MIRA INFORM REPORT

 

 

Report Date :

08.08.2014              

 

IDENTIFICATION DETAILS

 

Name :

P.T. RIAU ANDALAN PULP AND PAPER

 

 

Registered Office :

Pangkalan Kerinci, Kecamatan Langgom, Kabupaten Kampar, Riau Province, Sumatera 28000

 

 

Country :

Indonesia

 

 

Date of Incorporation :

15.05.1989

 

 

Com. Reg. No.:

No. AHU-AH.01.10-41869

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Integrated Pulp and Paper Industry

 

 

No. of Employees :

4,265

 

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 :

Slow but correct

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

 

Correct Name of Company : 

P.T. RIAU ANDALAN PULP AND PAPER

 

A d d r e s s :

Head Office & Factory

Pangkalan Kerinci

Kecamatan Langgom

Kabupaten Kampar

Riau Province, Sumatera 28000

Indonesia

Phone               - (62-761) 95529, 95725, 95777

Fax.                  - (62-761) 95681

P.O. Box           - 1080 Pekanbaru

Land Area         - 45.0 hectares

Office Space      - 18.0 hectares

Region              - Industrial Zone

Status               - Owned

 

Branches

  a. Jalan Teluk Betung No. 31

     Jakarta 10230

     Indonesia

     Phone    - (62-21) 314 4570

     Fax.       - (62-21) 314 4604

 

  b. UNIPLAZA, East Tower

     6th Floor, Block A-1

     Jalan Letjend. Haryono MT.

     Medan 20231, North Sumatra

     Indonesia                                       

     Phones - (62-61) 532532 (Hunting)

     Fax        - (62-61) 530833

 

Date of Incorporation :

15 May 1989


Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-4651.HT.01.01.TH'91

    Dated 12 September 1991

 

b. No. W7-01312.HT.01.04.TH.2007

    Dated 08 February 2007

c. No. AHU-36287.AH.01.02.Tahun 2008

    Dated 27 June 2008

d. No. AHU-AH.01.10-33198

    Dated 27 December 2010

e. No. AHU-41614.AH.01.02.Tahun 2011

    Dated 16 August 2011

f.  No. AHU-AH.01.10-41869

    Dated 21 December 2012

 

Company Status :

Domestic Investment (PMDN) Company

 

Permits by the Government Department :

 a.  The Department of Finance (Tax License)

      NPWP No. 01.341.857.9.092.000

 

 b.  The Company Registration Certifikat

      TDP No. 09.05.1.21.28526

      Dated 7 December 2007

 

 c.  The Capital Investment Coordinating Board 

      - No. 21/I/PMDN/1990

        Dated 4 January 1990

      - No. 47/II/PMDN/1999

        Dated 15 September 1999

      - No. 26/II/PMDN/2006

        Dated 19 April 2006

 

 d.  The Department of Industry

      - No. 317/T/INDUSTRI/1997

        Dated 14 July 1997

      - No. 1011/T/INDUSTRI/2005

        Dated 25 November 2005

 

Related/Affiliated Company :

The RAJA GARUDA MAS Group or the GOLDEN EAGLE Group Members

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                                - Rp  3,000,000,000,000.-

Issued Capital                                      - Rp  2,003,204,000,000.-

Paid Up Capital                                    - Rp  2,003,204,000,000.-

 

Shareholders/Owners :

a. PEAK PULP & PAPER LIMITED (d/h  Asia

    Pacific Resources International Holding Ltd.)            - Rp.  1,467,689,000,000.- (73.3%)

    Address : Bermuda – Seychelles

 

 

b. P.T. PERKASA RIAU SENTOSA (d/h PT.Tanoto

    Dana Perkasa Corp.)                                     - Rp.     336,175,000,000.- (16.8%)

    Address : Jl. Jend. Sudirman Kav. 1

                    Jakarta Pusat

c. P.T. RAJA GARUDA MAS Pulp Rayon and Paper     - Rp.     199,340,000,000.- (  9.9%)

    Address : Jl. M.H. Thamrin Kav. 31

                    Tanah Abang, Jakarta Pusat

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Pulp and Paper Industry

 

Production Capacity :

First Stage

a. Pulps                  - 800,000 tons p.a.

b. Chlorines             -   50,000 tons p.a.

c. Caustics Soda     -   50,000 tons p.a.

 

Second Stage

a. Pulps                  - 500,000 tons p.a.

b. Papers                - 600,000 tons p.a.

c. Chlorines             -   50,000 tons p.a.

d. Caustics Soda     -   50,000 tons p.a.

