MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. SADHANA ARIFNUSA

 

 

Registered Office :

Gedung Esa Sampoerna Centre, 6th Floor, Jalan Dr. Ir. H. Soekarno 198,

Sukolilo, Surabaya Timur, Surabaya, 60117, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.06.1991

 

 

Com. Reg. No.:

No. AHU-AH.01.10-19647

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Trading, Supply and Distribution of Tobacco

 

 

No. of Employees :

26 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 Complaint

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

 

Name of Company

 

P.T. SADHANA ARIFNUSA

 

 

Address

 

Head Office

Gedung Esa Sampoerna Centre, 6th Floor

Jalan Dr. Ir. H. Soekarno 198

Sukolilo, Surabaya Timur

Surabaya, 60117

East Java

Indonesia

Phones             - (62-31) 297 9297 (Hunting)

Fax                   - (62-31) 297 9298

Building Area    - 10 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

15 June 1991

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

-  No. C2-430.HT.01.04.TH.1999

   Dated 6 January 1999

-  No. AHU-24423.AH.01.02.TH.2012

   Dated 7 May 2012

-  No. AHU-AH.01.10-19647

   Dated 1 June 2012

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.527.002.8-631.000

 

 

Related Companies

 

a.   P.T. ADI SAMPOERNA (Trading of Tobacco)

b.   P.T. DELPHIA PRIMA JAYA (Trading and Distribution of Industrial Chemical and Agricultural

   Commodities)

c.   P.T. ESA KERTAS NUSANTARA (Culture Paper Manufacturing)

d.   P.T. ESA SAMPOERNA (Office Building Management and Investment Holding)

e.   P.T. INDRA SAMPOERNA (Trading and Distribution of Tobacco)

f. P.T. LANCAR SAMPOERNA BESTARI (Office Building Development and Management)

g.   P.T. MEDIA NUSA PERDANA (Daily News Paper)

h.   P.T. PAPERPRO INDONESIA (Trading and Distribution of Paper Products)

i. P.T. SADHANA (Trading and Distribution of Tobacco)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 900,000,000.-

Issued Capital                                 : Rp. 900,000,000.-

Paid up Capital                               : Rp. 900,000,000.-

 

Shareholders/Owners :

a. P.T. ESA SAMPOERNA                                                 - Rp. 810,000,000.-

    Address : Jl. Dr. Ir. H. Soekarno 198

                    Kelurahan Sukolilo, Kecamatan Surabaya

                    Timur, Surabaya, East Java

                    Indonesia

b. Mr. Sunarjo Sampoerna                                                - Rp.   90,000,000.-

    Address : Jl. Raya Kertajaya Indah 91

                     RT. 005/ RW. 010, Kel. Manyar

                     Manyar Sabrangan, Kec. Mulyorejo

                     Surabaya, East Java

                     Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Supply and Distribution of Tobacco

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

July 1991

 

Brand Name :

Sadhana Arifnusa

 

 

Technical Assistance :

None

 

Number of Employee :

26 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Clove Cigarette Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. BANGKIT JAYA

b. P.T. BANYU MUKTI

c. P.T. GADING MAS INDONESIA TOBACCO

d. P.T. HARUM SARI KENCANA

e. P.T. SURYA KERTA BAKTI

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank PERMATA Tbk

    Jalan Tunjungan No. 52

    Surabaya, East Java

    Indonesia

b. P.T. Bank CENTRAL ASIA Tbk

    Jalan Dr. Soetomo No. 118-122

    Surabaya, East Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 285.0 billion

2011 – Rp. 298.0 billion

2012 – Rp. 307.0 billion

 

Net Profit (estimated) :

2010 – Rp. 14.0 billion

2011 – Rp. 14.9 billion

2012 – Rp. 16.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Sunarjo Sampoerna

 

Board of Commissioners :

Commissioner                                 - Mr. Agus Setiono

 

Signatories :

Director (Mr. Sunarjo Sampoerna) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct name of the Subject is P.T. SADHANA ARIFNUSA not P.T. SADHANA ESA SAMPOERNA as stated in your order ref. no. 235004 dated 5 September 2013.

 

P.T. SADHANA ARIFNUSA (P.T. SA) was established in Surabaya, East Java on 15 June 1991 with the authorized capital of Rp. 500,000,000 of which Rp. 100,000,000 was issued and fully paid up. The founding shareholders of the company are the late Mr. Budi Sampoerna, Mr. Putera Sampoerna and Mr. Sunarjo Sampoerna, the three are Indonesian businessmen of Chinese extraction. The company notary deed had changed frequently and then in August 2007, the issued capital of the company was raised to Rp. 500,000,000 fully paid up and concurrently Mr. Putera Sampoerna withdrew and into the company entered Mr. Michael Joseph Sampoerna, an Indonesian businessman of Chinese extraction, as a new shareholder of the company. Later in January 2012 Mr. Michael Joseph Sampoerna withdrew and the whole share sold to P.T. ESA SAMPOERNA as new shareholder. Later according to the latest revision of notary documents of Mr. Swartana Tedja, SH., No. 109 dated 27 March 2012 the company authorized capital was increased to Rp. 900,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become P.T. ESA SAMPOERNA (90%) and Mr. Sunarjo Sampoerna (10%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-19647 dated June 1, 2012.

