MIRA INFORM REPORT

 

 

Report Date :

25.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. MIWON INDONESIA

 

 

Registered Office :

Jl. Perintis Kemerdekaan No. 1-3 Pulogadung, Jakarta Timur Jakarta 13260

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

09.11.1973

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in integrated food seasoning processing.

 

 

No. of Employees

909

 

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

 

Company name

 

P.T. MIWON INDONESIA

 

 

Address

 

Head Office

Jl. Perintis Kemerdekaan No. 1-3

Pulogadung, Jakarta Timur

Jakarta 13260

Indonesia

Phones             - (62-21) 4786 3124 (hunting)

Fax                   - (62-21) 4786 3146

Email                - headoffice@miwonindonesia.co.id

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

Building Area     - 3 storey

Office Space      - 48sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Kec. Driyorejo Km. 24

Kab. Gresik 6177

East Java

Phones             - (62-3) 7507888, 7590040

Fax                   - (62-3) 7507595, 7590039

Land Area         - 34.0 hectares

Building Area     - 12.8 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

09 November 1973

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

  a.  No. Y.A.5/348/4

      Dated 26 April 1973

  b.  No. C2-9041.HT.01.04.Th.95

      Dated 27 July 1995

  c   No. AHU-393311.02.Tahun 2008

      Dated 8 July 2008

 

 

  d   No. AHU-AH.01.10-25319

      Dated 21 June 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a. The President of the Republic of Indonesia

     No. B/32/Pres/4/1973

     Dated 26 April 1973

 

  b. The Capital Investment Coordinating Board

- No. 28/II/PMA/1980

  Dated 10 December 1980

- No. 2/II/PMA/1985

  Dated 9 January 1985

- No. 50/III/PMA/1987

  Dated 3 March 1987

- No. 47/II/PMA/1987

  Dated 19 August 1987

- No. 6/II/PMA/1989

  Dated 1 March 198

- No. 94/II/PMA/1993

  Dated 17 September 1993

- No. 82/II/PMA/1995

  Dated 19 April 1995

- No. 18/II/PMA/1996

  Dated 23 January 1996

 

Holding Company :

DAESANG CORPORATION of South Korea (Investment holding)

 

Affiliated/Associated Companies :

a. P.T. JICO AGUNG (Trading and Investment holding)

b. P.T. MIWON AGROKENCANA SAKTI (Corn Plantation)

c. P.T. ANEKA BOGA NUSANTARA (Food and Beverage Industry)

c. P.T. SINTANG RAYA (Palm Oil Plantation)

d. Etc.

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital    - Rp.  250,000,000,000.-

Issued Capital          - Rp.  158,149,550,000.-

Paid up Capital        - Rp.  158,149,550,000.-

 

Shareholders/Owners :

a. Daesang Corporation of South Korea               - Rp. 132,697,300,000.- (83.91%)

b. PT. Jico Agung of Indonesia                           - Rp.   25,349,000,000.- (16.03%)

c. Others                                                             - Rp.        103,250,000.- (  0.06%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Integrated Food Seasoning Processing

 

Production Capacity :

A. Initial Units

  a. Glutamic Acids                                -  45,000 tons p.a

  b. Monosodium Glutamates      -  45,000 tons p.a.

  c. Caustic Soda                       -  12,000 tons p.a.

  d. Chloride Acids (HCL)            -  10,500 tons p.a.

  e. Organik Fertilizers                - 180,000 kiloliters p.a.

  f.  Gypsums                            -   1,800 tons p.a.

  g. Bleaches                             -   1,500 kiloliters p.a.

  h. Porcelain Cleaners               -   1,200 kiloliters p.a.

  i.  Spice Liquid                         -   6,000 tons p.a.

  j. Tomato Sauces                     -   6,000 tons p.a.

  k. Seaweads                           -     620 tons p.a.

  l.  Mineral Waters                                -      50 million liters p.a.

 m. DOC                                   -      40 million heads p.a.

  n. Flex                                    -   3,500 tons p.a.

  o. Animal Feeds                                  - 300,000 tons p.a.

