MIRA INFORM REPORT

 

 

Report Date :

25.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. SULFINDO ADIUSAHA

 

 

Registered Office :

Panin Tower Senayan City 9th Floor Komplek Senayan City Jalan Asia Afrika Lot. 19 Jakarta Pusat, 10270

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.11.1987

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Subject is a leading chemical producer

·         Investment Holding

 

 

No. of Employees

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

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. SULFINDO ADIUSAHA

 

 

address

 

Head Office

Panin Tower Senayan City 9th Floor

Komplek Senayan City

Jalan Asia Afrika Lot. 19

Jakarta Pusat, 10270

Indonesia

Phones             - (62-21) 7278 1810 (Hunting)

Fax                   - (62-21) 7278 1808

E-mail               - sulfindo@sulfindo.com

Website            - http://www.sulfindo.com

Building Area     - 25 storey

Office Space      - 200 sq. meters

Region              - Commercial

Status               - Rent

 

Factory (Plant)

Desa Mangunrejo, Kecamatan Pulo Ampel

Kabupaten Serang, Cilegon

Banten Province

Indonesia

Phones             - (62-254) 5750035, 5751386

Fax                   - (62-254) 5750039, 5750540

Land Area         - 30 hectares

Building Space  - 270,000 sq. meters

Region              - Industrial Zone

Status               - owned

 

Date of Incorporation :

25 November 1987

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-2493 HT.01.01.TH.1990

   Dated 24 April 1990

-  No. C-11943 HT.01.04.TH.2005

   Dated 3 May 2005

 

 

-  No. AHU-62118.AH.01.02.TH.2008

   Dated 12 September 2008

-  No. AHU-AH.01.10-24096

   Dated 24 November 2008

-  No. AHU-AH.01.10-33860

   Dated 21 October 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.062.213.2-092.000

The Capital Investment Coordinating Board

-  No. 176/V/PMA/2000

   Dated 10 November 2000

-  No. 197/III/PMA/2005

   Dated 2 March 2005

 

Related Companies :

a.   P.T. ARTHA SUMATERA ENERGI (Holding Company/ Investment Holding)

b.   P.T. CAHAYA BUMI (Coal Mining)

c.   P.T. INDRA SAPTA RAHAYU (Coal Mining)

d.   P.T. MASINDO ARTHA RESOURCES (Coal Mining)

e.   P.T. MERAK ENERGI INDONESIA (Electric Steam Power Plant Development)

f.    P.T. REALITA JAYA MANDIRI (Coal Mining)

g.   P.T. SULFINDO ADIUSAHA (Petrochemical Processing Industry and Investment Holding)

h.   P.T. SUMATERA COAL TRANS (Coal Transportation Services)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 750,000,000,000.-

Issued Capital                                  : Rp. 353,291,000,000.-

Paid up Capital                                : Rp. 353,291,000,000.-

 

Shareholders/Owners :

a. DURABILITY ENTERPRISES LTD.                                     - Rp. 291,248,000,000.-

    Address : Road Town, Tortola

                    British Virgin Island

b. NEW PARTNER INVESTMENT LTD.                                 - Rp.   41,564,000,000.-

    Address : Offshore Incorporations Centre

                    Road Town, Tortola, British Virgin Island

c. BRENSWICK LTD.                                                            - Rp.   20,479,000,000.-

    Address : 7 Floor Burfield Commercial Building

                    143 Connaught Road, Hong Kong

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Petrochemical Industry

b.   Investment Holding

 

Production Capacity :

a.   Caustic Soda                                 - 320,000 tons p.a.

b.   Chlorines                                       - 300,000 tons p.a.

c.   Ethylene Dichloride                         - 370,000 tons p.a.

d.   Vinyl Chloride Monomer (VCM)        - 130,000 tons p.a.

e.   Poly Vinyl Chlorine (PVC)               -   95,000 tons p.a.

f. Caustic Soda Flake (NaOH 98%)   - 130,000 tons p.a.

g.   Hydrochloric Acid (HCI 32%)       `    - 131,000 tons p.a.

h.   Sodium Hypochlorite (NaOCI 10%)   -   30,000 tons p.a.

