|
Report Date : |
13.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. LONTAR PAPYRUS PULP & PAPER
INDUSTRY |
|
|
|
|
Registered Office : |
Jalan Ir. H. Juanda No. 14, Kota Baru, Jambi 36126 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
|
|
|
Date of Incorporation : |
07.05.1975 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
·
Pulp and Paper Industry ·
Industrial Chemical Processing |
|
|
|
|
No of Employees : |
2,488 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 |
P.T. LONTAR PAPYRUS PULP & PAPER INDUSTRY
Head Office
Jalan Ir. H. Juanda No. 14
Kota Baru
Jambi 36126
Indonesia
Phones - (62-741) 62625, 626321, 65930, 65931
Fax - (62-741) 61421
PO Box - 108 JAMBI
36001
Building Area - 2 storey
Office Space - 230 sq. meters
Region - Commercial
Status -
Owned
Jakarta Representative
Plaza
BII, Menara II, sth Floor
Jalan
M.H. Thamrin Kav. 22, No. 51
Jakarta 10350
Phones - (021) 392966-9
Fax -
(021) 3928875
Building Area - 26 storey
Office Space - 230 sq. meters
Region - Commercial
Status - Rented
Branch
and Processing Office
Wisma Indah Kiat, Building A 3rd Floor
Jalan Raya Serpong Km. 8
Tangerang 15310
Banten
Phones - (62-21)
53120001-3
Fax - (62-21)
53120342-4
Building Area - 8 storey
Office Space - 400 sq. meters
Region - Commercial
Building
Status - Owned
Factory
Desa Tebing Tinggi
Kecamatan Tebing Tinggi
Kabupaten Tanjung Jabung Barat
Jambi Province
Indonesia
Phones - (62-742)
51051, 62645
Fax - (62-742)
51060, 62621
Land Area - 180,000 sq.
meters
Building Area - 145,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Date of Incorporation :
7 May 1975
Legal Form :
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and Human Rights
a. No.
Y.A. 5/263/11
Dated 07 May 1976
b. No.
AHU-01211.AH.01.02.Tahun 2008
Dated 09 January 2008
c. No.
AHU-AH.01.10-34295
Dated 21 September 2012
d. No.
AHU-AH.01.10-36804
Dated 05 September 2013
Company Status
:
Private and
Domestic Investment (PMDN) Company
Permits by the
Government Department :
a. The Department of Finance
NPWP No. 01.115.965.4-092.000
b. The President of the Republic of Indonesia
No. B-237/Pres/07/1994
Dated 27 July 1994
c. The Capital Investment Coordinating Board
- No. B-95/A/Sp.01/BKPM/XII/1975
Dated 15 December 1975
- No. 29/V/PMA/1994
Dated 5 August 1994
- No. 154/II/PMA/1994
Dated 21 September 1994
- No. 02/V/PMDN/1997
Dated 8 January 1997
Related/Affiliated
Company :
A Member Company
of the SINAR MAS Group
;’
Capital
Structure :
Authorized
Capital - Rp.
3,200,000,000,000.-
Issued Capital - Rp.
1,227,140,000,000.-
Paid up Capital - Rp.
1,227,140,000,000.-
Shareholders/Owners
:
a. P.T. PINDO DELI PULP AND PAPER MILLS - Rp. 1,225,040,000,000.- (99.83%)
Address
: Plaza BII Menara II, 9th
Floor
Jl. M.H. Thamrin No. 51
Jakarta Pusat
Indonesia
b. P.T.
ARTHADANA MULIA MAKMUR -
Rp. 2,100,000,000.- ( 0.17%)
Address :
Gedung JITC, 4th Floor
Jl. Mangga Dua Raya
Jakarta Utara
Indonesia
Lines of
Business :
a. Pulp and Paper
Industry
b. Industrial
Chemical Processing
Production
Capacity :
a. Pulps - 1,020,000 tons p.a.
b. Tissue Papers - 60,000 tons p.a.
Total
Investment :
a.
Owned Capital - Rp. 2,000.0
billion
b.
Loan Capital - Rp.
5,500.0 billion
c.
