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Report Date : |
28.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. ECOGREEN OLEOCHEMICALS |
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Formerly Known As : |
P.T. BATAMAS MEGAH |
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Registered Office : |
Graha Gawi 3rd Floor, Jalan Setiabudi Selatan Kav. 10, |
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Country : |
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Date of Incorporation : |
13.10.1989 |
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Com. Reg. No.: |
No. 149/II/PMA/2004 |
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Legal Form : |
P.T. (Perseroan Terbatas) or Limited Liability Company |
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Line of Business : |
Fatty Alcohol Industry |
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No of Employees : |
455 |
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 |
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Payment Behaviour : |
No Complaints |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Indonesia |
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 |
P.T. ECOGREEN OLEOCHEMICALS
Head Office
Graha Gawi 3rd Floor
Jalan Setiabudi Selatan Kav. 10
Jakarta Selatan, 12920
Indonesia
Phones -
(62-21) 5790 4500 (Hunting)
Fax - (62-21) 5790 4490
E-mail - ecogreen@indosat.net.id
Building Area - 12 storey
Office Space - 200 sq. meters
Region - Commercial
Status - Rent
Factory
a. Jalan
Raya Pelabuhan Kav. 1
Kabil,
Batam
Kepulauan
Riau Province
Indonesia
Phones -
(62-778) 711001-06
Fax -
(62-778)711007
b. Jalan
Raya Pelabuhan IV
Gabion,
Bagan Deli
Belawan, Medan
North Sumatera
Indonesia
Phones - (62-61) 6941020
(Hunting)
Fax - (62-61) 6941645
Date of Incorporation
a. 13 October 1989 as P.T.
BATAMAS MEGAH
b. 31 May 2001 as P.T.
ECOGREEN OLEOCHEMICALS
Legal Form
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No.
The Ministry of Law and Human Rights
- No.
C2-5285.HT.01.01.TH.90
Dated 25 August 1990
- No.
AHU-88758.AH.01.02.TH.2008
Dated 21 November 2008
- No. AHU-AH.01.10-45104
Dated 30 October 2013
Company Status :
Foreign Investment (PMA) Company
Permit by the Government Department :
The Department of Finance
NPWP No. 01.348.478.7-217.000
The Capital Investment Coordinating Board
- No. 188/V/PMA/2000
Dated 5 December 2000
- No. 208/III/PMA/2001
Dated 1 March 2001
- No. 442/III/PMA/2001
Dated 19 April 2001
- No. 149/II/PMA/2004
Dated 15 September 2004
Related Company :
A Member Company of the WINGS Group (see attachment)
Capital Structure :
Authorized Capital : Rp.
4,000,000,000,000.-
Issued Capital : Rp.
1,359,388,000,000.-
Paid up Capital : Rp.
1,359,388,000,000.-
Shareholders/Owners :
a. CHARHART INVESTMENT PTE LTD -
Rp. 1,359,387,000,000.-
Address : Singapore
b. WORLDWIDE LINK (B.V.I) LIMITED -
Rp. 1,000,000.-
Address : Wichams Cay, Road Town
Tortola
British Virgin Island
Lines of Business :
Fatty Alcohol Industry
Production Capacity :
A. Batam Factory
- Fatty
Alcohol - 60,000 tons p.a.
- Glycerine - 21,000 tons p.a.
-
Methylester - 6,000 tons p.a.
- Fatty
Acids C8-10 - 12,000 tons p.a.
- Fatty
Acids C12-14 - 59,500 tons p.a.
- Fatty
Acids C16-18 - 18,500 tons p.a.
- Fatty
Alcohol C8-10 - 12,000 tons p.a.
- Fatty
Alcohol C12-14 - 50,000 tons p.a.
B. Belawan Factory
- Fatty
Alcohol - 30,000 tons p.a.
- Glycerine -
4,500 tons p.a.
- Fatty
Acids - 4,500 tons p.a.
Total Investment :
A. Batam Factory
a. Equity
Capital - Rp. 138.0 billion
b.
