MIRA INFORM REPORT

 

 

Report Date :

05.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. TANJUNG ENIM LESTARI PULP AND PAPER

 

 

Registered Office :

Menara Jamsostek, 18th Floor Suite TA-1802 Jalan Jend. Gatot Subroto No. 38 Jakarta Selatan, 12710

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.06.1990

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing paper pulp.

 

 

No. of Employees

1,320

 

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 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

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


Company name

 

P.T. TANJUNG ENIM LESTARI PULP AND PAPER

 

 

Address

 

Head Office

Menara Jamsostek, 18th Floor Suite TA-1802

Jalan Jend. Gatot Subroto No. 38

Jakarta Selatan, 12710

Phones             - (021) 5290 2088 (Hunting)

Fax                   - (021) 5290 2099

E-mail               - fazri@telpp.com

                           marketing@telpp.com

Website            - http://www.telpp.com

Building Area     - 30 storey

Office Space      - 1,200 sq. meters

Region              - Commercial

Status               - Rent

 

Branches

 a.                                                  Jalan Sukarno - Hatta Km. 14

      Batu Sarampok, Kelurahan Srengsem

      Kec. Panjang, Bandar Lampung

      Lampung

      Phones       - (0721) 342312-3, 342311

      Fax             - (0721) 342266

 

 b.  Jalan Resident H. Abdul Rozak Rt. 16

      Palembang, South Sumatera

      Phone         - (0711) 718112

      Fax             - (0711) 718112

 

Factory (Mill Site)

Desa Niru-Tebat Agung

Kec. Rambang Dangku

Kabupaten Muara Enim

South Sumatra 31172

Phones             - (0713) 324150, 324160

Fax                   - (0713) 324182, 324189

 

Date of Incorporation :

18 June 1990

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-3538.HT.01.01.TH.92

    Dated 01 May 1992

b. No. AHU-60196.AH.01.02.TH.2008

    Dated 8 September 2008

c. No. AHU-AH.01.10-05506

    Dated 8 May 2009

d. No. AHU-47772.AH.01.02.TH.2012

    Dated 07 September 2012

e. No. AHU-AH.01.10-50550

    Dated 25 November 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.357.596.4-092.000     

b. The Capital Investment Coordinating Board

    - No. 17/V/PMA/1996

      Dated 7 February 1996

-  No. 723/III/PMA/199

  Dated 14 June 1999

-  No. 930/III/PMA/1999

  Dated 21 July 1999

-  No. 1518/III/PMA/1999

  Dated 19 November 1999

-  No. 626/III/PMA/2007

  Dated 8 May 2007

 

Related Companies :

a. JAPAN INDONESIA PETROCHEMICAL INVESTMENT CORP. (Investment Holding)

b. MARUBENI CORPORATION (Trading House and Investment Holding)

c. SUMTRA PULP CORPORATION (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 3,245,792,000,000.- (US$ 621,782,490)

Issued Capital                                  - Rp. 3,245,792,000,000.- (US$ 621,782,490)

Paid up Capital                                - Rp. 3,245,792,000,000.- (US$ 621,782,490)

 

Shareholders/Owners :

a.  MARUBENI CORPORATION of Japan  - Rp. 3,013,591,000,000.- (92.85%)

     Address : 4 – 2 Ohtemachi 1, Chome

                   Chiyoda-Ku, Tokyo

                   Japan

 

 

b. SUMATRA PULP Corp. of Japan                     - Rp.    232,201,000,000.- (  7.15%)

    Address : Nishikicho Bld. 23 Kanda

                   Nishiki-Cho Come, Tokyo

                   Japan

 

 

 BUSINESS ACTIVITIES

 

Lines of Business :

Pulp Mill Industry

 

Production Capacity :

Pulps                                              - 500,000 tons p.a.

 

Total Investment :

a. Equity Capital                     - US$. 490.0 million

b. Loan Capital                       - US$. 380.0 million

c. Total Investment                  - US$. 810.0 million

 

Started Operation :

26 May 2000

 

Brand Name :

TELPP

 

Technical Assistance :

a. MARUBENI Corporation of Japan

b. SUMATRA PULP Corp., of  Japan

 

Number of Employee :

1,320 persons

 

Marketing Area :

Export      - 95%

Domestic                                        -   5%

 

