MIRA INFORM REPORT

 

 

Report Date :

18.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDO VEGETABLE OIL INDUSTRY

 

 

Registered Office :

Rungkut Industrial Estate Jl. Rungkut Industri IV No. 34 Surabaya, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

03.07.2004

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is dealing in edible Coconut Oil Industry.

 

 

No. of Employees :

250

 

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

 

Name of Company :

P.T. INDO VEGETABLE OIL INDUSTRY

 

A d d r e s s

Head Office & Factory

Rungkut Industrial Estate

Jl. Rungkut Industri IV No. 34

Surabaya, East Java

Indonesia

Phones             - (62-31) 8416356, 8482568, 8482569

Fax                   - (62-31) 8411496

Email                - bambang@indovegetableoil.com

Website            - www.indovegetableoil.com

Land Area         - 5,200 sq. meters

Building Space  - 4,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

 

Date of Incorporation

 

03 July 2004

 

 

Legal Form

 

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

 

 

Company Reg.  No

 

The Ministry of Law and Human Rights

a. No. C-21372 HT.01.01.TH.2000

    Dated 24 August 2000

b. No. AHU-12058.AH.01.02.Tahun 2012

    Dated 06 March 2012

c. No. AHU-AH.01.10-32193

    Dated 01 August 2013

 

 

Company Status

 

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.208.037.8-615.000

 

Affiliated/Associated Company :

Not available

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 20,000,000,000.-

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

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

 

Shareholders/Owners :

a. Mrs. The Sui An       - Rp. 12,000,000,000.- (60%)     

   Address : Jl. Tanah Abang II/112

                   Central Jakarta

                   Indonesia

b. Mrs. Yoanita Tombokan       - Rp.   5,000,000,000.- (25%)

   Address : Tanah Abang II/112

                   Central Jakarta

                   Indonesia

c. Mrs. Merry Tombokan          - Rp.   3,000,000,000.- (15%)     

   Address : Jl. Taman Slamet No. 7

                   Malang, East Java

                   Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Edible Coconut Oil Industry

 

Production Capacity :

a. RBD CNO (Cooking Oils)        - 45,000 tons p.a.

b. Crude Coconut Oil (CNO)        - 20,000 tons p.a.

c. Coconut Fatty Acid (CFAD)     - 20,000 tons p.a.

d. Copra Meals                          - 75,000 tons p.a.

 

Total Investment :

a. Equity Capital            - Rp.  80.0 billion

b. Loan Capital              - Rp.  40.0 billion

c. Total Investment         - Rp.120.0 billion

 

Started Operation

2 0 0 4

 

Brand Name :

Lombok and Sahabat

 

Technical Assistance :

None

 

Number of Employee :

250 persons

 

Marketing Area :

Local    - 100%

 

Main Customers :

a. Supermarkets and Hypermarkets

b. Mini-markets and Traditional Markets

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

            a.         PT. Smart Tbk.

            b.         PT. Wilmar Nabati Indonesia

            c.         PT. Bitung Manado Oil (Bimoli)

            d.         PT. Musim Semi Mas

            e.         PT. Sayap Mas Utama

 

Business Trend :

growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

            a.         P.T. Bank CENTRAL ASIA Tbk.

Rungkut Branch

Jl. Kendangsari Industri No.2

Surabaya, East Java

                        Indonesia 

            b.         P.T. Bank MANDIRI Tbk.

Rungkut Branch

Jl. Rungkut Industri Raya No.10

Surabaya, East Java

                        Indonesia

            c.         P.T. Bank NEGARA INDONESIA Tbk.

Gedung Graha Pangeran

Jl. Achmad Yani No. 286

Surabaya, East Java

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation case in the local commercial courts

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 190.0 billion

2011 – Rp. 240.0 billion

2012 – Rp. 280.0 billion

2013 – Rp. 156.0 billion (January – June)

 

Net Loss (estimated) :

2010 – Rp. 13.2 billion

2011 – Rp. 16.8 billion

2012 – Rp. 19.6 billion

2013 – Rp. 10.8 billion (January – June)

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                     - Mrs. Merry Tombokan

 

Board of Commissioners :

President Commissioner - Mrs. The Sui An

Commissioner                           - Mrs. Yoanita Tombokan

 