Reinvested Profit - Rp. 82.8 billion
c. Loan
Capital - Rp. 646.0 billion
d. Total
Investment - Rp. 866.8 billion
B. Belawan Factory
a. Equity
Capital - Rp. 114.0 billion
b. Loan
Capital - Rp. 240.0 billion
c. Total
Investment - Rp. 354.0 billion
Started Operation :
1994
Brand Name :
Ecogreen Oleochemicals
Technical Assistance :
None
Number of Employee :
455 persons
Marketing Area :
Export - 95%
Local - 5%
Main Customer :
Buyers in Europe Union and the USA
Market Situation :
Very Competitive
Main Competitors :
a. P.T. CISADANE RAYA CHEMICALS
b. P.T. FLORA SAWITA CHEMINDO
c. P.T. MEDAN OLEOCHEMICALS
d. P.T. SINAR OLEOCHEMICALS
e. P.T. SUMIASIH OLEOCHEMICALS
Business Trend :
Declining
Bankers :
a. P.T.
Bank EKONOMI RAHARDJA Tbk
Graha Gawi
Jalan
Setiabudi Selatan Kav. 10
Jakarta
Selatan
Indonesia’
b. P.T.
Bank MANDIRI Tbk
Plaza
Mandiri
Jalan
Jend. Sudirman Kav. 36-38
Jakarta
Selatan
Indonesia
c. P.T.
Bank CENTRAL ASIA Tbk
Komp.
Sakura Ampan Block B No. 6-8
Batam, Kepulauan
Riau Province
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
Annual Sales (estimated) :
2011 – US$ 185.0 million
2012 – US$ 192.0 million
2013 – US$ 175.0 million
Net Profit (estimated) :
2011 – US$ 13.3 million
2012 – US$ 15.5 million
2013 – US$ 9.8 million
Payment Manner :
Average
Financial Comments :
Satisfactory
Board of Management :
President Director - Mr. Teddy Tanzil
Vice President Directors - a.
Mr. Erwin Sutanto
b.
Mr. Handoyo Sutanto
Directors - a.
Mr. Hardy Johan
b.
Mr. Jacobus Hartato
c.
Mr. Widyanto
Board of Commissioners :
President Commissioner - Mr. Eddy William Katuari
Vice President Commissioner - Mr. Jimmy Masrin
Commissioner - Mr. Kenny Harjo
Signatories :
President Director (Mr. Teddy Tanzil) or
one of the Vice President Directors (Mr. Erwin Sutanto, Mr. Handoyo Sutanto) or
one of the Directors (Mr. Hardy Johan, Mr. Jacobus Hartato or Mr. Widyanto)
which must be approved by Board of Commissioner.
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Initially named P.T. BATAMAS MEGAH, it was established in October 1989
with an authorized capital of Rp. 150,000,000 issued and paid up capital of Rp.
120,000,000. The original founding shareholders are Mr. Lilik Prajitno and Mr.
Widodo Purnomosidi, both are indigenous businessmen. In September 1990 both of
them pulled out and replaced by Mr. Anthony Salim AKA Liem Hong Sien and his
younger brother Mr. Andree Halim AKA Liem Sien Djen, both are the sons of Mr.
Soedono Salim AKA Liem Sioe Liong, prime mover of the SALIM Group. In September
1992 Mr. Anthony Salim and Mr. Andree Halim resigned and replaced by three
companies of the SALIM Group members namely P.T. PERTIWI LESTARI, P.T. GUDANG PERAK
and P.T. BENTENGCITRA PURAPEKASA. In February 1995 the domicile of the company
relocated to Batam, Riau Province. In May 1991 its sister company P.T. PRIMA
INTI MEGAH operating oleochemical processing plant in Belawan, North Sumatra
had been merged into P.T. BATAMAS MEGAH. In November 2000 the authorized
capital was raised to Rp. 4,000,000,000,000 issued and paid up capital to Rp.
1,359,388,000,000 and the shareholders are P.T. HOLDIKO PERKASA (member of the
SALIM Group taking over all shares of Soedono Salim family in 104 companies in
the SALIM Group including this company) and WORLDWIDE LINK Ltd., of British
Virgin Island. In March 2001 the whole shares of P.T. HOLDIKO PERKASA in this
company had been taken over by CARHART INVESTMENTS Pte., Ltd., Singapore. By
the same time the name was changed to P.T. ECOGREEN OLEOCHEMICALS (P.T. EO).
