MIRA INFORM REPORT

 

 

Report Date :

08.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. SURYA BORNEOINDAH

 

 

Registered Office :

Jalan Abdurachman Saleh 2 No. 99, Pontianak, 78121, West Kalimantan

 

 

Country :

Indonesia

 

 

Date of Incorporation :

01.08.1991

 

 

Com. Reg. No.:

AHU-AH.01.10-26235

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Oil Palm Plantation and Processing

 

 

No of Employees :

1,509 persons

 

 

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

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate 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

 

Name of Company :

P.T. SURYA BORNEOINDAH

 

 

Address :

Head Office

Jalan Abdurachman Saleh 2 No. 99

Pontianak, 78121

West Kalimantan

Indonesia

Phones             - (62-561) 580151 – 4

Fax                   - (62-561) 580155, 580166, 761852

Building Area     - 2 storey

Office Space      - 120 sq. meters

Region              - Commercial

Status               - Rent

 

Branch Office

Bellagio Office Park Block OL 2/30-32

Jalan Mega Kuningan Barat Kav. E4 No. 3

Mega Kuningan

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 30066151 – 53

Fax                   - (62-21) 30066155, 30066166

E-mail               - ho@ptrii.com

Website            - http://www.ptrii.com

Building Area     - 4 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Plantation Site

Desa Sei Pemodang, Kecamatan Meliau

Kabupaten Sanggau

West Kalimantan

Indonesia

 

 

Date of Incorporation :

1 August 1991

 

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-552.HT.01.01.TH.94

   Dated 17 January 1994

- No. AHU-23973.AH.01.02.TH.2010

   Dated 11 May 2010

- No. AHU-AH.01.10-26235

   Dated 27 June 2013

 

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.563.860.4-701.000

The Capital Investment Coordinating Board

- No. 286/I/PMDN/1995

   Dated 29 May 1995

- No. 69/III/PMDN/2002

   Dated 3 May 2002

- No. 101/III/PMDN/2003

   Dated 19 June 2003

 

 

Related Company :

a.   P.T. ALAM RAYA INDONESIA (Shipping Services)

b.   P.T. KAPUAS PLANTATION INDUSTRY (Independent Plantation Management Services)

c.   P.T. ROYAL INDUSTRIES INDONESIA (Cooking Oil Processing)

d.   P.T. SAWIT DESA KAPUAS (Oil Palm Plantation and Processing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 50,000,000,000.-

Issued Capital                                  : Rp. 30,000,000,000.-

Paid up Capital                                : Rp. 30,000,000,000.-

 

 

Shareholders/Owners :

Mr. Bilal Asif                                                                    - Rp. 30,000,000,000.-

Address : Apartment Bellagio Mansion Suite 26 MB

                Jl. Mega Kuningan Barat Kav. E - 61

                Kuningan Timur, Setiabudi

                Jakarta Selatan, Indonesia

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Oil Palm Plantation and Processing

 

 

Production Capacity :

a.   Fresh Fruit Bunches                   - 253,000 tons p.a.

b.   Crude Palm Oil                          -   50,600 tons p.a.

c.   Palm Kernel                              -   10,120 tons p.a.

 

 

Total Investment :

a.   Equity Capital                            - Rp. 30.0 billion

b.   Loan Capital                              - Rp. 54.0 billion

c.   Total Investment                         - Rp. 84.0 billion

 

 

Started Operation :

2001 (commenced production)

 

 

Brand Name :

Surya Borneoindah

 

 

Technical Assistance :

None

 

 

Number of Employee :

1,509 persons

 

 

Marketing Area :

Local       - 80%

Export      - 20%

 

 

Main Customer :

P.T. ROYAL INDUSTRIES INDONESIA (Cooking Oil Industry)

 

 

Market Situation :

Very Competitive

 

 

Main Competitors :

a. P.T. SURYA AGRO PERSADA

b. P.T. SURYA BARATAMA PLANTATION

c. P.T. SURYA BUMI AGRO LANGGENG

d. P.T. SURYA INTI SAWIT KAHURIPAN

e. Etc.