 

B. Expansion Units

  a. Glutamic Acid                      - 12,000 tons p.a.

  b. Liquid Organic Fertilizers      - 48,000 tons p.a.

  c. Gypsum                              -    480 tons p.a.

 

Total Investment :

A. Initial Units

  a. Equity Capital          - Rp  14.3 million

  b. Loan Capital            - Rp  91.0 million

  c. Total Investment       - Rp 105.3 million


B. Expansion Units (1996)

  a. Equity Capital          - Rp  21.0 million

  b. Loan Capital            - Rp  31.3 million

  c. Total Investment       - Rp  52.3 million

 

Started Operation :

1 9 7 6

 

Brand Name :

MIWON INDONESIA

 

Technical Assistance :

Daesang Corporation of South Korea

 

Number of Employee :

909 persons                                   

 

Marketing Area :

a. Local (Domestic)  - 74%

b. Export                 - 26%

 

Main Customers :

a. Supermarket, Hypermarket and Mini-markets

b. Traditional markets

c. Overseas buyer in Asia, Europe, Africa, Middle East and Australia

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Sasa Indonesia

b. PT. Ajinomoto Indonesia

c. PT. Unilever Indonesia

d. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank KEB Indonesia

    Wisma GKBI, 20th Floor

    Jl. Jend. Sudirman kav. 28

    Jakarta Selatan

b. P.T. Bank WOORI Indonesia

    Jakarta Stock Exchange Building

    Jl. Jend. Sudirman Kav. 52-53

    Jakarta Selatan

 

Auditor :

Teramihardja, Pradhono & Chandra

 

Litigation :

No detrimental filling was recorded in the local courts

 


 

FINANCIAL FIGURE

 

Total Sales/Revenues :

2010 – Rp. 1,121.5 billion

2011 – Rp. 1,253.6 billion

2012 – Rp. 1,402.5 billion

2013 – Rp. 1,592.1 billion

 

Net Profit (loss) :

2010 – Rp. 104.5 billion

2011 – Rp.   66.2 billion

2012 – Rp. 100.7 billion

2013 – Rp.   96.4 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Kim, Du-Rean

Directors                                         - a. Mr. Lee, Sang-Woo

                                                        b. Mr. Lim, Duk-Jin

                                                        c. Mr. Lim, Chyol-Hee
                                                        d. Mr. Sukamso

                                                        e. Mr. Lee, Dong-Won

                                                        f.  Mr. Kim, Hyun Woo

 

Board of Commissioners :

President Commissioner                   - Mr. Yoo, Chul-Han

Commissioners                                - a. Mr. Kim, Keum-Bae

                                                        b. Mr. Kim, Gun-Hong

 

Signatories :

President Director (Mr. Kim, Du-Rean) or one of the directors (Mr. Liie, Sang-Woo, Mr. Lim, Duk-Jin, Mr. Lim, Chyol-Hee, Mr. Sukamso, Mr. Lee, Dong-Won or Mr. Kim, Hyun Woo) which must be approved by Board of Commissioners (Mr. Yoo, Chul-Han, Mr. Kim, Keum-Bae and Mr. Kim, Gun-Hong)


 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

     

      P.T. MIWON INDONESIA (P.T. MI) was established on November 9, 1973 with an authorized capital of Rp. 673,300,000.-  issued   capital   of Rp._134,460,000.-  of  which  Rp. 13,446,000.-  was paid up.  The founding shareholders of the company are MIWON Co. Ltd., of South Korea and Mr. Kayo Salim, an Indonesian businessman of Korean extraction. The deed of establishment was approved by the Ministry of Justice of the Republic of Indonesia in its decision letter No. Y.A.5/348/4 dated September 21, 1974. In October 1995, the authorized capital was raised to Rp. 100,000,000,000.- issued capital to Rp. 42,500,000,000.- entirely paid-up. The Company’s article of association has been amended for several times.  In 2008 based on notarial deed of Fathiah Helmi, SH., No. 74 dated May 29, 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 notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-39331.AH.01.02.Tahun 2008 dated July 8, 2008.