The latest according to the latest revision of notary documents of DR. Irawan
Soerodjo, SH., No. 205 dated 30 September 2013 the board of director and the
board of commissioner had been changed to lead and runs of the company’s
operation. The latest revision of notary documents was approved by the Ministry
of Law and Human Rights in its decision letter No. AHU-AH.01.10-45104 dated
October 2013.
The shareholders composition are WORLDWIDE LINK, Ltd., of British Virgin
Island and CARHART INVESTMENTS Pte., Ltd., of Singapore. Both shareholders of
P.T. EO namely WORLDWIDE LINK, Ltd., of British Virgin Islands and CARHART
INVESTMENTS Pte., Ltd., in which the whole shares are controlled by the Katuari
family and Sutanto family, both are founders and prime movers of the WINGS
Group, a large business group in detergent and soap industry.
P.T. ECOGREEN OLEOCHEMICALS (EO) is one of the biggest producers of
fatty alcohol in the country. By the existence of foreign investors since the
end 2000 it changed to a Foreign Capital Investment Company (PMA). It used to
manage oleochemicals processing plant in Batam, Riau Province, on a land of
some 20 hectares. The plant had been operating since February 1995 with
production capacity of 60,000 tons fatty alcohol per year, 9,000 tons glycerin
per year and 6,000 tons methylester per year. But after its sister company P.T.
PRIMA INTI PERKASA had been merged into P.T. BATAMAS MEGAH, the company managed
plant ex sister company located at Belawan, North Sumatra, on a land of some 10
hectares. The Belawan plant had been operating since 1990 with a production
capacity of 30,000 tons fatty alcohol per year, 4,500 tons glycerin per year
and 4,500 tons fatty acid per year. The operation of P.T. EO slowed down since
1998 in line with lower price of fatty alcohol in export market.
P.T. EO uses locally purchased palm kernel oil or coconut oil as feedstock,
which is first put through the refining process at its two plants, located at
Belawan, Medan (capacity 30,000 metric tons) or Batam (capacity 60,000 metric
ton, about to increase to 80,000 metric ton), both close to ports. The refined
oil is then processed in a splitter unit to produce fatty acid and glycerine
and subsequently fatty acid is converted to fatty alcohol through hydrogenation
process.
P.T. Ecogreen Oleochemicals has production facilities in Indonesia which
producing various cuts of Saturated Fatty Alcohols (from C8 to C18).
Unsaturated Fatty Alcohols (Oleyl Alcohols), Oleic Acid, Refined Glycerin and
Specialty Esters such as Medium Chain Triglycerides (MCT for Food, Cosmetics,
Pharmaceutical and Lubricant application). In September 2004, P.T. EO got an
expansion permit to increase production capacity of fatty acids (C8-10, C12-14,
C16-18) 89,500 tons, fatty alcohol (C8-10 and C12-14) 62,000 tons and glycerin
of 12,000 tons respectively per years. The development is estimated to absorb
an investment of Rp. 414.8 billion come from reinvested profit of Rp. 82.8
billion and the rest (Rp. 322.0) is loans. The expansion plant had been
operating in the middle of 2006. Some 95% of the product is exported to Europe,
Asian countries and the USA, the rest 5% is marketed locally and partly
absorbed by the WINGS Group. To support export market P.T. EO has owned branch
office in Singapore. Oleochemicals are used in personal care products, soaps
and detergents, food, plastics, pharmaceuticals and many other industries.
P.T. ECOGREEN OLEOCHEMICALS based in Indonesia, is one of the world’s
major producers of natural fatty alcohol with total production capacity of
110,000 metric tons per annum of fatty alcohol. However since July 2013 P.T. EO
ceased operations because of a shortage
of supply of gas as
feedstock alcohol. So, plan to boost production capacity
for exports faltered.
Then P.T. Perusahaan
Gas Negara (Persero) Tbk as the provider of gas distribution deliver gas to the Medan Industrial Estate (Kawasan Industri Medan), but still limited. After
that in September 2013 P.T.
