|
Report Date : |
19.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
P.T. CHEIL JEDANG INDONESIA |
|
|
|
|
Registered Office : |
Menara Jamsostek, 21st Floor Jalan Jend. Gatot Subroto Kav. 38 Jakarta Selatan, 12710 |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Financials (as on) : |
31.12.2010 (Consolidated) |
|
|
|
|
Date of Incorporation : |
28.10.1996 |
|
|
|
|
Com. Reg. No.: |
No. AHU-AH.01.10-25528 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
MSG, Lysine and L-Threonine and Nucleid Acid Manufacturing |
|
|
|
|
No. of Employees : |
1,280 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 more than 6%
annually in 2010-12. 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
P.T.
CHEIL JEDANG INDONESIA
Head
Office
Menara
Jamsostek, 21st Floor
Jalan Jend. Gatot Subroto Kav. 38
Jakarta Selatan, 12710
Indonesia
Phones -
(62-21) 5299 5000 (Hunting)
Fax - (62-21) 5299 5192-4
Building Area - 28 storey
Office Space - 400 sq. meters
Region - Commercial
Status - Rent
Factory
I
Jalan Raya Brantas Km. 3.5
Desa Jati Gedong, Kecamatan Ploso
Kabupaten
Jomang 61453
East
Java
Indonesia
Phones -
(62-321) 887700 (Hunting)
Fax - (62-321) 887711
Land Area - 320,000 sq.
meters
Building Area - 220,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Factory
II
Desa Arjosari, Kecamatan Rejoso
Pasuruan 67101, East Java
Indonesia
Phones -
(62-343) 482333 (Hunting), 401333
Fax - (62-343) 482768, 482788
Land Area - 310,600 sq.
meters
Building Area - 180,000 sq. meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
28
October 1996
Legal Form :
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of Law and Human Rights
- No. C-230871.HT.01.04.TH.2004
Dated 22 December 2004
- No.
AHU-54920.AH.01.02.TH.2008
Dated 25 August 2008
- No.
AHU-AH.01.10-03817
Dated 16 April 2009
- No.
AHU-29907.AH.01.02.Tahun 2011
Dated 15 June 2011
- No.
AHU-43620.AH.01.02.Tahun 2011
Dated 26 August 2011
- No.
AHU-AH.01.10-25528
Dated 13 July 2012
Company Status :
Foreign Investment
Company (PMA)
Permit by the
Government Department :
a. The Department of Finance
NPWP No. 01.071.816.1-057.000
b. The Capital Investment Coordinating Board
-
No. 739/I/PMA/1996
Dated 2 October 1996
- No. 463/III/PMA/1999
Dated 26 April 1999
- No. 172/II/PMA/2000
Dated 26 July 2000
- No. 1211/III/PMA/2004
Dated 6 December 2004
- No. 120/II/PMA/2005
Dated 11 May 2005
- No. 65/II/PMA/2006
Dated 9 March 2006
Holding Company :
CJ CHEIL JEDANG
Corp., of South Korea (Investment Holding)
Affiliated/Associated
Companies :
a. P.T. AGROBIS PANCA
EKATAMA (Day Old Chicks Farming)
b. P.T. BUMI TAPIOKA
JAYA (Tapioca Manufacturing)
c. P.T. CHEIL JEDANG
SUPERFEED (Animal Feed Milling)
d. P.T. CJ FEED
JOMBANG (Animal Feed Milling)
e. P.T. SUPER UNGGAS
JAYA (Poultry)
Capital
Structure :
Authorized Capital - US$ 107,911,000.-
Issued Capital - US$ 107,911,000.-
Paid up Capital - US$ 107,911,000.-
Shareholders/Owners
:
a. CJ CHEIL JEDANG CORP., of Korea - US$ 107,910,000.- (99,999%)
Address :
12 Floor, CJ Building 500,
5-GA, Namdaemoon-Ro, Ciang-Ku
South Korea
b. CJ CHINA LTD., of China - US$ 1,000.- (
0.001%)
Address :
Suite 1 R/F New Henry House
10 Ice House Street
China
Lines
of Business :
a.
