MIRA INFORM REPORT

 

 

Report Date :

09.10.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. BUMI NUSA MAKMUR

 

 

Registered Office :

Jl. Dr. Soetomo No. 97-C, 3rd Floor Surabaya, East Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

2013

 

 

Date of Incorporation :

15.04.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of crumb rubber.

 

 

No. of Employees :

260

 

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


 

Company name and address

 

P.T. BUMI NUSA MAKMUR

 

A d d r e s s :

Head Office

Jl. Dr. Soetomo No. 97-C, 3rd Floor

Surabaya, East Java

Indonesia

Phones             - (62-31) 568 2488 (hunting)

F a x                 - (62-31) 568 0877

Mobile               - (62-31) 7171 1717

Email                - bumirubber@gmail.com

Website            - http://www.bumirubber.com

Building Area     - 4 storey

Office Space      - 220 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Medali, Kecamatan Puri,

Mojokerto, East Java

Indonesia

Phones             - (62-321) 513 700 (hunting)

F a x                 - (62-321) 513 711

Land Area         - 50,000 sq. meters

Office Space      - 12,720 sq. meters

Region  - Industrial Zone

Status   - Owned

 

Date of Incorporation :

15 April 2008

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-26515.AH.01.01.Tahun 2008

    Dated 21 May 2008

b. No. AHU-57142.AH.01.02.Tahun 2009

    Dated 23 November 2009

c. No. AHU-34757.AH.01.02.Tahun 2011

    Dated 12 July 2011

 

Company Status :

National Private Company


 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 02.525.626.4-602.000

 

b. The Government of Mojokerto District

    No. 124/210/416-48/2008

    Dated 22 May 2008

 

Related/affiliated Company :

P.T. SURYA TIRTA MULIA (General Trading)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 60,000,000,000.-

Issued Capital                - Rp. 20,000,000,000.-

Paid up Capital              - Rp. 20,000,000,000.-

 

Shareholders/Owners :

a. Mr. Willin Kusnadi Artha      - Rp. 4,000,000,000.- (20%)

    Address : Jl. Darmo Permai Timur I No.23

                    Surabaya, East Java

                    Indonesia

b. Mr. Robby Setiawan, MSc.   - Rp. 4,000,000,000.- (20%)

    Address : Jl. Villa Bukit Regency I PC 6 No. 11

                    Surabaya, East Java

                    Indonesia

c. Mr. Roy Gunawan     - Rp. 4,000,000,000.- (20%)

    Address : Jl. Villa Bukit Regency I PC 1 No. 1

                    Surabaya, East Java

                    Indonesia

d. Mr. Raymond Gunawan        - Rp. 4,000,000,000.- (20%)

    Address : Jl. Villa Bukit Regency I PC 6 No. 11

                    Surabaya, East Java

                    Indonesia

e. Mr. Rocky Hendrawan Wibowo        - Rp. 4,000,000,000.- (20%)

    Address : Jl. Villa Bukit Regency I PC 6 No. 11

                    Surabaya, East Java

                    Indonesia

 

 

 

 

 

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Crumb Rubber Manufacturing

 

Production Capacity :

Crumb Rubber (SIR20)    - 36,000 tons p.a.

 

Total Investment :

a. Owned Capital           - Rp. 20.0 billion

b. Loan Capital              - Rp. 30.0 billion

c. Total Investment         - Rp. 50.0 billion

 

Started Operation :

June 2008

 

Brand Name : 

BNM Crumb Rubber

 

Technical Assistance :

None

 

Number of Employee :

260 persons

 

Marketing Area :         

Domestic (Local)            - 10%

Export                           - 90%

 

Main Customers :

a. Overseas buyers in Middle East, Japan, China, India, etc

b. Tire industry and rubber products in the country

 

Market Situation :       

Very Competitive

 

Main Competitors :     

a. P.T. Asahan Crumb Rubber

b. P.T. Adei Crumb Rubber Industry

c. P.T. Batanghari Tembesi

d. P.T. Djambi Waras

e. P.T. Madjin Crumb Rubber Factory

f.  P.T. Sunan Rubber

g. Etc.

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         P.T. Bank CENTRAL ASIA Tbk

Jalan Raya Darmo No. 5

Surabaya, East Java

Indonesia

b          The Hong Kong Shanghai Bank Corp.

Jalan Raya Darmo No. 5

Surabaya, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :      

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 210.0 billion

2011 – Rp. 238.0 billion

2012 – Rp. 266.0 billion

2013 – Rp. 149.8 billion (January – June)

 

Net Profit (estimated) :

2010 – Rp. 12.4 billion

2011 – Rp. 14.0 billion

2012 – Rp. 15.6 billion

2013 – Rp.   8.0 billion (January – June)

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director          - Mr. Willin Kusnadi Artha

Director                         - Mr. Raymond Gunawan

 

Board of Commissioner :

President Commissioner- Mr. Robby Setiawan, BSc

Commissioner               - Mr. Roy Gunawan

 

Signatories :

President Director (Mr. Willin Kusnadi Artha) or Director (Mr. Raymond Gunawan) which must be approved by the Board of Commissioners (Mr. Robby Setiawan, MSc and Mr. Roy Gunawan)

 

 

CAPABILITIES

 

Management Capability :

Fairly good

 

Business Morality :

Fairly good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

 

OVERALL PERFORMANCE

 

P.T. BUMI NUSA MAKMUR (P.T. BNM) was incorporated on April 15, 2008 with an authorized capital of Rp. 3,000,000,000.- of which Rp. 1,200,000,000.- was issued and fully paid up. The founding shareholders of the company are Mr. Willin Kusnadi Artha, Mr. Robby Setiawan and Mr. Roy Gunawan, they are Indonesian businessmen of Chinese descent.  The Articles of Association was made by Stephanie Juanita, SH., a public notary in Surabaya under Company Registration Number AHU-26515.AH.01.01.Tahun 2008 dated May 21, 2008.

