MIRA INFORM REPORT

 

 

Report Date :

28.08.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. CARGILL TRADING INDONESIA

 

 

Registered Office :

Wisma 46-Kota BNI 28th Floor Suite 2801, Jalan Jend. Sudirman Kav. 1, Jakarta Pusat, 10220

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.07.2012

 

 

Legal Form :

Foreign Investment (PMA) Company

 

 

Line of Business :

Trading, Export Import and Distribution of Agricultural Products.

 

 

No of Employees :

21

 

 

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


company name

 

P.T. CARGILL TRADING INDONESIA

 

 

Address

 

Head Office

Wisma 46-Kota BNI 28th Floor Suite 2801

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat, 10220

Indonesia

Phones             - (62-21) 574 6868 (Hunting)

Fax                   - (62-21) 574 5757

E-mail               - marketing@cargill.co.id

Website            - http://www.cargill.co.id

Building Area     - 32storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation

 

18 July 2012

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. AHU-43554.AH.01.01.TH.2012

  Dated 10 August 2012

- No. AHU-AH.01.10-03327

  Dated 5 February 2013

 

 

Company Status

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

Not Available

The Capital Investment Coordinating Board

No. 1590/1/PPM/I/PMA/2012

Dated 28 June 2012

 

 

Related Companies

 

a.   P.T. BUMI TAPIOKA JAYA (Tapioca Starch Manufacturing)

b.   P.T. CARGILL FOODS INDONESIA (General Trading and Management Trust)

c.   P.T. CARGILL INDONESIA (Animal Feed Milling, Grain and Vegetable Oils)

d.   P.T. CARGILL LESTARI AGROSENTRA (Oil Palm Plantation and Palm Oil Refinery)

e.   P.T. HARAPAN SAWIT LESTARI (Oil Palm Plantation and Palm Oil Refinery)

f.    P.T. HINDOLI (Oil Palm Plantation and Palm Oil Refinery)

g.   P.T. INDO SAWIT KEKAL (Oil Palm Plantation and Palm Oil Refinery)

h.   P.T. SARITANAM PRATAMA (Tapioca Starch Manufacturing)

i.    P.T. SORINI AGRO ASIA CORPORINDO Tbk (Liquid and Powder Sorbitol Manufacturing)

j.    P.T. VIC INDONESIA SEMESTA (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 15,000,000.-

Issued Capital                                  : US$   5,000,000.-

Paid up Capital                                : US$   5,000,000.-

 

Shareholders/Owners :

a. CARGILL INTERNATIONAL LUXEMBURG 6 S.a.r.l        - US$ 4,950,000.-

    Address : 11-13, Boulevard De La Foire,

                    L-1528, Luxembourg

b. P.T. CARGILL INDONESIA                                             - US$      50,000.-

    Address : Wisma 46-Kota BNI 28th Floor Suite 2801

                    Jl. Jend. Sudirman Kav. 1

                    Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Trading, Export Import and Distribution of Agricultural Products

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

August 2012

 

Brand Name :

Cargill Trading Indonesia

 

Technical Assistance :

Cargill International Luxembourg

 

 

Number of Employee :

21 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Trader and Distribution, Animal Feed Mills

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CITRA NATA PRAMANA

b. P.T. MARKAINDO SELARAS

c. P.T. PIONER HINBRIDA INDONESIA

d. P.T. SRIJAYA INTERNASIONAL

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   CITIBANK N.A.

      Bapindo Plaza Tower Citibank

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan, 12190

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk

      Graha Bank Niaga

      Jalan Jend. Sudirman Kav. 58

      Jakarta Selatan, 12920

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 35.0 billion (August – December)

2013 – Rp. 146.0 billion

 

 

 

Net Profit (estimated) :

2012 – None

2013 – Rp. 10.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Jean Louis Guillou

Directors                                         - a. Mr. Chetan Dhingra

                                                        b. Mr. Lindung Samosir

 

Board of Commissioners :

President Commissioner                   - Mr. Deepak Gupta

Commissioners                                - Mr. Kamran Qamar

 

Signatories :

President Director (Mr. Jean Louis Guillou) or one of the Directors (Mr. Chetan Dhingra or Mr. Lindung Samosir) which must be approved by Board of Commissioner

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

Maximum Credit Limit :

US$ 1,500,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. CARGILL TRADING INDONESIA (P.T. CTI) was established in Jakarta based on notary deed Mrs. Etty Roswitha Moelia, SH., no 13 dated 18 July 2012 with the authorized capital of US$ 15,000,000 issued capital of US$ 5,000,000 entirely paid up. The founding and shareholders of the company are CARGILL INTERNATIONAL LUXEMBOURG 6 S.a.r.l., of Luxembourg (99%) and P.T. CARGILL INDONESIA (1%). The company notary deed had been changed and according to the revision of notary deed Mrs. Etty Roswitha Moelia, SH., no. 5 dated 12 December 2012 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.01.10-03327 dated February 5, 2013.

