.
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Report Date : |
29.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
PERUM PERHUTANI |
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Formerly Known as: |
P.T. PERHUTANI (Persero) |
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Registered Office : |
Gedung Manggala Wanabakti Block K 7, 8th
– 10th Floor, Jalan
Gatot Subroto, Senayan, Jakarta Pusat, 10220 |
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Country : |
Indonesia |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
29.03.1972
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Public Company |
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Line of Business : |
· Engaged in forest governance and forest management planning, forest management, including the use, environmental services, the use of timber and non-timber forest product collection and not wood, forest rehabilitation and reclamation, forest protection and nature conservation, management of forest products into raw materials or finished materials, education and training in the field of forestry, research and development in the field of forestry, agro forestry development, building and developing community forests and / or forest smallholder’s crop and trade in forest products and its own production and the production of others. Subject also engaged in Woodworking Industry &
Investment Holding |
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No. of Employees : |
11,655 |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Exists |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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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 |
PERUM PERHUTANI
Head Office
Gedung Manggala
Wanabakti Block K 7, 8th – 10th Floor
Jalan Gatot Subroto
Senayan
Jakarta Pusat, 10220
Indonesia
Phones -
(62-21) 5721 282 (Hunting)
Fax -
(62-21) 5733 616
E-mail -
humas@perumperhutani.com
Website -
http://www.perumperhutani.com
Building Area -
4 storey
Office Space -
200 sq. meters
Region -
Commercial
Status -
Rent
Unit 1 Jawa Tengah
Jalan Pahlawan No. 15-17
Semarang, 50243
Central Java
Indonesia
Phones -
(62-24) 8413 631 (Hunting)
Fax -
(62-24) 8443 142
E-mail -
humas@perumperhutani.com
Building Area -
2 storey
Office Space -
700 sq. meters
Region -
Commercial
Status -
Owned
Unit II East Java
Jalan Genteng
Kali No. 49
Surabaya, 6008
East Java,
Indonesia
Phones -
(62-31) 5343 851 (Hunting)
Fax -
(62-31) 5311 784
E-mail -
humas2@perumperhutani.com
Building Area -
6 storey
Office Space -
1,200 sq. meters
Region -
Commercial
Status -
Owned
Unit III West Java
& Banten
Jalan
Soekarno Hatta No. 628 Km. 14
Bandung, 40292
West Java
Indonesia
Phones -
(62-22) 780 2871 (Hunting)
Fax -
(62-22) 2780 2972
E-mail -
humas3@perumperhutani.com
Building Area - 2 storey
Office Space -
600 sq. meters
Region -
Commercial
Status -
Owned
a. 29
March 1972 as Perum PERHUTANI
b. 2 July 2001 as P.T. PERHUTANI
(Persero)
c. 2003 PERUM PERHUTANI
Perusahaan Umum Negara (Perum) or
Public Company
Not Required
State Owned (BUMN) Company
The Department of
Finance
NPWP No. 01.001.652.5-051.000
The Government
Regulation
- PP
No. 15/1972
- PP No. 36/1986
- PP No. 53/1999
- PP No. 30/2003
- PP
No. 72/1010
a. P.T.
PERHUTANI ALAM WISATA (Service and Tourism)
b. P.T.
PERHUTANI ANUGERAH KIMIA (Industry and Tourism Gondorukem Derivatives and
Derivative
Turpentine)
Capital
Structure :
Capital :
Rp. 700,000,000,000.-
Shareholders/Owners
:
The Government
of the Republic of Indonesia -
100%
Lines of Business :
a. Forestry
Development and Management
b. Woodworking
Industry
c. Investment
Holding
Production Capacity :
a. Forest
Development and Management
-
Unit 1 Central Java - 635,747 hectares
- Unit II East
Java -
1,358,737 hectares
- Unit III West Java & Banten - 1,354,850
hectares
b. Timber - 435,402 cubic meters p.a.
c. Non
Teak on Timber - 525,488 cubic meters p.a.
d. Copal -
452 tons p.a.
e. Copal Mutu U -
451 tons p.a.
f. Eucalyptus
Leaves - 43,504 tons p.a.
g. Pine
Resin/Pine Sap - 109,908 tons p.a.
h. Lacquer -
251 tons p.a.
i. Sawn
Timber - 16,256 cubic
meters p.a.
j. Sawn
Timber & Jungle - 22,005 cubic
meters p.a.
k. Gondorukem - 70,000 tons p.a.
l. Turpentine
Oil - 14,000 tons p.a.
m. Eucalyptus
Oil - 40,214 tons p.a.
n. Seedlac -
1,450 tons p.a.
