MIRA INFORM REPORT

 

 

Report Date :

16.06.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PETROWIDADA

 

 

Registered Office :

Tower 1 D/H Wisma BCA 1, 7th Floor, Jalan Jend. Sudirman Kav. 22-23, Jakarta Pusat

 

 

Country :

Indonesia

 

 

Date of Incorporation :

01.07.1985

 

 

Com. Reg. No.:

AHU-AH.01.10-07084

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Phthalic Anhydrides and Maleic Anhydeides Processing

 

 

No of Employees :

242 persons

 

 

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

 

 


 

BASIC SEARCH

 

Name of Company :

P.T. PETROWIDADA

 

 

Address :

Head Office

Tower 1 D/H Wisma BCA 1, 7th Floor

Jalan Jend. Sudirman Kav. 22-23

Jakarta Pusat

Indonesia

Phones - (62-21) 5712998 (Hunting)

Fax                   - (62-21) 5712678

E-mail               - pwdjkt@rad.net.id

Building Area    - 30 storey

Office Space    - 250 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Factory

Jalan Prof. Mohamad Yamin, SH

Gresik 61118, East Java

Indonesia

Phones             - (62-31) 3951945 (Hunting)

Fax                   - (62-31) 3951950

E-mail               - pdwgssby@rad.net.id

Land Area         - 46,585 sq. meters

Building Area    - 43,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation :

01 July 1985

 

 

Legal Form :

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

 

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-AH.01.10-21040

  Dated 04 September 2008

- No. AHU-41795.AH.01.02.TH.2010

  Dated 24 August 2010

- No. AHU-AH.01.10-07084

  Dated 28 February 2013

 

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.061.583.9-052.001

b. The Capital Investment Coordinating Board

    - No. 12/I/PMA/1985

      Dated 23 May 1985

    - No. 107/II/PMD/1996

      Dated 9 December 1996

    - No. 904/III/PMA/2003

      Dated 7 August 2003

    - No. 1166/III/PMA/2003

      Dated 3 October 2003

 

 

Related Companies :

a. A Member Company of the ETERINDO Group (see attachment)

b. A Member Company of the PETROKIMIA Group (see attachment)

c. P.T. JUSTUS KIMIARAYA (Trading and Distribution of Industrial Chemical and Investment

    Holding)

d. P.T. WISMA PINTU SEMBILAN (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 1,734,300,372,578.-

Issued Capital                                 : Rp.    500,993,986,798.-

Paid up Capital                               : Rp.    500,993,986,798.-

 

 

Shareholders/Owners :

a. EXCEL CAPITAL VENTURE COMPANY LIMITED           - 92.7%

    Address : Room 501, 5/F., 113 Argyle Street

                    Mongkok, Kowlon     

                    Hong Kong

b. DAEWOO CORPORATION                                             -   4.2%

    Address : 541, Namdaemunno 5-GA

                    Chung-Gu, Seoul

                    South Korea

c. P.T. PETROKIMIA GRESIK (Persero)                            -   1.5%

    Address : Jl. Jend. Akhmad Yani

                    Gresik, East Java

                    Indonesia

d. P.T. JUSTUS KIMIARAYA                                             -   0.7%

    Address : Jl. Danau Sunter Utara No. 27-28 Block 03

                    Jakarta Utara

                    Indonesia

 

 

 

e. P.T. WISMA PINTU SEMBILAN                                      -   0.7%

    Address : Bungur Grand Centre Block C 8-9

                    Jakarta Pusat

                    Indonesia

f. P.T. ANUGERAH ARTA RESTUMAS                     -   0.2%

    Address : Jl. KH. Moh. Mansyur 41 AA

                    Jakarta Barat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Phthalic Anhydrides and Maleic Anhydeides Processing

 

 

Production Capacity :

A.   Initial Units (Unit 1 & II)

      a. Phthalic Anhydrides               - 70,000 tons p.a.

      b. Maleic Anhydrides                 -   3,200 tons p.a.