      In 2010 the authorized capital was raised to Rp. 250,000,000,000.- of which Rp. 158,149,550,000.- was issued and fully paid up.  Since then, the shareholders of the company are Daesang Corporation of South Korea (83.91%), PT. Jico Agung of Indonesia (16.03%) and Others below 1% each (0.06%).  
Most recently by notarial deed number 26 dated May 22, 2013 drawn up by notary Irene Yulia, SH., the company’s board of directors and board of commissioner was changed.  The amendment to deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-25319 dated May 22, 2013. No changes have been effected in term of its shareholding composition and capital structures to date.

 

      P.T. MI was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) engaged in integrated food seasoning processing industry, such as Monosodium glutamate (MSG) and Dry glutamic acid.  Its plant located at Jalan Driyorejo Km. 24, Gresik (East Java) over 34 hectares wide land has expanded frequently for increasing its  total production capacity.  Monosodium Glutamate is better known by the wideer community flavor begins production of 3600 tons per year in 1978.  However, the current has reached more than 50,000 tons per year.  Dry glutamic acid which is a semi-finised products of MSG, its capacity also increased in line with the development of the current demand capacity reached 12,000 per year.   Some 26% of its products are exported to including Asia, Europe, Africa, Middle East and Australia, while the rest 74% for domestic purpose.   Besides, P.T. MIT has also engaged  in  the investment holding, it controls 50% shares of P.T. ANEKA BOGA NUSANTARA (Ex. P.T. MIWON MINA SAMUDRA) engaged in food and beverage industry.  Product categories include Seasoning Flour, Wheat Agar-Agar, Seasonings Instant, Instant Powder drinks and Paste. We noticed that P.T. MI is a large-scale foreign company, which its operation developed slowly in the last three years.

 

      Generally the demand for Indonesian MSG and Dry Glutamic Acid has been rising by the average 6% to 7% per year within the last five years, in line with the people's growing consumption of various  foods and  drinks, particularly  fast  foods and snacks.  But, as from October 2008, the demand growth for food products has kept on dwindling as an impact of global economic crisis as told above.   The demand was increasing in the early 2009 due to economic condition was gradually recovery in the country. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country such as Sasa, Ajinomoto, Mikimoto, Indomoto, Mi Pung and others.  We consider P.T. MI to be in a quite favorable position for having already got hold of a steady clientele in the country.

 

      According to the financial statement of the company having been audited by Tanudiredja, Wibisana & Rekan, a public accountant, the net sales/revenues of P.T. MI in 2011 amounted to Rp. 1,253.6 billion with a net profit of Rp. 66.2 billion, increased to Rp. 1,402.5 billion with a net profit of Rp. 100.7 billion in 2012 and rose again to Rp. 1,592.1 billion with a net profit of Rp. 96.4 billion.  We estimated the company’s net revenues will be higher by at least 8% in 2013.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The financial statement as of December 31, 2011, 2012 and 2013 is attached. So far we did not hear that the P.T. MI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court. 

 

      The management of P.T. MI is headed by Mr. Kim, Du-Rean (55) , a professional manager from South Korea as President Director.  In daily activities, he is assisted by six directors namely Mr. Lee, Sang-Woo (49), Mr. Lim, Duk-Jin (53), Mr. Lim,Chyol-Hee (46), Mr. Lee, Dong-Won (41), Mr. Kim, Hyun Woo (47), all of South Korea and Mr. Sukamso (55) of Indonesia.  The company is managed by experienced professional managers in the above business. They are widely connected in domestic and foreign private business circles and are also on quite good terms with the government sector. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in business malpractices.

 

      P.T. MIWON INDONESIA 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.

