MIRA INFORM REPORT

 

 

Report Date :

28.02.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PREFORMED LINE PRODUCTS INDONESIA

 

 

Registered Office :

Cikarang Industrial Estate Jalan Jababeka Raya Block V/1 Cikarang, Bekasi 17530 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

24.07.2011

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Electrical Component Manufacturing

 

 

No. of Employees :

117

 

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, 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


Name of Company

 

P.T. PREFORMED LINE PRODUCTS INDONESIA

 

 

address

 

Head Office

Cikarang Industrial Estate

Jalan Jababeka Raya Block V/1

Cikarang, Bekasi 17530

West Java

Indonesia

Phones - (62-21) 8934866 (Hunting)

Fax                   - (62-21) 8934964, 8934216

E-mail               - teguhh@preformed.asia

Website            - http://www.preformed.asia/Indonesia

Land Area         - 3,000 sq. meters

Building            - 2,200 sq. meters

Region              - Industrial Estate

Status               - Owned

 

 

Date of Incorporation :

a.   8 December 1994 P.T. DULMISON INDONESIA

b.   24 July 2011 as P.T. PREFORMED LINE PRODUCTS INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. W7-HT.01.10-9392

  Dated 27 June 2007

- No. AHU-43342.AH.01.02.TH.2011

  Dated 25 August 2011

- No. AHU-AH.01.10-12522

  Dated 13 April 2012

 

Company Status  :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.070.931.9-055.000

The President of the Republic of Indonesia

No. B-299/Pres/9/1994

Dated 26 September 1994

 

The Capital Investment Coordinating Board

- No. 317/I/PMA/1994

  Dated 17 October 1994

- No. 453/III/PMA/2000

  Dated 31 March 2000

- No. 848/III/PMA/2000

  Dated 3 July 2000

- No. 1096/III/PMA/2001

  Dated 15 August 2001

- No. 1381/I/PMA/2002

  Dated 17 December 2002

- No. 358/II/PMA/2006

  Dated 8 November 2006

 

Related Company :

a.   PREFORMED LINE PRODUCTS AUSTRALIA PTY LTD (Electrical Component Industry and

      Investment Holding)

b.   PREFORMED LINE PRODUCTS COMPANY (Electrical Component Industry and Investment

      Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : US$ 2,200,000.-

Issued Capital                                 : US$ 2,200,000.-

Paid up Capital                               : US$ 2,200,000.-

 

Shareholders/Owners :

a. PREFORMED LINE PRODUCTS AUSTRALIA PTY LTD. - US$ 2,199,900.-

    Address : 190 Power St, Glendenning

                    NSW 2761, Australia

b. PREFORMED LINE PRODUCTS COMPANY                      - US$             10.-

    Address : 660 Beta Drive

                    Mayfield Village

                    Ohio 44143, United States of America

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Electrical Component Manufacturing

 

Production Capacity :

a.   Insulator (20 KV)                                             - 200,000 sets p.a.

b.   Heliformed (Wire Formed Products)                - 900,000 sets p.a.

c.   Transmission Hardware (150-500 KV)               - 250,000 sets p.a.

d.   Distribution Hardware (LV up to 70 KV)            - 870,000 sets p.a.

e.   Earthrod & Accessories                                  - 200,000 sets p.a.

f.    Trading, Imports and Distribution of

      Connectors, Arrester, Cables etc)                    - US$ 2.0 million

 

Total Investment :

a.   Equity Capital                           - US$ 2.2 million

b.   Loan Capital                              - US$ 1.7 million

c.   Total Investment                        - US$ 3.9 million

 

Started Operation :

1997

 

Brand Name :

Preformed

 

Technical Assistance :

Preformed Line Products Australia Pty, Ltd., Australia

 

Number of Employee :

117 persons

 

Marketing Area :

Local       - 10%

Export    - 90%

 

Main Customer :

a. Distributors

b. Buyers in Malaysia, Thailand, Singapore, Australia, UK, Germany, USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a.   P.T. AZET SURYA INDONESIA

b.   P.T. CLIPSAL MANUFACTURING JAKARTA

c.   P.T. DHEMAR NUSANTARA

d.   P.T. TECO MULTIGUNA ELEKTRO

e.   P.T. SCHENEIDER INDONESIA

f.    P.T. SEMESTA ELTRINDO PURA

g.   Etc.