 

We observe that Mr. Sunarjo Sampoerna is one of Mr. Putera Samperna, the Sampoerna family's members a majority business stakes owners and prime mover of the SAMPOERNA STRATEGIC Group, a big-size and growing business group in Indonesia. We have seen that majority business stakes of the company is controlled by Mr. Sunarjo Sampoerna. He is also the founding and majority business stakes owners of P.T. DELPHIA PRIMA JAYA dealing with trading of chemical and P.T. ADI SAMPOERNA dealing with trading and distribution of agricultural products and other companies. 

 

P.T. SA has been in commercial operation since July 1991 dealing with trading, supplying and distribution of Virginia tobacco. The company obtained tobacco from farmers in East Java and Central Java by cooperation partnership with farmers. A staff of the company said that P.T. SA is in cooperation with a number of Virginia tobacco farmers in Lombok, Nusa Tenggara Barat (NTB) and in Sleman, Daerah Istimewa Yogyakarta (DIY). P.T. SA is in cooperation with 4,000 tobacco farmers cultivating a land of 5,616 hectares in Lombok and 2,000 tobacco farmers cultivating a land of 2,100 hectares in Sleman. In this cooperation, P.T. SA provides information on how to plant tobaccos and gives tobacco seeds to the farmers. P.T. SA has operated on Lmbok Island fore more than 17 years SA operates on a system by using partnership farmers to grow Virginia Tobacco. Also providing a number of additional programmes for empowering and uplifting it’s partner farmers. P.T. SA has always operated the largest, and most successful number of farmer – company partnerships o the Island. P.T. SA also continues to expand and develop its community development programs for the communities in and around the forest areas, these micro-credit programs include; Goats, Chickens, Rice, Tobacco, Silage, Cattle, farmer owned tree plantation. Having harvesting tobacco products, the farmers dry and sold them to P.T. SA. Then, the tobacco products are supplied to various cigarette industries like P.T. HM SAMPOERNA and others in East Java and Central Java. We observe that P.T. SA is classified as a large sized company in the country dealing with trading and distribution of tobaccos of which the operation had been running smoothly and growing in the last five years.

 

 

In general, the demand for tobacco increased with increasing cigarette production in the country. However, the increased production of cigarettes is not followed by increased production of tobacco. National tobacco production within five years has been declining dramatically. The Government recently issued rules regarding Material Safety Addictive Substances Containing Form of Tobacco Products for Health as stipulated in Government Regulation (PP) No. 109 of 2012. The rules , indirectly , have been regarded as controlled by foreign tobacco companies , because of some existing chapters , described how the tobacco industry requires some rules that are difficult to implement implemented by local companies. No doubt, some NGOs and associations that fight for the rights of small cigarette industry catapult notes of protest to the government related to the rule. In addition the millions of people who depend on the tobacco industry in danger of losing the source of income. As a result, there will be increased unemployment. In fact, the President requires to all levels of government to make the rules that pro-job, pro-poor, pro-growth and pro-environment.
For large -scale cigarette industries that have large capital and advanced technology may be prepared for this rule. But for a small cigarette industry will be difficult to adjust. Moreover, most of the rules contained in this PP is precisely focused to dominate the clove cigarettes cigarette production in Indonesia. 93 % of cigarettes in Indonesia is dominated by clove cigarettes remaining 7 % by cigarettes. So you can imagine how the future Indonesian clove cigarette industry will be hit by this PP (government regulation).

 

Farmers play an important role in the cigarette industry. If there are no tobacco raw materials then there is no production. So with this rule, it is estimated that about 6 million farmers who will lose their source of income as farmers. It might, Indonesian tobacco prices will be bought cheaply because of the existence of this rule. Not only that before this begins rule, employers in the Kudus cigarettes already shut down the factory. Of the 110 existing cigarette factories in Kudus, currently lived 80 factories that still survive. This fact could be decreased again after this rule is applied.
The small cigarettes industry greatest hope is that PP is canceled. Because of the early manufacturing alone is controlled by Philip Morris that it is ready with products such rules, so he asked the government to implement its business in Indonesia to be free. There must be no foreign interference in making the rules. If the government is pro- people, then create a rule that people can prosper.

 

Tobacco Production, Export Volume and Export Value, 2008 - 2012

Year

Tobacco Production (Thousand Ton)

Export Volume (Thousand Ton)

Export Value (Million US$)

2008

2,6

30,0

73,7

2009

4,1

32,8

93,7

2010

3,4

28,0

73,7

2011

2,9

18,8

61,6

2012

3,2

16,5

61,5

Source: Central Bureau of Statistic (BPS)

 

Until this time P.T. SA has not been registered with Indonesian Stock Exchange, so that they had 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. 285.0 billion rose to Rp. 298.0 billion in 2011 increased to Rp. 307.0 billion in 2012 and projected to go on rising by at least 6% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 16.0 billion and the company has an estimated total networth of at least Rp. 15.0 billion.

 

 

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. SA is led by Mr. Sunarjo Sampoerna (55) a businessman and professional manager with experience in trading, and supplying of tobacco. He graduated School of Indonesian Institute of The Art Yogyakarta. 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. SADHANA ARIFNUSA is sufficiently fairly good for business transaction.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.49

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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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