MSG, Lysine and L-Threonine and Nucleid Acid Manufacturing
b.
Investment Holding
Production
Capacity :
a.
MSG/GA - 20,000 tons p.a.
b.
L-lysine HCL -
140,000 tons p.a.
c.
Liquid Organic Fertilizers -
594,090 tons p.a.
d.
Solid Organic Fertilizers - 279,000
tons p.a.
e.
Cell Protein - 30,000 tons p.a.
f.
Gypsums - 8,600 tons p.a.
g.
Humus - 4,000 tons p.a.
h.
Animal Feeds -
240,000 tons p.a.
i.
L-Threonine - 40,000 tons p.a.
j.
Food Seasoning - 1,500 tons p.a.
k.
Guanosine Monophospats - 2,500 tons p.a.
l.
Inosine Monophospats - 1,000 tons p.a.
m.
Dextrose (SOD) -
890,000 tons p.a.
Total
Investment :
a.
Equity Capital -
US$ 102.2 million
b.
Loan Capital -
US$ 298.5 million
c.
Total Investment -
US$ 400.7 million
Started
Operation :
1998
Brand
Name :
JCITIDE
Technical
Assistance :
CHEIL
JEDANG CORPORATION of South Korea
Number
of Employee :
1,280
persons
Marketing
Area :
Export - 90%
Local -
10%
Main
Customers :
Buyers
in Asia Pacific, Europe Union and the USA
Market
Situation :
Very
Competitive
Main
Competitors :
a.
P.T. AJINOMOTO INDONESIA
b. P.T. AJINEX INDONESIA
c. P.T. MIWON INDONESIA
d. P.T. SASA INTERNATIONAL
e. Etc.
Business
Trend :
Growing
B
a n k e r s :
a.
P.T. Bank WOORI INDONESIA
Jalan Jenderal
Sudirman Kav. 52-53
Jakarta
Selatan
Indonesia
b.
P.T. Bank DANAMON INDONESIA Tbk
Jalan Raya
Darmo No. 59
Surabaya,
East Java
Indonesia
c. P.T. Bank KEB INDONESIA
Jalan Jend. Sudirman
No. 28
Jakarta Pusat
Indonesia
Auditor
:
Tanudiredja,
Wibisana & Rekan (a member of PWC)
Litigation
:
No
litigation record in our database
Annual
Sales :
2009
– US$. 801.4 million
2010
– US$. 1,344.3 million
2011
– US$. 1,550.0 million (Estimated)
2012
– US$. 1,740.0 million (Estimated)
Net
Profit (Loss) :
2009
– US$. 41.0 million
2010
– US$. 72.7 million
2011
– US$. 83.0 million (Estimated)
2012
– US$. 92.5 million (Estimated)
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Song Young
Vice President Directors - Mr. Lee Dong Hyuk
Directors -
a. Mr. Kim Hansu
b. Mr. Kim Wonyoung
c. Mr. Kim Bong Joo
d. Mr. Kim Hak Yun
e. Mr. Shin Hee Sung
f. Mr.
Agus Sutijono
Board of Commissioners :
President Commissioner - Mr. Kim Chul Ha
Commissioners - a. Mr. Lee Jay Hyun
b. Mrs. Man Jo Kim
c. Mr. Bernard Kent Sondakh
d. Mr. Ha Dae Joong
Signatories :
President
Director (Mr. Song Young) or Vice President Directors (Mr. Lee Dong Hyuk) or
one of the Directors (Mr. Kim Hansu, Mr. Kim Wonyoung, Mr. Kim Bong Joo, Mr.
Kim Hak Yun, Mr. Shin Hee Sung or Mr. Agus Sutjijono ) which must be approved
by President Commissioner (Mr. Kim Chul Ha) and one of the Commissioners (Mr.
Lee Jay Hyun, Mrs. Man Jo Kim, Mr. Bernard Kent Sondakh or Mr. Ha Dae Joong)
Management Capability :
Good
Business Morality :
Good
P.T. CHEIL JEDANG INDONESIA (P.T. CJI) was
established in October 1996 in Surabaya, East Java with the authorized capital
of US$ 15,000,000 entirely issued and paid up. The founding shareholders are
CHEIL JEDANG CORPORATION (90%) of South Korea and P.T. CHEIL SAMSUNG INDONESIA
(10%). The articles of association of the company have frequently been revised.