Total Investment :
None
Started Operation :
1972
Brand Name :
Perum Perhutani
Technical Assistance :
None
Number of Employee :
11,655 persons
Marketing Area :
Export - 70%
Local - 30%
Main Customer :
Buyers in Asian countries, Europe
Union and the USA
Market Situation :
Competitive
Main
Competitors :
None
Business Trend
:
Growing
Bankers :
a. P.T.
Bank MANDIRI Tbk
Plaza
Mandiri
Jalan
Jend. Gatot Subroto Kav. 36-38
Jakarta Selatan
Indonesia
b. P.T. Bank ENGARA INDONESIA Tbk
Wisma
46-Kota BNI
Jalan
Jend. Sudirman Kav. 1
Jakarta
Pusat
Indonesia
Auditor :
Hendrawinata Eddy & Siddharta, Kreston International
Litigation :
The Subject Company was involved in civil sued by P.T. SAPTA
WAHANA MULIA in the Central Jakarta District Court No. 480/Pdt.G/12/PN/Jkt.Pst
dated 22 October 2012.
Annual Sales :
2011 – Rp.
3,144.3 billion
2012 – Rp.
3,555.9 billion
2013 – Rp.
3,850.0 billion (estimated)
Net Profit :
2011 – Rp.
149.8 billion
2012 – Rp.
202.1 billion
2013 – Rp.
230.0 billion (estimated)
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director
-
Mr. Bambang Sukmananto
Directors -
a. Mr. Mustoha Iskandar
b. Mr. Heru Siswanto
c. Mr. M. Soebagja
d. Mr. Morgan S. Lumban Batu
e. Mr. Achmad Fachrodji
f. Mr. Tedjo Rumekso
Board of Commissioners :
President Commissioner -
Mr. Hadi Daryanto
Commissioners -
a. Mr. Ediwan Prabowo
b. Mr. Harianto
c. Mr. Sarwono Kusumaatmadja
d. Mrs. Sri Puryono LS
e. Mr. Rasiyo
f.
Mr. Adiadi Nurcahyanto
g. Mr. Lex Laksamana Zainal
Signatories :
President Director (Mr.
Bambang Sukmananto) or one of the Directors (Mr. Mustoha Iskandar, Mr. Heru
Siswanto, Mr. M. Soebagja, Mr. Morgan S. Lumban Batu, Mr. Achmad Fachrodji or Mr.
Tedjo Rumekso) which must be approved by Board of Commissioner.
Management Capability :
Good
Business Morality :
Good
Perum PERHUTANI was established by Government Regulation (PP) No. 15 of 1972 which is amended by Government Regulation No. 36 Year 1986. In 1998, the Government issued Government Regulation No. 13 Year 1998 on Perusahaan Umum (Perum). With the publication of this decree, the rules underlying the establishment of Perum Perhutani was set back, by Government Regulation No. 53 Year 1999 about General State Forestry Company (Perum Perhutani). Based on Government Regulation No. 14 of 2001 dated March 23, 2001 on Form Transfer of State Forestry General Company (Perum Perhutani), the form changed from Company to Persero. This status changing are outlined in the deed Imas Fatimah No. 3 dated July 2, 2001 and has received approval from the Minister of Justice and Human Rights Decree No. C-05 080. HT.01.01.TH.2001 dated August 7, 2001.
In 2003 the company changed into the Perusahaan Umum Negara in accordance with the Company's Regulation Number 30 of 2003 about the General State Forestry Company (Perum Perhutani). This change has been noted in the State Gazette of the Republic of Indonesia Number 67 year 2003. Some part of it has changed and re-arranged by the PP. 72 of 2010 concerning the Perusahaan Umum (Perum) Forestry countries where the Company's working area covers the entire state forest located in Central Java, East Java and West Java. The company authorized capital was amounted at Rp. 700,000,000,000 wholly issued and paid up by the Government of the Republic of Indonesia.
In accordance with Article 11 of Government Regulation (PP) No. 72 of
2010 concerning the Perusahaan Umum(Perum) State Forestry, the aims and
objectives of the Company are:
1)
Organizing
efforts aimed at public benefit in the form of supply of goods and / or
services related to forest management and forest products of high quality at an
affordable price by the community based on the principles of sustainable forest
management and good corporate governance.