 

Total Investment :

a.   Equity Capital                            - Rp.    353.3 billion

b.   Loan Capital                              - Rp. 1,627.6 billion

c.   Total Investment                         - Rp. 1,980.9 billion

 

Started Operation :

1991

 

Brand Name :

Sulfindo Adi Usaha

 

Technical Assistance :

Asahi Kasei Corp, Japan

 

Number of Employee :

794 persons

 

Marketing Area :

Export      - 65%

Local       - 35%

 

Main Customer :

Chemical Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASAHIMAS CHEMICAL Tbk

b. P.T. CHANDRA ASRI PETROCHEMICAL Tbk

c. P.T. HUMPUS AROMATIC

d. P.T. STYRINDO MONO INDONESIA

e. P.T. TRANS PACIFIC PETROCHEMICAL INDOTAMA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

P.T. Bank CENTRAL ASIA Tbk

Menara BCA Grand Indonesia

Jalan M.H. Thamrin No. 1

Jakarta Pusat

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 2,985.0 billion

2012 – Rp. 3,128.0 billion

2013 – Rp. 3,315.7 billion

 

Net Profit (estimated) :

2011 – Rp. 208.5 billion

2012 – Rp. 234.0 billion

2013 – Rp. 245.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 


 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mrs. Dra. Diana Lumakso

Vice President Director                     - Mr. Lokita Prasetya

Director                                           - Mr. Iskandar Utina

 

Board of Commissioners :

President Commissioner                   - Mr. Samhadi Wira Cendana

Commissioners                                - a. Mr. Ir. Sujatim Abdurachman Habibie

                                                        b. Mrs. Henny Nasar Tjandra

 

Signatories :

President Director (Mrs. Dra. Diana Lumakso) or Vice President Director (Mr. Lokita Prasetya) or the Director (Mr. Iskandar Utina) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

P.T. SULFINDO ADIUSAHA (P.T. SA) was established in Jakarta on 25 November 1987 with an authorized capital of Rp. 150,000,000, of which Rp. 120,000,000 was issued and paid up. The company was founded by Mr. Soetojo Koerniawan AKA (also known as) Koo Swi and Mr. Ir. Widodo Purnomosidi, both Indonesian businessmen of Chinese extraction. In July 1988 the company's entire shares were sold to Mr. Anthony Salim AKA Liem Hong Sien, Mr. Andree Halim AKA Liem Sien Djien (both top figures of the SALIM or LIEM SIOE LIONG Group, now the largest private business group in the country), P.T. BIMANTARA CITRA (the parent company of the BIMANTARA Group, a big-sized and fast growing national private business group), Mr. Ir. George Hardjosoesilo AKA Lim Hong San (a prominent Indonesian businessman and a top figure of the BIMANTARA Group) and Mrs. Ayfen Yuliana, an ethnic-Chinese Indonesian businesswoman. According to the revision of the company's articles of association in 1993, the authorized capital was increased to Rp. 98,000,000,000 entirely issued and paid up. Concurrently Mr. Ir. George Hardjosoesilo and Mrs. Ayfen Yuliana pulled out and were replaced by P.T. GALAKSI ULTRAPRIMA (a private company) and 3 Indonesian businessmen of Chinese extraction, namely Mr. Soenarjo Adikoesoemo (a top figure of the ASTRA Group), Mr. Solichin Sumardjo and Mr. Soenarno.

 

In December 1998 the whole shares of the late Mr. Soedono Salim family in P.T. SULFINDO ADIUSAHA had been taken over by P.T. HOLDIKO PERKASA, a company intentionally founded in connection with the settlement of bad debts of SALIM Group to Indonesian Bank Restructuring Agency (IBRA) for the loan given by P.T. Bank CENTRAL ASIA Tbk., to companies affiliated with the SALIM Group. In December 2000 the authorized capital of P.T. SA was increased to Rp. 300,000,000,000 issued and paid up capital to Rp. 211,712,000,000.

 

At that time the shareholders were P.T. DUNIA MUSTIKA (98.5%), a company which the whole shares are controlled by P.T. HOLDIKO PERKASA, P.T. TARUNA DINAMIKA CITRINDO (ex P.T. TIMSCO DEVELOPMENT CORPORATION) (1.4%) and EXCEL PROJECT GROUP (B.VI) LIMITED (0.1%) a company owned by the SALIM Group based in British Virgin Island which is now the whole shares are controlled by P.T. HOLDIKO PERKASA.

