1947 |
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Group Company or Unlimited Liability
Company |
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Line of Business : |
Agribusiness and Food Division |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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) |
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Indonesia |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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 |
Company name
The SUNGAI BUDI Group
Year of Establishment
1947
Business Headquarter
Jakarta
Legal Status
Group Company or Unlimited Liability Company
Legalization
Not Required
Government Permits
Not Required
Capitlaization
Not Required
Founders and Owners
a. Mr. Widarto AKA Oey Kim Tjing
b. Mr. Santoso Winata AKA Oey Thik Seng
Business Operation Area
a. Through-out
Indonesia
b. Singapore,
Malaysia, Philippines, China, Japan, South Korea, India, Thailand, Taiwan,
Australia, Saudi Arabia, Bahrain, Belgium, Canada,
France, Italy, the USA, etc
Business Activities
- Agribusiness and Food Division
- Pulp and Paper Product Division
- Developer and Real Estate Division
- Financial Services Division
- Energy and Mining Division
- Telecommunication
- Trading and Other Activities
Ultimate Investment Holding
- P.T. SUNGAI BUDI
- P.T. BUDI DELTA SWAKARYA
- P.T. BUDI ACID JAYA Tbk.
- P.T. TUNAS BARU LAMPUNG Tbk.
Number of the Group Members
36 Companies
Major Members of the Group
a. P.T. INDO BANGNA PRIMA (Investment Holding)
b. P.T. BUDI STARCH INTERNATIONAL (Modified Tapioca Starch Manufacturing)
c. P.T. BUDI LUMBUNG CIPTAN (Tapioca Manufacturing)
d. P.T. BUDI SAKURA STARCH (Modified Tapioca Starch Manufacturing)
e. P.T. VE WONG BUDI INDONESIA (Monosodium Glutamate Manufacturing)
f. P.T. BANGUN NUSA INDAH LAMPUNG (Oil Plam Plantation)
g. P.T. BUMI SENTOSA ABADI (Oil Palm Plantation)
h. P.T. BUDI DWIYASA PERKASA (Oil Palm Plantation)
i. P.T. BUDINUSA CIPTAWAHANA (Oil Palm Plantation and Horticulture)
j. P.T. ADIKARYA GEMILANG (Pineapple Plantation)
k. P.T. BANGUN TATALAMPUNG ASRI (Oil Palm Plantation)
l. P.T. AGRO BUMI MAS (Manufacturing of Crude Palm Oil)
Top Figures and Executives
a. Mr. Widarto AKA Oey Kim Tjing
b. Mr. Santoso Winata AKA Oey Thik Seng
Contact Addresses
The SUNGAI BUDI Group
Wisma Budi, 8th – 9th Floor
Jl. H.R. Rasuna Said Kav. C-6
Jakarta Selatan
12940
Indonesia
Phones -
(62-21) 5213383 (hunting)
Fax - (62-21) 5213282
Email - info@budiacidjaya.com
Website - http://www.budiacidjaya.com
Lampung Office
Jl. Ikan Kakap
9/12
Teluk Betung, Bandar Lampung
Indonesia
Phones - (62-721) 486122 (hunting)
Fax. - (62-721) 486754, 482684
Contact Persons
Mr. Widarto AKA Oey Kim Thjing
Chairman
Mr. Santosa Winata AKA Oey Thik Seng
President Director
OVERALL PERFORMANCE
The SUNGAI BUDI Group is a company group established in 1947 by the late
Mr. Oey Liang Tjing and his wife. In 1960, the operation of the SUNGAI BUDI
Group was shifted to the second generation namely to Mr. Handoko Winata AKA Oey
Tjan Tong, and his brothers Mr. Ngadiman Winata AKA Oey Tjan Ng and Mr. Widarto
AKA Oey Kim Tjing. In 1980 Mr. Ngadiman
Winata died and his shares went over to his son Mr. Santoso Winata AKA Oey Thik
Seng. In 1987, there was an internal
dispute among them in which Mr. Handoko Winata finally withdrew. At that time, the majority business stakes of
the SUNGAI BUDI Group were controlled by Mr. Widarto AKA Oey Kim Tjing and his
nephew Mr. Santoso Winata AKA Oey Thik Seng.