 

Total Investment :

First Stage

a. Equity Capital                                   - Rp 1,417.5 billion

b. Loan Capital                                     - Rp 1,553.3 billion

c. Total Investment   - Rp 2,970.8 billion

 

Second Stage

a. Equity Capital                                   - Rp    598.7 billion

b. Loan Capital                                     - Rp 1,111.9 billion

c. Total Investment   - Rp 1,710.6 billion

 

Industrial Forest Estate Project

a. Equity Capital                                   - Rp   157.0 billion

b. Loan Capital                                     - Rp   293.0 billion

c. Total Investment   - Rp   450.0 billion

 

Started Operation :

1 9 9 5

 

Brand Name :

RIAU PULP

 

Technical Assistance :

None

 

Number of Employee :

4,265 persons

 

Marketing Area :

a. Export           - 65%

b. Local             - 35%

 

Main Customer :

Buyers in Asia, Europe and USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDAH KIAT PULP & PAPER Tbk

b. P.T. TJIWI KIMIA Tbk

c. P.T. LONTAR PAPYRUS

d. P.T. PINDO DELI PULP & PAPER

e. P.T. PARISINDO PRATAMA

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

     Jalan Gatoto Subroto Kav. 36-38

     Jakarta 12190

    Indonesia

b. P.T. Bank BNI Tbk

     Jalan Jend. Sudirman Kav. I

     Jakarta Barat

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 5,860.0 billion

2011 – Rp. 6,330.0 billion

2012 – Rp. 7,089.0 billion

2013 – Rp. 7,820.0 billion

 

 

Net Profit (estimated) :

2010 – Rp. 550.0 billion

2011 – Rp. 590.0 billion

2012 – Rp. 660.0 billion

2013 – Rp. 720.0 billion

 

Payment Manner :

Sometime Delay

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director          - Mr. Kusnan Rahmin

Directors                       - a. Mr. David Alexander Kerr

                                      b. Mr. Mulia Nauli

                                      c. Mrs. Susanna

                                      d. Mr. Vinod Kesavan

 

Board of Commissioners :

President Commissioner - Mr. Ibrahim Hasan

Commissioner               - Mr. Praveen Singhavi

 

Signatories :

President Director (Mr. Kusnan Rahmin) or one of the Directors (Mr. David Alexander Kerr, Mr. Mulia nauli, Mrs. Susanna and Mr. Vinod Kesavan)  which must be approved by President Commissioner (Mr. Ibrahim Hasan) or Commissioner (Mr. Praveen Singhavi)

 

 

CAPABILITIES

 

Management Capability :

Fairly Good

 

Business Morality :

Fairly Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

 

OVERALL PERFORMANCE

 

      Initially named P.T. RIAU PULP & PAPER, the company was established in 1989 with an authorized capital of Rp 100,000,000.-, issued and paid up capital of Rp 20,000,000.-. The original founding shareholders are Mrs. Tinah Bingei, Mr. Ir. Frits Irawan and Mr. Ir. Yusak Hartono, they are Chinese Indonesians.  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonsia through its Decree No. C2-4651.HT.01.01.TH.91 dated September 12, 1991. The articles of association of the company have frequently been changed.  In 1992 the company renamed P.T. RIAU ANDALAN PULP & PAPER (P.T. RAPP) and its authorized capital was raised to Rp 500,000,000,000.- issued capital to Rp 100,000,000,000 and the paid up capital to Rp 10,000,000,000.-. In 1994 the authorized capital was again raised to Rp 2,000,000,000,000.-, issued and paid up capital to Rp 1,417,500,000,000.- Since then the shareholders of P.T. RAAP are P.T. RAJA GARUDA MAS and P.T. TANOTO DANAPERKASA Corp., both of Indonesia, GOLDEN PROSPER INTERNATIONAL Ltde., of Hong Kong and UNITED RESOURCES S.A., of Luxembourg.   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. C2-16.001 HT.01.04.TH.1994 dated October 25, 1994. 

 

      But since the early 1995 some 98.9% shares of P.T. RAPP had been taken over by ASIA PACIFIC RESOURCES INTERNATIONAL HOLDING Ltd, (APRIL), a Singapore based public company and the rest (1.1%) is owned by P.T. RAJA GARUDA MAS PULP RAYON AND PAPER of Indonesia. In February 2007, the authorized capital was again raised to Rp. 3,000,000,000,000.-, issued and paid up capital to Rp. 2,003,204,000,000.- The deed of amendment was made by Mrs. Linda Herawati, SH., a public notary in Jakarta under Company Registration Number W7-HT.01.10-250, dated February 28, 2007.  Since then the shareholders of P.T. RAPP are ASIA PACIFIC RESOURCES INTERNATIONAL HOLDING Ltd., of Singapore (73.3%), P.T. TANOTO INTERNATIONAL PERKASA Corp., (16.8%) and P.T. RAJA GARUDA MAS PULP RAYN AND PAPER (9.9%), both of Indonesia.    This amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. W7-01312 HT.01.04.TH.2007 dated February 8, 2007. 

