MIRA INFORM REPORT

 

 

Report Date :

04.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

P.T. MUSIM MAS-FUJI

 

 

Registered Office :

Jalan Raya Narogon Km. 9 Kelurahan Bojong Menteng, Kecamatan Rawa LumbuBekasi, 17117West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

19.08.2010

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Specialty Fats Industry

 

 

No. of Employees :

220

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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 also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices

 

Source : CIA

 

 

 

 


Name of Company

 

P.T. MUSIM MAS-FUJI

 

 

ADDRESS

 

Head Office & Factory

Jalan Raya Narogon Km. 9

Kelurahan Bojong Menteng, Kecamatan Rawa Lumbu

Bekasi, 17117

West Java

Indonesia

Phones             - (62-21) 826 00 912 (Hunting)

Fax                   - (62-21) 826 00 725

E-mail               - mustofa@musimmas-fuji.com

Land Area         - 14,000 sq. meters

Office Space    - 10,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

19 August 2010

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. AHU-45110.AH.01.01.TH.2010

            Dated 22 September 2010

-           No. AHU-00829.AH.01.02.TH.2011

            Dated 6 January 2011

-           No. AHU-AH.01.10-09405

            Dated 15 March 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 31.223.565.8-432.000

The Capital Investment Coordinating Board

No. 01521/1/PPM/PMA/2010

Dated 29 July 2010

 

 

 

Related Companies :

a.         FUJI OIL CO., LTD., Japan (Investment Holding)

b.         A Member Company of the MUSIM MAS Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 400,000,000,000.-

Issued Capital   : Rp. 130,000,000,000.-

Paid up Capital : Rp. 130,000,000,000.-

 

Shareholders/Owners :

a. P.T. MIKIE OLEO NABATI INDONESIA                                  - Rp. 66,300,000,000.-

    Address : Jl. Raya Narogong Km. 9

                    Kelurahan Bojong Menteng, Kecamatan Rawa

                    Lumbu, Bekasi, West Java

                    Indonesia

b. FUJI OIL CO., LTD.                                                               - Rp. 63,700,000,000.-

    Address : 2-1-5 Nishi - Shinaibashi

                    Chuo-Ku, Osaka

                    Japan

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Specialty Fats Industry

 

Production Capacity :

a.         Cooking Oil Base Palm Oil         - 120,000 tons p.a.

b.         Cocoa Butter Substitutes           -   20,000 tons p.a.

c.         Shortening & Margarine -   20,000 tons p.a.

d.         RBD Olein         -   20,000 tons p.a.

e.         Cream Fats       -   10,000 tons p.a.

f.          Processed Oil   -   10,000 tons p.a.

 

Total Investment :

a.         Equity Capital   - Rp. 130.0 billion

b.         Loan Capital      - Rp. 150.0 billion

c.         Total Investment            - Rp. 280.0 billion

 

Started Operation :

November 2011 (trial production)

 

Brand Name :

PALVY

 

Technical Assistance :

Fuji Oil Co., Ltd., Japan

 

 

Number of Employee :

220 persons

 

Marketing Area :

Export              - 40%

Local    - 60%

 

Main Customer :

Buyers in Asian Countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CISADANE RAYA CHEMICALS

b. P.T. DARMEX OIL & FATS

c. P.T. DUA KUDA INDONESIA

d. P.T. FLORA SAWITA CHEMICAL

e. P.T. WILMAR NABATI INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         P.T. Bank DANAMON INDONESIA Tbk

                        Jalan Ir. H. Juanda No. 2

                        Bekasi, West Java

                        Indonesia

b.         The Bank of TOKYO-MITSUBISHI-UFJ LTD

                        Midplaza Building

                        Jalan Jend. Sudirman Kav. 10-11

                        Jakarta 10220

                        Indonesia

c.         P.T. Bank SUMITOMO MITSUI INDONESIA

                        SUMMITMAS II Building

                        Jalan Jend. Sudirman Kav. 61-62

                        Jakarta 12190

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 312.0 billion

2013 – Rp. 335.0 billion

 