2)
To
achieve the aims and objectives in paragraph 1, the Company has main business
activities: forest governance and forest management planning, forest
management, including the use, environmental services, the use of timber and
non-timber forest product collection and not wood, forest rehabilitation and
reclamation, forest protection and nature conservation, management of forest
products into raw materials or finished materials, education and training in
the field of forestry, research and development in the field of forestry, agro
forestry development, building and developing community forests and / or forest
smallholder’s crop and trade in forest products and its own production and
the production of others.
3)
In
addition to main business activities, Company may carry on business as;
§
Potential
optimization efforts for resources owned trading house, agro industrial
complex, agribusiness, property, warehousing tourism, hotels, resorts, rest areas,
hospitals, mining, quarrying, telecommunications infrastructure, utilization of
water resources and other natural resources.
§
Other
business activities in accordance with the company’s aim and purpose.
§
Type
of business units;
The company is headquartered in Jakarta. Main business activities of the
Company as described above, are run through the 3 (three) business unitswhich
are Unit I Central Java, East Java Unit II and Unit III West Java and Banten,
as well as 2(two) following centers: Center for Research and Development
Perhutani Puslitbang Perhutani ) in Cepu, Central Java and the Centre for
Education and Training Human Resources (HR Training Center) in Madiun East
Java.
ü Unit I Central Java
Unit I is headquartered in Central Java,Semarang. The
area is divided into 20 Unit KPH, 6 KBM and the Bureau of Planning and
Development at Salatiga. KBM consists of 2KBM Timber (IK) and Brumbung Cepu,
1KBM Non Timber (INK) Brumbung, 1 KBM Agroforestry Ekowisata and Other Services
(AEJ), formerly named KBM Travel Seed and Other Business (WBU), 2 KBM Marketing
Cepu and Tegal. KBM Industries sawn timberhas 2 factories and machines in Cepu
Brumbung, Non Timber Industry KBM has 4 factories and turpentine are gondorukem
Cimanggu PGT, PGT Winduaji, PGT and PGT Paninggaran Sepuran and 1 mill in
Gundih eucalyptus oil, 1 mill Candiroto in Natural Silk North Kedu and
processing honey in Pati.
ü Unit II East Java
Unit II of East Java headquartered in Surabaya. Unit
II region is divided into 23 KPH, 3 KBM Marketing (KBM Sar) located in
Bojonegoro, Madison and Probolinggo, 1 KBM Wood Industry (KBM IK) located in
Gresik, 1 KBM Non Timber Industry (KBM INK) located in Tandes and 1 and 1 KBM
AEJ Planning Bureau which is located in Manchester. Besides, there are 6
machines in the mill sawn Ngawi, Saradan, Jatirogo and Bojonegoro and 3
factories gondorukem and turpentine in Jember, Kediri and Lawu Ds, and 2 plant
eucalyptus oil in Mojokerto and Madiun.
ü Unit III West Java and Banten
Unit III West Java and Banten based in Bandung.
Regional unit of West Java and Banten III is divided into 14 KPH, 3 KBM is KBM
Marketing, KBM Industries, KBM AEJ, 1 Bureau of Planning and National
Beekeeping Centre (Pusbahnas) in length Parung Bogor. Unit III West Java and
Banten has Gondorukem and Turpentine Factory PGT KPH Sindangwangi in North
Bandung.
Perum Perhutani’s field of business is enterprises in the forestry sector (especially in Java and Madura) and have duty and authority to enforce the Forest Resource management activities (SDH) with give respect to the aspects of production / economic, social aspect, and environmental aspects.
Perum Perhutani has 9 (nine) groups of goods and services and / or 8 (eight) flagship product. Everything related to forest management. Products and services intended to be delivered, as follows:
1)
Sustainable
Wood Products: Perhutani produce high-quality wood, harvested from managed
forests with sustainable principles. Round timber species that are marketed
through KBM Wood Marketing are: Teak, Pine, Mahogany, Sonokeling, Damar,
Accacia, Jabon, Sengon, Gmelina, Rasamala and so forth, including several
species of rattan and bamboo. Perum Perhutani produce finished goods or
products of the wood processing industry in KBM Cepu Wood Industry, KBM Brumbung
Wood Industry, and KBM Gresik Wood Industry. Some wood products are: Garden
Furniture, Housing Component (doors and frames), Indoor Furniture, Flooring
(Wooden Floor), Raw Sawn Timber, TOP (Teak Plywood Overlay) and other products
to order.