Total Investment - Rp. 7,500.0
billion
Started
Operation :
1 9 7 6
Brand Name :
Lontar Papyrus
Technical
Assistance :
None
Number of
Employee :
2,488 persons
Marketing Area
:
Local - 80%
Export - 20%
Main Customers
:
a. P.T. SURYA JAYA
PLACE (Distributor)
b. P.T. PERMATA BIRU INDAH (Distributor)
c. P.T. SUTIO JAYATAMA (Distributor)
d. P.T. MARGONO (Distributor)
e. Etc.
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. KERTAS NUSANTARA
b. P.T. RIAU ANDALAN KERTAS
c. P.T. RIAU ANDALAN PULP AND PAPER
d. P.T. TANJUNG ENIM LESTARI PULP AND PAPER
e. P.T. TOBA PULP LESTARI Tbk
f. P.T. PABRIK KERTAS LECES
g. Etc.
Business Trend
:
Fluctuating
Bankers :
a. P.T. Bank INTERNASIONAL
INDONESIA Tbk
Wisma BII
Jalan M.H.
Thamrin 50
Jakarta Pusat,
Indonesia
b. P.T. Bank CIMB NIAGA Tbk
Graha Niaga
Jalan
Jend. Sudirman Kav. 58
Jakarta
Selatan, Indonesia
c. P.T. Bank MANDIRI Tbk
Plaza
Mandiri
Jalan
Jend. Gatot Subroto Kav. 36-38
Jakarta
Selatan, Indonesia
d. CITIBANK N.A.
CITIBANK Tower
Jalan Jend. Sudirman No. 54-55
Jakarta
Pusat
Indonesia
Auditor :
Tjiendradjaja & Hondoko Tomo (a member of Mazars)
Litigation :
The company has
been involved in detrimental cases at the court of Kuala Tungkal, Jambi on
September 2004.
Net Sales :
2009 – US$ 339.3
million
2010 – US$ 473.4
million
2011 – US$ 393.7
million
2012 – US$ 445.1
million
2013 – US$ 352.0
million (as of September 30, 2013)
Net Profit
(Loss) :
2009 – (US$ 86.7
million)
2010 – (US$ 8.7 million)
2011 – (US$ 44.5
million)
2012 – US$ 25.7 million
2013 – US$ 63.5 million (as of September 30, 2013)
Payment Manner
:
Sometime delay
Financial
Comments :
Fairly
Board of Management :
President Director - Mr. Lin Chin Wen
Vice President Directors -
a. Mr. Hendra Jaya Kosasih
b. Mrs. Linda Suryasari Wijaya Limantara
c. Mrs. Indah Suryasari
Wijaya Limantara
Directors -
a. Mr. Suresh Kilam
b. Mr. Arthur Tahya
c. Mr. Kenny Santoso
d. Mr. Kurniawan Yuwono
e. Mr. Agustian Rachmansjah Partawidjaja
f. Mr.
Frenky Loa
g. Mr. Suhendra Wiriadinata
Board of Commissioners :
President Commissioner -
Mr. Yudi Setiawan Lin
Vice President Commissioner -
Mr. John Ferdinand Pandelaki
Commissioners -
a. Mr. Soetedjo
b. Mr. Pande Putu Raka
c. Mr. Sukirta Mangku Djaja
d. Mr. Gandi Sulistiyanto Soeherman
Signatories :
President Director (Mr.
Lin Chin Wen) or one of Vice President
Directors (Mr. Hendra Jaya Kosasih, Mrs. Linda Suryasari Wijaya Limantara or
Mr. Indah Suryasari Wijaya Limantara) or one of the Directors (Mr. Suresh
Kilam, Mr. Arthur Tahya, Mr. Kenny Santoso, Mr. Kurniawan Yuwono, Mr. Agustian
Rachmansjah Partawidjaja, Mr. Frenky Loa or Mr. Suhendra Wiriadinata) which
must be approved by Board of Commissioners.
