MIRA INFORM REPORT

 

 

Report Date :

05.12.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. DUA KUDA INDONESIA

 

 

Registered Office :

Kawasan Berikat Nusantara, Jalan Madiun Block C-2 No. 11-13, Unit Usaha Kawasan Marunda Jakarta Utara, 14120

 

 

Country :

Indonesia

 

 

Date of Incorporation :

23.05.2006

 

 

Com. Reg. No.:

AHU-AH.01.10-05867

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Oleo Chemical Industry

 

 

No. of Employees :

315 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 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


Basis Search

 

Name of Company:

P.T. DUA KUDA INDONESIA

 

Address:

Head Office & Factory

Kawasan Berikat Nusantara

Jalan Madiun Block C-2 No. 11-13

Unit Usaha Kawasan Marunda

Jakarta Utara, 14120

Indonesia

Phones             - (62-21) 4485 3559, 4485 2388

Fax                   - (62-21) 4485 3640, 4485 3616

E-mail               - info@duakuda.com

Website            - http://www.duakuda.com

Land Area         - 43,000 sq. meters

Building Space  - 35,000 sq. meters

Region              - Industrial Estate

Status               - Rent

 

Date of Incorporation :

23 May 2006

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-17270 HT.01.01.TH.2006

  Dated 13 June 2006

- No. AHU-29176.AH.01.02.TH.2008

  Dated 30 May 2008

- No. AHU-AH.01.10-05867

  Dated 21 February 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.193.126.6-057.000

 

The Department of Industry and Trade

TDP No. 09.01.1.15.22223

Dated 10 July 2008

 

The Capital Investment Coordinating Board

- No. 012/KBN/31/I/PMA/2006

  Dated 28 April 2006

- No. 045/KBN/31/PMA/04/2008

  Dated 18 April 2008

 

Related Companies :

a.   INTELLIOIL CHEMICALS PTE LTD., Singapore (Investment Holding)

b.   RUGAO CITY SHUANGMAS CHEMICAL CO, LTD., China (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 120,000,000.-

Issued Capital                                 : US$ 120,000,000.-

Paid up Capital                               : US$ 120,000,000.-

 

Shareholders/Owners :

a. RUGAO CITY SHUANGMA CHEMICAL CO, LTD. - US$ 98,400,000.-

    Address : 15th Team, South Dong Chen Village

                    Dongchen Town, Rugao City

                    Jiangsu Province

                    P.R. China

b. Mr. Dachlah AKA Tjia Ke Seng                                      - US$ 12,000,000.-

    Address : Jl. Pratama 7 Block X/22, RT. 006 RW. 021

                    Kelurahan Bojong Rawalumbu, Kecamatan

                    Rawalumbu, Bekasi, West Java

                    Indonesia

c. INTELLIOIL CHEMICALS PTE, LTD.                              - US$   9,600,000.-

    Address : 371, Beach Road # 07 – 01 Key Point

                    Singapore

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Oleo Chemical Industry

 

Production Capacity :

Oleo Chemicals                               - 250,000 tons

-   Stearic Acid

-   Hydrogenated Palm Oil (HPO)

-   Palm Wax

-   Glycerine

 

Total Investment :

a.   Equity Capital                           - US$ 120.0 million

b.   Loan Capital                              - US$   30.0 million

c.   Total Investment                        - US$ 150.0 million

 

 

Started Operation :

2007

 

Brand Name :

Dua Kuda Indonesia

 

Technical Assistance :

Rugao City, P.R. China

 

Number of Employee :

315 persons

 

Marketing Area :

Export    - 100%

 

Main Customer :

Buyers in P.R. China

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CISADANE RAYA CHEMICALS

b. P.T. ECOGREEN OLEOCHEMICALS

c. P.T. FLORA SAWITA CHEMINDO

d. P.T. MEDAN OLEOCHEMICALS

e. P.T. SINAR OLEOCHEMICALS

f.  P.T. SUMI ASIH OLEOCHEMICALS

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CHINA TRUST INDONESIA

      Tamara Centre, 16th Floor

      Jalan Jend. Sudirman Kav. 24

      Jakarta Selatan

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Kelapa Gading Boulevard Block LB 1 No. 15-16

      Jakarta Utara

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 812.0 billion

2012 – Rp. 876.5 billion

2013 – Rp. 892.0 billion

2014 – Rp. 472.5 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 65.0 billion

2012 – Rp. 71.9 billion

2013 – Rp. 75.8 billion

2014 – Rp. 42.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Tjiang Jian

Directors                                         - a. Mr. Sun Gang

                                                        b. Mr. Ji Xiaobing

                                                        c. Mr. Jiang Quenfeng

                                                        d. Mr. Xu Ying Xiang

 

Board of Commissioners :

President Commissioner                  - Mr. Mao Chun Ming

Vice President Commissioner          - Mr. Shen Ya Ming

Commissioners                               - Mr. Dachlan AKA Tjia Ke Seng

 

Signatories :

President Director (Mr. Tjian Jian) or one of the Directors (Mr. Sun Gang, Mr. Ji Xiaobing, Mr. Jiang Quenfeng or Mr. Xu Ying Xiang) which must be approved by Board of Commissioner.