Net Profit (estimated) :

2012 – Rp. 23.4 billion

2013 – Rp. 25.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                     - Mrs. Shiu Shia

Directors           - a. Mr. Ung Chiew Hwa

                                      b. Mr. Chia Keng Choon

                                      c. Mr. Tomoyuki Yoshida

                                      d. Mr. Hideki Komai

 

Board of Commissioners :

President Commissioner            - Mr. Bachtiar Karim

Commissioner   - Mr. Osamu Nakamura

 

Signatories :

President Director (Mrs. Shiau Shia) or one of the Directors (Mr. Ung Chiew Hwa, Mr. Chia Keng Choon, Mr. Tomoyuki Yoshida or Mr. Hideki Komai) 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

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. MUSIM MAS – FUJI (P.T. MMF) was established in Bekasi, West Java based on notary deed Mrs. Linda Herawati, SH., No. 74 dated 19 August 2010 with the authorized capital of Rp. 4,000,000,000 issued capital of Rp. 1,000,000,000 fully and paid up. The founding and shareholders of the company are P.T. MIKIE OLEO NABATI INDUSTRI of Indonesia as partner local and FUJI OIL CO., LTD., of Japan as foreign partner. The company notary deed has been changed a couple of times and January 2011 the company authorized capital was increased to Rp. 400,000,000,000 issued capital to Rp. 130,000,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become MIKIE OLEO NABATI INDUSTRI (51%) and FUJI OIL CO., LTD., Japan (49%). After that according to the latest revision of notary deed Mrs. Linda Herawati, SH., No. 38 dated 26 February 2013 the company board of director and the board of commissioner had been changed to lead and runs of the company’s operation. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-09405 dated March 15, 2013.

 

We observe the local partner P.T. MIKIE OLEO NABATI INDUSTRI is a national private company dealing with crude palm oil refining industry which majority interest controlled by Mr. Bahari Karim, Mr. Bachtiar Karim, Mr. Burhan Karim and his family members. They also founder of the MUSIM MAS Group, a big business group in the production and marketing of cooking oil in the country. Growing from strength to strength, Musim Mas Group is one of Indonesia's most dynamic groups, with a diversified portfolio of products and assets. Its activities are centered on its core business of palm cultivation and palm oil processing. It is a market leader in the manufacturing of palm oil, soap, margarines and owns ships, tankers, a grain terminal and bulk tank terminals. The Group's landmark achievements include owning one of the largest palm oil refineries in the world. Indonesia is the Group's native market and Musim Mas ranks among the biggest Indonesian producers in the vegetable oil efining and soap manufacturing industries. It is proud of its synergistic and highly integrated operations that have set a new benchmark in the industry.

 

P.T. MMF operates under the Foreign Capital Investment (PMA) company facility to deal with specialty fats industry. The plant is located at Jalan Raya Narogong Km. 9, Bojong Menteng, Rawa Lumbu, Bekasi, West Java standing on 14,000 sq. meters. The construction of the plant has begun since 2010 and completed in the end 2011. The plant has been operating since 2012 by produces of cooking oil base palm oil including cocoa butter substitutes, shortening & margarine, RBD olein, cream fats and processed oil. Most of raw materials like crude palm oil (CPO) is obtained through MUSIM MAS Group. The company also equipped with fractionation, semi continuous deodorizer, hydrogenation plant. Mr. Mustofa, marketing executive of the company explained some 60% of the products marketed to various food processing industries such as chocolate industry, biscuits industry, ice cream processing, confectionery processing, pharmaceutical and cosmetics industries.