 

Business Trend :

Growing


BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   WESTPAC Banking Corporation

       Wisma Standard Chartered Bank

       Jalan Jend. Sudirman Kav. 33 A

       Jakarta 10220

      Indonesia

 

 

b.   P.T. Bank COMMONWEALTH

       Wisma Metropolitan II

       Jalan Jend. Sudirman Kav. 29-31

       Jakarta 12920

c.   P.T. Bank ANZ INDONESIA

      ANZ TOWER 8th Floor

Jalan Jend. Sudirman Kav. 33 A

Jakarta Pusat, 10220

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 145.0 billion

2012 – Rp. 152.0 billion

2013 – Rp. 163.0 billion

 

Net Profit (Loss) :

2011 – Rp. 10.1 billion

2012 – Rp. 11.4 billion

2013 – Rp. 12.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Bernardus Effendi Ristionovianto

Export Sales and Tenders Manager  - Mr. Teguh Hadiwinato

Domestic Sales Manager                 - Mr. Effendy Sinaga

 

Board of Commissioner :

Commissioner                                 - Mr. Norman Leslie Windell

 

Signatories :

Director (Mr. Bernardus Effendi Ristionovianto) 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

 

 

OVERALL PERFOMANCE

 

Based on investigation the correct name of Subject is P.T. PREFORMED LINE PRODUCTS INDONESIA not P.T. PERFORMED LINE PRODUCT as stated in your order ref. no. 255488 dated 20 February 2014.

 

Originally the company named P.T. DULMISON INDONESIA was established in Bekasi, West Java on 8 December 1994 with the authorized capital of US$ 700,000 issued capital of US$ 400,000 entirely paid up. The founding shareholders of the company are DULMISON PTY. LTD., of Australia as foreign partner and P.T. RAGAM OBOR HIKMAH as local partner. In December 2002 the authorized capital was increased to US4 2,200,000 entirely fully and paid up. The company notary deed has been changed a couple of times. In November 2005, DULMISON PTY., LTD., of Australia and P.T. RAGAM OBOR HIKMAH withdrew and the entered into the company namely TYCO GROUP S.A.R.L., and TYCO INTERNATIONAL GROUP., S.A., both of Luxemburg as new shareholders. On the same occasion the authorized capital was raised to US$ 2,200,000 wholly issued and paid up. The latest in June 2007, TYCO GROUP S.A.R.L., and TYCO INTERNATIONAL GROUP S.A., pulled out and replaced by EMERALD GROUP S.A.R.L., (99%) and TYCO ELECTRONICS GROUP S.A., (1%) both of Luxemburg. Later in July 2011 the company named was changed to P.T. PREFORMED LINE PRODUCTS INDONESIA (P.T. PLPI). On the same occasion the whole shares had been taken over by PREFORMED LINE PRODUCTS (AUSTRALIA) PTY LTD of Australia (99.99%) and PREFORMED LINE PRODUCTS COMPANY of the USA (0.01%). Later according to the latest revision of notary deed Mr. Mala Mukti, SH., No. 44 dated 10 April 2012 the company board of director and the board of commissioner had been changed 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.01.10-12522 dated April 13, 2012.

