MIRA INFORM REPORT

 

 

Report Date :

15.02.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ESSENCE INDONESIA

 

 

Registered Office :

Jalan Otto Iskandardinata No. 74, Jakarta 13330

 

 

Country :

Indonesia

 

 

Date of Incorporation :

18.07.1970

 

 

Com. Reg. No.:

No. AHU-AH.01.10-29116

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Flavor and Fragrances

 

 

No. of Employees :

190

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Indonesia

B1

B1

 

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, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, 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 in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices.

 

Source : CIA

 


           

BASIC SEARCH

 

Name of Company :

P.T. ESSENCE INDONESIA

 

A d d r e s s :

Head Office & Factory

Jalan Otto Iskandardinata No. 74

Jakarta 13330

Phone               - (021) 8500074 (hunting)

Fax       - (021) 8190116, 8569329

Email    - iffindonesia@iff.com

Website            - www.iff.com

Land Area         - 15,000 sq. meters

Building Space  -   9,200 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

a. 1956 as N.V. ESSENCE INDONESIA LTD.

b. 18 July 1970 as P.T. ESSENCE INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

a. No. C2-2535.HT.01.04.TH.1998

    Dated 27 March 1998

b. No. C-UM.02.01.9070.TH.2006

    Dated 01 June 2006

c. No. AHU-03033.AH.01.02.Tahun 2010

    Dated 20 January 2010

d. No. AHU-54997.AH.01.02.Tahun 2011

    Dated 11 November 2011

e. No. AHU-AH.01.10-06031

    Dated 21 February 2012

f. No. AHU-AH.01.10-29116

    Dated 07 August 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

            a.         The Department of Finance

                        NPWP No. 01.000.080.0-092.000

 

            b.         The Department of Trade and Industry

            No. 28/M/SK/I/1970

            Dated 24 January 1970

 

            c.         The Capital Investment Coordinating Board

            - No. 911/III/PMA/1997

              Dated 10 July 1997

            - No. 08/II/PMA/1998

               Dated 13 January 1998

            - No. 107/III/PMA/2002

              Dated 28 January 2002

 

Holding Companies :

a. INTERNATIONAL FLAVORS AND FRAGRANCES Inc., (IFF) of the USA

b. INTERNATIONAL FLAVORS AND FRAGRANCES IFF of the Netherlands

 

Affiliated Company :

A member of IFF Group of Companies

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - US$. 650,000 (Rp. 211,910,000.-)

Issued Capital                - US$. 650,000 (Rp. 211,910,000.-)

Paid up Capital              - US$. 650,000 (Rp. 211,910,000.-)

 

Shareholders/Owners :

a. INTERNATIONAL FLAVORS AND

    FRAGRANCES Inc. of the USA                                             - 37.058%

    Address : 521 West Fifty-Seventh Street

                    New York 10019, USA

 

b. INTERNATIONAL FLAVORS AND

    FRAGRANCES IFF of the Netherlands                                  - 62.937%

    Address : Liebergerweg 72-76 (1221 JT)

                    Hilversum – The Netherlands

 

c. Mr. Rudy Subagio Kiswandono

   of Indonesia                                                                          -   0.005%

   Address : Jl. Dr. Muwardi II No. 19

                   Jakarta Barat

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Flavor and Fragrances Manufacturing

Production Capacity :

Flavors and Fragrances - 37,000 tons p.a.

 

Total Investment :

a. Equity Capital            - US$.    650,000.-

b. Re-invested Profit       - US$. 3,700,000.-

c. Total Investment         - US$. 4,350,000.-

 

Started Operation :

1956 when it was named N.V. ESSENCE INDONESIA Ltd

 

Brand Name :

None

 

Technical Assistance :

International Flavors and Fragrances Inc., of the USA

 

Number of Employee :

190 persons

 

Marketing Area :

Domestic          - 70%

Export               - 30%

 

Main Customers :

Overseas Buyers in USA, Philippines, Thailand, Japan and other European countries

Domestic Buyers: PT. Coca Cola Indonesia, PT. Indofood Sukses Makmur, PT. Wing Surya, Etc.

 

Market Situation :

Competitive

 

Main Competitors :

a. P.T. GIVAUDAN INDONESIA

b. P.T. INDESSO AROMA

c. P.T. HARUMSARI SURYAAMPUH

d. P.T. JEERINDO SARI UTAMA

e. P.T. MANE INDONESIA

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.  P.T. Bank MANDIRI Tbk

     Mandiri Plaza (Ex. BBD Plaza)

     Jl. Imam Bonjol No. 61

     Jakarta Pusat

b. CITIBANK N.A.