B.   Expansion Units (Unit III)             

      a. Phathalic Anhydrides             - 70,000 tons p.a.

      b. Fumaric Acid                         -   3,000 tons p.a.

 

 

Total Investment :

A.   Initial Plant (First Stage)

      a. Equity Capital                        - Rp. 83.7 billion

      b. Reinvested Profit                  - None

      c. Agio Shares                          - None

      d. Loan Capital                          - None

      e. Total Investment                    - Rp. 83.7 billion

B.   Expansion Plant (Second Stage)

      a. Equity Capital                        - Rp. 547.8 billion

      b. Reinvested Profit                  - Rp.   12.3 billion

      c. Agio Shares                          - Rp.   17.4 billion

      d. Loan Capital                          - None

      e. Total Investment                    - Rp. 577.5 billion

 

 

Started Operation :

1989, but ceased operation since 20 January 2004 (fire burning incident unit 1 & II)

 

 

Brand Name :

PWD

 

 

Technical Assistance :

a. LURGI of Germany

b. ELF ATOCHEM of France

 

 

Number of Employee :

242 persons

 

 

Marketing Area :

Local      - 70%

Export    - 30%

 

 

Main Customer :

ETEERINDO Group (Distributors)

 

 

Market Situation :

Very Competitive

 

 

Main Competitors :

None

 

 

Business Trend :

Growing

 

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.  P.T. Bank NEGARA INDONESIA Tbk

      Jalan Rajawali 10

      Surabaya, East Java

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

      Indonesia

c.   The Hongkong Shanghai Banking Corp.Ltd.

      3/F Hyatt - Graha Bumi Modern

      Jalan Jend. Basuki Rachmat 106-128

      Surabaya, East Java

      Indonesia

d.   Standard Chartered Bank

      Jalan Panglima Sudirman No. 57

      Surabaya, East Java

      Indonesia

 

 

Auditor :

Internal Auditor

 

 

Litigation :

No litigation record in our database

 

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 527.0 billion

2012 – Rp. 535.0 billion

2013 – Rp. 550.0 billion

 

 

Net Profit (estimated) :

2011 – Rp. 38.9 billion

2012 – Rp. 42.8 billion

2013 – Rp. 45.1 billion

 

 

Payment Manner :

Average

 

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Choi Choon Ha

Directors                                         - a. Mr. Hadisan Sridjaja

                                                        b. Mr. Yudianto Kosman

                                                        c. Mr. Jaka Lelana

 

Board of Commissioners :

President Commissioner                  - Mr. Sudiharto Sridjaja

Commissioners                               - a. Mr. Jasin Sridjaja

                                                        b. Mr. Ir. Suwarno Soepono

                                                        c. Mr. Yeo Thiam Chye

                                                        d. Mr. Lee Seung Hoon

                                                        e. Mr. Jung Kap Jae

                                                        f. Mr. Je Jong Chul

                                                        g. Mr. Eric Lego

                                                        h. Mr. Agus Kholik

 

 

Signatories :

President Director (Mr. Choi Choon Ha) or one of the Directors (Mr. Hadisan Sridjaja, Mr. Yudianto Kosman or Mr. Jaka Lelana) which must be approved by Board of Commissioner.

 

 

 

CAPABILITIES

 

Management Capability :

Good

 

 

Business Morality :

Good

 

 

 

OVERALL PERFORMANCE

 