Main Customers :

a. P.T. CELMARK INTERINDO TRADE

b. MARUBENI CORPORATION

c. SINGAPORE PULP PRIVATE LIMITED

d. International market in Japan, France, Germany, the UK, Italy and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. TJIWI KIMIA Tbk

b. P.T. INDAH KIAT Pulp and Paper

c. P.T. PINDO DELI Pulp and Paper

d. P.T. LONTAR PAPYRUS

e. P.T. RAJA GARUDA MAS

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Jalan Imam Bonjol 61

    Jakarta Pusat, 10310

b. The Bank of TOKYO – MITSUBISHI UFJ LTD

    Midplaza Building

    Jalan Jend. Sudirman Kav. 10-11

    Jakarta Pusat, 10220

 

Auditor :

Purwantono, Sarwoko & Sandjaja (ERNST & YOUNG)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Net Sales (estimated) :

2010 – US$ 289.1 million

2011 – US$ 312.0 million

2012 – US$ 338.5 million

2013 – US$ 369.0 million

 

Net Profit (Loss) :

2010 – US$ 61.2 million

2011 – US$ 65.0 million

2012 – US$ 70.5 million

2013 – US$ 76.8 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory


 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Takashi Hashimoto

Vice President Director                     - Mr. Hiroyuki Moriyasu

Directors                                         - a. Mr. Jiro Suzumori

                                                        b. Mr. Toshikazu Sakurai

                                                        c. Mr. Rudi Fajar

 

 

Board of Commissioner :

President Commissioner                   - Mr. Yoshiharu Kambe

Vice President Commissioner           - Mr. Bambang Hendrajatin

Commissioners                                - a. Mr. Hiroshi Tanaka

                                                        b. Mr. Yasuyuki Amakusa

                                                        c. Mr. Mutsuhiko Koike

 

Signatories :

President Director (Mr. Takashi Hashimoto) or Vice President Director (Mr. Hiroyuki Moriyasu) or one of Directors (Mr. Jiro Suzumori, Mr. Toshikazu Sakurai or Mr. Rudi Fajar) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below Average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 


 

OVERALL PERFORMANCE

 

P.T. TANJUNGENIM LESTARI PULP AND PAPER or P.T. TANJUNG ENIM LESTARI (P.T. TEL) was established in Jakarta based on Notarial Deed No. 52 of Susana Zakaria, SH., dated on June 18, 1990 with an authorized capital of Rp. 180,000,000,000.- of which Rp. 36,000,000,000.- was issued and fully paid up.  The founding shareholders of the company are Mrs. Siti Hardiyanti Rukmana or Mbak Tutut (indigenous business woman) and P.T. MUKTILESTARI KENCANA originally named P.T. CAHAYA PACIFIC DHARMA (a private company).  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-3538.HT.01.01.TH.92 dated May 1, 1992.

 

      Its articles of association have subsequently been amended for several times. In the middle of 1995, its entire original shareholders pulled-out and replaced by P.T. BARITO PACIFIC TIMBER Tbk, P.T. TRIDAN SATRIAPUTRA INDONESIA (both are private companies) and SUMATRA PULP CORPORATION of Japan. The authorized capital had on the same occasion converted into US$ 300,000,000 entirely issued of which US$ 30,000,000 was paid up. In December 1999, P.T. TRIDAN SATRIAPUTRA INDONESIA pulled out and replaced by P.T. TUNGGAL SETIA PRATAMA, a private company (a member company of the BARITO PACIFIC Group) and MARUBENI CORPORATION of Japan. On the same occasion, the authorized capital was raised and converted again into Rp. 777,633,000,000 wholly issued and paid-up.

 

      In December 2002, P.T. TUNGGAL SETIA PRATAMA pulled-out and the whole shares took over by MARUBENI CORPORATION of Japan. Then in October 2006, P.T. BARITO PACIFIC TIMBER Tbk pulled out and the whole shares sold to JAPAN INDONESIA PETROCHEMICAL INVESTMENT Corporation of Japan.  In August 2008 the authorized capital was raised to US$ 621,782,490 (Rp. 3,245,792,000,000) wholly issued and paid up. With this development the composition of its shareholders has been changed to become MARUBENI Corp. of Japan (83.26%), JAPAN INDONESIA PETROCHEMICAL INVESTMENT Corp., of Japan (9.58%) and SUMATRA PULP Corp., of Japan (7.16%).  In May 2009, JAPAN INDONESIA PETROCHEMICAL INVESTMENT Corp., pulled out and the whole shares are sold to MARUBENI Corp.  Since the time, the shareholders of the Company are MARUBENI Corp., (92.85%) and SUMATRA PULP Corp., (7.15%). The deed of amendment was made by Mr. Benny Kristianto, SH., a public notary in Jakarta and it was approved by the Minister of Law and Human Rights through its Decree No. AHU-AH.01.10-05506 dated May 8, 2009.