 

 

 


 

Attachment

PT. MIWON INDONESIA AND SUBSIDAIRY

Consolidated Statements of Financial Position

As of  December 31, 2011, 2012 and 2013

 

                                                                                                                                                            (in million Rupiah)

DESCRIPTION

2013

2012

2011

A. ASSETS

 

 

 

a.  Current Assets

 

 

 

      - Cash and cash equivalent

245,476.3

131,942.4

89,445.8

      - Time deposit

--

--

40,945.6

      - Accounts receivables

 

 

 

          * Trade

257,891.5

228,037.2

172,459.7

          * Others

1,247.1

1,730.2

4,674.2

      - Inventories

272,390.1

233,814.4

206,635.2

      - Advances

1,397.2

8,002.2

9,948.6

      - Prepaid taxes

2,954.3

8,655.1

6,483.3

      - Prepaid expenses

422.8

148.6

441.1

    Total Current Assets

781,779.4

612,330.1

531,033.5

b. Non Current Assets

 

 

 

     - Investment property, net

6,487.3

7,279.9

7,636.3

     - Property, Plant and equipments

378,187.2

345,259.8

269,557.5

     - Other non-current assets

1,298.5

1,363.3

1,331.5

     Total Non Current Assets

385,973.0

353,903.0

278,524.4

TOTAL ASSETS   =   TOTAL LIABILITEIS AND EQUITY

1,167,752.3

966,233.1

809,557.9

 

 

 

 

B. LIABILITIES AND EQUITY 

 

 

 

a. Short-term Liabilities 

 

 

 

     - Short-term loans

481,855.1

371,797.0

306,167.3

     - Account payables

 

 

 

         * Trade

97,781.4

113,156.0

129,896.2

         * Others

26,136.6

16,511.3

17,935.0

     - Advances received

1,899.8

924.3

988.2

     - Taxes payable

3,464.1

12,557.5

6,424.5

     - Accrued expenses

22,168.1

15,053.7

15,189.7

    Total short-term liabilities 

633,305.1

529,999.9

476,600.9

b. Long Term Liabilities 

 

 

 

     - Deferred tax liabilities, net

3,950.2

4,527.0

6,090.2

     - Estimated liabilities for employee benefit

21,082.9

18,668.4

14,512.1

    Total long-term Liabilities 

25,033.1

23,195.4

20,602.3

    Total Liabilities

658,338.2

553,195.3

497,203.2

C. EQUITY

 

 

 

     - Issued and paid-up capital 

158,149.6

158,149.6

158,149.6

     - Additional paid in capital

30,116.1

30,116.1

36,309.0

     - Differences arising from changes in equity

(106.6)

(106.6)

(106.6)

     - Differences in value of restructuring transaction

--

--

(6,192.9)

     - Retained Earnings (deficit)

299,527.2

204,700.9

106,682.3

     - Non-controlling interests

21,727.9

20,177.9

17,513.3

    Total Equity

509,414.1

413,037.8

312,354.6

D.  INCOME STATEMENTS  

 

 

 

      a.    Net Sales

1,592,121.1

1,402,486.0

1,253,582.5

      b.    Cost of Goods Sold 

(1,292,419.9)

(1,188,038.7)

(1,095,708.3)

      c.    Gross Profit

299,701.3

214,447.2

157,874.2

      d.    Operating Expenses

(66,705.3)

(47,274.8)

(48,157.8)

      e.    Operating Profit

232,996.0

167,172.4

109,716.4

      f.     Other Income (Expenses)

(102,711.4)

(30,386.9)

(20,133.8)

      g.    Profit before Income Tax

130,284.6

136,785.5

89,582.7

      h.    Income Tax Expense, net

(33,908.3)

(36,102.3)

(23,417.2)

      i.     Profit before Minority Interest

96,376.3

100,683.2

66,165.5

      j.     Minority Interest

--

--

--

      k.    Net Profit

96,376.3

100,683.2

66,165.5

    Note: Audited by Teramihardja, Pradhono & Chandra, a public accountant

 


 

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 :

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.