MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. CJ FEED JOMBANG

 

 

Registered Office :

Menara Jamsostek, 21st Floor, Jalan Jend. Gatot Subroto Kav. 38, Jakarta Selatan, 12710

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.08.2004

 

 

Com. Reg. No.:

AHU-AH.01.10-04513

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in deal with animal feed milling

 

 

No of Employees :

157 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 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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

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

 

 

 

BASIC SEARCH

 

Name of Company :

P.T. CJ FEED JOMBANG

 

Address :

Head Office

Menara Jamsostek, 21st Floor

Jalan Jend. Gatot Subroto Kav. 38

Jakarta Selatan, 12710

Indonesia

Phones             - (62-21) 5299 5000 (Hunting), 2525858

Fax                   - (62-21) 5299 5191-4

Building Area     - 28 storey

Office Space      - 400 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Raya Gambiran Km. 2

Desa Gambiran, Kecamatan Mojoagung

Jombang, 61453

East Java

Indonesia

Phones             - (62-321) 497200 (Hunting)

Fax                   - (62-321) 497555

Land Area         - 100,000 sq. meters

Building Space  - 37,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

12 August 2004

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-14666.HT.01.04.TH.2005

  Dated 30 May 2005

- No. AHU-57206.AH.01.02.TH.2008

  Dated 1 September 2008

- No. AHU-AH.01.10-04513

  Dated 13 February 2013

 

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.192.966.6-057.000

The Capital Investment Coordinating Board

- No. 247/I/PMA/2004

  Dated 6 May 2004

- No. 305/III/PMA/2005

  Dated 4 April 2005

 

Related Companies :

a.   P.T. AGROBIS PANCA EKATAMA (Day Old Chicks Farming)

b.   P.T. CHEIL JEDANG INDONESIA (MSG, Lysine and L-Threonine and Nucleid Acid Manufacturing and Investment Holding)

c.                                                   P.T. CHEIL JEDANG SUPERFEED (Animal Feed Milling)

d.   P.T. SUPER UNGGAS JAYA (Poultry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 4,000,000.-

Issued Capital                                  : US$ 4,000,000.-

Paid up Capital                                : US$ 4,000,000.-

 

Shareholders/Owners :

a. CJ GLOBAL HOLDINGS LIMITED                                  - US$ 3,920,000.-

    Address : Central Paza 18

                    Harbour Road Wanchai

                    Hong Kong

b. P.T. CHEIL JEDANG INDONESIA                                   - US$      40,000.-

    Address : Menara Jamsostek

                    Jl. Jend. Gatot Subroto No. 38

                    Jakarta Selatan

                    Indonesia

c. P.T. CHEIL JEDANG SUPERFEED                                 - US$      40,000.-

    Address : Menara Jamsostek

                    Jl. Jend. Gatot Subroto No. 38

                    Jakarta Selatan

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Animal Feed Milling

 

 

Production Capacity :

a.   Animal Feeds                            - 240,000 tons p.a.

b.   Distribution of Animal Feeds       - US$ 60 million

 

Total Investment :

a.   Equity Capital                            - US$   4.0 million

b.   Loan Capital                              - US$ 13.0 million

c.   Total Investment                         - US$ 17.0 million

 

Started Operation :

October 2005

 

Brand Name :

CJ Feed Jombang

 

Technical Assistance :

CJ Global Holdings Limited, Hong Kong

 

Number of Employee :

157 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Fish farmers

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CENTRAL PROTEINA PRIMA Tbk

b. P.T. JAPFA COMPFEED Tbk

c. P.T. SINTA PRIMA FEEDMILL

d. P.T. SURI TANI PEMUKA

e. P.T. WONOKOYO JAYA KUSUMA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank WOORI INDONESIA

      Jalan Jenderal Sudirman Kav. 52-53

      Jakarta Selatan

      Indonesia

b.   P.T. Bank DANAMON INDONESIA Tbk

      Jalan Raya Darmo No. 59

      Surabaya, East Java

      Indonesia

c.   P.T. Bank KEB INDONESIA

      Jalan Jend. Sudirman No. 28

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 185.0 billion

2012 – Rp. 194.0 billion

2013 – Rp. 203.0 billion

 

Net Profit (estimated) :

2011 – Rp. 12.9 billion

2012 – Rp. 14.5 billion

2013 – Rp. 16.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Choi Seung Ho

Vice President Director                     - Mr. Kim Sang Gyu

Directors                                         - a. Mr. Kim Chang Mo

                                                        b. Mr. Lee Joo Yeal

                                                        c. Mr. Shin Hee Sung

 

Board of Commissioners :

President Commissioner                   - Mr. Lee Jay Hyun

Commissioner                                 - Mr. Kim Won Yung

 

Signatories :

President Director (Mr. Choi Seung Ho) or Vice President Director (Mr. Kim Sang Gyu) or one of the Directors (Mr. Kim Chang Mo, Mr. Lee Joo Yeal or Mr. Shin Hee Sung) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct name of the Subject is P.T. CJ FEED JOMBANG not P.T. CJ FEED INDONESIA as stated in your order ref. no. 277551 dated 17 July 2014.