 

In December 2001 the whole shares owned by P.T. HOLDIKO PERKASA in P.T. SA and subsidiaries namely P.T. SATOMO INDOVYL MONOMER and P.T. SATOMO INDODVYL POLYMER (SULFINDO Group) had been sold to DURABILITY ENTERPRISE LTD. (EMPEROR Group) of Hong Kong worth US$ 41.2 million. In May 2004, the issued and paid up capital was raised to Rp. 291,248,000,000 and concurrently the shareholders of P.T. SA were DURABILITY ENTERPRISES LTD of British Virgin Island and P.T. TARUNA DINAMIKA CITRINDO (ex. P.T. TIMSCO DEVELOPMENT CORPORATION of Indonesia). In March 2005, the authorized capital of the company was raised to Rp. 750,000,000,000 of which Rp. 353,291,000,000 was issued and fully paid up and concurrently into the company entered new shareholders BRENSWICJ LIMITED of Hong Kong and NEW PARTNER INVESTMENTS LIMITED of British Virgin Island.

 

Later in March 2005, P.T. SATOMO INOVYL MONOMER and P.T. SATOMO INDOVYL POLYMER merged to P.T. SULFINDO ADIUSAHA (surviving company). After merged the merged the composition of its shareholders has been changed to become DURABILITY ENTERPRISES LIMITED of British Virgin Islands (81.28%), NEW PARTNER INVESTMENT LIMITED of British Virgin Island (11.77%), BRENSWICK LIMITED of Hong Kong (5.80%), and P.T. TARUNA DINAMIKA CITRINDO (1.15%). After that on 12 August 2008 the company’s board of director and the board of commissioner had been changed.

 

Then according to the latest revision of notary documents of Mr. Deni Thanur, SH., M.Kn., No. 28 dated 12 October 2011 P.T. TARUNA DINAMIKA CITRINDO pulled out and the whole share sold to DURABILITY ENTERPRISES LIMITED of British Virgin Islands. With this time the composition of its shareholders has been changed to become DURABILITY ENTERPRISE LIMITED of Brtish Virgin Island (82.44%), NEW PARTNER INVESTMENT LIMITED of British Virgin Islands (11.76%) and BRENSWICK LIMITED of Hong Kong (5.80%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-33860 dated October 21, 2011.

 

P.T. SA is a leading chemical producer in Indonesia which started operation since 1991. Initially, the company obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with Vinyl Chloride Monomer (VCM) and Ethylene Dichloride (EDC) industry. However, since November 2000, by the entrance of its foreign partner of Hong-Kong, the facility of the company was changed to Foreign Capital Investment (PMA) facility.  Its plant is located at Mangunrejo Village, Serang Regency, Merak, Banten Province, on a land of 282,935 sq. meters. In September 1995, the company expanded its activities by taking over assets, liabilities, and whole activities of its sister company P.T. INDOCHLOR PRAKARSA INDUSTRIES dealing with the processing of caustic soda and chlorine of which the plant is at the same location with its previous plant. After the merged since March 2005, the plant produces of Caustic Soda, Chlorines, Chlorinated Descendant, Ethylene Dichloride (EDC), Vinyl Chloride Monomer (VCM) and Poly Vinyl Chloride (PVC).

 

P.T. SA produces caustic soda capacity around 320.000 DMT/year with membrane technology. As a world technology, besides supplying to domestic market, they also serve international market. Over the time they has diversified our chemical business by creating products such of EDC, VCM, and PVC. P.T. SA produces 320.000 metric ton of EDC, 130.000 metric tons of VCM, and 95.000 metric tons of PVC annually. All these products have strengthened and supported Sulfindo's presence in the market as an integrated Chlor-Alkali producer in Indonesia. Their mission is to sustain long-term growth as a leading chemicals producer in ASEAN with Indonesia as its home base. They are committed to produce high quality chemicals at globally competitive prices and deliver efficient customer service at all times. Being in the business for long period of time Sulfindo has earned international standard for quality assurance recognition. Sulfindo received ISO 9001 Certificate for caustic soda appreciation in April 2000. P.T. SA or Sulfindo plant is located in Merak covering a total area of 30 ha. Fast and efficient distribution of products is supported by presence of truck terminal that handles daily transportation activity. The plant is also equipped with a jetty with a loading and unloading capability of 55,000 DWT.

 

Using electrolysis technologies from salt as basic raw material is processed to produce Caustic soda & chlorine. Some portion of Caustic soda liquid then processed further to create caustic soda flake. Chlorine through chlorinization process, producing EDC by thermal cracking of EDC and polymerization of VCM to produce PVC. Besides that, Sulfindo also developing to gain derivatives such as Hydrochloric Acid and Sodium Hypochlorite.