 

P.T. CTI has obtained Foreign Investment (PMA) company facility to deal with trading, export import of agricultural products. The company import of agricultural products such as soybean, corn, wheat, soybean meal/pellet, rapeseed meal, corn gluten meal, wheat flour, DDGS (Distillers Dried Grains with Solubles), canola meal/pellet, canola oil, de oiled rice brand, empyreal 75 (corn protein concentrate), sunflower meal, sunflower oil, cotton seed meal, tapioca starch, corn starch, potato starch. P.T. CTI provides customized animal productivity solutions to commercial producers across the Americas, Europe, and Asia. Rather than focusing on standardized nutrition products, creates customized ingredient blends and management programs to fit each situation. To run a successful business, livestock farmers must manage a multitude of factors that impact the development, growth, health and productivity of their animals. Many aspects of an animal’s performance and productivity are greatly influenced by nutrition. As the animal’s lifecycle progresses, nutritional needs may change, and production goals also drive nutrition requirements. The whole products imported from the USA, Latin America and other countries. Then the whole products supplied to Indonesian markets, food and beverages, animal feed mills P.T. CARGILL INDONESIA which operating in animal feed mills.

 

Besides, the company also exported of crude olein, refine bleach deodorize palm olein, refine bleach deodorize palm kernel olein, crude stearin, crude palm kernel oil, crude kernel olein, crude kernel stearine, crude non oil (CNO), palm kernel. The whole products exported to various countries such as USA, Latin America and other countries. Previously the imports of soybean is handled by parent company P.T. CARGILL INDONESIA, however since August 2012 the soybean, corn and soybean meals and others had been taken over by P.T. CTI. Recently, the retail price of imported soybean has reached Rp. 8,000 per kilogram, 60 percent higher than regular prices, which is usually around Rp. 5,000 per kilogram. That compares to locally sourced soybean, which sells at about Rp. 9,000 per kilogram.

 

The government has reiterated that the price increase is caused by the long drought in the US the key source of Indonesian soybean imports. KPPU spokesman Ahmad Junaidi said that his team would supervise the movement of prices in the domestic soybean market, particularly in the consumer bases of imported soybean, with 78 percent focused on five provinces - West Java, Central Java, Yogyakarta, East Java and Bali. P.T. CTI is one of the biggest importers of soybean in Indonesia. During the sales P.T. CTI is done through 40 major distributors throughout Indonesia. The whole products imported from the USA. P.T. CTI has obtained quota to imports of 240,000 tons soybean per annum. However the realization just as much of 173,000 tons in 2012 due to declined soybean production in the USA. In addition P.T. CTI said the lack of supply of soybeans in the country of USA, the high world price of soybean import volume makes the target is not reached.

 

Generally, demand for soybean, corn has kept on increasing in the last five years having close relation with the increasing growth of food processing and animal feed mills in the country as customers. Besides, the corn import has also been going up. However, the increasing local corn products are not followed by the demand for corns by animal feed industries. This condition is caused by the difficulties especially the contagious bird influenza disease faced by animal feed industries causing thousands of poultry to die in several regions in the country. This case will also cause the public absorption power level in consuming poultry products to decline. This difficult situation has made many animal feed industries to suffer from a loss especially animal feed industry. However, animal feed production is still holding out. Besides that the competition is very tight due to a large number of similar companies operating in the country. It’s projected the demand for soybean, corn and others will be rising in the future at least 5% per annum. The business position of P.T. CTI is appraised to be favorable for having established wide marketing networks within and outside the country.

 

Until this time P.T. CTI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CTI is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in the first year operation August to December 2012 amounted to Rp. 35.0 billion rose to Rp. 146.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 has yielded an estimated net profit of at least Rp. 10.2 billion and the company has an estimated total networth of at least Rp. 55.0 billion. We observe that P.T. CTI 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. CTI is led by Mr. Jean Louis Guillou (46) a professional manager of the USA with experience in trading, export import and distribution of soybean, corn, soybean mills and others. Daily activity he is assisted by Mr. Chetan Dhingra (38) and Mr. Lindung Samosir (46) as directors. 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. CARGILL TRADING INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.15

Euro

1

Rs.79.65

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.