The parent company of the SUNGAI BUDI Group is P.T. SUNGAI BUDI, a
company established in 1962 dealing with trading and exporting of agricultural
products and essence oil refinery. Since that time its operation has kept on
expanding to tapioca flour milling, chemical industries, plastic bags and
others. At present P.T. SUNGAI BUDI as
holding company of the SUNGAI BUDI Group.
The main business of the SUNGAI BUDI Group has been dealing
with plantation and exporting of agricultural products such as coconut and palm
oils, cocoas, rice, glutinous rice, tapioca flour and tapioca starch. Besides,
the company group is also dealing with chemical industrial materials like
citric acids and calcium citrate, property and housing development, natural
marble mining and processing, mosquito repellent coil manufacturing, plastic woven
bag manufacturing, corrugated carton box manufacturing and others.
There are two prominent company members of the SUNGAI BUDI
Group having gone public namely P.T. BUDI ACID JAYA Tbk dealing with chemical industries
and food materials and P.T. TUNAS BARU LAMPUNG Tbk dealing with palm and hybrid
plantation and the manufacturing of palm cooking oil, coconut cooking oil and
crude palm oil.
a. P.T. BUDI ACIDJAYA Tbk.
Originally named P.T. NORTH-ASPAC CHEMICAL INDUSTRIAL COMPANY, it was
established in 1979 with an authorized capital of Rp. 600,000,000.- wholly
issued and paid-up. Founders and original shareholders are Mr. Vincent
Tanuwidjaja and Mr. Hendrawan Rusli both Chinese origin Indonesian businessmen.
In May 1988, the company renamed to P.T. BUDI ACIDJAYA. In May 1995, it has
gone public by floating its 30% shares to the public through Jakarta Stock
Exchange (BEJ) and Surabaya Stock Exchange (BES). In the middle of 1997, the
company renamed to P.T. BUDI ACIDJAYA Tbk (P.T. BAT) or public listed company.
The company’s Articles of Association has frequently amended for a couple of
times. As of 31 March 2013, the
authorized capital of the company is Rp 525,000,000,000.- of which Rp.
512,375,000,000.- was issued and paid up.
The latest shareholders of P.T. BAT are PT. SUNGAI BUDI (26.26%), PT.
BUDI DELTA SWAKARYA (26.42%), Mr. Tan Anthony Sudirdjo (0.2%), Public (45.86%)
and Treasury stock (1.44%).
P.T. BAT obtained a domestic investment (PMDN) license for dealing with
industrial chemical processing. It
originally managed a factory unit located at Jalan Manggala Km. 73-74,
Terbanggi Besar, Central Lampung, standing on 7.0 hectares land and starting
with operation in 1987 with a capacity to produce 7,500 tons of citrate per
annum. In the early of the 1994, P.T.
BAT took over all assets and the factories of its sister companies P.T. BUDI
ALAM KENCANA, P.T. SUNGAI BUDI PERKASA (both are tapioca manioc manufacturers)
and P.T. BUDI SULFAT JAYA (citrate acid and
sulfate acid producer). As from that time on, P.T. BAT operates 4 factories
wholly located in Lampung Province. Around 68% of its products are exported to
the USA, Australia, South Korea, Japan, Taiwan and several other European
countries while the rest is distributed domestically.
Besides, P.T. BAT is also active in investment holding by controlling
94.50% shares of PT. INDO BANGNA PRIMA (investment holding company), 99.93%
shares of PT. BUDI STARCH INTERNATIONAL (Tapioca starch manufacturing), 99.98%
shares of PT. BUDI LUMBUNG CIPTA TANI (Tapioca manufacturing), 51% shares of
PT. VE WONG BUDI INDONESIA (Monosodium glutamate manufacturing), 99.97% shares
of PT. BUDI SAKURA STARCH (Modified tapioca starch manufacturing), 50.105
shares of PT. ASSOCIATED BRITISH BUDI (Glucose and fructose manufacturing and
100% shares of PT. BUDI ACID JAYA SINGAPORE Pte. Ltd., (Trading).
But, as of 31 March 2013 the company holds 99.98% shares of P.T. BUDI
LUMBUNG CIPTA TANI (Tapioca manufacturing), 51.00% shares of P.T. VE WONG BUDI
INDONESIA (Monosodium glutamate manufacturing), 99.99% shares of P.T. BUDI
SAKURA STARCH (Modified tapioca starch manufacturing), 50.10% shares of P.T.