 

      In May 2008, the composition of the board of directors and commissioner was changed. 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-35287. AH.01.02.Tahun 2008 dated June 27, 2008.  In December 2010, the composition of the board of directors and commissioner was changed. 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.01.10-33198 dated December 27, 2010.

 

      In July 2011, the composition of the board of directors and commissioner was changed and the latest shareholders of the company are PEAK PULP & PAPER LIMITED (d/h Asia Pacific Resoruces International Holdings Ltd) of Bermuda, Seychelles (73.3%), P.T. PERKASA RIAU SENTOSA (d/h PT. Tanoto Dana Perkasa) and PT. RAJA GARUDA MAS PULP RAYON AND PAPER (9.9%).  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-4164.AH.01.02.Tahun 2011 dated August 16, 2011.

 

      Latest on October 23, 2012, 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.01.10-41330 dated November 22, 2012. The latest composition of the board of directors and commissioners are as shown on page-6 of this report.  We are extremely difficult to trace or investigate the shareholders of PEAK PULP & PAPER LIMITED, as this company is incorporated under law of the Republic of Seychelles.  But we allege or estimate that the owners of this company are Mr. Sukanto Tanoto and his family member.

 

      P.T. RAPP is a member of the RAJA GARUDA MAS Group or GOLDEN EAGLE Group, a large business group headed by Mr. Sukanto Tanoto AKA Tan Sui Hang. The group members have engaged in rubber glove manufacturing, woodworking, oilpalm plantation and palmoil refinery, industrial estate development, banking, office block rental management, iron and steel industry, logging, trading and other business activities.

 

      P.T. RAPP is dealing with pulp industry, managing a plant in Pangkalan Kerinci, Kecamatan Langgom, Kampar, Riau Province. The construction of the plant started since 1992 by two stages. In the first stage P.T. RAPP has a production capacity of 500,000 tons per year including its chemicals production chlorines and caustic soda of 50,000 tons each per year. It has absorbed a total investment for the first stage of Rp 2,970.8 billion coming from company's capital of Rp 1,417.5 billion and the rest from loan.  The second or expansion plant with a production capacity of 500,000 tons pulp, 600,000 tons paper, chlorines and caustic soda of 50,000 tons each per year. The second development has absorbed a total investment of Rp 1,710.6 billion coming from company's capital of Rp 598.7 billion and the rest from loan.

 

      P.T. RAPP had been operating commercially since 1995 and now it has an installed capacity of 820,000 tons per year, including its expansion unit. It got a license from BKPM in 1993 to manage Forest Industrial Estate (HTI) of 280,500 hectares in 10 locations in Kampar area, Pangkalan Kerinci, Riau, while its paper manufacturing unit was handed over to its affiliated P.T. RIAU ANDALAN KERTAS (P.T. RAK), its plant is located at Kawasan Industri Kampar Pangkalan Kerinci, Pekan Baru, Riau.  The plant started production commercially since mid-1999 with a production capacity of 350,000 tons per year. P.T. RAPP and P.T. RAK got electric energy supply from P.T. RIAU PRIMA ENERGI, also a member of the RGM Group. Some 65% of the products is exported and the rest is sold locally mainly to P.T. RAK.

 

      Beside the above positive news there is also negative information against P.T. RAPP. In July 2000 it was accused to seize 87 hectares land owned by 31 families (KK) of Kerinci, Riau, for industrial forest-estate (HTI) project. Mr. Lukman, a public figure of Pangkalan Kerinci said that the above 87 hectares land have not yet been compensated by P.T. RAPP. He said the people claim for compensation of Rp 10,000.- per m2, while P.T. RAPP will only pay the empowerment compensation of Rp 3.75 million per hectare. The land dispute has yet been settled to date.

 

      Other negative news was that in the end of March 2001, P.T. RAPP was accused to absorb stolen wood from 800 hectares forest-estate owned by P.T. ARARA ABADI (a member of the SINAR MAS Group). The case came from the stealing of acacia mangium wood plantation owned by P.T. ARARA ABADI by persons who claimed themselves under the names of cooperatives in Riau. The stolen wood was sold using a document of Surat Angkutan Kayu Rakyat (People Wood Transporting Permit) and being absorbed by P.T. RAPP.

