MIRA INFORM REPORT

 

 

Report Date :

24.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PUPUK ISKANDAR MUDA

 

 

Registered Office :

Jl. Medan – Banda Aceh Krueng Geukeuh, Lhokseumawe 24310 Nanggroe Aceh Darussalam

 

 

Country :

Indonesia

 

 

Date of Incorporation :

24.02.1982

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in urea fertilizer and ammonia industry.

 

 

No. of Employees

1,245

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

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 – 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

 


Company name

 

P.T. PUPUK ISKANDAR MUDA

 

 

address

 

Head Office & Factory

Jl. Medan – Banda Aceh

Krueng Geukeuh, Lhokseumawe 24310

Nanggroe Aceh Darussalam

Indonesia

Phone               - (62-645) 56222 (hunting)

Fax                   - (62-645) 56095

P.O. Box           - 021 Krueng Geukeuh

Email                - info@pim.co.id

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

Land Area         - 280 hectares

Building Area     - 120 hectares

Region              - Industrial Estate

Status               - Owned

 

Jakarta Office

Jl. Bangka Raya No. 107

Jakarta Selatan

Indonesia

Phone               - (62-21) 71793227, 7980615

Fax                   - (62-21) 71790964

P.O. Box           - 152/KBY JKS

Building Area     - 2 storey

Office Space      - 1,200 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

24 February 1982

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

- No. AHU-00773.AH.01.02.Tahun 2012

  Dated 05 January 2012

- No. AHU-AH.01.10-05787

  Dated 20 February 2012

 

- No. AHU-AH.01.10-38469

  Dated 29 October 2012

 

Company Status :

Domestic Investment Company

 

Permits by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.001.678.0-051.000

 

  b.  The Investment Coordinating Board

      - No. 57/I/PMDN/1983

        Dated 21 April 1983

      - No. 119/II/PMDN/1996

        Dated 20 May 1996

 

Related/Affiliated Company :

A member of the PUPUK INDONESIA Group or the PUSRI Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital             - Rp. 4,000,000,000,000.-

Issued Capital                   - Rp. 2,225,674,000,000.-

Paid up Capital                 - Rp. 2,225,674,000,000.-

 

Shareholders/Owners :

a. P.T. PUPUK INDONESIA (Persero)    - Rp. 2,225,664,000,000.- (99.9996%)

    Address : Jl. Anggrek Kav. 34-35

                    Palmerah, Jakarta Pusat

                    Indonesia

b. YKK – PIM                                      - Rp.             10,000,000.- (  0.0004%)

    Address : Jl. Medan Merdeka – Banda Aceh

                    Aceh Utara

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Urea Fertilizer and Ammonia Industry

 

Production Capacity :

a. Urea Fertilizers                            - 1,140,000 tons p.a.

b. Ammonia                                     -    766,000 tons p.a.

 

Total Investment :

Owned Capital  - Rp. 2,225.7 billion

 

Started Operation :

1 9 8 5

 

Brand Name :

Pupuk Iskandar Muda (PIM)

 

Technical Assistance :

None

 

Number of Employee :

1,245 persons

 

Marketing Area :

Domestic          - 100%

 

Main Customers :

PT. Pupuk Sriwidjaja (PUSRI) as Authorized Distributor

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Pupuk Kujang

b. PT. Pupuk Kaltim

c. PT. Petrokimia Gresik

d. PT. Pupuk Agro Flora Indonesia

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank NEGARA INDONESIA Tbk

      Lhok Seumawe Branch

      D.I. Aceh Province

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Lhok Seumawe Branch

      D.I. Aceh Province

      Indonesia

c.   P.T. Bank RAKYAT INDONESIA Tbk

      Lhok Seumawe Branch

      D.I. Aceh Province

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2011 – Rp. 2,180.4 billion

2012 – Rp. 2,703.1 billion

2013 – Rp. 2,664.1 billion

 

Profit (Loss) Before Tax:

2011 – Rp. 214.1 billion

2012 – Rp.   64.2 billion

2013 – (Rp.  80.4 billion)

 

Payment Manner :

Sometime delay

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Drs. Eko Sunarko, MM

Directors                                         - a. Mr. Husni Achmad Zaki

                                                        b. Mr. Ir. Lili Djadjuli

                                                        c. Mr. Ir. Usman Mahmud

 

Board of Commissioners :

President Commissioner                   - Mr. Achmad Humam Hamid

Commissioners                                - a. Mr. Dadang Heru Kodri

                                                        b. Mrs. Farida Zed Arifin

                                                        c. Mrs. Fitriani

                                                        d. Mr. Ir. Indra Jaya

 

Signatories :

President  Directors (Mr. Drs. Eko Sunarko, MM) or one of the directors (Mr. Husni Achmad Zaki, Mr. Ir. Lili Djadjuli and Mr. Ir. Usman Mahmud) which must be approved by Board of Commissioners


 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. PUPUK ISKANDAR MUDA (P.T. PIM) was established in February 24, 1982 with an authorized capital of Rp 150,000,000,000.- and an issued capital of Rp 50,000,000,000.- of which Rp 25,000,000,000.- was paid up. The founding shareholders of P.T. PIM are the government of the Republic of Indonesia and the state-owned company in the fertilizer industry P.T PUPUK SRIWIDJAJA (Persero) abbreviated P.T. PUSRI. The company's notarial act was since revised a couple of times.  Later the authorized capital was increased to Rp  4,000,000,000,000.- of which Rp. 2,225,674,000,000.- was issued and paid up.  Actually P.T. PIM's entire shares are controlled by P.T. PUSRI (99.9996%) and a Workers Welfare Foundation of P.T. PUPUK ISKANDAR MUDA or YKK-PIM (0.0004%).  The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-00773.AH.01.02.Tahun 2012 dated January 5, 2012 and No. AHU-AH.01.10-05787 dated February 20, 2012.


