MIRA INFORM REPORT

 

 

Report Date :

25.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ASAHIMAS CHEMICAL

 

 

Formerly Known as : 

P.T. ASAHIMAS SUBENTRA CHEMICAL

 

 

Registered Office :

Summitmas Tower, 9th Floor, Jl. Jend. Sudirman Kav. 61-62, Jakarta 12190

 

 

Country :

Indonesia

 

 

Date of Incorporation :

08.09.1986

 

 

Com. Reg. No.:

AHU-AH.01.10-26253

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in producing Basic Chemicals such as Caustic Soda (NaOH), Ethylene Dichloride (EDC), Vinyl Chloride Monomer (VCM), Polyvinyl Chloride (PVC), Hydrochloric Acid (HCl), Liquid Chlorine (Cl2) and Sodium Hypochlorite (NaC1O).

 

 

No of Employees :

1,150

 

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

 


Name of Company

 

P.T. ASAHIMAS CHEMICAL

 

 

Registration Address

 

Head Office

Summitmas Tower, 9th Floor

Jl. Jend. Sudirman Kav. 61-62

Jakarta 12190

Indonesia

Phones             - (62-21) 5202111 (hunting), 5201741

Fax.                  - (62-21) 5202110, 5253730

Email                - info@asc.co.id

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

Building Area     - 34 storey

Office Space      - 460 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Gunung Suih

Jl. Raya Anyer Km. 11

Cilegon 42447, Banten

Indonesia

| Phones           - (62-254) 601252

Fax.                  - (62-254) 602027

Land Area         - 90 hectares

Building Space  - 46 hectares

Region              - Industrial zone

Status               - Owned

 

 

Date of Incorporation

 

8 September 1986 as P.T. ASAHIMAS SUBENTRA CHEMICAL, changed its name to P.T. ASAHIMAS CHEMICAL on July 1, 1999

 

 

Legal Form

 

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

 

Company Reg. No.

 

The Ministry of Laws and Human Rights

  a.  No. C2-436.HT.01.01.TH.88

      Dated 23 January 1988

  b.  No. AHU-97793.AH.01.02.Tahun 2008

      Dated 18 December 2008

  c.  No. AHU-AH.01.10-26253

      Dated 18 July 2012

 

 

Company Status

 

Foreign Investment Company (PMA)

 

 

Permit by the Government Department

 

  a.  The Department of Finance

NPWP No. 01.061.615.9-092.000

 

  b.  The President of the Republic Indonesia

No. B-20/Pres/6/1986

Dated 14 June 1986

 

  c.  The Capital Investment Coordinating Board

- No. 19/I/PMA/1986

  Dated 1 July 1986

- No. 39/II/PMA/1988

  Dated 8 September 1988

- No. 10/II/PMA/1991

  Dated 30 January 1991

- No. 126/II/PMA/1994

  Dated 3 August 1994

 

 

Holding Company

 

ASAHIMAS GLASS CO. LTD. (Investment Holding)

 

 

Affiliated/Associated Companies

 

a. A member of the ASAHIMAS Group of Japan

b. A member of the RODAMAS Group of Indonesia

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 47,460,000,000.-

Issued Capital                - Rp. 47,460,000,000.-

Paid up Capital              - Rp. 47,460,000,000.-

 

Shareholders/Owners :

a. ASAHIMAS GLASS Co. Ltd., of Japan    - Rp. 24,916,500,000.- (52.5%)

b. ABLEMAN FINANCE Ltd., of UK            - Rp.   8,542,800,000.- (18.0%)

c. MITSUBISHI Corp., of Japan                   - Rp.   5,457,900,000.- (11.5%)

d. PT. RODAMAS of Indonesia                   - Rp.   8,542,800,000.- (18.0%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business (Source Notary Deed of PT. Asahimas Chemical) :

Engaged in producing Basic Chemicals such as Caustic Soda (NaOH), Ethylene Dichloride (EDC), Vinyl Chloride Monomer (VCM), Polyvinyl Chloride (PVC), Hydrochloric Acid (HCl), Liquid Chlorine (Cl2) and Sodium Hypochlorite (NaC1O).

 

Actual Lines of Business :

Integrated Chemical Industry

 

Production Capacity :

a. Caustic Soda (100% NaOH)                   - 370,000 tons p.a.

b. Flake Caustic Soda (F-NaOH)                -   30,000 tons p.a.

c. Hydrochloric Acid (HCL)                         -   62,000 tons p.a.

d. Sodium Hypochlorite (NaCLO)                -   25,000 tons p.a.

e. Liquid Chlorine (L-CL2)                           -   12,000 tons p.a.

f.  Vinyl Chloride Monomers (VCM)             - 400,000 tons p.a.

g. Polyvinyl Chlorides (PVC)                      - 285,000 tons p.a.