Management Capability :
Satisfactory
Business Morality :
Satisfactory
Credit Risk :
Above Average
P.T. LONTAR PAPYRUS PULP & PAPER
INDUSTRY (P.T. LPPPI) was established in May 1975 with an authorized capital of
Rp. 2,000,000,000 entirely issued and paid up. The founding shareholders of the
company are P.T. SATRIA PERKASA AGUNG (a national private company) and Mr.
Teguh Ganda Widjaja AKA (also known as) Oei Tjie Goan (an Indonesian
businessman of Chinese extraction) as the original shareholders. The Deed of establishment was approved by the
Minister of Justice of the Republic of Indonesia through its Decree No. Y.A.
5/263/11 dated May 7, 1976. The articles
of association of the company have frequently been revised. In 1995 the authorized capital was increased
to Rp. 800,000,000,000 with the issued and paid capital amounting to Rp.
160,000,000,000. At the same time Mr. Teguh Ganda Widjaja pulled out and his
shares ware taken over by DITTON Holding Ltd., a foreign company based in
Tortole, British Virgin Islands. In June 1996 the issued capital was raised to
Rp. 544,314,000,000 and wholly paid up. Concurrently DITTON Holding Ltd.
withdrew and since then P.T. LPPPI's entire shares went over into the control
of P.T. PINDO DELI PULP AND PAPER MILLS (80%) and P.T. SATRIA PERKASA AGUNG
(20%), both are national private companies.
In December 1996 the authorized capital was
again increased to Rp. 3,200,000,000,000 with an issued and paid up capital of
Rp 844,314,000,000. On 25 July 1997 the issued and paid up capital was stepped
up from Rp. 844,314,000,000 to Rp. 854,815,000,000. Since then all P.T. LPPPI's
shares were owned by P.T. PINDO DELI PULP AND PAPER MILLS (80.00%), P.T. SATRIA
PERKASA AGUNG (19.75%) and P.T. ARTHADANA MULIA MAKMUR (0.25%). Since the end
of 1999 P.T. SATRIA PERKASA AGUNG and P.T. ARTHADANA MULIA MAKMUR withdrew and
their shares were taken over by P.T. PURINUSA EKAPERSADA.
On September 03, 2012 the issued capital was
raised again to Rp. 1,227,140,000,000.- and fully paid up. Since the time, the shareholders of the
company are PT. PINDO DELI PULP AND PAPER MILLS (99.83%) and P.T. ARTHADANA
MULIA MAKMUR (0.17%). The amendment to Deed was approved by the Minister
of Law and Human Rights of the Republic of Indonesia through Decree No.
AHU-AH.01.10-34295 dated September 21, 2012.
Most recently by notarial deed of Linda Herawati, SH., No. 50 dated July 24, 2013 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.01.10-36804 dated September 05, 2013.
P.T. LPPPI has been operating since 1976
engaged in the field of pulp and paper industry. Initially the company’s plant
is located in Kampung Bayeun, Langsa, Rantau Selamat district, East Aceh
regency, Nangroe Aceh Darusalam. Then in
1994, the company was granted a license from BKPM to expand and relocated its
plant to Desa Tebing Tinggi, Tanjung Jabung Barat Regency, Jambi Province. Its trial production started at the end of
1995 and commercial production at the middle of 1996. The main activity of the
Company is the production of pulp and tissue.
The company started production of pulp in 1994 and tissue in 1998, with
a current total production capacity of approximately 1,020,800 tons of pulp and
60,000 tons of tissue per annum. Some
80% of pulp is sold to local market and the rest is exported. While the whole tissue papers are exported to
Asia, Europe, the USA and Australia.
The economic crisis and sharp Rupiah
depreciation against hard foreign currencies have brought bad impact to the
company’s performance. In September 2004, P.T. LPPPI sued its 12 creditors
because loan agreements have violated the laws. The defendants are including
Bank AMERICA NATIONAL TRUST COMPANY, THE DEPOSITORY TRUST COMPANY CEDE &
CO., MORGAN STANLEY & CO. INC., P.T. Bank MIZUHO INDONESIA, OKATREE CAPITAL
MANAGEMENT LLC, GENERAL ELECTRONIC CAPITAL CORPORATION, GRYPHONE DOMESTIC VI
LLC, OCM OPPORTUNITIES FUND, COLUMBIA/HCA MASTER RETIREMENT TRUST, APP
INTERNATIONAL FINANCE COMPANY BV and The National Land Institution of Kuala
Tungkal, Jambi province. P.T. LPPPI demanded the 12 creditors to pay material
and non material loss of US$ 1.68 billion to plaintiff.