ASSOCIATED BRITISH BUDI (Glucose and fructose manufacturing) and 100.0% shares
BUDI ACID JAYA SINGAPORE Pte. Ltd,. (Trading).
As of 31 March 2013, the chart of P.T. BAT’s members shall be as
follows:
Source: PT. Budi Acid Jaya Tbk.
b. P.T. TUNAS BARU
LAMPUNG Tbk
P.T. TUNAS BARU LAMPUNG Tbk (P.T. TBL) was established in Tanjung Karang
in December 1973 with the authorized capital of Rp. 100,000,000 of which Rp.
20,000,000 entirely issued and fully paid up. The founding shareholders of the
company are Mr. Handoko Winata and Mr. Ngadiman Winata, both are Indonesian
businessmen of Chinese extraction. The articles of association of the company
have frequently been revised. On 14 February 2000, P.T. TBL went public by
selling a large extent of its shares to the publics through Jakarta Stock
Exchanges (BEJ). The company’s Articles of Association has frequently amended
for a couple of times. As of 31 March
2013, the authorized capital of the company is Rp 800,000,000,000.- of which
Rp. 617,762,000,000.- was issued and paid up.
The latest shareholders of P.T. TBL are PT. SUNGAI BUDI (28.63%), PT.
BUDI DELTA SWAKARYA (30.05%), Mr. Widarto (0.05%), Mr. Santoso Winata (0.05%)
and Public (41.22%)
P.T. TBL is classified as a large sized fully integrated industry
producing vegetable cooking oil and other vegetable oil derivatives operating
six units of modern and complete processing plants. Some 90% of its products in
the form of crude cooking oil is locally sold under brands of Tawon, Rose Brand
and has controlled 70% of market shares in South Lampung, Riau, Bengkulu and
Jambi and 10% of market shares in East Java. Besides, crude coconut cooking oil
products are locally marketed under brands of Gunung Agung and Kompas; washing
soap products under brands of Kompas, Bumi Waras and bathing soap products
under Love and Segar brands. Some 90% of other products like palm expellers,
copra expellers, palm chips and copra chips is exported as animal feed basic
materials.
P.T. TBL began its operation in Lampung in the early 1970’s,
it have grown to become one of the largest and lowest cost vegetable cooking oil
producers. The company has also entered
into new markets in 1996 in East Java by acquiring a cooking oil refinery. We
see this as our gateway to other Eastern Indonesian markets such as Kalimantan,
Bali, Lombok, Maluku and Irian Jaya. Since this acquisition, the company have
improved the efficiency of their East Java refinery and expanded production
capacity in 1999. In addition to vegetable cooking oil, the company also
produces crude coconut oil, stearine, crude palm oil, palm kernel oil and other
consumer products such as cream soap and laundry soap which utilize fatty acid,
a by-product from CPO production. P.T.
TBL currently controls a land bank of more than 50,000 hectares in Lampung,
used mainly for oil palm plantations. Oil palm is recognized as the highest oil
producing crop per hectare of all oil yielding vegetables. This means that at
any given production level, oil palm requires a smaller plantation area than
any other oil producing crop. Besides, P.T. TBL also engaged in electric steam
power plant development and management by establish electric steam power plant
of 12 MW in Lampung.
Besides, P.T. TBL is also active in investment holding by controlling
99.99% shares of PT. BANGUN NUSA INDAH LAMPUNG (oil palm plantation), 99.97%
shares of PT. BUMI SENTOSA ABADI (oil palm plantation), 99.99% shares of PT.
BUDI DWIYASA PERKASA (oil palm plantation), 98.0% shares of PT. BUDINUSA
CIPTAWAHANA (oil palm plantation and horticulture), 99.75% shares of PT.
ADIKARYA GEMILANG (pineapple plantation), 99.71% shares of PT. BANGUN
TATALAMPUNG ASRI (oil palm plantation), 90.0% shares of PT. AGRO BUMI MAS
(manufacturing of crude palm oil) and 86.98% shares of PT. MULYA MANDRA MUKTI
(investment company).