 

P.T. CJ FEED JOMBANG (P.T. CJFJ) was established in Jombang, East Java on 12 August 2004 with the authorized capital of US$ 4,000,000 entirely issued and paid up. The founding shareholders of the company are P.T. CHEIL JEDANG INDONESIA and P.T. CHEIL JEDANG SUPERFEED. Its article of association has frequently been revised and in August 2008 CJ GLOBAL HOLDINGS LIMITED of Hong Kong entered into the company as new shareholders. On the same occasion the composition of its shareholders has been changed to become CJ GLOBAL HOLDINGS LIMITED of Hong Kong (98%), P.T. CHEIL JEDANG INDONESIA (1%) and P.T. CHEIL JEDANG SUPERFEED (1%). The latest according to the revision of notary deed Mr. I Gede Buda Gunamanta, SH., no. 76 dated 14 January 2013 the company board of director and the board of commissioner had been restructured 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.01.10-04513 dated February 13, 2013.

 

P.T. CJFJ or known as CJ Indonesia obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with animal feed milling. Its plant is located at Jalan Raya Gambiran Km. 2, Gambiran Village, Jombang, East Java on a land of 10.0 hectares. According to its license, the plant has annual production capacity of 240,000 tons of animal feed. Basic materials such as corn, fish’s heads, and corn are from local suppliers while several others are still imported from Japan and other countries.

 

The plant has been in operation since October 2005 with initial monthly capacity of 20,000 tons of animal feed and it will continuously be increased to 480,000 tons per annum. The development of the plant has absorbed an investment of US$ 17.0 million coming from own capital of US$ 4.0 million and the rest from loans. Animal feed business is an important Indonesia manufactures and markets various forms of assorted feeds. CJFJ line of feeds mainly caters towards chickens, which take up 90% of Indonesia’s meat consumption. The company use corns and soybean meals, and different type of chickens (breeder type, consumption type, etc) when manufacturing the feeds to achieve the perfectly tailored formulation.

 

CJFJ as products are processed with the utmost care and contain the highest nutritional contents. Prompt and swift delivery is also the company’s main concern. Moreover, based on Cheil Jedang Groups accumulated know-how, CJ Indonesia enforces a strict quality control system to manage the entire manufacturing and marketing process, from raw material purchase to production and distribution. Furthermore, the company is well received by the local livestock raising community for its service oriented management style and complete technical assistance to farmers and dealers. The whole products of the company are locally marketed among breeders in East Java and Central Java. Besides, some of the products supplied to P.T. AGROBIS PANCA EKATAMA engaged in day old chicks farming and P.T. SUPER UNGGAS JAYA in poultry. P.T. CJFJ is classified as a newly operated company of its kind in the country of which the operation had been growing in the last three years.

 

In overall views we find the demand for animal feed, fish meal, fish oil and feather meals had been rising by 8% to 10% per year in the last five years, in line with the growth of animal feed industry in the country. We observed that the national poultry industry in 2007 is having a difficult time as production cost has been increasing due to the high prices of the basic materials for animal feed triggered by bad weather conditions and the world crude oil price hike.  Beside that the competition is very tight due to a large number of similar companies operating in the country. The feed production in Indonesia in 2011 amounted at 11.3 million tons increased to 12.7 million tons in 2012 and to 13.4 million tons in 2013. Increasing demand for meat and eggs has seen driving domestic feed production. This has encouraged expansion and entry of new players to feed industry. The business position of P.T. CJFJ is appraised to be favorable for having established wide marketing networks within and outside the country. It’s projected the demand for fish meal, fish oil and feather meals will be rising in the future at least 6% per annum.

 

Meat and Eggs production, 2010 – 2013

                                                                                                                 (Million Metric Tons)

Products

2010

2011

2012

2013

Meat

2,366

2,554

2,691

2,771

Eggs

1,366

1,456

1,541

1,603

 

Until this time P.T. CJFJ has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CJFJ is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted to Rp. 185.0 billion rose to Rp. 194.0 billion in 2012 increased to Rp. 203.0 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. 16.2 billion and the company has an estimated total networth of at least Rp. 41.0 billion.

 

 

We observe that P.T. CJFJ 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. CJFJ is led by Mr. Choi Seung Ho (53) a professional manager of South Korea with experience in animal feed milling and trading. 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. CJ FEED JOMBANG is sufficiently fairly good for business transaction.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 61.01

UK Pound

1

Rs. 102.69

Euro

1

Rs. 81.90

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.