MIRA INFORM REPORT

 

 

Report Date :

09.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PABRIK KERTAS INDONESIA (PAKERIN)

 

 

Registered Office :

Jalan Kertopaten No. 3, Surabaya, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.05.1974

 

 

Com. Reg. No.:

No. AHU-74513.AH.01.02.TH.2008

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Industrial Paper

 

 

No. of Employees :

1,550

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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

 

 


BASIC SEARCH

 

Full Name of Company :

P.T. PABRIK KERTAS INDONESIA (PAKERIN)

 

A d d r e s s :

Head Office

Jalan Kertopaten No. 3

Surabaya, East Java

Indonesia

Phones             - (62-31) 3716173 (hunting)

Fax                   - (62-31) 3714345, 3717223

P.O. Box           - 1990 SBY 61364

Email                - contact@pakerin.co.id

Website            - http://www.pakerin.co.id

Building Area     - 2 storey

Office Space      - 230 sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Desa Bangun

Kecamatan Pungging

Mojosari, Mojokerto 61384

East Java

Indonesia

Phones             - (62-321) 591377-78

Fax                   - (62-321) 591376

Land Area         - 38,000 sq. meters

Office Space      - 23,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Jakarta Office

Jalan Malaka II / 21-H

Jakarta 11230

Indonesia

Phones             - (62-21) 6910974

Fax                   - (62-21) 6910973

Building Area     - 2 storey

Office Space      - 230 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

25 May 1974

 

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

No. AHU-74513.AH.01.02.TH.2008

Dated 16 October 2008

 

Company Status  :

Domestic Investment Company (PMDN)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.122.763.4-092.000

The Department of Industry and Trade

- No. 020/IUS/DJ/XI/76

  Dated 11 November 1976

- No. 425/DJ.IKD/IZ/1993

  Dated 9 October 1993

The Capital Investment Coordinating Board

- No. 62/A/Sp.01/BKPM/VI/77

  Dated 10 June 1977

- No. 10/VI/PMDN/1980

  Dated 12 June 1980

- No. 17/II/PMDN/1983

  Dated 17 March 1983

- No. 60/II/PMDN/1984

  Dated 26 November 1984

- No. 53/II/PMDN/1988

  Dated 9 March 1988

- No. 184/II/PMDN/1990

  Dated 26 March 1990

- No. 18/II/PMDN/1994

  Dated 9 October 1994

 

Holding Companies :

a. P.T. INTI ANUGERAH (Investment Holding)

b. P.T. SUPREME AGUNG (Investment Holding)

 

Affiliated/Associated Companies :

a. P.T. ASIA CARTON LESTARI (Corrugated Carton Box and Paper Tube Industry)

b. P.T. INDOPACK PRATAMA (Corrugated Carton Box Manufacturing)

c. P.T. PRIMA MASTER Bank (Banking Services)

d. P.T. ARATIKA (General Trading)

e. C.V. TRISAKTI (General Trading)

f.  Etc

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 1,000,000,000,000.-

Issued Capital                - Rp.    261,000,000,000.-

Paid up Capital              - Rp.    261,000,000,000.-

 

Shareholders/Owners :

a. P.T. INTI ANUGERAH            - Rp. 169,600,000,000.- (64.98%)

b. P.T. SUPREME AGUNG        - Rp.   88,200,000,000.- (33.79%)

c. Mr. Soegiharto         - Rp.     3,200,000,000.- (  1.23%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Industrial Paper Manufacturing

 

Production Capacity :

a. Coated Duplex           -   45,000 tons p.a.

b. Paper Board  -     6,000 tons p.a.

c. Kraft Liner & Corrugated Medium         -   30,000 tons p.a.

d. NCR Papers  -     4,600 tons p.a.

e. Industrial Papers        - 354,000 tons p.a.

f. Cultural Papers           -   45,000 tons p.a.

g. Tissue Papers            -     6,000 tons p.a.

h. Pulps Papers - 129,000 tons p.a.

i. Caustic Soda  -   15,000 tons p.a.

 

Total Investment :

a. Equity Capital            - Rp. 261.0 billion

b. Reinvested Profit        - Rp.     8.5 billion

c. Loan Capital  - Rp. 304.4 billion

d. Total Investment         - Rp. 573.5 billion

 

Started Operation :

1980

 

Brand Name :

PAKERIN

 

Technical Assistance :

None

 

Number of Employee :

1,550 persons

 

Marketing Area :

Local                - 70%

Export               - 30%

 

Main Customer :

Trading and Distributor of Papers

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Pabrik Kertas TJIWI KIMIA Tbk

b. P.T. INDAH KIAT PULP & PAPER Tbk

c. P.T. LONTAR PAPYRUS

d. P.T. RIAU ANDALAN PULP & PAPER

e. P.T. RIAU ANDALAN KERTAS

f.  P.T. PELITA CENGKARENG PAPER

g. P.T. SURABAYA AGUNG KERTAS

h. P.T. SUPARMA Tbk

i.  P.T. SURABAYA MEKA BOX

j.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Jalan Jembatan Merah 25

    Surabaya, East Java

    Indonesia

 

b. P.T. Bank CENTRAL ASIA Tbk

    Jalan Raya Darmo

    Surabaya, East Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 1,240.0 billion

2010 – Rp. 1,385.0 billion

2011 – Rp. 1,572.0 billion

2012 – Rp. 1,705.0 billion

2013 – Rp. 1,840.0 billion

 

Net Profit (estimated) :

2009 – Rp.   87.0 billion

2010 – Rp.   95.0 billion

2011 – Rp. 106.0 billion

2012 – Rp. 115.0 billion

2013 – Rp. 124.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. David Siemens Kurniawan

Director                                     - Mr. Njoo Steven Tirtowidjojo

 