 

Total Investment :

a. Equity Capital            - US$   42.0 million

b. Reinvested Profit        - US$ 115.0 million

c. Loan Capital              - US$ 388.0 million

d. Total Investment         - US$ 545.0 million

 

Started Operation :

June 1989

 

Brand Name :

Asahimas Chemical

 

Technical Assistance :

Asahimas Glass Co. Ltd., of Japan

 

Number of Employee :

1,150 persons

 

Marketing Area :

a. Local       - 40%

b. Export     - 60%

 

Main Customers :

a. Pulp and Paper Industries

b. Soap and Detergent Industries

c. Oil and Gas Industries

d. Pharmaceutical Industries

e. Plastic Product Industries

f.  Paint and Ink Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Makro Chemindo

b. PT. Adimitra Prima Lestari

c. PT. Indokemika Jayatama

d. PT. Manggala Indah Makmurf

e. PT. Asrikima Utama

f.  PT. Esmalglass Indonesia

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

  a.  P.T. Bank NEGARA INDONESIA Tbk

      Wisma 46 Kota BNI

      Jl. Jend. Sudirman Kav.1

      Jakarta Pusat

 

  b.  The Bank of Tokyo Mitsubishi UFJ Ltd.

      Mid Plaza Building

      Jl. Jend. Sudirman Kav. `0-11

      Jakarta Selatan

 

  c.  P.T. Bank MANDIRI

      Mandiri Plaza

      Jl. Gatot Subroto Kav. 36-38

      Jakarta Selatan

 

Auditor :

Internal Auditor


Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Sales (estimated) :

2010 – US$.   790.0 million 

2011 – US$.   975.0 million

2012 – US$.1,180.0 million

2013 – US$.1,256.0 million

 

Net Profit (estimated) :

2010 – US$. 54.9 million

2011 – US$. 67.8 million

2012 – US$. 82.5 million

2013 – US$. 88.0 million

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Jun Miyazaki

Vice President Director                     - Mr. Ronny Budirahardjo

Directors                                         - a. Mr. Anton Kustedja

                                                        b. Mr. Arif Suherman

                                                        c. Mr. Takashi Yoshida

                                                        d. Mr. Tetsu Honjo

                                                        e. Mr. Eddy Sutanto

                                                        f.  Mr. Yusuyuki Ueda

 

Board of Commissioners :

President Commissioner                   - Mr. Masao Nemoto

Vice President Commissioner           - Mr. Tan Pei Ling

Commissioners                                - a. Mr. Suryo Suherman

                                                        b. Mr. Takashizu Minato

 

Signatories :

President Director (Mr. Jun Miyazaki) or Vice President Director (Mr. Ronny Budirahardjo) or one of the Directors (Mr. Anton Kustedja, Mr. Arif Suherman, Mr. Takashi Yoshida, Mr. Tetu Honjo, Mr. Eddy Sutanto or Mr. Yusuyuki Ueda) which must be approved by Board of Commissioners (Mr. Masao Nemoto, Mr. Tan Pei Ling, Mr. Suryo Suherman and Mr. Takashizu Minato)

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. ASAHIMAS SUBENTRA CHEMICAL CO. LTD., it was established in Jakarta by virtue of Natarial Deed of Ms. Koerniatini Karim, SH., No. 20 dated September 8, 1986 with an authorized capital of US$ 42,000,000.- (Rp 47,460,000,000) of which US$ 4,200,000.- (Rp 4,746,000,000) was issued and fully paid up.  The founding  shareholders  are  ASAHI GLASS Co. Ltd.,  of   Japan,  P.T. RODAMAS  and P.T. SUBENTRA both are private companies.  The company notary deed was approved by the Ministry of Justice in its decision letter No. C2-436.HT.01.01.TH.88 dated January 23, 1988.  The articles of association of the company have frequently been revised.  In the end of 1987, all authorized capital of US$ 42,000,000.- was issued and paid up.  On the same occasion, AG FINANCE Co. ltd., of Japan and PPG INDUSTRIES Inc., of the USA entered into the Company as new shareholders.  But, in January 1999, AG FINANCE Co. Ltd., of Japan and P.T. SUBENTRA of Indonesia pulled out and replaced by ABLEMAN FINANCE Ltd., of British Virgin Island.