2)
Forest
Chemical Products: Perhutani produce Forest Chemical Products such as Gumrosin
and Turpentine. Gumrosin and Turpentine is distilled products of high quality
pine sap. Other products in this category are: copal, eucalyptus oil, shellac,
ylang-ylang oil and so on.
3)
Ecotourism
and Landscape Beauty; Perum Perhutani managing nature tourism in 162 (one
hundred and sixty-two) locations, such as forest recreation tourist, beaches
tourist , waterfalls, lake tour, tour crater, and cave tours. Some tourist
sites are equipped with attractions arts and cultural interest such as Kawah
Putih tourist festival, strawberry picking and so on.
4)
Forest
Food and Health products; Perum Perhutani providing high quality honey products,
manufactured in the garden apiary Parung Panjang Bogor, Regaloh and other
forest locations in Central Java. Other products in this category are Honey
Water Drinks and Bottled Drinking Water labeled “Air Perhutani”. In
addition, the forestry produce: coffee, rice, corn, spices and other foodstuffs
in collaboration with the forests village community through Joint Forest
Management (PHBM).
5)
Forest
Products Seed: Seeds and plants seeds of qualified and certified forestry is
produced by the Center for Research and Development of Perhutani in Cepu.
Products in this category are prioritized to support business Perum Perhutani
forest management, besides also to be marketed.
6)
Forestry
training and Development; Perum Perhutani provides a package of training and
consulting of forestry business conducted at the Center for Training and Human
Resource Development (HRD) in Madiun. Perum Perhutani also has Assessment
Centre which can be used in cooperation with other parties.
7)
Clean
energy forest products; Perum Perhutani develop alternative energy businesses
through micro-hydro technology, utilizing water sources in the forest or the
river which has waterfall. Perhutani also working with the South Korea
Government in developing alternative energy from waste biomass harvest.
8)
Flora
and Fauna forestry products; Perum Perhutani provides products such as cocoon,
silk yarn, monkey captive, deer captive , crocodile captive as well as for
conservation.
9)
Commercial
zone products; Perum Perhutani open to cooperation with other parties in the
form of optimization of asset utilization such as; rest area, billboards,
tower, hall rental, and so on.
Besides, Perum PERHUTANI also engaged in investment holding by controls
99% shares of P.T. PERHUTANI ALAM WISATA dealing with services and tourism
industry and 55% shares of P.T. PERHUTANI ANUGERAH KIMIA dealing with industry
and tourism gondorukem derivatives and derivatives turpentine.
We note that the demand for woodworking, timber, agribusiness, and other
forest products has kept on rising in the last five years in line with the
growth of various industrial sectors. The crisis very adversely affected every
industrial sector and resulted in falling investment climate in the country. In
2012, the global economic downturn still continued. However, Indonesia’s
economy continues to show encouraging performance and stability has been well
maintained. This can be seen from the results of a study conducted by Bank
Indonesia, as generally seen from several indicators that had affected the
growth of Indonesia’s economy, which include:
(1)
Real
GDP growth of 6.2 percent year-on-year in the third quarter. Although this
growth rate was slightly lower 6.4% in the second quarter, however, it is the
eight quarterly growth record of over 6% in succession,
(2)
The
Rupiah exchange rate depreciated despite its volatility could be maintained at
a relatively low level. On average, the Rupiah depreciated by 6.3% (yoy) to
Rp9.358 per U.S. dollar from Rp8.768 per U.S. dollar in 2011. Meanwhile,
point-to-point, the Rupiah depreciated by 5.91% and closed at Rp. 9.638 per
U.S. dollar with a better maintained volatility at the level of 4.3%
(annualized). The curbed Rupiah volatility is closely linked to Bank Indonesia
policy in stabilizing the exchange rate to keep the Rupiah volatility at low
levels,
(3)
The
inflation rate remained under control at a low level in the range of 4.5%
± 1%. The controlled inflation is the result of Bank Indonesia policy,
supported by the improving policy coordination with the Government.
Indonesia’s economic stability and growth is certainly able to encourage national banking business development. Throughout 2012, the national banking intermediation function was increasing as characterized by high credit growth, particularly in the productive sectors. By the end of November 2012, credit growth reached 22.3%. The interest rate remained consistent with low inflation pressures and controlled in accordance with the inflation target in 2012 and 2013 at the level of 4.5 plus minus 1 percent. Therefore, bank loan and deposit interest rates decreased during 2012, in line with the decline of money market interest rates. Meanwhile, competition is very tight on account of the many companies with similar activities operating in the country. Perum Perhutani is considered to be still in a quite good position for having notched up lots of experience and having secured a wide clientele and having developed a wide marketing network in the country as well as overseas.