EO back in
operation and produce fatty alcohols and
others.
Generally outlook we find the demand for fatty acid,
glycerine has been rising at home. It is in line with the growth of several
industrial sectors, including rubber products, textile industry, cosmetic and
soap industries, pharmaceutical, lubricating industry, paper making, and others
as potential consumers of the products. As the largest
producer of crude palm oil (crude palm oil / CPO) in the world,
Indonesia should likely be the basis of the oleochemical industry world beyond
Malaysia, China, India,
and even the European Union. National oleochemical
industries performance from year to year has been improvement. This is due to market demand and government policy
support. Currently, Malaysia
is still considered a benchmark constellation of global oleochemical industry
because of the high acquisition and integration technology
industry from upstream
to downstream.
Indonesia must change the mindset that initially
rely on the production of crude palm oil into various derivative manufacturers
high value-added palm oil, oleochemicals one
through industrialization, Ministry
of Industry, said Mr. Abdul, continues to
push the industry to support the progressive
imposition of export duty on CPO exports to ensure domestic
availability of raw materials. The
government also encouraged the
expansion of capacity and new investment in the area of the proposed facility
oleochemical industry through tax allowances and tax
holidays. For tax holiday, there
are two companies that have been filed. A
company that P.T. Unilever Oleochemical Indonesia. Upon the enactment of export
duty on CPO progressive, there is an
increase in the oleochemical
industry investments by 12 companies with a
total investment value of Rp.
14 trillion. Ministry
of Industry is also targeting 60% export of derivative
products, including oleochemicals,
and 40% of CPO.
Some of oleochemical products as a derivative product of Crude Palm Oil
(CPO) has been able to produce in Indonesia. But, actually the case is the
Indonesian oleochemical industry is not affordable yet to supply domestic
demand especially in the down-streamer, because of domestic oleochemical
products are still in the stage of semi-finished products.
The semi-finished products which consists of fatty acid, fatty alcohol
and glycerol were exported and after extending process then imported again by
Indonesian as finished products like additive matters for textile industry,
rubber, plastic, detergent, paint, cosmetic, processed-food, etc. Finally, as a
consequence, development of Indonesian oleochemical industry is still far left
behind compare to the one of Malaysian.
In 2011, for example, Indonesia has some 16 oleochemical producer
companies with a total capacity of 1.67 million tons, contains 1.00 million
tons of fatty acid, 490,000 tons of fatty alcohol and some 177,750 tons of
glycerol. Since all domestic oleochemical products were exported, afterwards
Indonesia’s market share in the world would be at 15% of 6.63 million tons of
fatty acid consumption whereas, fatty alcohol only has 12% of 3.95 million tons
and has only 8.9% of 2.00 million tons of glycerol. It
is estimated both fatty acid and glycerine will remain to rise in the coming
years. Competition is very tight due to a large number of similar companies
operating in the country, like P.T. ECOGREEN OLEOCHEMICALS, P.T. CISADANE RAYA
CHEMICAL, P.T. SUMI ASIH, P.T. MEDAN OLEOCHEMICAL and P.T. FLORA SAWITA. In
overall we find that oleo chemicals industry in the country keeps rising
despite the export price was lower and fluctuated. The growth of oleo chemicals
industry in the country is seen in the table below.