 

In July 1999, the company renamed to P.T. ASAHIMAS CHEMICAL (P.T. AC). According to amendment to it’s the articles of association on July 2004 the authorized capital of the company was converted to Rp. 47,460,000,000.- entirely was issued and fully paid up.  Since at the time, the shareholders of the company are ASAHI GLASS Co. Ltd. of Japan (52.5%), ABLEMAN FINANCE Ltd., of United Kingdom (18.0%), PT. RODAMAS of Indonesia (18.0%) and MITSUBISHI Corp. of Japan (11.5%). The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. C-18327.HT.01.04.TH.2004 dated July 21, 2004.  Based on notary deed of Ms. Linda Herawati, SH., No. 12 dated November 20, 2008 concerning changes of the whole article of association of the Company’s to conform with Law No. 40 Year 2007 concerning Limited Liability Company. The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-97793.AH.01.02.Tahun 2008 dated December 18, 2008.

 

Most recently by notarial deed of Linda Herawati, SH., No. 51 dated April 17, 2013 the company’s board of directors and the board of commissioners had been changed.  However, no changes have been effected in term of its shareholding composition and capital structures to date.  The amendment to Article of Association has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decision Letter No. AHU-AH.01.10-16676 dated May 01, 2013.

 

P.T. AC (the Company) was established within the framework of Laws No. 1, 1967 and No. 11, 1970 regarding foreign capital investment, and approval from the President of the Republic of Indonesia and the Capital Investment Coordinating Board (BKPM) was obtained through their Letter No. 19/I/PMA/1986, both on July 1, 1986. The Company is involved in the manufacture of chemical products with its plant located in Cilegon, Banten, while the head office is located in Jakarta.

 

Based to our investigation, P.T. has been operating since June 1989 dealing with industrial chemicals processing whose plant is located in Cilegon (West Java) standing on 90.0 hectares land operating in June 1989 after an inauguration ceremony officiated by the former President Soeharto.  Subsequent plant expansion programs have substantially increased production capacities and investment now totals US$ 545 million.  P.T. AC produces basic chemicals utilized by a host of downstream industries: Caustic Soda (NaOH), Ethylene Dichloride (EDC), Vinyl Chloride Monomer (VCM), Polyvinyl Chloride (PVC), Hydrochloric Acid (HCl), Liquid Chlorine (Cl2) and Sodium Hypochlorite (NaC1O).

 

Around 70% of the basic materials namely ethylene is still imported while the rest 30% is obtained domestically.  Meanwhile, other basic material including salt is still wholly imported. All of hydrochloric acids, sodium hypo-chlorides and liquid chlorines, 85% of its EDC products 30% of PVC, 30% of VCM and 80% of caustic soda products are marketed domestically and the  rest exported to Singapore, Malaysia, Sri Lanka, China, Nepal, Pakistan, Bangladesh, Taiwan, India and Philippines.  Today, P.T. AC is the largest integrated chemical factory of Chlor-Alkali (CA), Vinyl Chloride Monomer (VCM) and Polyvinyl Chloride (PVC) plants in Indonesia and South East Asia.

 

Until this time P.T. AC has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. AC 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 US$. 975.0 million, increased to US$. 1,180.0 million in 2012 and rose again to US$. 1,256.0 million in 2013.  We estimated the company has yielded a net profit at least US$. 88.0 million in 2013 and the company has an estimated total asset at least US$.660.0 million.  Its projected that total sales turnover of the company will increase at least 12% in 2014.   We observe that P.T. AC is supported by financially strong behind it.   So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

 

Pursuant to its latest notarial Deed, President Director of P.T. AC is Mr. Jun Miyazaki (53), a professional manager of Japan origins who experienced for more than 21 years in the field of basic chemical manufacturing and trading. In daily activities, he is assisted by Mr. Ronny Budirahardjo (63) of Indonesia as Vice President Director and six directors namely Mr. Anton Kustedja (78), Mr. Arif Suherman (36), Mr. Takashi Yoshida (52), Mr. Tetsu Honjo (51), Mr. Eddy Sutanto (51) and Mr. Yusuki Ueda (52).  We observed that management’s reputation in said business is fairly good. They have wide relations with private businessmen within and outside the country and with the government sector. So far we have never heard that the board of directors and commissioners of the company involved in business malpractices or detrimental cases that settled through the court.  Their litigation record is clean and they have never involved in civil or criminal cases or politics in the country. Both are not in bankruptcy condition as their business is running well.

 

P.T. ASAHIMAS CHEMICAL 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.60.00

UK Pound

1

Rs.102.19

Euro

1

Rs.80.68

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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%)

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.