MIRA INFORM REPORT

 

 

Report Date :

28.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

P.T. VOITH PAPER ROLLS INDONESIA

 

 

Registered Office :

Karawang International Industrial City Jalan Permata V Lot EE-1 Karawang, 41361 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.11.2005

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing  of Plastic and Rubber (Roll Cover)

 

 

No. of Employees

238

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. VOITH PAPER ROLLS INDONESIA

 

 

address

 

Head Office & Factory

Karawang International Industrial City

Jalan Permata V Lot EE-1

Karawang, 41361

West Java

Indonesia

Phones             - (62-267) 419 719 (Hunting)

Fax                   - (62-267) 419 718

Land Area         - 20,000 sq. meters

Building Area     - 16,700 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Date of Incorporation :

a. 24 September 1999 as P.T. VOITH SULZER PAPER TECHNOLOGY SERVICES INDONESIA

b. 1 March 2003 as P.T. VOITH PAPER SERVICES INDONESIA

c. 18 November 2005 as P.T. VOITH PAPER ROLLS INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-15600 HT.01.01.TH.2000

  Dated 27 July 2000

- No. W7-HT.01.10-11201

  Dated 27 September 2007

- No. AHU-72424.AH.01.01.TH.2008

  Dated 13 October 2008

- No. AHU-AH.01.10-28274

  Dated 19 July 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.882.618.0-052.000

 

 

 

The Capital Investment Coordinating Board

- No. 328/I/PMA/1999

  Dated 26 May 1999

- No. 1260/III/PMA/1999

  Dated 24 September 1999

- No. 225/II/PMA/2004

  Dated 16 December 2004

 

Related Company :

A Member Company of the SINAR MAS Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - US$ 11,000,000.-

Issued Capital                - US$   3,570,000.-

Paid up Capital              - US$   3,570,000.-

 

Shareholders/Owners :

a. VOITH PAPER HOLDING GMBH & CO. KG                     - US$ 2,713,200.-

    Address : Sankt Poltener Strasse 43

                    89522 Heildenheim

                    Germany

b. P.T. PURINUSA EKAPERSADA                                     - US$    856,800.-

    Address : Jl. Fachrudin No. 18

                    Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Plastic and Rubber (Roll Cover) Manufacturing

 

Production Capacity :

a. Roll Cover                                    - 25,466 tons p.a.

b. Paper Mill Machinery Reparation

    and Services                                - US$ 1.0 million

 

Total Investment :

a. Equity Capital                              - US$   3.5 million

b. Loan Capital                                - US$ 11.0 million

c. Total Investment                           - US$ 14.5 million

 

Started Operation :

2002

 

Brand Name :

VPRI

 

Technical Assistance :

VOITH PAPER HOLDING GmbH & Co., KG of Germany

 

Number of Employee :

238 persons

 

Marketing Area :

Local       - 90%

Export      - 10%

 

Main Customers :

a. P.T. INDAH KIAT PULP AND PAPERS

b. P.T. PINDO DELI PULP AND PAPER

c. P.T. Pabrik Kertas TJIWI KIMIA Tbk

d. P.T. LONTAR PAPYRUS SAKTI

e. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

P.T. VOITH PAPER

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank INTERNATIONAL INDONESIA Tbk

      Jalan M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

b.   DEUTSCHE Bank AG

      Wisma Deutsche Bank

      Jalan Imam Bonjol No. 80

      Jakarta Pusat

      Indonesia

c.   P.T. Bank SINARMAS

      Wisma Bank SInarmas

      Jalan M.H. Thamrin No. 51

      Jakarta Pusat

      Indonesia

 

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 170.0 billion

2012 – Rp. 181.0 billion

2013 – Rp. 192.0 billion

 

Net Profit (estimated) :

2011 – Rp. 15.0 billion

2012 – Rp. 15.9 billion

2013 – Rp. 16.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Robert Kietaibl

Vice President Director                     - Mr. Tinggar Praharso Urip Simeon

Directors                                         - a. Mr. Stephan Keuschniggzingl

                                                        b. Mr. Thomas Ludwig Holzer

 

Board of Commissioners :

President Commissioner                   - Mr. Martin Gustav Scherrer

Commissioners                                - a. Mr. Adam Moran

                                                        b. Mr. Tjandra Sujanto

 

Signatories :

President Director (Mr. Robeert Kietaibl) or Vice President Director (Mr. Tinggar Praharso Urip Simeon) or one of the Directors (Mr. Stephan Keuschniggzingl or Mr. Thomas Ludwig Holzer) which must be approved by Board of Commissioners.