But, as of 31 March 2013 the company holds 99.99% shares of PT. BANGUN
NUSA INDAH LAMPUNG (oil palm plantation), 99.97% shares of PT. BUMI SENTOSA
ABADI (oil palm plantation), 99.99% shares of PT. BUDI DWIYASA PERKASA (oil
palm plantation), 98.0% shares of PT. BUDINUSA CIPTAWAHANA (oil palm plantation
and horticulture), 99.75% shares of PT. ADIKARYA GEMILANG (pineapple
plantation), 99.71% shares of PT. BANGUN TATALAMPUNG ASRI (oil palm
plantation), 90.0% shares of PT. AGRO BUMI MAS (manufacturing of crude palm
oil) and 73.94% shares of PT. BUMI PERKASA GEMILANG (oil palm plantation). As of 31 March 2013, the chart of P.T. TBL’s
members shall be as follows:
Source: PT. Tunas Baru Lampung Tbk.
So far, it is rare that
company groups in Indonesia have a complete financial statement audited by a
public accountant. We believed that the SUNGAI BUDI Group also has no complete
financial statement above. However, we believed that the money machine of the
SUNGAI BUDI Group is reflected from its two company members having gone publics
namely P.T. BUDI ACID JAYA Tbk and P.T. TUNAS BARU LAMPUNG Tbk. The financial
illustration of both companies in 2009 to as of 31 March 2013 is pictured on
the following table:
P.T. BUDI ACID JAYA Tbk.
(Rp
billion)
|
Description |
2013* |
2012 |
2011 |
2010 |
2009 |
|
Total Sales |
528.0 |
2,295.4 |
2,504.0 |
2,124.4 |
1,782.1 |
|
Gross Profit |
56.3 |
203.5 |
316.3 |
242.8 |
261.3 |
|
Income Before Tax |
9.6 |
58.0 |
90.1 |
71.9 |
178.4 |
|
Net Income/Profit |
6.4 |
62.9 |
63.0 |
46.8 |
146.4 |
|
Total Assets |
2,189.5 |
2,299.7 |
2,123.3 |
1,967.6 |
1,598.8 |
|
Total Liabilities |
1,328.8 |
1,445.5 |
1,312.3 |
1,165.1 |
815.6 |
|
Total Equity |
860.6 |
854.1 |
811.0 |
802.0 |
782.6 |
Source: Financial
Statement of P.T. Tunas Baru Lampung Tbk.
and (*) as of 31 March 2013
P.T. TUNAS BARU LAMPUNG Tbk. (Rp
billion)
|
Description |
2013* |
2012 |
2011 |
2010 |
2009 |
|
Total Sales |
873.1 |
3,805.9 |
3,731.7 |
2,951.1 |
2,783.6 |
|
Gross Profit |
237.0 |
1,027.7 |
1,242.9 |
641.0 |
447.2 |
|
Income Before Tax |
99.0 |
311.1 |
539.9 |
324.4 |
321.1 |
|
Net Income/Profit |
77.9 |
243.8 |
421.1 |
248.1 |
251.0 |
|
Total Assets |
4,896.8 |
5,197.6 |
4,244.6 |
3,651.1 |
2,786.3 |
|
Total Liabilities |
3,059.8 |
3,438.1 |
2,637.3 |
2,490.5 |
1,881.6 |
|
Total Equity |
1,826.2 |
1,749.1 |
1,598.3 |
1,234.2 |
899.6 |
Source: Financial
Statement of P.T. Tunas Baru Lampung Tbk.
and (*) as of 31 March 2013
We believed that the prime mover of the SUNGAI BUDI Group is Mr. Widarto
AKA Oey Kim Tjing (66) and his nephew Mr. Santoso Winata AKA Oey Thik Seng
(51), both are the second generation in the SUNGAI BUDI Group having more than
26 years experience in trading and exporting of agricultural products. In their
daily activities, they are assisted by a number of professional managers
including Mr. Sudarmo Tasmin, Mr. Tanto Nugroho, Mr. Winoto Prajitno, Mr.
Sugandhi and others. The management of the SUNGAI BUDI Group has 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 SUNGAI BUDI Group has been involved in business
malpractices and detrimental cases being settled in the court.
Based on the compiled information, it can be concluded that the SUNGAI
BUDI Group is a company group focusing on trading and exporting of agricultural
products. The SUNGA BUDI Group is
appraised to be good for normal business transaction. However, in view of the
unstable economic condition in the country, we recommend to treat prudently in
extending a loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.61 |
|
UK Pound |
1 |
Rs.83.98 |
|
Euro |
1 |
Rs.71.94 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.