The Growth and
Production of Ole Chemical, 2005-2012
|
Year |
Fatty Acid |
Production (Ton) |
Growth (%) |
||
|
Glycol |
Fatty Alcohol |
Total |
|||
|
2005 2006 2007 2008 2009 2010 2011 2012 |
436,700 398,952 350,203 476,700 504,080 542,391 585,782 631,473 |
46,354 41,283 35,577 51,222 55,290 59,492 64,251 69,262 |
93,712 119,905 176,099 111,159 136,482 146,855 158,603 170,974 |
576,766 560,141 561,879 639,081 695,582 748,738 808,636 871,709 |
(2.88) 0.31 14.74 8.88 7.60 8.00 7.80 |
|
Growth, % /year |
4.44 |
||||
Source: Central Bureau of Statistic, processed by ICB
Until this time P.T. EO has not been registered with Indonesian Stock
Exchange, so that they had not obliged to announce their financial statement. The management of P.T. EO 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 US$ 185.0 million
rose to US$ 192.0 million in 2012 decreased to US$ 175.0 million in 2013 due to
the lower of gas supply in Medan, North Sumatera. It’s projected the sales
turnover will be higher by at least 5% in 2014. The operation in 2013 yielded
an estimated net profit of at least US$ 9.8 million and the company has an estimated
total net worth of at least US$ 151.0 million. We observe that P.T. EO is
supported by the WINGS Group, a business group 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. EO is headed by Mr. Teddy Tanzil (58) a
professional manager headed the company since the end 1994. He is one of the
top executive of the WINGS Group. The management is further made up to more
professional managers, home and expatriates from Germany and the Philippines,
with experience in the oleo chemical industry and trade. The management is
widely connected with government authorities as well as 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 business malpractices. The company’s litigation record is
clean and it has not registered with the black list of Bank of Indonesia. P.T.
ECOGREEN OLEOCHEMICALS is good for normal business transaction.
List of the W I N
G S Group Members
ADYABUANA PERSADA, P.T. (Ceramic Floor Tile Manufacturing)
AKTIF INDONESIA INDAH, P.T. (Industrial Chemicals Processing)
ASPIRASI LUHUR, P.T. (Investment Holding)
BIMA MAS SEJATI JAYA, P.T. (General Trading)
BIMA NUSA RAJAWALI, P.T. (General Trading)
DIAN LESTARI PERDANA, P.T. (Office Block Rental Management)
ECOGREEN OLEOCHEMICALS, P.T. (Fatty Alcohol Industry)
EKA TATA MAKMUR, P.T. (Real Estate and Housing Development)
EKATAMA RAYAINDAH, P.T. (Housing Development)
EKONOMI RAHARJA, P.T. Bank (Banking)
FOSFINDO, P.T. (Investment Holding)
FINDECO JAYA, P.T. (Alkyl Benzene Sulfonate Processing)
GAWI MAKMUR KALIMANTAN, P.T. (Oil Pal Plantation and Pal Oil Refinery)
KARUNIA ALAM SEGAR, P.T. (Instant Noodles Processing Industry)
LION WINGS, P.T. (Cosmetic, Detergent, Toothpaste and Sanitary Napkin
Manufacturing)
MULTI INDOMANDIRI, P.T. (Glass Tablewares Manufacturing)
MULTINUSA LESTARI, P.T. (Housing Development)
MULTIPACK UNGGUL, P.T. (Corrugated Box, Printing and Soft Packaging
Manufacturing)
PETRO CENTRAL, P.T. (Industrial Chemical Processing)
PRAKARSA ALAM SEGAR, P.T. (Instant Noodles
Processing Industry)
PONDOK PALEMINDAH, P.T. (Housing Development)
PONDOK PALEM INDAH PERMAI, P.T. (Housing Development)
PONDOK PALEM INDAH RAYA, P.T. (Housing Development)
SAYAP MAS UTAMA, P.T. (Soap and Cosmetic Industry)
SADHANAGRAHA ADHIKA, P.T. (Investment Holding)
SARANAGRIYA LESTARI KERAMIK, P.T. (Ceramic Industry)
SATYAWADA MITRAUSAHA (Investment Holding)
SIAM-INDO CONCRETE PRODUCTS, P.T. (Natural Fiber Cement/Roofing Sheets
Manufacturing)
SIAM-INDO GYPSUM INDUSTRY, P.T. (Gypsum Plasters and Compound
Manufacturing)
SRIWIJAYA ALAM SEGAR, P.T. (Food Processing Industry)
TIRTA ALAM SEGAR, P.T. (Food and Beverages Processing Industry)
UNGGUL INDAH CORPORATION, (Industrial Chemical Processing)
UNIPACK INDOSYSTEMS, P.T. (Plastic Flexible Packaging Manufacturing)
VARIA INDOWIN PERKASA, P.T. (Integrated Shrimp Culture)
WINGS SURYA, P.T. (Soap, Detergent, Water glass and Plastic Packaging
Industry)
Etc.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SHG |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.