Beside that P.T. LPPPI has ownership interest of more than 50% in the following subsidiaries which are engaged in real estate, property, hotel, and information technology business. The table of P.T. LPPPI’s subsidiary companies shall be as follows:
(In thousand US$)
|
Name of Subsidiary |
Lines of Business |
Start of Operations |
% of Ownership |
Total Assets (30 Sept. 2013) |
|
- Lontar Papyrus Finance, BV., in Netherlands |
Financing company |
2004 |
100 |
816 |
|
- Grand Ventures Limited in Malaysia |
Investment company |
2004 |
100 |
26,165 |
According to financial report audited by
Tjiendradjaja & Handoko Tomo, a Registered Public Accountant, the net sales
of P.T. LPPPI in 2008 amounted to US$ 378.0 million with a net profit of US$
18.5 million declined to US$ 339.3 million with a net loss of US$ 86.7 million
in 2009 and rose again to US$ 473.4 million with a net loss of US$ 8.7 million
in 2010. The company’s net sales in 2011
amounted to US$ 393.7 million with a net loss of US$ 44.5 million and increased
to US$ 445.1 million with a net profit of US$ 25.7 million in 2012. As per 30 September 2013, its sales turnover
was US$ 352.0 million with a net profit of US$ 63.5 million. Up to present, we have yet to gain the
financial statement of P.T. LPPPI in 2013. The Company’s financial statements
in 2010, 2011, 2012and as of 30 September 2013 are attached.
The management of P.T. LPPPI is led by Mr.
Lin Chin Wen (53) a professional manager of Taiwan with experience in pulp and
paper industry and trading. Daily operation he is assisted by Mr. Hendra Jaya
Kosasih (63), Mrs. Linda Suryasari Wijaya Limantara (33) and Mrs. Indah
Suryasari Wijaya Limantara (32), third as vice president director and also
assisted by seven directors and a number of professional managers. But the prime-mover is Mr. Teguh Ganda
Widjaja AKA Oei Tjie Goan (70) the first son of Mr. Eka Tjipta Widjaja AKA Oei
Ek Tjhong (89). The management is having maintained a wide business relation
with private businessmen at home and abroad as well as with government sectors.
The business reputation in the pulp and paper industry is good. But, the company has huge debts and it has
been filed to the local district court. However, P.T. LPPPI even counter
attacked by suing its creditors. However, financially the above case was
settled peacefully.
Considering the operation of P.T LPPPI
suffered from loss in 2009 to 2011, also economic condition in the country is
still unstable, we recommend to treat prudently in extending any new loan to
the company.