According to the financial statement of the company having been audited by public accountant, sales turnover of Perum PERHUTANI in 20102,787.2 billion with a net profit of Rp. 156.0 billion increasing to Rp. 3,144.3 billion with a net profit of Rp. 149.8 billion in 2011 and to Rp. 3,555.9 billion with a net profit of Rp. 202.1 billion in 2012. We estimated the sales turnover of the company in 2013 amounted at Rp. 3,850.0 billion with a net profit of Rp. 230.0 billion. We estimated the sales turnover will be higher by at least 6% in 2014. Based on information obtained from some customers, the payment habit of the company is smooth ranging from 1 to 3 months. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The condense financial statement is shown.
(In million Rp)
|
Descriptions |
31 December |
||
|
2012 |
2011 |
2010 |
|
|
A. ASSETS |
|
|
|
|
a. Current Assets |
1,766,156 |
1,663,051 |
1,544,592 |
|
b. Non Current Assets |
677,704 |
524,958 |
414,650 |
|
c. Other Assets |
25,869 |
26,439 |
16,115 |
|
TOTAL ASSETS = TOTAL LIABILITIES & EQUITY |
2,443,861 |
2,188,009 |
1,959,242 |
|
B. LIABILITIES &STOCKHOLDERS EQUITY |
|
|
|
|
a. Current Liabilities |
479,565 |
371,399 |
309,240 |
|
b. Non Current Liabilities |
135,609 |
154,549 |
130,773 |
|
c. Stockholders Equity : - Paid Up Capital - General use retained earning - Specified use Retained Earnings - Unspecified use Retained Earnings
Total Stock holders
Equity |
7000,000 866,648 64,652 202,150 1,833,450 |
700,000 740,759 64,652 149,763 1,655,174 |
700,000 590,229 64,652 156,045 1,510,926 |
|
C. INCOME STATEMENT |
|
|
|
|
a. Sales Net |
3,555,951 |
3,144,313 |
2,787,176 |
|
b. Operating Profit |
189,192 |
64,056 |
138,432 |
|
c. Net Profit (loss) |
202,150 |
149,763 |
156,045 |
Notes: 31 December 2010, 2011 and 2012 audited by hendrawinata, Eddy
& Siddharta
Litigation Matter
Perum Perhutani civil sued by P.T. Sapta Wahana Mulia
(PT Perhutani Vehicle industry was) in the Central Jakarta District Court
Number Case Number: 480/ Pdt.G/12/PN.Jkt.Pst dated 22-10-2012, while the
lawsuit PT Sapta Wahana Mulia (PT Perhutani Wahana Industry was) is a lawsuit
broken promise / defaults on the implementation of the timber industry
cooperation agreement and its amendment No. 103/SJ/Dir/2002-18/JV/X/2002 and
Wood Industry Cooperation Agreement No. 104/SJ/Dir / 2002-19/ JV/X/2002 and its
amendment. That we need to inform the lawsuit by default PT Sapta Wahana Mulia
(PT Perhutani Wahana Industry) has been submitted to the Central Jakarta
District Court disputed and it is basically the same (nebis in idem) and has
received the decision of the Supreme Court in the level of judicial review that
has been and binding verdict won by Perum Perhutani.
Currently in the process of litigation in the Central
Jakarta District Court, entered the evidentiary hearing agenda of the Parties.
Potential loss to the company of this case is the plaintiff’s claim for
damages amounting to Rp. 110,119,269,142.
The management of Perum PERHUTANI I headed by Mr.
Bambang Sukmananto (55) as President Director. His last position before his career
in Perhutani was as Secretary of the Directorate General of Forest Utilization,
Directorate General of Forest Utilization, Ministry of Forestry of Republic of
Indonesia. He is a Forestry graduate of the Faculty of Forestry, Bogor
Institute of Agricultural, graduate in 1983. He received a Master of Science
from the Ateneo De Manila University Philippine in 1992, and Doctorate Degree
in Agricultural Economics from Bogor Institute of Agriculture in 2007. 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. Perum PERHUTANI is sufficiently fairly good for business
transaction.
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 : |
MNL |
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%)