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Report Date : |
03.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. OLAM |
|
|
|
|
Registered Office : |
GandaRia 8 Office Tower, 15th Floor, Jl. Sultan
Iskandar Muda, Kebayoran Lama Jakarta 12240 |
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Country : |
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|
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Date of Incorporation : |
19.07.1996 |
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Com. Reg. No.: |
AHU-AH.01.10-53203 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Trading, Export-Import and Distribution of Agricultural Products |
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No. of Employees : |
500 |
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 |
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Payment Behaviour : |
No complaints |
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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 |
Name of Company :
P.T. OLAM
INDONESIA
A d d r e s s :
Head Office
GandaRia 8 Office Tower, 15th Floor
Jl. Sultan Iskandar Muda
Kebayoran Lama
Jakarta 12240
Indonesia
Phones -
(62-21) 2930 3622 (hunting)
Fax. - (62-21) 2930 3628
Building Area - 32 storey
Office Space - 220 sq. meters
Region - Commercial
Status - Rent
Branches
a. Kawasan
Industri Makassar
Jl.
Kima 4 Kav. K / 6-7
Makassar
90241, South Sulawesi
Indonesia
Phones - (62-411) 511695, 513703, 514372
Fax. -
(62-411) 512372
b. Jl.
Binjai Km, 15, Gg. Kenduri 1-A
Medan
20123, North Sumatra
Indonesia
Phone - (62-61) 844 4370
Fax. -
(62-61) 844 4370
c. Jl.
Margomulyo Indah Blok F/9
Tandes,
Surabaya 60186
East
Java
Indonesia
Phone - (62-31) 748 2173
Fax. -
(62-31) 748 3165
d. Jl.
KH Agus Anang No. 36
Way
Lunik, Panjang
Bandarlampung
35224
Lampung
Province
Indonesia
Phone - (62-721) 33956
Fax. -
(62-721) 31998
Date of
Incorporation :
19 July 1996
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of Law and Human Rights
a. No. C2-10.700 HT.01.01.Th.96
Dated 29 November 1996
b. No. AHU-76169.AH.01.02.Tahun 2008
Dated 21 October 2008
c. No. AHU-AH.01.10-53203
Dated 09 December
2013
Company Status :
Foreign Investment Company (PMA)
Permit by the
Government Department :
a. The Department of Finance
NPWP No. 01.071.665.2-059.000
b. The President of the Republic of Indonesia
No. B-374/Pres/5/1996
Dated 20 May 1996
c. The Capital Investment Coordinating Board
No. 468/I/PMA/1996
Dated 14 June 1996
Related/Affiliated
Company :
A member of the OLAM INTERNATIONAL Group
Capital Structure
:
Authorized Capital - US$
1,100,000.- (Rp. 2,559,700,000.-)
Issued Capital - US$ 1,100,000.-
(Rp. 2,559,700,000.-)
Paid up Capital - US$ 1,100,000.-
(Rp. 2,559,700,000.-)
Shareholders/Owners
:
a. OLAM
INTERNATIONAL LIMITED -
US$ 1,099,350.- (99.94%)
Address : Suite 2, Seaton
House, 17-19
Seaton Place
Jersey
b. Mr. Sunny
George Verghese -
US$ 650.- ( 0.06%)
Address : Madras, 30/A Cathedral
Garden Road,
Nungam,
India
Lines of Business
:
Trading, Export-Import and Distribution of Agricultural Products
Production Capacity
:
None
Total Investment :
a. Owned Capital - US$.
5.0 million
b. Loan Capital -
US$. -- million
c. Total Investment - US$. 5.0 million
Started Operation
:
1996
Brand Name :
Olam Indonesia
Technical
Assistance :
None
Number of Employee
:
500 persons
Marketing Area :
Export - 100%
Main Customers :
Overseas buyers in the
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ALAM INDORAMA
b. C.V. BUMI DJAJA
c. P.T. ADI SAMPOERNO
d. C.V. PUTRA NUSA
e. C.V. SUMBER BUMI JAYA
f. C.V. ARSAM PRATAMA
g. C.V. MUKTI JABAR
h. C.V. PRIMATAMA
i. Etc.
Business Trend :
Growing
B a n k e r s :
a. Standard Chartered Bank
Jakarta Branch
Indonesia
b. Hong Kong and Shanghai
Bank Corp.