Most recently by notarial deed of Lumassia, SH., No. 06 dated October 7, 2013 the shareholders composition of the company are P.T. PUPUK INDONESIA (99.9996%) and YKK-PIM (0.0004%).  The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-38469 dated October 29, 2012.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. PIM operates in the production of urea fertilizer with its plant located at Jalan Raya Medan-Banda Aceh, Desa Krueng Geukeuh, Lhokseumawe, Nanggroe Aceh Darussalam. The plant started operation in early 1985 after having been under construction since 1983. The main raw material for the fertilizer plant comes from the ARUN natural gas field located 10 kilometers away from the plant. A large extent of the company's production is marketed domestically, particularly in North Sumatra and Aceh provinces. The company has also been exporting part of its production to several countries, but exports are handled by P.T. PUSRI.

 

The earthquake and Tsunami tidal wave disasters in Aceh and North Sumatra on 26 December 2004 have brought bad impact to P.T. PIM’s plant because a large extent of the plant machineries was damaged. Consequently, the plant of P.T. PIM and project of PIM-2 being planned to produce in December 2004 are delayed. Besides, the company is also facing difficulties in gaining natural gas supply as the basic materials because EXXON MOBIL has yet to guarantee the supply of whole natural gas need of P.T. PIM and PIM-2 project.

 

In early October 2006 P.T. PIM ceased its operational activities because the gas contract from the supply shifting (swap) of P.T. PUPUK KALTIM was expired.  Being not in operation, P.T. PIM’s management has still maintained its assets. Therefore in 2006, P.T. PIM had been in operation only for six months from April to 21 September 2006.  During 2007 P.T. PIM has only been operating a plant of PIM II with production period of just six month due to gas supply problem.

 

      Until the end of 2010 P.T. PIM was still experiencing gas shortages as much as 5 cargoes or equivalent to 50 MMscfd (million metric standard cubic feet per day) from the total need of 11 cargoes, making it difficult to optimize production. Mr. Mashudianto, president director of P.T. PIM said that the realization of the gas supply to a factory unit of PT PIM so far had been newly provided a cargo or equivalent to 10 MMscfd, although the government had guaranteed the supply of six cargoes for the operation a factory unit. It's just that the price offered was too high that the subsidies allocated by the government swelled. P.T. PIM asked gas price in the position of US$.6.0 - US$. 6.5 per million Btu (British thermal unit).  However, the operation of one unit factory of  PIM  was relatively can meet the urea need in the Nanggroe Aceh Darussalam and surrounding.

 

      P.T. PIM is an eleventh urea fertilizer factory in Indonesia and it is belonged to the second urea fertilizer factory after P.T. AAF in Aceh Province.  Installed capacity PIM-1 and PIM 2 per year is 1,140,000 tons of urea fertilizer and 766,000 tons of ammonia.  Based on the government policy, the sole distributor appointed by the government for marketing fertilizers to the farmers is P.T. PUPUK INDONESIA, including urea fertilizers produced by P.T. PIM. Besides, the company’s products of urea and ammonia are being marketed by P.T. PIM itself through distributors of food sectors surrounding the plant, industrial sector and plantation sectors.  We observed that P.T. PIM is classified as a medium-sized company of its kind in the country of which the operation has been fluctuating in the last three years.

 

      According to annual report of P.T. PUPUK INDONESIA, the net sales of P.T. PIM in 2011 amounted to Rp 2,180.4 billion with a net profit before tax of Rp 214.1 billion increased to Rp 2,703.1 billion with a net profit before tax of Rp 64.2 billion in 2012 and declined to Rp 2,664.1 billion with a net loss before tax of Rp 80.4 billion in 2013.  The Company’s total asset was recorded at Rp 5,229.0 billion in 2013, or increased to 14.41% compared to 2012 Rp. 4,470.4 billion. Financial condition of the company as of 31 December 2011, 2012 and 2013 are below:

 

(in million Rupiah)

Description

2011

2012

2013

Net Sales

2,180,355

2,703,109

2,664,111

Income (Loss) Before Tax

214,057

64,219

(80,426)

Income Comprehensive for the Year

176,550

31,934

(93,233)

Total Asset

4,481,136

4,570,392

5,228,972

 

So far, we did not hear that P.T. PIM having been black listed by Bank Indonesia (Central Bank) and registered in district court for detrimental cases. The company punctual payment habit within 1 to 3 months is running smoothly.

 

Since October 2012, P.T. PIM's management has been headed by Mr. Drs. Eko Sunarko, MM (58) having replaced Mr. Drs. Mashudianto, MM (57), as president director.  In his daily operations he is assisted by three directors, namely Mr. Husni Achmad Zaki (49), Mr. Ir. Lili Djadjuli (40) and Mr. Ir. Usman Mahmud (56).  The company's management has an average experience of 15 years in the urea fertilizer industry and trade.  The management is handled by professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors.   So far, we did not hear that the management of the company having been involved in business malpractices. The management of the company has never been registered in the district court for detrimental cases. 

 

P.T. PUPUK ISKANDAR MUDA is sufficiently fairly good for business transaction. However, in view of the economic slowdown and 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.60.18

UK Pound

1

Rs.102.68

Euro

1

Rs.81.03

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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.