 

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

 

Initially the company named P.T. VOITH SULZER PAPER TECHNOLOGY SERVICES INDONESIA was established in Bekasi, West Java on 24 September 1999 with the authorized capital of US$ 11,900,000 issued capital of US$ 3,570,000 wholly paid up. The founding and shareholders of the company are VOITH PAPER HOLDING GmbH & CO. KG., of Germany (76%) as foreign partner and P.T. PURINUSA EKAPERSADA (24%) as local partner. The company notary deed has frequently been revised. In March 2003, the company renamed P.T. VOITH PAPER SERVICES INDONESIA. Then, on 18 November 2005, the company renamed P.T. VOITH PAPER ROLLS INDONESIA (P.T. VPRI). The deed of amendment was made by Mrs. Linda Herawati, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. W7-HT.01.10-11201, dated September 27, 2007. Then according to the latest revision of notary documents of Mrs. Linda Herawati, SH., No. 45 dated 19 July 2012 the board of director and the board of commissioner had been changed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-28274 dated July 31, 2012.

 

We observe that local partner P.T. PURINUSA EKAPERSADA is a national private company dealing with specialist carton box, paper cone and paper tube products and investment holding which majority business stakes is controlled by Mr. Dr. Eka Tjipta Widjaja AKA Oei Ek Tjhong and family members. The family also controls the major business stakes and primemover of the SINAR MAS Group, a big-size business group in Indonesia based in Jakarta.

 

P.T. VPRI operates in the frame works of Foreign Investment (PMA) company license to deal with plastic and rubber (roll cover) manufacturing. The plant located at Karawang International Industrial City, Jalan Permata V Lot EE-1, Karawang, West Java on a land of 20,000 sq. meters. The plant started its commercial operation since 2002 and has been expanding frequently to increasing production capacity. The plant produces Roll Cover (plastic, rubber, polyurethane covering) of 25,466 tons per annum. The plant has absorbed an investment of US$ 14.5 million, come from owned capital of US$ 3.5 million and the rest from loans. Besides, the company has provides maintenance and recondition of roll cover products. Some 90% of the products like Roll Covers marketed locally to pulp and paper industry, board paper industries and tissue machines industries. The rest 10% is exported to the Europe Union, China, Asian countries and others.

 

Indonesia as the largest paper making market in South East Asia has been a major hub for P.T. VPRI for more than 15 years to serve Voith Paper’s customer base in Asia Pacific.  The growth of the Indonesian paper, board, tissue and pulp production combined with ever growing and stronger commitment to the customers, has fueled the growth of Voith’s operations in Karawang over this time period.

 

Since 2012, P.T. VPRI is already well on the way to meet these demands. By tripling its manpower, building up its after-market products & services business including stock preparation and paper machine rebuilds providing local resources with increased international capabilities, Voith Karawang shall integrate as a full scale project execution location into the worldwide network of the application, design and engineering competence centers within Voith Paper worldwide.

 

P.T. Voith Paper Rolls Indonesia, the roll service center being an integral part of Voith Karawang, is going to expand and invest as the demand for all types of roll covers and mechanical roll service in constantly increasing. The roll service center has, since many years, major commitments in corporate contracts to customers throughout the Asia Pacific region and with the forecasted growth, would soon reach its capacity limits. Driven by space requirements of mechanical roll service, the service center in Karawang will double its overall output capacity and in addition install a high end, state of the art manufacturing line for composite calendar covers, providing fastest process and turnaround times along with the added security of reduced transportation costs and risks for producers within this market segment. In further addition to capacity, and to service the growing Tissue Industry, Voith Paper Rolls Indonesia will expand its mobile tissue cylinder grinding and thermal coating equipment along with manpower to increase both flexibility and availability for onsite service.