Signatories :

Director (Mrs. Merry Tombokan) which must be approved by Board of Commissioners (Mrs. The Sui An and Mrs. Yoanita Tombokan)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. INDO VEGETABLE OIL INDUSTRI (P.T. IVOI) was established in Surabaya, East Java based on notarial Deed No. 14 dated July 3, 2004 of notary Atika Ashiblie, SH., with an authorized capital of Rp. 5,000,000,000.- of which Rp. 1,250,000,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mrs. The Sui An (60%), Mrs. Merry Tombokan (15%), Mrs. Yoanita Tombokan (12.5%) and Mr. erdinan Tombokan (12.5%).  They are Indonesian entrepreneurs of Chinese extraction.  The deed of establishment has been approved by the Minister of Law and Human Rights through its Decision Letter No. C-21372 HT.01.01.TH.2004 dated August 24, 2004.   The articles of association of the company have been revised, most recently by notarial Deed No. 01 dated June 3, 2013 of notary Vivi Soraya, SH., the authorized capital was raised to Rp. 20,000,000,000.- entirely was issued and fully paid up.  Since at the time, the shareholders of the company are Mrs. The Sui An (60%), Mrs. Yoanita Tombokan (25%) and Mrs. Merry Tombokan (15%).  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-32193 dated August 1, 2013. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. IVOI started to be operating since 2004 after taking over from P.T. Djaja Makmur Group’s assets and business activity which is dealing with edible coconut oil industry in Rungkut Industrial Estate, Jl. Rungkut Industri IV No. 34, Surabaya, East Java.  The Company produces cooking oil (RBD CNO) with the “Sahabat” and “Lombok” brand, which is popular among the locals – usage for daily cooking and home industry in Surabaya and its surroundings.   Beside, P.T. IVOI also produces Crude Coconut Oil (CNO), Coconut Fatty Acid Distillate (CFAD) and Copra Meals – usage for oleo-chemicals industries, food industries, soap industries ant others.  On June 27, 2009, one of the factory’s buildings suffered a fire caused by the explosion of one of copra crusher.  The fire can be extinguished after four hours later.  Losses caused y the fire was estimated more than Rp 1.0 billion.  After doing repairs and renovation of the factory buildings, the plant was able to walk normally again. We observed that P.T. IVOI is classified as a small-sized company of its kind in the country of which the operation has been growing slowly in the last three years.

 

Generally, the demand for cooking oil has kept on increasing in the last five years in line with the growing demand for palm cooking oil within and outside the country. According to research, total palm cooking oil industries operating in Indonesia are 53 units with production capacity 7.2 million tons but in 2005 reached 62 units with total production capacity of 9.7 million tons. The main business players in cooking oil business are PT. SMART Tbk., (SINAR MAS Group) under cooking oil brands of FILMA, KUNCI MAS; the SALIM Group through P.T. SALIM IVOMAS PRATAMA under cooking oil brand of BIMOLI; the KPN Group and others. The national cooking oil production has kept on increasing in the last five years in line with the changing of the publics’ consumption patterns from using coconut cooking oil to palm cooking oil. The business position of P.T. MUSIM MAS is favorable for having established wide marketing coverage in Surabaya and its surroundings, including Bali and Lombok provinces.  The growth of cooking oil production in the last five years is pictured on the following table:

 

 

The Production of Palm Cooking Oil, 2004 – 2011*

 

Year

Production (Ton)

2004

4,527,700

2005

4,980,470

2006

5,428,670

2007

5,808,670

2008

6,186,233

2009

6,619,269

2010

6,826,000

2011

7,250,000

Source: Department of Industry;  Processed by ICB*) Estimated

 

Until this time P.T. IVOI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. IVOI 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. 190.0 billion increased to Rp. 240.0 billion in 2011 to Rp. 280.0 billion in 2012 and projected to go on rising by at least 8% in 2013. The operation in 2012 yielded an estimated net profit of at least Rp. 19.6 billion and the company has an estimated total net worth of at least Rp. 80.0 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. IVOI is led by Mrs. Merry Tombokan (41) a young businesswoman with more than 8 years experience in edible coconut oil industry.  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. IVOI 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.63.38

UK Pound

1

Rs.100.86

Euro

1

Rs.84.60

 

 

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.