In December 2004, its holding company P.T. CHEIL SAMSUNG INDONESIA was merged
into P.T. CJI and concurrently the authorized capital of the company was raised
to US$ 102,225,000 wholly issued and paid up. Since the merging of P.T. CHEIL
SAMSUNG INDONESIA into P.T. CJI, whole properties, assets, liabilities,
employees and businesses of P.T. CHEIL SAMSUNG INDONESIA ware taken over by
P.T. CHEIL JEDANG INDONESIA and since that time P.T. CHEIL SAMSUNG INDONESIA
was dispersed by law without prior liquidation. At the same time, whole shares
of the company were controlled by CHEIL JEDANG CORPORATION of South Korea
(99.99%) and CHEIL JEDANG CHINA LIMITED of China (0.01%).
In May 2011, the authorized capital was
raised again to US$ 107,911,000.- (Rp. 961,442,726,000.-) entirely was issued
and paid up. Concurrently, the
shareholders of the company are CJ CHEIL JEDANG CORPORATION of South Korea
(99.999%) and CJ CHINA LIMITED of China (0.001%). The amendment to articles of
association was made by Mr. I Gede Buda Gunamanta, SH., a public notary in
Jakarta and it was approved by the Minister of Law and Human Right in its
Decision Letter No. AHU-AH.01.10-03817, dated April 16, 2009 and No.
AHU-29907.AH.01.02.Tahun 2011 dated June 15, 2011.
Later according to the latest revision of
notarial Deed No. 61 dated 29 June 2012 of I Gede Buda Gunamanta, SH., the
company board of directors and the board of commissioners had been changed.
But, no changes have been effected in term of its shareholding composition and
capital structures to date. The amendment to Articles of Association has been
approved by the Minister of Law and Human Rights through Decision Letter No.
AHU-AH.01.10-25528 dated 13 July 2012.
P.T. CJI obtained a Foreign Capital
Investment (PMA) facility issued by the Capital Investment Coordinating Board
(BKPM) to deal with food seasoning and animal feed processing. P.T. CJI the
first CJ Group`s investment in Indonesia has demonstrated itself as one of the
biggest producer of Lysine, MSG and L-Threonine in the world. Located in
Pasuruan, East Java, the area`s abundant natural resources and good
infrastructure add to the growing success of P.T. CJI, with four times lysine
production capacity expansion ended in 1995 and 1998. Located in Jombang of
East Jawa region, P.T.CJI is the second largest manufacturer of nucleic acid in
the world. Nucleic acids have put Cheil Jedang on the globe, and its
manufacturing technology has been further refined and developed in PT.CJI.
The plant is equipped with the most modern
and sophisticated facilities and hopes to add amino acid, a promising product
for the future, to its product portfolio. Thus, in the near future, it will
become CJ Indonesia’s second amino acids complex, following P.T.CJI in
Pasuruan. Currently, P.T.CJI manages a massive manufacturing complex, armed
with latest technology practices and the most skillful resources. Its plant is
located at Jalan Raya Brantas Km. 3.5, Jati Gedong Village, Ploso, Jombang on a
land of 32.0 hectares. According to its
license, the plant has annual production capacity of 1,500 tons of food
seasoning, 2,500 tons of guanosine and 1,000 tons of inosine monophospats. The
plant has been in operation since July 1998 with an investment of US$ 75.4
million coming from own capital of US$ 15.0 million and the rest from loans.
Mr. Heri, a staff of the company said that the company just produces food
seasoning such as IMP, GMP and I & G.
In December 2004, since the merging of P.T.
CHEIL SAMSUNG INDONESIA into P.T. CJI, the company operates a plant of P.T.