 

 

 

 

Specialty fats are used widely in the food and other industries where special applications require specific physical properties and the largest single user of Specialty Fats are the chocolate and confectionery industries where several factors like: meltdown in the mouth flavour release, etc., are extremely critical and are usually compared with industry's standard of excellence - cocoa butter. Specialty Fats are thus, tailor made to imitate the many positive traits of cocoa butter or other properties to make them more suitable for specific applications. Specialty fats are not only used in the Chocolate Industry but also find uses in Ice Cream Industry- ice cream fats, ice cream chocolate coatings, confectionery, pharmaceuticals-suppositories/binders, milk fat, Non Dairy Whipped Toppings, Cosmetics - lipsticks.

 

P.T. MMF products uses PALVY brand for local markets. P.T. MMF clients are P.T. NESTLE INDONESIA, P.T. KRAFT FOOD COMPANY INDONESIA, P.T. FRAFT FOOD INDONESIA, P.T. NABISCO FOODS, KHONG GUAN, P.T. KRAFT ULTRAJAYA INDONESIA, ORANG TUA Group, and others. Meanwhile the rest 40% is exported to meet the demand of food processing in Japan and Asian countries. We observe the operation of P.T. MMF has been growing and developing well in the last two years.

 

Generally outlook we find the demand for special fats has been rising at home. It is in line with the growth of several industrial sectors, including rubber products, textile industry, cosmetic and soap industries, pharmaceutical, lubricating industry, paper making, and others as potential consumers of the products. As the largest producer of crude palm oil (crude palm oil / CPO) in the world, Indonesia should likely be the basis of the oleochemical industry world beyond Malaysia, China, India, and even the European Union. National oleochemical industries performance from year to year has been improvement. This is due to market demand and government policy support. Currently, Malaysia is still considered a benchmark constellation of global oleochemical industry because of the high acquisition and integration technology industry from upstream to downstream.

 

Indonesia must change the mindset that initially rely on the production of crude palm oil into various derivative manufacturers high value-added palm oil, oleochemicals one through industrialization, Ministry of Industry, said Mr. Abdul, continues to push the industry to support the progressive imposition of export duty on CPO exports to ensure domestic availability of raw materials. The government also encouraged the expansion of capacity and new investment in the area of ​​the proposed facility oleochemical industry through tax allowances and tax holidays. For tax holiday, there are two companies that have been filed. A company that P.T. Unilever Oleochemical Indonesia. Upon the enactment of export duty on CPO progressive, there is an increase in the oleochemical industry investments by 12 companies with a total investment value of Rp. 14 trillion. Ministry of Industry is also targeting 60% export of derivative products, including oleochemicals, and 40% of CPO.

 

Some of oleochemical products as a derivative product of Crude Palm Oil (CPO) has been able to produce in Indonesia. But, actually the case is the Indonesian oleochemical industry is not affordable yet to supply domestic demand especially in the down-streamer, because of domestic oleochemical products are still in the stage of semi-finished products. The semi-finished products which consists of fatty acid, fatty alcohol and glycerol were exported and after extending process then imported again by Indonesian as finished products like additive matters for textile industry, rubber, plastic, detergent, paint, cosmetic, processed-food, etc. Finally, as a consequence, development of Indonesian oleochemical industry is still far left behind compare to the one of Malaysian.

 

In 2011, for example, Indonesia has some 16 oleochemical producer companies with a total capacity of 1.67 million tons, contains 1.00 million tons of fatty acid, 490,000 tons of fatty alcohol and some 177,750 tons of glycerol. Since all domestic oleochemical products were exported, afterwards Indonesia’s market share in the world would be at 15% of 6.63 million tons of fatty acid consumption whereas, fatty alcohol only has 12% of 3.95 million tons and has only 8.9% of 2.00 million tons of glycerol. It is estimated both fatty acid and glycerine will remain to rise in the coming years.

 

Competition is very tight due to a large number of similar companies operating in the country, like P.T. ECOGREEN OLEOCHEMICALS, P.T. CISADANE RAYA CHEMICAL, P.T. SUMI ASIH, P.T. MEDAN OLEOCHEMICAL and P.T. FLORA SAWITA. In overall we find that oleo chemicals industry in the country keeps rising despite the export price was lower and fluctuated. The growth of oleo chemicals industry in the country is seen in the table below.