Board of Commissioners :

President Commissioner - Mr. Soegiharto

Commissioner                           - Mr. Njoo Henry Susilowidjojo

 

Signatories :

President Director (Mr. David Siemens Kurniawan) or the Director (Mr. Njoo Steven Tirtowidjojo) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

P.T. PABRIK KERTAS INDONESIA abbreviated P.T. PAKERIN was established in May 1974 in Surabaya, East Java. The founders and original shareholders are Mr. Njono Soetjipto, Mr. Kusuma Sudarga, Mr. Iwan Kentjana, Mr. Sulistio Hadiwidjojo, Mr. Harianto Simka, Mr. Siswanto Godjali (all of them ethnic Chinese businessmen) and Mr. Soebijono, an indigenous businessman. The company's authorized capital was set at Rp. 500,000,000 issued capital at Rp. 100,000,000 entirely paid up. The company's articles of association were converted for several times. The latest in November 1994 the authorized capital was raised to Rp. 800,000,000,000 issued and paid up capital to Rp. 164,046,600,000. By the same time the above shareholders have all pulled out and replaced by P.T. INTI ANUGERAH and P.T. SUPREME AGUNG, both are national private companies owned by Mr. Njono Soetjipto and family.

 

The latest in September 2008, the authorized capital was increased to Rp. 1,000,000,000,000 issued capital to Rp. 261,000,000,000 fully and paid up. On the same occasion Mr. Soegiharto joined the company as new shareholder. The deed of amendment was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-74513.AH.01.02.TH.2008, dated October 16, 2008. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. PAKERIN deals with industrial paper manufacturing by operating a plant located in Desa Bangun, Kecamatan Pungging, Mojosari, Mojokerto, East Java.  Since starting commercial production in 1980, the company has expanded its installed capacity from 15,000 tonnes per annum (tpa) to 700,000 tpa in 1998 and continually increased the range of products it manufactures.  PT. PAKERIN is committed to increase its market share through low cost, high efficiency and advanced manufacturing.  PT. PAKERIN has a vertically integrated operation with its own plants producing several pulps, caustic soda, electricity and steam and pouring raw water, and various waste paper which are the main ingredients in the paper production process. PT. PAKERIN manufactures industrial paper which is used to make boxes and a wide range of packaging material for industrial and consumer goods. Its main products are Kraft liner, corrugating medium, coated duplex board, chip board, and core board.

 

In 1997, P.T. PAKERIN took over a corrugated carton Box and Paper Tube factory totally with its assets and established a Corrugated Carton Box and Paper Tube company under the name PT. ASIA CARTON LESTARI. The establishment of PT. ASIA CARTON LESTARI was one of the expansion projects of PT. PAKERIN to supply Corrugated Carton Boxes and Paper Tubes to Jabotabek and its surrounding area. Present, some 70% of P.T. PAKERIN's products are sold domestically while the rest 30% are exported to more than 20 countries such as Singapore, Malaysia, Hong Kong, the People's Republic of China, Sri Lanka, Australia and Pakistan. P.T. PAKERIN is classified as a large sized company in the country dealing with paper making of which the operation had been running smoothly and growing in the last three years.

 

Generally outlook, the national pulp and paper industries will be better in 2012 than in 2011. Market estimates of production and sales will be the norm. Additional capacity will continue price of pulp is still going up although with a slower rise in pulp price increases triggered by the low stock of pulp due to the hard efforts of pulp mills to reduce production, to balance the supply-demand, and the purchase of pulp on a large scale by China also triggered a rise in pulp prices.

 

Ir. H. M. Mansur, Chairman of the Presidium APKI (Association of Indonesian Pulp and Paper) said the increased price of paper is not as big and as fast as the price of pulp, because the factories are not as intensive as paper pulp mills to reduce production, so that the paper stock in the world market is still quite great. Indonesia's pulp paper does not seem necessary to limit and reduce production because production will be absorbed by the market-domestic and export markets.  Details on Indonesian last six years, pulp and paper production and export value is listed below:

 

Indonesian Pulp and Paper Production and Export, 2007 – 2012

 

Year

Pulp Production (tones)

Paper Production (tons)

Export of Pulp and Paper  (tons)

Export of Pulp and Paper  (million US$)

2007

6,282,330

8,680,804

6,542,620

4,395.90

2008

5,910,416

8,251,972

6,676,940

5,162.10

2009

6,525,099

9,308,225

6,512,660

4,226.13

2010

7,900,000

11,040,000

7,111,190

5,655.07

2011

7,600,000

11,990,000

7,219,490

5,726.98

2012

8,000,000

13,000,000

7,435,680

5,559.73

Sources: APKI (Indonesian Pulp and Paper Association) and Central Bureau of Statistic

 

Until this time P.T. PAKERIN has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of  P.T. PAKERIN 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. 1,572.0 billion increased to Rp. 1,705.0 billion in 2012 to Rp. 1,840.0 billion in 2013 and projected to go on rising by at least 8% in 2014.   The operation in 2013 gained an estimated net profit of at least Rp. 124.0 billion and the company has an estimated total asset of at least Rp. 780.0 billion. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The payment habit of the company ranging from 1 to 3 months is running smoothly.

 

The management of P.T. PAKERIN is headed by Mr. David Siemens Kurniawan (58) as President Director, a professional manager with wide experience in industry and trading of paper. In his daily activities, he is assisted by Mr. Njoo Steven Tirtowidjojo (56) as director. The management of the company is handled by professional managers having wide relation with overseas and national private businessmen as well as with the government sectors. 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. PAKERIN is sufficiently fairly good for business transaction. However, in view of the political situation in the country is warming we recommend to treat prudently in extending a loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.80

UK Pound

1

Rs.102.42

Euro

1

Rs.81.32

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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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.