    CITIBANK Tower

    Jl. Jend. Sudirman Kav. 54-55

    Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 218.0 billion

2011 – Rp. 232.0 billion

2012 – Rp. 269.0 billion

2013 – Rp. 295.0 billion

 

Net Profit (estimated) :

2010 – Rp. 12.0 billion

2011 – Rp. 12.8 billion

2012 – Rp. 14.5 billion

2013 – Rp. 15.9 billion

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Christopher James Osborne

Directors                                   - a. Mr. Rudy Subagio Kiswandono

                                                  b. Mr. Eduardo Dagondon Alejandrino

                                                  c. Mrs. Wong Yee Foon (Yvonne Wong)

 

Board of Commissioners :

President Commissioner             - Mr. Teo Chee Wee

Commissioner                           - Mr. Chandy Cheeran Thambi

 


Signatories :

President Director (Mr. Christopher James Osborne) or one of the Directors (Mr. Rudy Subagio Koswandono, Mr. Eduardo Dagondon Alejandrino or Mrs. Wong Yee Foon) which must be approved by Board of Commissioners (Mr. Teo Chee Wee and Mr. Chandy Cheeran Thambi)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named N.V. ESSENCE INDONESIA, the company was established in 1956 with legal status of N.V. (Naamloze Vennootschap) equivalent with P.T. (Perseroan Terbatas) or Limited Liability Company. In July 1970 the company name was changed to P.T. ESSENCE INDONESIA (P.T. EI). Its notarial act subsequently underwent further revisions. By the term of the notarial act revision 1970, the authorized capital was set at US$ 650,000.- entirely issued and paid up. The shares are wholly controlled by INTERNATIONAL FLAVORS & FRAGRANCES Inc., of New York, USA. In December 1997 the authorized capital was converted from US$ to Rp 211,910,000.- and by the same time Mr. Drs. Kurnia Irwansyah Rais joined in as a new shareholder of P.T. EI.  On November 2009, Mr. Drs. Kurnia Irwansyah Rais pulled out and it whole shares is sold to Mr. Rudy Subagio Kiswantodno, is also of Indonesia.  The deed of amendment was made by Singgih Susilo, SH., a public notary in Jakarta under Company Registration Number AHU-03033.AH.01.02.Tahun 2010, dated January 20, 2010. 

 

On January 2012, INTERNATIONAL FLAVORS & RAGRANCES I.F.F. of the Netherlands entered into the Company as new shareholder.  Since the time, the shareholders of the company are INTERNATIONAL FLAVORS & FRAGRANCES Inc., of the USA (37.058%), INTERNATIONAL FLAVORS & FRAGRANCES IFF of the Netherlands (62.937%) and Mr. Rudy Subagio Kiswandono of Indonesia (0.005%). The latest amendment to Notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decision Letter No. AHU-AH.01.10-29116 dated August 7, 2012.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. EI is a foreign capital investment company (PMA) dealing with flavor, fragrance and aroma chemical industry. Its plant is located at Jalan Otto Iskandarwinata No. 74, East Jakarta, on a land of some 1.5 hectares. The plant has been operating since 1956 with a production capacity of 12,000 tons flavor, fragrance and aroma chemical per year, with an investment of US$ 650,000. In January 1998 it was licensed for plant expansion to pro-duce 25,000 tons flavor, fragrance and aroma chemical per year.  Mrs. Fia Amelia, a staff of the company said to our inquiry that some 70% of the products is marketed locally to a number of food and drink industries like P.T. COCA COLA, P.T. INDOFOOD SUKSES MAKMUR, etc. The other 30% is exported to the USA, Philippines, Thailand, Japan and other European countries.  We observed that P.T. EI is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

In overall we find the demand for essence, flavor and fragrance had been rising by the average 6% to 8% per year within the last five years in line with the growth of cosmetic industries, food and beverages, pharmaceutical and a stable economic growth in the period.   But, as from October 2008, the demand growth for essence, flavor and fragrances has kept on dwindling as an impact of global economic crisis as told above.   The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country such as P.T. GIVAUDAN INDONESIA, P.T. INDESSO AROMA, P.T. HARUMSARI SURYAAMPUH, P.T. JEERINDO SARI UTAMA, P.T. MANE INDONESIA, P.T. JUTARASA ABADI, P.T. MULTI FRAGRANCE, etc.  Business position of P.T. EI is quite favorable for it has controlled a wide marketing chains and customers in several major cities in the country.

 

Until this time P.T. EI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. We observed that total sales turnover of the company in 2010 amounted to Rp. 218.0 billion increased to Rp. 232.0 billion in 2011 to Rp 269.0 billion in 2012 and rose again to Rp.295.0 billion in 2013 and projected to go on rising by at least 6% in 2014.  The operation in 2013 yielded an estimated net profit of at least Rp. 15.9 billion and the company has an estimated total networth of at least Rp. 132.0 billion.    We observe that P.T. EI is supported by a foreign company which has financially fairly strong 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. EI is headed by Mr. Christopher James Osborne (44) as president director, a professional manager of the USA with has experienced for more than 16 years in flavor and fragrances manufacturing.  In daily activities, he is assisted by three directors namely Mr. Rudy Subagio Kiswandono (55) of Indonesia, Mr. Eduardo Dagondon Alejandrino (51) of Filipina and Mrs. Wong Yee Foon AKA Yvonne Wong (48) of Singapore. The management’s reputation in said business is sufficiently fairly good. The company has had wide relation in the realm of the private businessmen within and outside the country. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.  P.T. ESSENCE INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.28

UK Pound

1

Rs.103.67

Euro

1

Rs.85.18

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.