CHEIL SAMSUNG INDONESIA located in Arjosari Village, Rejoso, Pasuruan, West
Java on a land of 31.6 hectares. The plant has been in commercial operations in
1990 and expanded for a couple of times to increasing production capacity. The
plant produces of 20,000 tons of monosodium glutamate (MSG)/glutamate acid
(GA), 140,000 tons of L-Lysine HCL, 10,000 tons of L-Threonine, 594,000 tons of
Liquid Organic Fertilizer, 279,650 tons of Solid Organic Fertilizer, 240,000
tons of chicken feed mill, 30,000 tons of cell protein, 8,600 ton of gypsum and
4,000 ton of humus. The main products are Lysine, MSG/GA and chicken feed. The
company's product in the form of Lysine uses the L-Lysine HCL brand, its MSG
uses the MIPUNG brand for the local market and MIPOONG for the export market,
while its chicken feed uses the SUPERFEED brand. Some 90% of the company
products is exported to Asia, Europe and the USA using JCITIDE brand and the
remaining 10% being marketed in the country. Meanwhile, chicken feed, liquid
and solid organic fertilizer are entirely marketed in the country.
P.T. CJI is also engaged in vestment holding
by controlling 99.99% shares of CJ Do Brasil Industria Commercio de Produtos
Alimenticios (Brazil) dealing with production and sale of foodstufts and other
chemical products, and 100% shares of CJ International Asia Pte., Ltd.,
(Singapore) dealing with trading. We
observed that P.T. CJI is classified as
a large sized company of its kind in the country of which the operation has
been growing in the last three years.
We find that the demand for MSG (Monosodium
Glutamate) has fluctuated in the last five years in line with the fluctuating
domestic animal feed production under the impact of the economic and monetary
crisis in Indonesia since end 1997. Up to now the domestic MSG production has
been largely for the consumption of the animal feed industry. Competition is
very tight in the MSG business on account of the many brands of this commodity
being available in the domestic market, including Ajinomoto, Sasa, Miwon,
Mikimoto, Indomoto, Intimoto and others. Meanwhile, the company's Lysine
production faces strong competition from comparable products of the USA and
Japan. Generally, the business position of P.T CJI is favorable for having wide
marketing networks in the country. The
company is the largest animal feed industry in Indonesia. The operation of the company is backed up by
the CHEIL JEDANG Group based in South Korea.
According to the financial statement of the
company being audited by Tanudiredja, Wibisana & Rekan, a Public
Accountant, that sales turnover of the company in 2009 amounted to US$ 801.4 million
with a net profit of US$ 41.0 million increased to US$ 1,334.3 million with a
net profit of US$ 72.7 million in 2010.
The company’s balance sheets and statement of income in fiscal 2009 and
2010 are attached below. Up to present,
we have yet to gain the statement of income of P.T. CJI in fiscal 2011 and
2012. However, we estimated the total
sales turnover in 2011 amounted to US$ 1,550.0 million with a net profit of US$
83.0 million and rose again to US$. 1,740.0 million with a net profit of US$.
92.5 million in 2012. We note that P.T.
CJI is supported by a financially strong and healthy foreign partner. So far,
we have never heard of the company having been black listed by the Central Bank
(Central Bank) and registered in the court for detrimental cases. The company usually pays its debts punctually
to suppliers
Since June 2012, the Company's management is
headed by Mr. Song Young (49) replacing Mr. Jeong Tae Jin (54) as president
director. He is a professional manager
of South Korea with more than 18 years experience in food seasoning processing
and animal feed milling. In daily
operation, he is assisted by Mr. Lee Dong Hyuk (56) as vice president director
and six directors namely Mr. Kim Hansu (44), Mr. Kim Wonyoung (38), Mr. Kim
Bong Joo (44), Mr. Kim Hak Yun (45), Mr. Shin Hee Sung (44), all of South Korea
and Mr. Agus Sutijono (56) of Indonesia. The management is having wide relation
with home and overseas private businessmen as well as with government sectors.
So far, we did not hear that the company’s management involved in a business
malpractice or detrimental cases that settled in the country. The company’s
litigation record is clean and it has not registered with the black list of
Bank of Indonesia.