 

 


CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. DUA KUDA INDONESIA (P.T. DKI) was set-up in North Jakarta based on notary deed of Mr. Buntario Tigris Darmawa NG, SH., No. 144 dated 23 May 2006 with the authorized capital of US$ 13,000,000 issued capital of US$ 5,000,000 entirely paid up. The founding and shareholders of the company are RUGAO CITY SHUANGMA CHEMICALS CO, LTD., of P.R. China, INTELLIOIL CHEMICALS PTE, LTD., of Singapore and Mr. Dachlan AKA Tjia Ke Seng an Indonesian businessman of Chinese descent. The company notary deed has been changed and according to the latest revision of notary documents of Mrs. Eva Misdawati, SH., No. 04 dated 7 May 2008 the company authorized capital was increased to US$ 120,000,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become RUGAO CITY SHUANGMA CHEMICAL CO, LTD., (82%), Mr. Dachlan AKA Tjia Ke Seng (10%) and INTELLIOIL CHEMICALS PTE, LTD., (8%). The latest according to the revision of notary deed Mrs. Eva Misdawati, SH., no. 33 dated 31 October 2012 the company board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-05867 dated February 21, 2013.

 

P.T. DKI acquired a Foreign Investment (PMA) facility issued by Capital Investment Coordinating Board (BKPM) for dealing with oleo chemical processing by managing a plant located at Kawasan Berikat Nusantara, Jalan Madiun Block C.2 No. 11-13, Cilincing, North Jakarta standing on 43,000 sq. meters land. The plant has been operating since 2007 by produces of oleo chemicals such as Stearic Acid, Hydrogenated Palm Oil (HPO), Palm Wax and Glycerine mostly for oriented export manufacturing. P.T. DKI is a foreign invested enterprise mainly specialized in producing all kinds of oleo chemicals, including stearic acid, palm wax, hydrogenated palm oil and glycerin. The whole raw material in the form of crude palm oil is obtained from several palm plantations in Kalimantan and some other areas of Indonesia. P.T. DKI has the production capacity of all the oleo chemicals has achieved 250, 000 tons/year.

 

P.T. DKI Products

 

Stearic Acid

 

Stearic acid has found wide application in the following industries such as Plastic: lubricant, plasticizer, remover; rubber: curing agent, dispersant, softener; Textile printing: softener, water-repellent; Wax and candles raw material; Cosmetic: greasy material, emulsifier, softener, brightener; Food: emulsifier, modifier; Pharmaceutical: surfactants, antiseptic; Paper making: sizing agent, softener; School supply: crayon, pencil lead, thickener for glue stick.

 

Hydrogenated Palm Oil (HPO)

 

HPO is obtained from full hydrogenation of palm oil. Application for make soap, candles, lubricating grease polishing paste, candles and margarine. Its main derivate monoglyceride is commonly used in food processing and textile industry.

 

Palm Wax

 

Palm Wax for Candle. With palm oil as the raw material, palm wax is fully natural, biodegradable. It is a renewable and inexhaustible resource with eco-friendliness. I is also has application in lubricant, waterproofing agent, polishing agent etc. Benefits of waxes include Non toxic, clean burning, colour stability and formulation flexibility. In the candle industry, the common material paraffin wax has a high price. At the same time, the hydrogenated oil has similar character with the paraffin wax. In order to reduce the cost, P.T. DKI often mix paraffin was and hydrogenated oil together. Palm wax is suitable for no crystal cup wax for its soft character.

 

Glycerin

 

Glycerin can be obtained from various oils and fats. However, the best is derived from palm-based oleochemicals due to its natural purity. Hence, it is preferred in pharmaceutical, food and personal care applications. It is known to person that glycerin is widely used in toiletries, such as lotion, cream, toothpaste, lipstick, liquid soap as well as in food as edulcorator. The tobacco industry uses the glycerin as humectant when the medical industry can use it in ointment, tincture, complexant, cough syrup etc. The paint and printing needs it in resin, the plastic industry uses it as plasticizer and release agent. The motoring industry relies on it for antifreeze agents. In the paper industry, the glycerin used as cellophane and coated Paper. The glycerin also can be used in the textile industry.

 

It has been growing consistently during these years. P.T. DKI maintains close contact with the customer, helping in the solution to any problem or process difficulty. P.T. DKI well-trained technical & marketing staffs are ready at all times to serve and co-operate with the customer for one reason. P.T. DKI believed that it is their superior quality along with on-going customer service that has gained the confidence of highly valued customers worldwide and hence contributed to success and achievement today. According information the whole product exported to meet the demand of industrial manufacturing in China. Compliance with ISO 9001:2008, Halal and Kosher Certification is just a way of showing this commitment. The whole product is exported to various industries in China. We observe that P.T. DKI is one the biggest producers of oleo chemicals in the country with operation has been growing and developing well in the last three years.