 

The Growth and Production of Ole Chemical, 2005-2012

 

Year

Fatty Acid

Production (Ton)

Growth (%)

Glycol

Fatty Alcohol

Total

2005

2006

2007

2008

2009

2010

2011

2012

436,700

398,952

350,203

476,700

504,080

542,391

585,782

631,473

46,354

41,283

35,577

51,222

55,290

59,492

64,251

69,262

93,712

119,905

176,099

111,159

136,482

146,855

158,603

170,974

576,766

560,141

561,879

639,081

695,582

748,738

808,636

871,709

 

(2.88)

0.31

14.74

8.88

7.60

8.00

7.80

Growth, % /year

4.44

 

Until this time P.T. MMF has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. MMF is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 202 amounted to Rp. 312.0 billion rose to Rp. 335.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 25.6 billion and the company has an estimated total networth of at least Rp. 150.0 billion. We observe that P.T. MMF is supported by foreign partner with has financially strong and sound behind it. 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. MMF is led by Mrs. Siu Shia (40) a professional manager with experience in specialty fats industry. Prior she is a professional manager of P.T. Mikie Oleo Nabati Industry. In its operation she is assisted by Mr. Ung Chiew Hwa (51), Mr. Chia Keng Choon (61), Mr. Tomoyuki Yoshida (61) and Mr. Hideki Komai (53) as Directors. 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. MUSIM MAS-FUJI is sufficiently fairly good for business transaction.

 

 

Attachment

 

List of the MUSIM MAS Group Members

 

AGRO WIRATAMA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

BAHANA NUSA INTERINDO, P.T. (Oil Palm Plantation and Palm Oil Refinery)

BERKAT SAWIT SEJATI, P.T. (Oil Palm Plantation and Palm Oil Refinery)

BINA KARYA PRIMA, P.T. (Soap Manufacturing)

BRASTAGI BINTANG ASIA, P.T. (Hotels Development and Management)

DAYA INDAH NUSANTARA, P.T. (Oil Palm Plantation and Refinery)

GLOBALINDO ALAM PERKASA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

INDO KARYA INTERNUSA, P.T. (RBD Palm Oil and Palm Kernel Oil Processing)

INDOMAKMUR SAWIT BERJAYA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

INTER-CONTINENTAL OILS AND FATS, Singapore (Trading and Distributor Specializing in Tropical Oil and Derivatives Products)

INTIBENUA PERKASATAMA, P.T. (Palm Oil Refinery)

LAMBANG UTAMA, P.T. (Soap Manufacturing)

LESTARI ABADI PERKASA, P.T. (Oil Palm Plantation Palm Oil Refinery)

MAJU ANEKA SAWIT, P.T. (Oil Palm Plantation and Palm Oil Refinery)

MEGASURYA MAS, P.T. (Bath Soap, Cooking Oil and Margarine Manufacturing)

MIKIE OLEO NABATI INDUSTRI, P.T. (Crude Palm Oil Refinery)

MUSIM MAS-FUJI, P.T. (Specialty Fats Industry)

MUSIM MAS HOLDINGS PTE., LTD., Singapore (Trading)

MUSIM SEMI MAS, P.T. (Oil Palm Plantation and Refinery, Soap Manufacturing)

MUSIM MAS RESOURCES, P.T. (Management Consulting Services and Wholesale Trade, and Investment Holding)

SINAR AGRO RAYA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

SIRINGO-RINGO, P.T. (Oil Palm Plantation and Palm Oil Refinery)

SUKAJADI SAWIT MEKAR, P.T. (Oil Palm Plantation and Palm Oil Refinery)

UNGGUL LESTARI, P.T. (Oil Palm Plantation and Palm Oil Refinery)

WILLIAM RESOURCES, P.T. (Investment Holding)

Etc

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.12

UK Pound

1

Rs.100.07

Euro

1

Rs.82.74

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.