.

MIRA INFORM REPORT

 

 

Report Date :

29.01.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ETERNAL BUANA CHEMICAL INDUSTRIES

 

 

Registered Office :

Jl. Raya Serang Km. 14 Desa Dukuh, Kec. Cikupa Tangerang 15710 Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

30.04.1979

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Specialty Resins and Biodiesel Industry

 

 

No. of Employees :

980

 

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 – 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. ETERNAL BUANA CHEMICAL INDUSTRIES

 

 

Address

 

Head Office & Factory

Jl. Raya Serang Km. 14

Desa Dukuh, Kec. Cikupa

Tangerang 15710

Banten Province

Indonesia

Phones             - (62-21) 522 5630-2, 596 0680

Fax                   - (62-21) 522 5634, 5940 0141

Land Area         - 162,354 sq. meters

Building Area     - 105,800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Jakarta Office

Barclays House, 7th Floor

Jl. Jend. Sudirman Kav. 22-23

Jakarta 12920

Indonesia

Phones             - (62-21) 571 2998 (hunting)

Fax                   - (62-21) 571 2678

Building Area     - 32 storey

Office Space      - 380 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation :

30 April 1979

 

Legal Form :

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

 

Company Reg.                                No. :

The Ministry of Justice and Human Rights

a. No. C-22385.HT.01.04.TH.2003

    Dated 18 September 2003

b. No. AHU-06749.AH.01.02.Tahun 2009

    Dated 10 March 2009

c. No. AHU-AH.01.10-36773

    Dated 11 October 2012

 

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance 

    NPWP No. 01.219.924.6-415.000

 

b. The Capital Investment Coordinating Board

    - No. 105/V/PMA/1998

      Dated 12 November 1998

    - No. 1234/III/PMA/2003

      Dated 22 October 2003

    - No. 558/III/PMA/2004

      Dated 15 June 2004

    - No. 401/II/PMA/2006

      Dated 13 December 2006

 

c. The Department of Industry and Trade

    - No. 01470/10/DN/DU-PMDN/III/1983

      Dated 25 March 1983

    - No. 228/M/2/1991

      Dated 16 February 1991

 

Holding Company :

P.T. ROYAL CHEMIE INDONESIA (Management Consulting and Investment Holding)

 

Related/Affiliated Companies :

a. P.T. BUANA MAKMUR ANDALAN (Trading and Investment Holding)

b. A member of the ETERINDO Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                             - Rp. 2,200,000,000,000.-

Issued Capital                                   - Rp.    555,275,300,000.-

Paid up Capital                                  - Rp.    555,275,300,000.-

 

Shareholders/Owners :

a.  P.T. ROYAL CHEMIE INDONESIA       - Rp. 550,875,300,000.- (99.20%)

    Address : Menara BTN, 19th Floor

                    Jl. Gajah Mada No. 1

                    Jakarta Pusat

                    Indonesia

 

b. P.T. BUANA MAKMUR ANDALAN       - Rp.     4,400,000,000.- (  0.80%)

    Address : Menara BTN, 15th Floor

                    Jl. Gajah Mada No. 1

                    Jakarta Pusat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Specialty Resins and Biodiesel Industry

 

Production Capacity :

  Initial Units

a. Synthetic Latex Resins                 - 30,000 tons p.a.

b. Alkyd Acrylic and Amino Resins    - 20,000 tons p.a.

c. Unsaturated Polyester Resins       - 20,000 tons p.a.

d. Plasticizers                                 - 30,000 tons p.a.

 

  Expansion Units

a. Biodiesel (FAME)                         - 20,000 tons p.a.

b. Glycerin                                      - 10,000 tons p.a.


Total Investment :

  Initial Units

a. Equity Capital            - Rp. 555.3 billion

b. Loan Capital              -          --     billion

c. Total Investment         - Rp. 555.3 billion

 

  Expansion Units

a. Equity Capital            - Rp.    --    billion

b. Loan Capital              - Rp. 399.7 billion

c. Total Investment         - Rp. 399.7 billion

 

Started Operation :

1979 (in trading of industrial chemicals) and 1982 (producing of specialty resins)

 

Brand Name :

ETERNAL BUANA CHEMICAL

 

Technical Assistance :

Eternal Chemical Co. Ltd., of Taiwan

 

Number of Employee :

980 persons

 

Marketing Area :

Domestic   - 80%

Export        - 20%


 

Main Customers :

a. Paint, Building Materials, Fiberglass and Sanitary Ware Industries in the country

b. Overseas buyers in Southeast Asia, China, India, Bangladesh, Middle East, Japan, Korea, etc.