 

      According to Mr. Nur Mahmudi (former Minister of Forestry) the stealing and absorbing of illegal wood had been doing since 1998, causing the state loss at least Rp 400 million because no collecting of Forest Resources Provision Fund. But P.T. RAPP considered that the accusation was very premature and full of business competition. 

 

      In May 2001 P.T. RAPP again was alleged to involve in manipulation of Reforestation Fund (DR) and forest contribution (IHH) of Rp 680.0 billion since 1999 to 2000.  But Mr. Protasius Daritan, SH, president director of P.T. RAPP refused and the company used its owned fund since the early 1993 and not a single cent received or used the DR fund. The case is not clear, so far, and still under investigation of Attorney General Office.

 

      The company plant utilization has reached 100% with a capacity of 1.8 million per annum out of installed production capacity of 2 million tons p.a. Meanwhile, its paper making plant managed by P.T. RIAU ANDALAN KERTAS (P.T. RAK) has a production capacity of 350,000 tons p.a. Some 75% of P.T. RAPP's export from 2002 to date has been coming from the sales of pulp and the rest is from paper export. She went on to say that the international price of pulp has been rising between US $ 420 to US $ 450 per ton of which the price of the last two years was US $ 300 per ton due to an over supplies.

 

      In September 2005, P.T. RAK planned to merge into P.T. RAPP but the plan has yet to be realized up to this time.  In January 2006, P.T. RAPP thirdly gained a Golden Flag Award for its high achievement in Working Safety and Health Management System Audit 2006 and Zero Accident Award.  On 13 March 2006, P.T. RAPP received a certificate of Industrial Forestry Conservation (PHTL) from Indonesian Ekolabel Institution (LEI).   That event was attended by Mr. MS Kaban, the Minister of Forestry, Mr. Rachmat Witoelar, the Minister of Environment and Mr. Emil Salim and environmental export.

 

      Up to December 2005, the industrial forestry areas of P.T. RAPP reached 254 thousand hectares consisting of own forestry 150 thousand hectares and the balance are of other business partners.  Besides, P.T. RAPP is also collecting timbers of the villagers to meet the rest.  Another product of the company is pure honey produced by villagers through community development program.  In September 2006, P.T. RAPP allocated a fund of Rp. 30 billion for community development program and environmental conservation.  Besides, P.T. RAPP tries to increase the villager’s incomes by involving 9,800 families to plant acacia trees in an area of 26,000 hectares.

 

      Local media Detik News, 15 February 2007 informed that factory of P.T. RAPP in Pangkalan Kerinci Riau was sealed by joint force from National Police and Directorate General of Forestry, as P.T. RAPP was red handed conducted illegal action by buying timbers which was not in compliance with designated sizes. Further on March 2007, Detik News also reported that Regional Police of Riau would conduct open war in illegal logging with two paper companies namely PT. Riau Andalan Pulp and Paper (RAPP) and PT. Indah Kiat Pulp and Paper (IKPP).  Regional Police of Riau admitted no fear though the companies were “supported” by Riau Provincial Legislative Council. The matter was conveyed to Chief of Regional Police of Riau Brigadier General Pol. Sutkiptadi in Riau Regional Police Headquarters on Jl. Sudirman, Pekanbaru, Riau, Thursday (1/3/2007)

 

      Further on August 2007, a local Newspapers “Batam Today” reported that P.T. RAPP and PT. IKPP planned to conduct mass layoff in the end of October 2007. According to plan both these companies would conduct mass layoff to 400 thousand direct workers and 600 thousand indirect workers. The layoff was impact from policy from Riau Regional Police Chief Brigadier General Police Sutjipta in illegal logging war.  Many parties including Minister of Forestr, Malam Sambat (MS) Kaban considered that illegal logging eradication had been deviated. It should follow up companies without permit not otherwise.”

 

      In order to seek solution for this layoff plan, Erman Suparno (Minister of Labor and Transmigration would communicate with Police Chief General Police Sutanto and Minister of Forestry MS Kaban. In principle, Ministry of Labor and Transmigration remained to respect the law enforcement taken by Riau Regional Police in illegal logging case. But, he hoped that Police Chief and Ministry of Forestry collectively  also sought solution to the layoff plan, as P.T. RAPP and PT IKPP stumbled in illegal logging case.