 

Some 65% of the products are exported to several countries including Japan, India, Taiwan, Thailand and several other countries and the rest is locally marketed among manufacturing companies such as bathing soap industries, pulp & paper industries, rayon, alumina, textile, water treatment, MSG industries, fiber industries, and others. Sulfindo supplies caustic soda to customers in several sectors such as Rayon, Soap and Detergent, Pulp & Paper, textile, water
treatment and many other uses in the chemical processing industry. PVC is widely used in many other chemical manufacturers for many business sectors. The need for good infrastructure in the region has led to a growing demand for PVC products such as pipes and cables. The changing lifestyles of consumer also demand high quality of PVC products such as leather for furniture, film for food packaging, PVC doors, profile for housing and others. Each type of PVC is used for different kind depend on application need.

 

P.T. Sulfindo Adiusaha Products are:

Product

Production Capacity

Process

Licensor

Applications

Caustic Soda

320,000 TPA

Ion Exchange Membrane

Asahi Kasei Corporation

Pulp & Paper, Rayon, Allumina, Textile, Soap, Water Treatment, MSG, General Industries

Chlorine

300,000 TPA

Ion Exchange Membrane

Asahi Kasei Corporation

EDC/VCM/PVC, Pulp & Paper, HCl, Water Treatment, Other Chemical Industries (Phosgene, Propylene Oxyde, etc.)

Ethylene Dichloride

370,000 TPA

LTDC / HTDC

Arkema Chemicals

VCM

Vinyl Chloride Monomer

130,000 TPA

Thermal Cracking

Arkema Chemicals

PVC

Poly Vinyl Chloride (PVC)

95,000 TPA

Suspension Polymerization

Tosoh Corporation

Rigid Plate, various extruded sheets, Films, Blow bottle, Calendering, Pipes, Hose, Corrugated sheets, Tapes, Wires, Cables, Leathers.

Caustic Soda Flake (NaOH 98%)

130,000 TPA

Falling Film Concentration

Bertrams

 

Hydrochloric Acid (HCl 32%)

131,000 TPA

 

Mersen

Metal pickling, Metal Chloride, Water Treatment, MSG

Sodium Hypochlorite (NaOCl 10%)

30,000 TPA

 

.

Bleaching, Desinfectant, Water Treatment

 

Besides, P.T. SA engaged in investment holding by controls 92.86% shares of P.T. MERAK ENERGI INDONESIA, a private company dealing with electric steam power plant with capacity 2 x 60 MW. The whole electric power supplied to parent company P.T. SULFINDO ADIUSAHA.

 

We note that the demand for petrochemicals had been rising by some 6% up to 8% per year in the five years in line with the fast growth of industries using petrochemical basic materials like the plastic and plastic product industries in the country. Since October 2008 the demand for the above petrochemicals had kept on dropping in line with the decline of plastic and plastic goods industries as a result of the global economic crisis in October 2008 and the very tight banking liquidity in the country. The domestic demand for petrochemicals is projected to grow by just 4% to 6% up to the next two years, in view of the still labile economic condition. Besides, competition is very heavy from particularly petrochemicals of Singapore, Malaysia, Thailand, Taiwan and South Korea. Besides, there are now several companies planning to build petrochemical production centers like P.T. HUMPUSS AROMATIC of the HUMPUSS Group and P.T. TRANS PACIFIC PETROCHEMICAL INDOTAMA and others.

Until this time P.T. SA has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SA 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. 2,985.0 billion rose to Rp. 3,128.0 billion in 2012 increased to Rp. 3,315.7 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 245.3 billion and the company has an estimated total networth of at least Rp. 750.0 billion. We observe that P.T. SA is supported by foreign partner with has financially strong and sound behind it. 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. SA is led by Mrs. Diana Lumaksi (57) a businesswoman and professional manager with experience in petrochemical industry. She has a good educational background graduated from University of Diponegoro, Semarang, Central Java majoring in Economic. She married to Mr. Hadi Siswanto and they have three children.

 

      The management, which is evaluated quite creative and dynamic, also has succeeded in expanding their overseas marketing network. We consider the management is quite capable of further developing business in the future. They have close relations with many high-ranking government officials as well as with private businessmen within and outside the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. SULFINDO ADIUSAHA is sufficiently fairly good for business transaction.

 

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 :

RAS

 

 

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.