Jakarta Branch
Indonesia
c. DBS Bank
Singapore Branch
Singapore
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
Annual Sales
(estimated) :
2010 – US$. 426 million
2011 – US$. 480 million
2012 – US$. 550 million
2013 – US$. 312 million (January – June)
Net Profit (Loss)
:
2010 – US$. 30.0 million
2011 – US$. 33.6 million
2012 – US$. 38.5 million
2013 – US$. 21.8 million (January – June)
Payment Manner :
Average
Financial Comments
:
Satisfactory
Board of Management :
President Director - Mr. Prakash Chand Jhanwer
Directors - a. Mr. Amit Verma
b. Mr. Gopalarathanam Srinivasakumar
c. Mr. Saurabh Rajinder Suri
Board of Commissioners :
Commissioner -
Mr. Krishnan Sridhar
Signatories :
President Director (Mr. Prakash Chand
Jhanwer) or one of the Directors (Mr. Amit Verma, Mr. Gopalarathanam
Srinivasakumar or Mr. Saurabh Rajinder Suri) which must be approved by Board of
Commissioner (Mr. Krishnan Sridhar)
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Below average
Credit Recommendation :
Credit can be proceeded normally
Proposed Credit
Limit :
Moderate amount
P.T. OLAM INDONESIA (P.T. OI) was established in Jakarta based on Deed
No. 32 dated July 19, 1996 made by Mrs. Rukmasanti Hardjasatya, SH., notary in
Jakarta with an authorized capital of
US$ 65,000.- (Rp 151,255,000.-) entirely was issued and fully paid up. The founding shareholders of the company are
OLAM HOLDINGS Ltd., of Jersey (99%) and Mr. Sunny George Verghese (1%), an
Indian businessman. The Deed of
establishment has been approved by the Minister of Justice of the Republic of
Indonesia through its Decision Letter No. C2-10.700 HT.01.01.Th.96 dated
November 29, 1996. The articles of
association of the company have frequently been revised. In June 2001, the
authorized capital was raised to US$ 1,100,000.- (Rp 2,559,700,000.-) entirely
was issued and fully paid up.
Concurrently, the shareholders of the company are OLAM INTERNATIONAL
Ltd., of Jersey (99.94%) and Mr. Sunny George Verghese (0.06%). Most recently by notarial Deed of Notary
Ashoya Ratam, SH, No. 48 dated November 25, 2013 the company’s board of
directors and commissioners were changed. The amendment to Deed
has been approved by the Minister of Law and Human Rights of the Republic of
Indonesia through Decision Letter No. AHU-AH.01.10-53203 dated December 9,
2013. No changes have been effected in term of its shareholding
composition and capital structures to date.
P.T. OI is a member of the OLAM Group,
a leading global integrated supply chain manager and processor of agricultural
products and food ingredients, supplying various products across 16 platforms
in 65 countries. OLAM has a direct
sourcing and processing presence in most major producing countries catering to
13,600 customers across the world.
P.T. OI obtained a Foreign Capital Investment (PMA) facility issued by
the Capital Investment Coordinating Board (BKPM) in 1996 to deal with trading
and export-import of agricultural products. Mr. Andy, an export-import staff of
the company explained that the whole agricultural products likes cocoa, coffee
and sugar bought from farmer in North Sumatra, South Sulawesi, Java and other
island of Indonesia. Then, the whole
products are exported to the United States of America, Europe Union and Asian
countries. One of the flagship
initiatives of the Olam Livelihood Charter is its participation in the Sulawesi
Alliance of Farmers, Olam and Blommer Chocolate (SAOFB), one of the largest
cocoa programmes in the world. Working
in partnership with the USAID Indonesia-funded Agribusiness Market and Support
Activity (AMARTA), the project aims to help improve the economic and social
welfare of farming communities in Indonesia. We observed that P.T. OI 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.
We have noticed that the demand for agricultural products had increased some
10% to 11% per annum in the last five years in line with the growth of
industrial manufacturing in the country and international market. In the coming
years, the growth rate of demand is estimated at about 6% to 7% per annum. The
present market situation for agricultural products is very competitive for a
large number of similar companies operating in the country. Meanwhile, competition is quite heavy in the
export import of agricultural products with many companies now doing business
in this field in Indonesia. Business
position of P.T. OI is favorable for it has controlled a wide marketing network
at home and abroad and their product has been widely known among consumers in
the country.
The company is neither public listed nor bond issued company. Therefore,
the company has no obligation to publish financial statement publicly. The management is very reclusive and
unlikely to expose its financial condition to outsider. We estimate that
sales turnover of the company in 2010 amounted to US$. 426 million increased to
US$. 480 million in 2011 rose again to US$.550 million in 2012 and projected to
be increasing by at least 8% in 2013. The operation of the company in 2012 is
estimated to have gained a net profit of US$.38.5 million with a total
net-worth of US$.120 million. 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. OLAM INDONESIA is headed by Mr. Prakash Chand
Jhanwer (38) as president director, an Indian professional manager with
experience for more than 10 years in trading and export-import of agricultural
products. In his daily activities, she
is assisted by three directors namely Mr. Amit Verma (37), Mr. Gopalarathanam
Srinivasakumar (44) and Mr. Saurabh Rajinder Suri (32). The management has maintained a wide relation
with private businessmen at home and abroad as well as with government
authorities. So far, we did not hear
that the company's management having been involved in the business
malpractices. The company litigation
record is clean and it has not registered with the black list of Bank of
Indonesia.
P.T. OLAM INDONESIA is appraised to be good for business
transaction. However, in view of the
economic condition in the country is still unstable, we recommend to treat
prudently in extending any new loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.90 |
|
|
1 |
Rs.102.74 |
|
Euro |
1 |
Rs.85.16 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.