 

      Latest on October 28, 2013, the composition of the board of directors and commissioner was changed again. But, no changes have been effected in term of its shareholding composition and capital structures to date.  The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-AH.01.10-50550 dated November 25, 2013.

 

      P.T. P.T. TEL (“the Company”) was established under the framework of the Foreign Investment Law No. 1 of 1967.  The Company is engaged in manufacturing paper pulp and commenced its commercial operations on May 26, 2000. Its plant is located at Desa Niru - Tebat Agung, Kecamatan Rambang Dangku, Muara Enim, South Sumatra, on a land of some 1,250 hectares.  The plant produces pulp of 450,000 tons per year and increased to 500,000 tons per year at present.   Basic material like log of Mangium Acacia wood is supplied by its sister company P.T. MUSI HUTAN PERSADA owning an industrial forest estate concession of 193,500 hectares. The development of the plant has absorbed an investment of Rp. 2,766.7 billion coming from own capital of Rp. 777.6 billion and the rest from loan.

 

      To realize the project, P.T. TEL got a syndication loans from the international financial agencies amounting to US$ 990,989,000.-, among others from FUJI Bank, SAKURA Bank of Japan and other banks of the USA. Financing for the project was an industry first; a unique project financing, namely Limited Resource Financing. It was made possible by over 29 lenders, comprising mainly Export Credit Agencies from Sweden, Germany, Canada, Finland and International Commercial Bank in Asia, Europe and the USA.

 

      The main contractor of this project is TESSAG Industrie-Anlagen (formerly known as KLOCKNER INDUSTRIE-Anlagen GmbH) of Germany and NIPPON PAPER Industries of Japan as an operator of pulp plant. The consultant is SANDWELL INC., of Canada. The latest technology is used and more sophisticated than other pulp industries in Indonesia and North America. Besides, it has a special port located at Tarahan, some 15 km. from Lampung city and some 350 km. from the plant. The port is equipped with a warehouse of 30,000 tons storage capacity. The pulp from the plant to Tarahan is transported by special train.

 

      Some 95% of the products are exported to Japan, France, Germany, the UK, Italy, the Netherlands, Spain, Asia Pacific and other countries, while the other 5% is marketed to local paper industries. In export P.T. TEL has made a purchasing-contract for 10 years with MARUBENI Corporation, CELLULOSE MARKETING INTERNATIONAL (CELMARK) of Sweden and SINGAPORE PULP & PAPER Limited (SPPL) Singapore. A sharp Rupiah depreciation against US$ and other hard foreign currencies has a positive impact to the company's financial condition because some 95% of the products is exported. But the prolonged economic crisis has made its production cost increased drastically.   Business position of P.T. TEL is favorable for it has controlled a wide marketing network at abroad and their product has been widely known among consumers.

 

      According to financial statement which audited by Purwantono, Sarwoko & Sandjaja (a member of Ernst & Young)  that the net sales/income P.T. TEL in 2008 amounted to US$ 281.0 million with a net profit of US$ 69.5 million declined to US$ 186.2 million with a net loss of US$ 16.2 million in 2009 and rose again to US$. 289.1 million with a net profit of US$ 61.2 million in 2010.   Up to present, we have yet to gain the statement of income of P.T. TEL in fiscal 2011 to 2013.  However, we estimated that net sales/income of the company in 2011 amounted to US$ 312.0 million with a net profit of US$ 65.0 million increased to US$ 338.5 million with a net profit of US$ 70.5 million in 2012 and rose again to US$ 369.0 million with a net profit of US$ 76.8 million in 2013.  So far we did not hear that P.T. KI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

      The management is headed by Mr. Takashi Hashimoto (53) as president director, a well-experienced businessman in pulp industry and trade. He is a professional manager of SUMATRA PULP Corporation of Japan with experience for some 20 years in this business.   In his daily activities, he is assisted by Mr. Hiroyuki Moriyasu (47) as vice president director and three directors namely Mr. Jiro Suzumori (66), Mr. Toshikazu Sakurai (59) and Mr. Rudi Fajar (45) of Indonesia, and a number of experienced professional managers in this business, having maintained a wide business relation among private businessmen at home and abroad as well as among government authorities. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in business malpractices.

 

       P.T. TANJUNG ENIM LESTARI (P.T. TEL) 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.61.02

UK Pound

1

Rs.102.69

Euro

1

Rs.81.91

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.