 

On October 27, 2009 the authorized capital was raised to Rp. 30,000,000,000.- of which Rp. 10,000,000,000.- was issued and fully paid up.  At the same time, the shareholders of the company are Mr. Willin Kusnadi Artha (30%), Mr. Robby Setiawan (17.5%), Mr. Roy Gunawan (17.5%) and P.T. SURYA TIRTA MULIA (35.0%).  But, since March 18, 2010, P.T. SURYA TIRTA MULIA pulled out and its whole shares are sold to Mr. Raymond Gunawan (17.5%) and Mr. Rocky Hendrawan Wibowo (17.5%). The amendment Articles of Association was made by Stephanie Juanita, SH., a public notary in Surabaya under Company Registration Number AHU-AH.01.10-10253 dated April 29, 2010.

 

Most recently by notarial deed of notary Ninik Sutjiati, SH., No. 36 dated April 29, 2011 the authrozied capital was raised again to Rp. 60,000,000,000.- of which Rp. 20,000,000,000.- was issued and fully paid up.  The capital structures and shareholder composition of P.T. BNM in details are as shown on page-3 of this report.  The notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-18491 dated October 22, 2009.  No changes have been effected in term of its shareholding composition and capital structures to date.

Pursuant to the deed of notary of the company, P.T. BNM engaged to operate in general trading, import-export, distributor and industry of crumb rubber and rubber products. The Company’s registered office located at Mojokerto (East Java) and the company can open branch offices or representative offices at home and abroad.

 

P.T. BNM has been operating since mid-2008 in crumb rubber industry.   Its plant is located at Desa Medali, Kecamatan Puri, Mojokerto, East Java on a land of 5.0 hectares. The company produces natural rubber SIR20 (Standard Indonesia Rubber 20) and SIR10 with “Bumirubber” as the brand.  SIR20 is Technically Specified Rubber (TSR) grade which its main use is for car and truck tire which requires good elongation and good abrasion. SIR20 is famous because acceptable international quality and most competitive in TSR market.  SIR10 is premium grade of SIR20 which it has lower dirt content. It is used mainly for special compound and high performance tire which does not allow much contamination in its composition.   According the company’s profile, their output is up to 2,000 metric tons per month and will be double in near future preparing against increasing global huge demand for raw materials of tire industry and rubber products.   Some 10% of P.T. BNM' products are marketed locally while the rest 90% is exported to Middle East, Japan, China, India and others.  We observed that P.T. BNM is classified as a medium sized company of its kind in the country of which the operation has been growing slowly in the last three years.

 

We note that generally the domestic demand for crumb rubber and rubber products has been rising by about 6% - 8% per year in the last five years in line with the growing population of tire and tube industry, automotive industry and rubber product industry in the country.  According to the Indonesia Car Manufacturers Association (GAIKINDO) explained that the total of car sales in 2007 amounted to 434 thousand units increased to 608 thousand units in 2008  and declined to 486 thousand units in 2009.  The total of car sales in 2010 rose again to 765 thousand units and to 894 thousand units in 2011 and to 1,116 thousand units in 2012.  The growth of car and motorcycle sales in Indonesia in 2007 to 2012 is pictured on the following table:

 

Year

Domestic Car Sales

(‘000 units)

Domestic Motorcycle Sales (‘000 units)

2007

434

4,688

2008

608

6,216

2009

486

5,852

2010

765

7,383

2011

894

8,034

2012

1,116

7,141

 

Source: GAIKINDO and the Indonesian Motorcycle Manufacturer Association (AISMI)

 

The demand of crumb rubber is projected to go on rising each year in the next three years. Meanwhile, competition is quite heavy in the crumb rubber industries now doing business in this field in Indonesia.  We consider P.T. BNM to be in a quite favorable position for having already got hold of a steady clientele especially in overseas.

 

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. The management is very reclusive and unlikely to expose its financial condition to outsider. We estimate that sales turnover of the company in 2010 amounted to Rp. 210.0  billion increased to Rp. 238.0 billion in 2011  to Rp. 266.0 billion in 2012 and projected to be increasing by at least 10% in 2013. The operation of the company in 2012 is estimated to have gained a net profit of Rp. 15.6 billion with a networth of Rp. 60.0 billion.  Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. We did not hear that the company has been black listed by Central Bank (Bank Indonesia) and having detrimental cases being settled in the courts.

 

The management of P.T. BNM is headed by Mr. Willin Kusnadi Artha (43) as president director, a young businessman with experience for some 7 years in crumb rubber industry and trading.  In his daily activities, he is assisted by his young brother Mr. Raymond Gunawan (29) as director and a number of professional staffs also with experience and expertise in the business. The management has maintained a wide relation with private businessmen at home and abroad as well as with government authorities.  So far, we did not hear that the company's management having been involved in the business malpractices.

 

P.T. BUMI NUSA MAKMUR is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.99.20

Euro

1

Rs.83.69

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.