 

With the strong international and experienced optimization team of Voith Paper Fabrics & Rolls Systems and the after-market Product & Services business line Voith Paper will continue to lead standards of excellence in customer support and solutions throughout the industry. Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive.

 

Some of the products supplied to P.T. INDAH KIAT PULP & PAPERS, P.T. PINDO DELI PULP & PAPER, P.T. Pabrik Kertas TJIWI KIMIA, P.T. LONTAR PAPYRUS SAKTI, P.T. PURINUSA EKAPERSADA, P.T. EKAMAS FORTUNA, P.T. SURABAYA KERTAS, P.T. SUPARMA Tbk, P.T. RIAU ANDALAN KERTAS, P.T. THE UNIVENUS, P.T. PELITA CENGKARENG PAPER and others. We observe the operation of P.T. VPRI has been growing and developing well in the last three years.

 

Generally, demand for roll cover for pulp, board, paper and tissue machines has kept increasing in the last five years in line with the growth of pulp and paper industries, paper industries, board and tissue paper industries and others. The national pulp and paper industries will be better in 2012 than in 2011. Market estimates of production and sales will be the norm. Additional capacity will continue price of pulp is still going up although with a slower rise in pulp price increases triggered by the low stock of pulp due to the hard efforts of pulp mills to reduce production, to balance the supply-demand, and the purchase of pulp on a large scale by China also triggered a rise in pulp prices. Ir. H. M. Mansur, Chairman of the Presidium APKI (Association of Indonesian Pulp and Paper) said the increased price of paper is not as big and as fast as the price of pulp, because the factories are not as intensive as paper pulp mills to reduce production, so that the paper stock in the world market is still quite great. Indonesia's pulp paper does not seem necessary to limit and reduce production because production will be absorbed by the market-domestic and export markets. Global crisis appears to have started over, things would be normal, production, consumption and prices will rise again. Indonesia has very good potential to be leader in the global pulp and paper industry due to its geographical location. The increase in roll cover in the county during the economic crisis in the last several years was attributable to the absorbing power of the users being still growing sufficiently. Business position of P.T. VPRI is favorable because has been controlled a wide marketing network in the country.

 

Indonesian Pulp and Paper Production, 2007 – 2012

                                                                                                                                                  (Tons)

Year

Pulp Production

Paper Production

2007

5,200,000

11,000,000

2008

5,900,000

    9,7000,000

2009

6,500,000

12,200,000

2010

7,900,000

12,900,000

2011

7,900,000

12,900,000

2012

8,216,000

13,416,000

 

Until this time P.T. VPRI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. P.T. VPRI's management adopts very reclusive attitude towards outsiders and rejected to unveil its financial condition. We estimated that P.T. VPRI's operation in 2011 booked a total sales turnover of Rp. 170.0 billion increased to Rp. 181.0 billion in 2012 rose to Rp. 192.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 has yielded a net profit of Rp. 16.3 billion and the company has a total networth of about Rp. 106.0 billion. P.T. VPRI is backed by financially quite strong and sound foreign partners behind it. So far, we did not hear 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. VPRI is headed by Mr. Robert Kietabibl (51), a professional manager of Austria with very extensive experience in roll cover manufacturing. Robert Kietaibl, Senior Vice President of Voith Paper Rolls Asia revealed that initially the new service center will offer a full range of rubber roll covers, mechanical roll service and roll cover regrinding, while it will expand into the roll covers manufacturing area for polyurethane and composite roll covers in a second phase. The company’s management is further handled by a team of professional managers with wide experience in the paper industry and trade. The have extensive relations with national and foreign private businessmen and with government authorities as well. So far, we did not hear that the management of the company being filed to the district court for detrimental cases. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. VOITH PAPER ROLLS INDONESIA is sufficiently fairly good for business transactions.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.12

UK Pound

1

Rs.102.71

Euro

1

Rs.84.52

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.