(in
thousand US dollar)
|
DESCRIPTION |
September
30, 2013 |
December 31, |
||
|
2012 |
2011 |
2010 |
||
|
1. ASSETS |
|
|
|
|
|
a. Current Assets |
|
|
|
|
|
- Cash and Cash
Equivalent |
53,223 |
38,222 |
36,334 |
31,884 |
|
- Trade Receivable |
|
|
|
|
|
* Third Parties |
25,205 |
35,746 |
18,458 |
18,555 |
|
* Related Parties |
25,964 |
12,643 |
7,457 |
5,162 |
|
- Other Trade Receivable
– net |
196 |
680 |
411 |
808 |
|
- Due to Related Parties |
|
|
|
|
|
- Inventories |
104,383 |
90,240 |
90,704 |
92,495 |
|
- Advances |
32,613 |
20,107 |
27,942 |
18,182 |
|
- Prepaid Tax |
4,494 |
4,432 |
4,267 |
3,650 |
|
- Other current assets |
2,441 |
2,311 |
7,681 |
115 |
|
Total Current Assets |
248,519 |
204,381 |
193,254 |
170,851 |
|
b. Non-current Assets |
|
|
|
|
|
- due from related
parties |
65,003 |
65,093 |
64,906 |
64,142 |
|
- Investment in
associated company |
4,472 |
4,472 |
4,472 |
4,472 |
|
- Fixed Assets - net |
640,489 |
664,860 |
693,809 |
724,159 |
|
- guarantee for
long-term purchases |
76,576 |
76,576 |
76,576 |
76,576 |
|
- Other non-current
Assets |
307,555 |
221,951 |
162,640 |
111,531 |
|
Total Non-Current Assets |
1.094,095 |
1,032,952 |
1,002,403 |
980,880 |
|
TOTAL ASSETS = TOTAL LIABILITIES & STOCKHOLDER’S EQUITY |
1,342,614 |
1,237,333 |
1,195,657 |
1,151,731 |
|
2. LIABILITIES
& EQUITY |
|
|
|
|
|
a. Current Liabilities |
|
|
|
|
|
- Short term Liabilities |
452,805 |
408,334 |
300,623 |
167,938 |
|
- Trade Payable |
|
|
|
|
|
* Third Parties |
25,921 |
27,120 |
38,375 |
54,691 |
|
* Related Parties |
11,176 |
4,912 |
31,646 |
26,949 |
|
- Advances from customers |
108,088 |
105,619 |
82,026 |
-- |
|
- Factoring |
-- |
-- |
-- |
27,273 |
|
- Other Payables |
4,234 |
7,476 |
6,254 |
3,493 |
|
- Accrued Expanses |
22,458 |
20,163 |
16,726 |
41,214 |
|
- Taxes Payable |
2,845 |
3,333 |
1,475 |
4,692 |
|
- Due from Related
Parties |
-- |
-- |
-- |
-- |
|
- Current Maturities of
Long Term Debt |
235,309 |
234,908 |
239,913 |
331,150 |
|
Total Current Liabilities |
862,836 |
811,865 |
717,038 |
657,400 |
|
b. Non-Current Liabilities |
|
|
|
|
|
- Due to Related Parties |
16,534 |
12,596 |
18,933 |
14,765 |
|
- Deferred Tax
Liabilities |
73,052 |
85,330 |
92,362 |
87,551 |
|
- Provision for employee
benefit |
9,418 |
10,256 |
9,574 |
8,597 |
|
- Lease and Bond Payable |
24 |
26 |
66,167 |
72,295 |
|
- Current maturities of
long term debt |
-- |
-- |
-- |
-- |
|
Total Non-Current Liabilities |
99,028 |
108,208 |
187,036 |
183,208 |
|
3. TOTAL EQUITY |
|
|
|
|
|
- Issued and Paid up Capital |
406,242 |
406,242 |
381,242 |
381,242 |
|
- Advances for future stock
subscription |
-- |
-- |
25,000 |
-- |
|
- Retained Earning (deficit) |
(25,492) |
(88,982) |
(114,659) |
(70,119) |
|
Total Equity |
380,750 |
317,260 |
291,583 |
311,123 |
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
a. Total Sales |
352,043 |
445,127 |
493,705 |
473,403 |
|
b. Cost of Goods Sold |
(283,278) |
(380,716) |
(458,110) |
(407,999) |
|
c. Gross Profit |
68,765 |
64,411 |
35,595 |
65,404 |
|
d. Operating Expenses |
(28,249) |
(39,228) |
(44,642) |
(36,888) |
|
e. Operating Profit (Loss) |
40,516 |
25,228 |
(9,047) |
28,516 |
|
f. Other Income (Expenses) |
10,695 |
(6,583) |
(30,682) |
(19,157) |
|
g. Profit (Loss) Before
Income Tax |
51,211 |
18,645 |
(39,729) |
9,359 |
|
h. Income Tax Benefit |
12,279 |
7,032 |
(4,811) |
(18,104) |
|
i. Net Profit (Loss) |
63,490 |
25,677 |
(44,540) |
(8,745) |
Note: Audited by Tjiendradjaja &
Handoko Tomo (a member of Mazars)
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.18 |
|
|
1 |
Rs.102.55 |
|
Euro |
1 |
Rs.81.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
TPT |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.