 

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

      Indonesia

b.   P.T. Bank MUAMALAT INDONESIA Tbk

      Arthaloka Building

      Jalan Jend. Sudirman No. 2

      Jakarta Pusat, 10220

      Indonesia

 

 

Auditor :

Internal Auditor

 

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 325.8 billion

2012 – Rp. 356.0 billion

2013 – Rp. 387.6 billion

 

 

Net Profit (estimated) :

2011 – Rp. 22.8 billion

2012 – Rp. 27.0 billion

2013 – Rp. 29.0 billion

 

 

Payment Manner :

Average

 

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Bilal Asif

 

 

Board of Commissioners :

Commissioner                                 - Mrs. Yohana Rosyana

 

 

Signatories :

Director (Mr. Bilal Asif) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. SURYA BORNEOINDAH (P.T. SBI) was established in Pontianak, West Kalimantan on 1 August 1991 with the authorized capital of Rp. 200,000,000 issued capital of Rp. 40,000,000 fully and paid up. The founding and shareholders of the company originally are Mr. Ir. Rusdi Ignatius, Mrs. Aljani Juliadi, both are Indonesian businessmen of Chinese extraction. The company notary deed had been changed a couple of times. In April 2003 the whole shares had been controlled by Mr. Hendry Tano, Mr. Rudy Tano both are Indonesian businessmen of Chinese descents as new shareholders. On the same occasion the company authorized capital was increased to Rp. 26,000,000,000 entirely issued and paid up. Later in September 2006 the company Mr. Bilal Asif entered into the company as new shareholder. Then in April 2010 the company authorized capital was raised to Rp. 50,000,000,000 issued capital to Rp. 30,000,000,000 entirely paid up. On the same occasion Mr. Hendry Tano and Mr. Rudy Tano pulled out and the whole share controlled by Mr. Bilal Asif (100%). The latest according to the revision of notary deed Mr. Arry Supratno, SH., no. 185 dated 21 June 2013 the company board of director and the board of commissioner re-elected 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.01.10-26235 dated June 27, 2013.

P.T. SBI has been obtained domestic investment (PMDN) company facility to deal with oil palm plantation and processing. The company manages a plantation sites located at Desa Sei Pemodang, Meliau district, Sanggau regency, West Kalimantan standing on land bank of 20,000 hectares. The palm oil had been planted since 1994 – 2004 with total core plant (tanaman inti) of 1,095 hectares and plasma of 4,083 hectares. Later in 2005 the company has been expanded plantation site almost of 13,000 hectares. The palm oil estate had been commenced harvested since 2001 and mills production since 2002. According information, the company has production capacity 253,000 tons of fresh fruit bunches, 50,600 tons of crude palm oil and 10,120 tons of palm kernel respectively per annum. The plantation and refinery has absorbed an investment of Rp. 84.0 billion come from own capital of Rp. 30.0 billion while the rest from loans.

 

Mr. Bilal Asif, director and owner of the company said that 80% of the products crude palm oil and palm kernel is supplied to sister company P.T. ROYAL INDUSTRIES INDONESIA, a foreign investment company dealing with cooking oil industry. P.T. ROYAL INDUSTRIES INDONESIA produces of cooking oil (bulk and packaging) with Green Land and White Pearl brands. The types of product are Palm Fatty Acid Distillate (PFAD), Refined Bleached and Deodorized Palm Stearin (RBDPS), Refined Bleached and Deodorized Palm Olein (RBDPL), Vegetable Ghee non-hydrogenated, Soap Noodle, Soap Bar and Jerry Can. Meanwhile some 20% of the products is exported to Pakistan and India. We observe that P.T. SBI has been growing and developing well in the last three years.

 

Palm oil is one of the world's most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as source for bio-fuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees need warm temperatures, sunshine and plenty of rain in order to maximize production. A negative side-effect of palm oil production - apart from its impact on people's health due to its high level of saturated fat - is that the palm oil business is a key driver for deforestation in countries such as Indonesia and Malaysia. Indonesia is the largest greenhouse gas emitter after China and the United States. Global palm oil production is dominated by Indonesia and Malaysia. These two countries together account for around 85 to 90 percent of total global palm oil production. Indonesia is currently the largest producer and exporter of palm oil worldwide. On the long term, global palm oil demand shows an increasing trend as an expanding global population gives rise to increased consumption of palm-oil based products.