 

      In December 2011 in Jakarta a Mouth Sewing Action occurred in front of House of Representatives Building’s entrance in Jakarta, committed by the residents of Pulau Padang, Meranti Islands Regency, Riau joining in the Pulau Padang Save Community Forum (FKM-PPP). They refused the operation P.T. RAPP in Pulau Padang by reason environment damage would occur and the loss of resident access to forests and land as a major source of living. Prolonged conflict on the Pulau Padang which covers 14 villages was triggered by the issuance of Forest Timber Concession (HTI) to PT RAPP, dated 21 June 2009, by decree of the Minister of Forestry 327/Menhut-II/2009 covering 350.165 hectares, where the concession of RAPP was included in the Pulau Padang area of ​​41.205 hectares. According to FKM-PPP, concession of P.T. RAPP in this Pulau Padang was largely overlapped with the lands that had become the rights of the local communities, either in the form of rubber, sago plantations, and farming area and former farming areal and plantations. Due to motuh sewing action, in January 2012, the Government of Indonesia through the Ministry of Forestry suspended the operation of PT RAPP in this Pulau Padang.

 

      Mr. Kusnan Rahmin, President Director of P.T. RAPP said that the company's production in 2014 will decline as much as 200,000 tons of pulp, due to the government policy on sustainable forest management. He added that the production of P.T. RAPP last year to 2.7 million tons of pulp and 850,000 tons of paper.  But with the sustainable forest management policies make it follow the rules of the moratorium, which may not buy raw materials from wood fibers seller in the list of high conservation value.

 

      P.T. RAPP is a subsidiary of PEAK PULP & PAPER LIMITED (formerly APRIL Ltd.) is a pulp and paper mill second largest in Asia with brand PaperOne. Currently PaperOne already exported to various countries in Asia, the Pacific, Australia, China and Europe.

 

      Until this time P.T.  RAPP has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.  We estimated the total sales turnover in 2011 amounted to Rp. 6,330.0 billion with a net profit of Rp. 590.0 billion increased to Rp. 7,089.0 billion with a net profit of Rp. 660.0 billion in 2011 and rose again to Rp. 7,820.0 bilion with a net profit of Rp. 720.0 million in 2013.  It is estimated the company has an estimated total networth at least Rp. 4,500.0 billion.  We observe that P.T. RAPP is supported by financially strong behind it, especially Mr. Sukanto Tanoto.  According to Glove Asia Magazine on June 3, 2010, Mr. Sukanto Tanoto is an one of the ten richest businessmen in Indonesia with a total networth of US$ 2.1 billion.

 

      In 2007, P.T. Bank MANDIRI Tbk, as director of RAJA GARUDA MAS Group’s credit syndicate amounting to Rp. US$.1.44 billion asked other creditors to sign a restructuring agreement. In the restructuring agreement, the portion of Bank Mandiri of US$.589.93 million of total loan facility of US$. 1.44 billion. According to restructuring agreement, RGM Group's principal loan was spread across three companies namely PT RAPP, P.T. RIAU ANDALAN KERTAS and P.T. RIAU PRIMA ENERGY - known as RIAU Complex. According to the agreement each dated 23 December, RGM was obligated to pay the loan principal of US$. 100 million until 2009.  Payment of loan principal on the same date increased to US$. 110 million for the period 2010 to 2015.  According P.T. Bank MANDIRI Tbk, by far the RGM Group's debt payments were considered smooth and cooperative.

 

      The management of P.T. RAPP is headed by Mr. Kusnan Rahmin (50) of Indonesia as the president director being assisted by four directors namely Mr. David Alexander Kerr (59) of Canada, Mr. Mulia Nauli (50) of Indonesia, Mrs. Susanna (40) of Indonesia and Mr. Vinod Kesavan (48) of India. The president commissioner of the company is Mr. Ibrahim Hasan (61) of Indonesia and Mr. Praveen Singhavi (43), a professional manager of India as commissioner.  However, we believed that the prime-mover of the company is Mr. Sukanto Tanoto alias Tan Sui Hang (65), a leading businessman in the country.  In June 2013, one of foreign business magazines (Glove Asia) reported that Mr. Sukanto Tanoko is one of the ten wealth businessmen in Indonesia with assets of US$ 2.1 billion.

 

      Mr. Tanoto has wide relation private businessmen of home and overseas as well as with the government sectors. As far as business is concerned the management has never involved in any fraudulent dealings or detrimental cases being settled in local district court.  They have wide relations with private businessmen within and outside the country and with the government sector. So far we have never heard that the board of directors and commissioners of the company involved in business malpractices or detrimental cases that settled through the court. 

 

      In view of the negative factors and unstable economic condition in the country, we recommend to treat prudently in business transaction and in extending a loan to P.T. RAPP and other company member of the RAJA GARUDA MAS Group or the GOLDEN EAGLE Group.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.41

UK Pound

1

Rs.103.42

Euro

1

Rs.82.16

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

PDT

 

               

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.