 

P.T. PLPI obtained a Foreign Capital Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with electrical component manufacturing. The plant located at Cikarang Industrial Estate, Jalan Jababeka Raya Block V/1, Cikarang, Bekasi, West Java on a land of 3,000 sq. meters. The plant has been operating since 1997 and has been expanding frequently to increasing production capacity. The plants produce various types of electrical component such as Insulators (20 KV) of 200,000 sets, Heliformed (Wire Formed Products) of 400,000 sets, Transmission Hardware (150-500 KV) of 150,000 sets, Distribution Hardware (LV up to 70 KV) of 370,000 sets and Earthrod & Accessories of 200,000 sets per annum respectively. The plant has absorbed an investment of US$ 2.2 million, originally come from owned capital. The 3000 m2 factory is a major supplier of a wide range of fittings and accessories for overhead transmission and distribution lines and associated communications infrastructure, serving customers in Indonesia and around the world. The ISO9001 certified facility manufactures products that are based on a specialized capability in formed wire and cast aluminum products and include specialist vibration control equipment, such as Dogbone Vibration Dampers, Spacer Dampers and Armor Grip Support Units, as well as a wide range of helical wire products. For the communications infrastructure, a complete range of OPGW and ADSS cable fittings and accessories, as well as fiber optic splice closures, are also manufactured and supplied.

 

To accommodate the increasing markets demand, in November 2006 P.T. PLPI got an expansion permit to increase production capacity which an investment of US$ 1.7 million originally coming from loan. The expansion plant will be operating the end of 2008 and will produce 500,000 sets of Heliformed, 500,000 sets of Distribution Hardware, 100,000 sets of Transmission Hardware and trading, import and distribution of connectors, arrester, cable and other per annum. About 90% of its production is exported to various countries like Singapore, Malaysia, Australia, Thailand, United Kingdom, Germany and the USA, while the rest is locally marketed under PREFORMED brand through its distributors spreading in major cities in the country. We observed that P.T. PLPI’s is classified as a medium sized company in the country with electrical component manufacturing of which operation has been growing in the last three years.

 

We observed that the electrical equipment industry had kept on rising in the last five years in line with the growth of electric energy in Indonesia. PLN is the main supplier of electricity to the national grid and originally supplied all electricity from its own plants which is financed and built. Between 1996 and 2006 PLN set up 27 Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) and 22 of these had to be renegotiated following the 1998-1999 economic crisis. There was almost no investment in new power plants between 2000 and 2006. PLN launched its 10,000 MW electricity expansion program, comprising 35 new coal-fired power stations, to meet the growing demand for power amid power shortage, especially in the provinces, and to replace the use of fuel oil. PLN aimed to generated 6,900 MW from 10 new power plants in Java, alongside 25 power plants on other island outside The Java-Bali System generating 3,100 MW. The second 10,000 MW program would comprise 93 power stations, to be built between 2010 and 2014, with a total capacity of 10,153 MW. Of this 5,770 MW or 57% would be for The Java-Bali-Madura gird and the rest would be for Sumatra, Kalimantan, Sulawesi and Eastern Indonesia. PLN originally planned that up to 48% of the second 10,000 MW power program would be generated from geothermal sources, 26% from coal, 14% from natural gas and 12% from hydropower. The proposed fuel mix was then amended to 37% geothermal 33% coal-fired, 16% from gas and 12% from hydroelectric power.

 

The Production and Sales of National Electricity, 2005 – 2012

 

Year

Electricity Production (GWh)

Electricity Sales (GWh)

2005

127,371

107,032

2006

133,109

112,610

2007

142,440

121,247

2008

149,438

                    129,019

2009

155,333

134,582

2010

165,621

147,297

2011

172,246

157,997

2012

177,383

163,527

 

Until this time P.T. PLPI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PLPI 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. 145.0 billion rose to Rp. 152.0 billion in 2012 increased to Rp. 163.0 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. 12.2 billion and the company has an estimated total networth of at least Rp. 65.0 billion. We observe that P.T. PLPI 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 management of P.T. PLPI is led by Mr. Bernardus Effendi Ristionovianto (48) a professional manager with experience in electrical component manufacturing and trade. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. 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. PREFORMED LINE PRODUCTS INDONESIA is sufficiently fairly good for business transaction.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.103.31

Euro

1

Rs.85.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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.