P.T. PETROWIDADA was established in July 1985 by DAEWOO CORPOTATION of South Korea, P.T. ETERINDO WAHANATAMA Tbk., state-owned chemical fertilizer company P.T. PETROKIMIA GRESIK, P.T. JUSTUS KIMIA RAYA and P.T. WISMA PINTU SEMBILAN. The company was set up with an authorized capital of US$ 7,500,000 entirely issued of which US$ 3,000,000 was paid up. In February 1997 the authorized capital was converted and raised to Rp. 250,000,000,000 with the issued and paid up capital amounting to Rp. 135,937,159,000. In August 2003, the authorized capital was increased to Rp. 3,558,779,555,500 issued capital of Rp. 889,694,898,000 entirely paid up. On the same occasion EXCEL CAPITAL VENTURE COMPANY LIMITED (ex. ROYAL PETROCHEMIE Corporation Ltd.,) of the People Republic of China and DAEWOO CORPORATION of South Korea joined the company as new shareholders. In October 2003, the authorized capital was increased again to Rp. 4,099,999,999,400 issued capital of Rp. 1,184,382,692,900 entirely paid up. Then in August 2008, P.T. ETERINDO WAHANATAMA Tbk pulled out and the whole shares sold to EXCEL CAPITAL VENTURE COMPANY LIMITED of the People Republic of China. On the same occasion, P.T. ANUGERAH ARTA RESTUMAS entered into the company as new shareholders. The latest according to the revision of notary deed Mr. DR. Teddy Anwar, SH., no. 18 dated 14 January 2013 the company authorized capital was reduced to Rp. 1,734,300,372,578 issued capital at Rp. 500,993,986,798 of which paid up. With this time the composition of its shareholders has been changed to become EXCEL CAPITAL VENTURE CO. LTD., of Hong Kong (92.7%), DAEWOO CORPORATION of South Korea (4.2%), P.T. PETROKIMIA GRESIK (1.5%), P.T. WISMA PINTU SEMBILAN (0.7%), P.T. JUSTUS KIMIA RAYA (0.7%), and P.T. ENUGRAH ARTA RESTUMAS (0.2%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-07084 dated February 28, 2013.

 

We note that P.T. PTROWIDADA's majority shares are controlled by P.T. ETERINDO WAHANATAMA Tbk., a publicly listed member of the ETERINDO Group, in which the majority business stakes are controlled by Mr. Sudiharto Sridjaja and his family. The other home partner in the company is P.T. PETROKIMIA GRESIK, the parent company of the PETROKIMIA GRESIK Group, a state-owned business group in the petrochemical industry. Meanwhile, P.T. WISMA PINTU SEMBILAN is the parent company of the WITULAN Group, a medium size Indonesian business group. P.T. JUSTUS KIMIA RAYA is a big size company in industrial chemical distribution in the country.

 

P.T. PETROWIDADA is the Southeast Asia’s major producer of Phthalic Anhydride (PA) and Maleic Anhydride by manages a plant located in the Petrochemical Industrial Estate in Gresik, East Java. The plant (PA-1) has been in operation since 1988 producing phthalic anhydride with a production capacity of 30,000 tons per year and its derivate maleic anhydride with a capacity of 900 tons/year. The first PA line uses the LURGI technology from Germany while the second line operates on the French ELF Atochem technology. Both are internationally recognized advanced technologies for PA production. Together with the completion of the second line, PETROWIDADA also installed a new steam turbine generator capable of producing the necessary electrical supply to run both plants. The plant has been expanded several times. In April 1995 expansion unit II (PA-II) started to be built and went into commercial production in 1996 with an additional production capacity of 40,000 tons of phthalic anhydride per year, bringing the plant's production capacity to 70,000 tons of phthalic anhydride & 2,400 tons of maleic anhydride per year. Then in 1997 it was planned to build expansion unit III (PA-III) with an additional production capacity of 70,000 tons of phthalic anhydride and 3,000 tons of fumaric acid per year. The expansion plan (PA-III) was to start building the plant in the first quarter of 1997 for scheduled completion in September 1998. The economic crisis caused the project to be delayed for three years, but was resumed in early 2001, going into commercial production in early 2002.