P.T. CHEIL JEDANG INDONESIA is sufficiently
fairly good for business transaction. However, in view of the political
situation in the country is warming we recommend to treat prudently in
extending a loan to the company.
Attachment:
PT. CHEIL JEDANG
INDONESIA
And Subsidiaries
Consolidated Statement of Income
Years Ended
December 31, 2010 and 2009
(Expressed in US
Dollars)
(Expressed in US Dollars)
|
DESCRIPTION |
2010 |
2009 |
|
ASSETS |
|
|
|
Current Assets |
|
|
|
- Cash and cash equivalents |
114,871,878 |
49,593,064 |
|
- Trade receivables |
120,333,483 |
168,283,359 |
|
- Other receivables |
609,193 |
1,263,448 |
|
- Prepaid expenses and advances |
6,139,235 |
9,464,962 |
|
- Inventories |
98,787,648 |
47,902,715 |
|
- Derivative receivables |
220,611 |
1,182,063 |
|
- Prepaid taxes |
26,722,007 |
11,009,390 |
|
- Other current assts |
15,198 |
1,655,738 |
|
Total current
Assets |
367,699,253 |
290,354,739 |
|
Non-current assets |
|
|
|
- Investment |
191,447 |
191,447 |
|
- Prepaid Taxes |
35,058,748 |
35,857,876 |
|
- Fixed assets |
364,419,395 |
344,600,430 |
|
- Refundable deposits |
1,962,424 |
1,873,745 |
|
- Other non-current assets |
1,109,448 |
1,619,060 |
|
Total Non-current Assets |
402,741,462 |
384,142,558 |
|
TOTAL ASSETS =
TOTAL LIABILITIES AND EQUITY |
770,440,715 |
674,497,297 |
|
LIABILITIES |
|
|
|
Current Liabilities |
|
|
|
- Trade payables |
151,994,532 |
131,776,450 |
|
- Other payables |
8,306,419 |
13,811,082 |
|
- Taxes payables |
20,552,632 |
3,371,638 |
|
- Accrued expenses |
18,386,419 |
26,885,529 |
|
- Derivative payable |
459,505 |
3,517,799 |
|
- Bank loans |
287,782,585 |
191,498,984 |
|
Total Current
Liabilities |
487,482,092 |
370,861,482 |
|
Non-current Liabilities |
|
|
|
- Bank loans |
-- |
93,981,191 |
|
- Deferred tax liabilities, net |
36,851,890 |
34,101,654 |
|
- Derivative payable |
-- |
1,899,402 |
|
- Employee benefits obligation |
1,798,949 |
1,363,017 |
|
Total Non-current
Liabilities |
38,650,839 |
131,345,264 |
|
- Minority Interest |
3,126 |
4,095 |
|
Equity |
|
|
|
- Issued and paid up capital |
107,911,000 |
102,225,000 |
|
- Additional paid-in capital |
7,914,000 |
-- |
|
- Difference from restructuring
transactions |
285,965 |
766,811 |
|
- Foreign exchange translation of
subsidiary’s f.s. |
14,216,000 |
13,252,645 |
|
Retained earnings |
113,977,693 |
56,042,000 |
|
Total Equity |
244,304,658 |
172,286,456 |
|
Income Statement |
|
|
|
- Net Sales/revenue |
1,344,321,762 |
801,386,115 |
|
- Cost of goods sold |
(1,026,112,031) |
(650,471,602) |
|
- Gross profit |
308,209,731 |
150,914,513 |
|
- Operating expenses |
(194,650,533) |
(101,015,027) |
|
- Operating income |
113,559,198 |
49,899,486 |
|
- Other (expenses) income |
(9,723,384) |
12,205,764 |
|
- Profit before income tax |
103,835,814 |
62,105,250 |
|
- Income tax expenses |
(31,113,0569) |
(21,053,863) |
|
- Profit before minority interest |
72,722,745 |
41,051,387 |
|
- Minority interest |
1,110 |
(682) |
|
- Net Profit |
72,723,855 |
41,050,705 |
Audited by Tanudiredja, Wibisana & Rekan, a public
accountant (a member of PWC)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.63 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.84.56 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.