 

Market Situation :

Very Competitive

 

 

Main Competitors :

a. P.T. CITRA RESINS INDUSTRIES

b. P.T. JUSTUS SAKTI RAYA

c. P.T. NUPLEX RAUNG RESINS

d. P.T. JAYA WARINDO ABADI

e. P.T. NIPPON PAINT INDONESIA

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. The Hong Kong Shanghai Banking Corp. (HSBC)

    The World Trade Center, 3rd Floor

    Jl. Jend. Sudirman Kav. 29-31

    South Jakarta – Indonesia

 

b. P.T. Bank CIMB NIAGA Tbk

    Graha CIMB Niaga

    Jl. Jend. Sudirman Kav. 58

    South Jakarta - Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 1,190.0 billion

2011 – Rp. 1,360.0 billion

2012 – Rp. 1,550.0 billion

2013 – Rp. 1,760.0 billion

 

Net Profit (estimated) :

2010 – Rp. 52.0 billion

2011 – Rp. 60.0 billion

2012 – Rp. 68.3 billion

2013 – Rp. 77.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Choi Choon Ha

Director                                     - Mr. Hadisan Sridjaja

 

Board of Commissioners :

President Commissioner - Mr. Sudiharto Sridjaja

Commissioner                           - Mr. Jasin Sridjaja

 

Signatories :

President Director (Mr. Choi Choon Ha) or the Director (Mr. Hadisan Sridjaja) which must be approved by Board of Commissioners (Mr. Sudirharto Sridjaja and Mr. Jasin Sridjaja)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

 


 

OVERALL PERFORMANCE

 

P.T. ETERNAL BUANA CHEMICAL INDUSTRIES (P.T. EBCI) was established in Jakarta on April 1979 with an authorized capital of Rp. 20,000,000.- of which Rp. 4,000,000.- was issued and fully paid up.  The founding shareholders are Mr. Balijo Ardinoto, an Indonesian businessman of Chinese extraction and Mr. Ali Husni, an indigenous businessman.  The Articles of association of the company have frequently been revised.  In 1981, Mr. Balijo Ardinoto pulled out and replaced by Mr. Buyung Tahib, an indigenous businessman.  In 1983, the company had been joined by new shareholder respectively Mr. Yasin Sridjaja, Mr. Sudiharto Sridjaya, Mrs. Suminah Hasim, wholly Chinese origin Indonesian entrepreneurs and Mr. Syarif Anwar Soehoed, an indigenous businessman.  In February 1998, the authorized capital was raised to Rp 175,000,000,000.- entirely was issued and fully paid up.  Then, in November 2004, the authorized capital was raised again to Rp 2,200,000,000,000.- of which Rp 555,275,300,000.- was issued and fully paid up. 

 

Most recently by notarial Deed No. 56 dated March 19, 2012 made by DR. Teddy Anwar, SH., the company’s shareholders are P.T. ROYAL CHEMIE INDONESIA (99.20%) and P.T. BUANA MAKMUR ANDALAN (0.80%).  The capital structures and shareholder composition of P.T. EBCI in details are as shown on page-3 of this report. The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-36773 dated October 11, 2012

 

P.T. ROYAL CHEMIE INDONESIA is a foreign investment company which was established in 2003 by ROYAL CHEMIE CORPORATION Ltd of Mauritius (99,999%) and P.T. KEDUNG SARI PRATAMA of Indonesia (0,001%). We are extremely difficult to trace or investigate the shareholders of ROYEL CHEMIE CORPORATION Ltd., as this company is incorporated under law of the Republic of Mauritius. But we allege or estimate that the owners of this company are Mr. Sudiharto Sridjaja and his family members.

 

P.T. EBCI started with operation in 1979 in trading and the distribution of specialty chemical and resins particularly for textile, leather, paint and plastic industries.  Later in 1982, P.T. EBCI developed a plant located on Jalan  Raya Serang  Km. 14, Cikupa, Tangerang (West Java) standing on 16.2  hectares  wide land  operating in 1982 and producing specialty resins such as synthetic latex resin under license  and technology  of  ETERNAL CHEMICAL CO. LTD., of Taiwan. In 1986, the  plant  has been  expanded  for  manufacturing  unsaturated  polyester  resin,  alkyd acrylic  and  amino  resins. In 1988, P.T. EBCI started in producing plasticizers product. But,  its  plant  was  of May 1994 razed by  fire  and  therefore  it  stopped production  activities.  After restoration and in the same time adding its production capacity, the plant has resumed operation in 1995.  In 2008, P.T. EBCI started in producing Fatty Acid Methyl Ether (FAME) or Biodiesel and Glycerin.