 

Generally outlook we find the demand for fatty acid, glycerin has been rising at home. It is in line with the growth of several industrial sectors, including rubber products, textile industry, cosmetic and soap industries, pharmaceutical, lubricating industry, paper making, and others as potential consumers of the products. As the largest producer of crude palm oil (crude palm oil / CPO) in the world, Indonesia should likely be the basis of the oleochemical industry world beyond Malaysia, China, India, and even the European Union. National oleochemical industries performance from year to year has been improvement. This is due to market demand and government policy support. Currently, Malaysia is still considered a benchmark constellation of global oleochemical industry because of the high acquisition and integration technology industry from upstream to downstream.

 

Indonesia must change the mindset that initially rely on the production of crude palm oil into various derivative manufacturers high value-added palm oil, oleochemicals one through industrialization, Ministry of Industry, said Mr. Abdul, continues to push the industry to support the progressive imposition of export duty on CPO exports to ensure domestic availability of raw materials. The government also encouraged the expansion of capacity and new investment in the area of ​​the proposed facility oleochemical industry through tax allowances and tax holidays. For tax holiday, there are two companies that have been filed. A company that P.T. Unilever Oleochemical Indonesia. Upon the enactment of export duty on CPO progressive, there is an increase in the oleochemical industry investments by 12 companies with a total investment value of Rp. 14 trillion. Ministry of Industry is also targeting 60% export of derivative products, including oleochemicals, and 40% of CPO.

 

Some of oleochemical products as a derivative product of Crude Palm Oil (CPO) has been able to produce in Indonesia. But, actually the case is the Indonesian oleochemical industry is not affordable yet to supply domestic demand especially in the down-streamer, because of domestic oleochemical products are still in the stage of semi-finished products. The semi-finished products which consists of fatty acid, fatty alcohol and glycerol were exported and after extending process then imported again by Indonesian as finished products like additive matters for textile industry, rubber, plastic, detergent, paint, cosmetic, processed-food, etc. Finally, as a consequence, development of Indonesian oleochemical industry is still far left behind compare to the one of Malaysian.

 

In 2011, for example, Indonesia has some 16 oleochemical producer companies with a total capacity of 1.67 million tons, contains 1.00 million tons of fatty acid, 490,000 tons of fatty alcohol and some 177,750 tons of glycerol. Since all domestic oleochemical products were exported, afterwards Indonesia’s market share in the world would be at 15% of 6.63 million tons of fatty acid consumption whereas, fatty alcohol only has 12% of 3.95 million tons and has only 8.9% of 2.00 million tons of glycerol. It is estimated both fatty acid and glycerin will remain to rise in the coming years. Competition is very tight due to a large number of similar companies operating in the country, like P.T. ECOGREEN OLEOCHEMICALS, P.T. CISADANE RAYA CHEMICAL, P.T. SUMI ASIH, P.T. MEDAN OLEOCHEMICAL and P.T. FLORA SAWITA. In overall we find that oleo chemicals industry in the country keeps rising despite the export price was lower and fluctuated. The growth of oleo chemicals industry in the country is seen in the table below.

 

The Growth and Production of Ole Chemical, 2005-2013

 

Year

Fatty Acid

Production (Ton)

Growth (%)

Glycol

Fatty Alcohol

Total

2005

2006

2007

2008

2009

2010

2011

2012

2013

436,700

398,952

350,203

476,700

504,080

542,391

585,782

631,473

659,510

46,354

41,283

35,577

51,222

55,290

59,492

64,251

69,262

72,337

93,712

119,905

176,099

111,159

136,482

146,855

158,603

170,974

178,565

576,766

560,141

561,879

639,081

695,582

748,738

808,636

871,709

910,415

 

(2.88)

0.31

14.74

8.88

7.60

8.00

7.80

4.45

Growth, % /year

4.44

 

Until this time P.T. DKI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. DKI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 812.0 billion rose to Rp. 876.0 billion in 2012 increased to Rp. 892.0 billion in 2013. As from January to June 2014 the sales turnover has reached at least Rp. 472.5 billion with a net profit of at least Rp. 42.0 billion. It is projected the sales turnover will rising by at least 5% in 2015. The company has an estimated total networth of at least US$ 122.0 million. We observe that P.T. DKI 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. DKI is led by Mr. Tjiang Jian (51) a professional manager of Singapore with experience in oleo chemical industry. In his daily activity he is assisted by Mr. Sun Gang (35), Mr. Ji Xiaobing (42), Mr. Jiang Qunfeng (40) and Mr. Cheng Yun Kang (44) 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. DUA KUDA INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.88

UK Pound

1

Rs.97.02

Euro

1

Rs.76.13

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.