 

About 30% of the company's production is exported through by distributors such as CONTINENTAL PACIFIC (Hong Kong) Pte. Ltd., and CONTINENTAL PACIFIC (Singapore) Pte. Ltd., to South Korea, Taiwan, Thailand, Malaysia, China, Pakistan and the Philippine. The rest 70% marketed in the country to mainly plastic and textile industries, unsaturated polyester resins, alkyd resins, dyes and pigments and other chemical products such as herbicides, polyester polyol, etc. Up to now, there is still no substitution ingredient for PA (Phthalic Anhydride). All raw materials and finished products are laboratory tested to ensure that only those that meet exact specifications are approved. The company commitment to international production standards as reflected in the ISO 9002 certification obtained in September 1995.  P.T. PETROWIDADA currently is the sole PA producer in Indonesia. 

 

However, on 20 January 2004, two plant units PA-I and PA-II of P.T. PETROWIDADA was exploded and burnt physically a part of the building. Three people died and some fifty-eight employees injured as a result of that accident. Meanwhile, PA-III unit had slightly damaged, but it had been repaired and has been operating since October 2004. After repaired, the PA-III unit has been produce of 70,000 tons per year. The company suffered from financial loss of hundred billions Rupiah as a result of the blast and fire in PA-I and PA-II plant units. Whole financial loss of the company are guaranteed by 10 consortiums of big insurance companies P.T. TUGU PRATAMA INDONESIA along with other insurance companies with the insurance value of US$ 152 million.

 

The management of P.T. PETROWIDADA explained that the team on project engineering of the company has been formed to handle the reconstruction of PA-1 and PA-II plant having been burn down. However, the management rejected to disclose when PA-1 and PA-II would be constructed. The management of the company added that at present just PA-III only operating up to now with capacity of Phathalic Anhydrides of 70,000 tons and Fumaric Acid of 3,000 tons per annum respectively.

 

Generally outlook the PA and its MA derivatives industries have been fluctuating within the last five years. The blast at the PA plant of P.T. PETROWIDADA has also affected the production of maleic anhydride (MA) in Indonesia in 2008, as MA is no longer produced in the country.

 

This condition is worsened by the increase in the price if benzene on the market, prompting another MA producer, P.T. JUSTUS SAKTI RAYA, to cut back its output. Now that the MA plant of P.T. JUSTUS SAKTI RAYA is in operation since the end of 1998, MA production in 2008 increased to 14,138 tons. And in the next three years, production continued to increase to 15,870 tons in 2010. But in 2011 production declined to 15,323 ton after the drop in the PA production of P.T. PETROWIDADA. And in view of all these problems, in 2012 production may decline to 12,250 tons. The business position of P.T. PETROWIDADA is unfavorable because the PA-1 and PA-II has yet production up to now.

 

Growth of Production of PA and MA in Indonesia

 

 

Type

 

2008

 

2009

 

2010

 

2011

 

3012*

 

 

PA

 

75,900

 

83,200

 

126,000

 

74,853

 

71,051

 

MA

 

14,138

 

14,348

 

15,870

 

15,323

 

12,250

 

P.T. PETROWIDADA has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. KWU is very reclusive towards outsiders and rejected to disclose its financial condition. We estimate that total sales turnover of the company in 2011 amounted to Rp. 527.0 billion rose to Rp. 535.0 billion in 2012 increased to Rp. 550.0 billion in 2013 and projected to go on rising by at least 5% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 45.1 billion and the company has an estimated total networth of at least Rp. 500.0 billion. We observe that P.T. PETROWIDADA 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.  

 

P.T. PETROWIDADA's management is headed by Mr. Choi Choon Ha (63) a professional manager of South Korea with more than 18 years of experience in industrial chemicals processing. Daily operation he is assisted by Mr. Hadisan Sridjaja (47) a professional manager graduated of South Carolina University of the USA, Mr. Yudianto Kosman (55), a graduated from Geological Engineering In University of Nevada, USA in 1986 and Magister Management from University of Indonesia in 1994, and Mr. Jaka Lelana (48), a directors. The management is also supported by a number of professionals in the above business. They have wide relations with private companies at home and abroad as well as with the government sector.