 

Some 80% of its products are for domestic purpose by using ETERNAL brand licensed by ETERNAL CHEMICAL Co., Ltd., of Taiwan.  P.T. EBCI’s products are widely used in manufacturer of consumer goods including raw material of paints, construction materials, fiberglass material and sanitary ware.  Meanwhile the rest 20% are exported to Southeast Asia, China, India, Bangladesh, Middle East, Japan, Korea, etc.  Domestically,   its plasticizers  products are marketed through P.T. INDOKEMIKA JAYATAMA (a member company of the SALIM Group) while its other products are directly  distributed by  P.T. EBCI to its customers in Jakarta, West Java and  Central Java regions.

 

Besides, P.T. EBCI also controls 4.50% shares of P.T. ETERINDO NUSA GRAHA (ENG) and the rest is owned by P.T. ROYAL CHEMIE INDONESIA (95.50%).  P.T. ENG is dealing with industrial chemical processing and manages a plant in Gresik, East Java, operating since October 1997 with an investment of Rp 126.0 billion. P.T. ENG produces Dioctyl phthalates (DOP), Resin and Bio-diesel.

 

Until this time P.T. EBCI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. P.T. EBCI’s management is very reclusive to outsider and rejecting to disclose its financial condition.  We observed that total sales turnover of the company in 2011 amounted to Rp. 1,360.0 billion increased to Rp. 1,550.0 billion in 2012 and rose again to Rp. 1,760.0 billion in 2013. The operation in 2013 yielded an estimated net profit at least Rp. 77.6 billion and the company has an estimated total net worth at Rp. 850.0 billion.  We observed that P.T. EBCI is supported by financially strong business family behind it.  So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. EBCI is led by Mr. Choi Choon Ha (63) as president director, a professional manager with broad experience in industrial chemical processing.  In daily his operation, he is assisted by Mr. Hadisan Sridjaja (47) as director and a number of professional managers and expert in specialty resins manufacturing.  The management is very 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. EBCI is fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

Attachment

 

List of the ETERINDO Group Members

 

 

1.    ANUGERAHINTI GEMANUSA, P.T. (Polyvinyl Alcohol and Acetic Acids Processing)

2.    BUANA METALINDO, P.T. (Metalworking)

3.    BUANA MAKMUR ANDALAN, P.T. (Trading and Investment Holding)

4.    BUANA SOLVINDO, P.T. (Butyl Acetates Processing)

5.    ETERNAL BUANA CHEMICAL INDUSTRIES, P.T. (Specialty Resin and Biodiesel Industry)

6.    GENERAL INTI UTAMA, P.T. (Investment Holding)

7.    ETERINDO NUSA GRAHA, P.T. (Biodiesel and Plasticizer Manufacturing)

8.    ETERINDO ANUGERAH PRAKARSA, P.T. (Investment Holding)

9.    ETERINDO WAHANATAMA Tbk.,, P.T. (Trading and Investment Holding)

10.   GLOBECHEM PACIFIC PERKASA, P.T. (Maleic Anhydride Processing)

11.   HEXABUANA TOMANAS, P.T. (Modern Office Building Management)

12.   INDO BERLIAN BUANA PERKASA, P.T. (Maleic Anhydrides Processing)

13.   INTIMUTIARA CHEMINCO, P.T. (Trading and Distribution of Industrial Chemicals)

14.   INTIMUTIARA GASINDO, P.T. (Investment Holding and Distributions)

15.   INTIMUTIARA KIMINDO, P.T. (Trading and Importer of Industrial Chemicals)

16.   LARISJAYA, P.T. (Trading and Distributions of Industrial Chemicals)

17.   MAISKA BHUMI SEMESTA, P.T. (Oil Palm Plantation)

18.   MALINDO PERSADA KHATULISTIWA, P.T. (Oil Palm Plantation)

19.   METRO PACIFIC CORP., Pte., Ltd., Singapore (Trading)

20.   MITSUI ETERINDO CHEMICALS, P.T. (Arcylamide Monomers Processing)

21.   PETRO OXO NUSANTARA, P.T. (Oxo Alcohols Processing)

22.   PETROWIDADA Tbk., P.T. (Phthalic Anhydride and Maleic Anhydride Processing)

23.   PROINTAL, P.T. (Chemical Storage Tanks Management)

24.   ROYAL CHEMIE INDONESIA, P.T. (General Trading and Investment Holding)

25.   ROYAL CHEMIE Corp. Ltd., of Mauritius (Investment Holding)

26.   SOUTH EASTERN CHEMICALS Sdn., Bhd., Malaysia (Plasticizers and Resins Processing)

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.99

UK Pound

1

Rs.104.61

Euro

1

Rs.86.17

 

 

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%)

 

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.