 

The demand for palm cooking oil has kept on increasing in the last five years in line with the growing demand for palm cooking oil within and outside the country. According to research, total palm cooking oil industries operating in Indonesia are 53 units with production capacity 7.2 million tons but in 2005 reached 62 units with total production capacity of 9.7 million tons. The main business players in cooking oil business are SMART (SINAR MAS Group) under cooking oil brands of FILMA, KUNCI MAS; the SALIM Group through P.T. SALIM IVOMAS PRATAMA under cooking oil brand of BIMOLI; the KPN Group and others. The national cooking oil production has kept on increasing in the last five years in line with the changing of the publics’ consumption patterns from using coconut cooking oil to palm cooking oil. The growth of cooking oil production in the last five years is pictured on the following table:

 

The Production of Crude Palm Oil, Palm Cooking Oil and Palm Kernel, 2005 – 2013

Year

Crude Palm Oil

(Ton)

Palm Cooking Oil (Ton)

Palm Kernel

(Ton)

2005

11,860,000

4,980,470

98,828

2006

17,350,000

5,428,670

104.030

2007

17,660,000

5,808,670

110,670

2008

18,640,000

6,186,233

119,000

2009

19,320,000

6,619,269

142,000

2010

21,900,000

6,826,000

139,000

2011

23,000,000

7,250,000

158,000

2012

23,500,000

7,902,500

181,700

2013

25,000,000

8,180,000

192,000

 

Few Indonesian industries have shown such a robust growth as the palm oil industry did during the last 15 years. This growth is visible in the country's production and export numbers as well as in the quantity of its palm oil estate area. Driven by increased global demand and higher yields, palm oil cultivation has been expanded significantly by Indonesian farmers and conglomerates (at the expense of the environment and production numbers of other agricultural products as farmers switch to palm oil plantation). The majority of Indonesia's palm oil production is exported (see table below). The business position of P.T. SBI is favorable for having established wide marketing coverage in the country and overseas markets. The most important export destination countries are China, India, Malaysia, Singapore and the Netherlands.

 

Indonesia’s Palm Oil Production and Export


 

  2007

  2008

  2009

  2010

  2011

  2012

  2013

Production
(million metric tons)

  17.7

  18.6

  19.3

  21.9

  23.0

  23.5

  25.0

Export
(million metric tons)

   n.a

  14.2

  15.5

  15.6

  16.5

  18.1

  21.0

Export
(in USD$ billion)

   n.a

  15.6

  10.0

  16.4

  20.2

  21.6

  20.0

 

Until this time P.T. SBI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SBI is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in 2011 amounted to Rp. 325.8 billion rose to Rp. 356.0 billion in 2012 increased to Rp. 387.6 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2014 yielded an estimated net profit of at least Rp. 29.0 billion and the company has an estimated total networth of at least Rp. 105.0 billion. 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. SBI is led by Mr. Malik Bilal Asif or Bilal Asif (30) a businessman with experience in oil palm plantation and processing. Mr. Bilal Asif is an Indonesian citizen graduate in commerce and management from the Forman Christian College University, Lahore Pakistan. He has pursued MBA from Indonesia. He holds a degree in Commerce and Management. Mr. Bilal joined the Royal Group at an early age in 2002. He moved to Indonesia in 2003 after the company's inception in Indonesia. He has been overseeing Royal Group's operations as the Chief Operating Officer and its Director. He has been influential in the expansion of the palm oil businesses and has contributed remarkably in augmentation of the Royal Group. He has highly contributed in contriving the company to become global leader in the palm oil industry and in export of consumer products to worldwide destinations. He is also the President Director of P.T. Alam Raya Indonesia which is one of the largest shipping company in Indonesia. With such an illustrative and solid background in production and management, Mr. Bilal Asif has been influential in ensuring adept management of total operations of the group.

 

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. P.T. SURYA BORNEOINDAH is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.79

UK Pound

1

Rs. 102.42

Euro

1

Rs. 81.32

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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.