 

So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PETROWIDADA is sufficiently fairly good for business transaction. However, in view of the unstable political in the country, we recommend to treats prudently in extending a new loan to the company.

 

 


Attachment 1

 

 

List of the ETERINDO Group Members

 

 

1.       ANUGERAHINTI GEMANUSA, P.T. (Polyvinyl Alcohol and Acetic Acids Processing)

2.       ANUGERAH ARTA RESTUMAS, P.T. (Investment Holding)

3.       BUANA METALINDO, P.T. (Metalworking)

4.       BUANA MAKMUR ANDALAN, P.T. (Trading and Distributor)

5.       BUANA SOLVINDO, P.T. (Butyl Acetates Processing)

6.       ETERNAL BUANA CHEMICAL INDUSTRIES, P.T. (Plasticizers, Synthetic Latex Resins, Unsurated Polyester Resins and Alkyd & Amino Resins Processing)

7.       GENERAL INTI UTAMA, P.T. (Investment Holding)

8.       ETERINDO NUSA GRAHA, P.T. (Plastizers, Synthetic latex Resins, Unsurated Polyester Resins and Alkyd & Amino Resins Processing)

9.       ETERINDO ANUGERAH PRAKARSA, P.T. (Investment Holding)

10.    ETERINDO WAHANATAMA Tbk., P.T. (Investment Holding)

11.    GLOBECHEM PACIFIC PERKASA, P.T. (Maleic Anhydride Processing)

12.    HEXABUANA TOMANAS, P.T. (Modern Office Building Management)

13.    INDO BERLIAN BUANA PERKASA, P.T. (Maleic Anhydrides Processing)

14.    INTIMUTIARA CHEMINCO, P.T. (Trading and Distribution of Industrial Chemicals)

15.    INTIMUTIARA GASINDO, P.T. (Investment Holding and Distributions)

16.    INTIMUTIARA KIMINDO, P.T. (Trading and Importer of Industrial Chemicals)

17.    LARISJAYA, P.T. (Trading and Distributions of Industrial Chemicals)

18.    METRO PACIFIC CORP., Pte., Ltd., Singapore (Trading)

19.    MITSUI ETERINDO CHEMICALS, P.T. (Arcylamide Monomers Processing)

20.    PETRO OXO NUSANTARA, P.T. (Oxo Alcohols Processing)

21.    PETROWIDADA Tbk., P.T. (Phtalic Anhydride and Maleic Anhydride Processing)

22.    PROINTAL, P.T. (Chemical Storage Tanks Management)

23.    SOUTH EASTERN CHEMICALS Sdn., Bhd., Malaysia (Plasticizers and Resins Processing)

24.    E t c.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment 2

 

List of the PETROKIMIA GRESIK Group Members

 

1.       PETRINDO HITACHI ZOSEN, P.T. (Steel Fabricating)

2.       PETRO CENTRAL, P.T. (Sodium Tripoly Phosphate Processing)

3.       PETROFURYL, P.T. (Carbofuran Processing)

4.       PETROKIMIA GRESIK (Persero), P.T. (Petrochemical Industry and Investment Holding)

5.       PETROKIMIA KAYAKU, P.T. (Pesticides Formulation)

6.       PETROKUJANG PUTERA, P.T. (Phosphate Acid Purification)

7.       PETRONIKA, P.T. (Dicotyl Phtalate Industry or DOP Processing)

8.       PETROSIDA, P.T. (Active Pesticides Processing)

9.       PETROWIDADA, P.T. (Phthalic Anhydride Processing)

10.    PUSPETINDO, P.T. (Steel Fabricating)

11.    Etc.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 59.47

UK Pound

1

Rs. 100.93

Euro

1

Rs. 80.71

 

 

INFORMATION DETAILS

 

Analysis Done by :

KRN

 

 

Report Prepared by :

DPT

 

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.