MIRA INFORM REPORT

 

 

Report Date :

27.06.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ZUG INDUSTRY INDONESIA

 

 

Registered Office :

Pergudangan Miami, Jalan Rawa Melati Block A1 No. 5, Kelurahan Tegal Alur, Kecamatan Kalideres Jakarta Barat, 11820

 

 

Country :

Indonesia

 

 

Date of Incorporation :

13.05.2004

 

 

Com. Reg. No.:

AHU-53560.AH.01.02.TH.2012

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer of Boiler

 

 

No of Employees :

250 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. ZUG INDUSTRY INDONESIA

 

 

Address :

Head Office & Factory

Pergudangan Miami

Jalan Rawa Melati Block A1 No. 5

Kelurahan Tegal Alur, Kecamatan Kalideres

Jakarta Barat, 11820

Indonesia

Phones             - (62-21) 5595 2077 (Hunting)

Fax                   - (62-21) 5595 1873

E-mail               - sales.id@zug-power.com

                          zuq@cbn.net.id

Website            - http://www.zug-power.com

Land Area         - 17,000 sq. meters

Building Space  - 230 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Branch Office

Jalan Ir. Haji Juanda II No. 26 C

Kelurahan Sukadamai, Kecamatan Polonia

Medan, 20157

North Sumatera

Indonesia

Phones             - (62-61) 4556 752

Fax                   - (62-61) 4556 753

Building Area     - 2 storey

Office Space      - 110 sq. meters

Region              - Commercial

Status               - Rent

 

 

Date of Incorporation :

13 May 2004

 

 

Legal Form :

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

 

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-18834.HT.01.01.TH.2004

   Dated 28 July 2004

 

 

- No. AHU-53560.AH.01.02.TH.2012

   Dated 17 October 2012

 

 

Company Status :

Foreign Investment (PMA) Company

 

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.116.428.0-059.000

The Department of Industry and Trade

TDP No. 090215328277

Dated 3 December 2004

The Capital Investment Coordinating Board

No. 227/I/PMA/2004

Dated 27 April 2004

 

 

Related Company :

P.T. TAKA TURBOMACHINERY INDONESIA (Turbine Rotating Equipment Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 11,613,000.-

Issued Capital                                  : US$   4,625,800.-

Paid up Capital                                : US$   4,625,800.-

 

 

Shareholders/Owners :

a. Henkie Leo                                                                   - US$ 4,043,210.-

    Address : Jl. Taman Villa Meruya Block C 3 No. 15 A

                    Kelurahan Meruya Utara, Kecamatan

                    Kembangan, Jakarta Barat, Indonesia

b. Mr. Williem                                                                  - US$    559,180.-

    Address : Jl. Teluk Gong, RT. 010 RW. 007

                    Kelurahan Pejagalan, Kecamatan Penjaringan

                    Jakarta Utara, Indonesia

c. Mr. Chen Weiping                                                         - US$      23,410.-

    Address : Jiangsu, Yixing Shi

                    Zhoo Tie Zheng Chen Qiao, China

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Boiler Manufacturing

 

 

Production Capacity :

a.   Package Boilers                        - 160 unit p.a.

b.   Industrial Boilers                        - 100 unit p.a.

c.   Pressure Vessels                      -   75 unit p.a.

 

 

Total Investment :

Owned Capital                                 - US$ 11.6 million

 

 

Started Operation :

2005

 

 

Brand Name :

ZUG

 

 

Technical Assistance :

STEINMMULLER GmbH of Germany

 

 

Number of Employee :

250 persons

 

 

Marketing Area :

Local       - 100%

 

 

Main Customer :

Power Plants, Industry and Civil Contractors

 

 

Market Situation :

Very Competitive

 

 

Main Competitors :

a. P.T. BOUSTEAD MAXITHERM INDUSTRIES

b. P.T. CILEGON FABRICATORS

c. P.T. GRAND KARTECH Tbk

d. P.T. HITACHI CONSTRUCTION MACHINERY

e. P.T. MECHMAR JAYA INDUSTRIES

 

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   Hongkong and Shanghai Banking Corp. Ltd.

      World Trade Centre

      Jalan Jend. Sudirman Kav. 29-31

      Jakarta Selatan

      Indonesia

b.   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. 450.0 billion

2012 – Rp. 475.0 billion

2013 – Rp. 510.0 billion

 

Net Profit (estimated) :

2011 – Rp. 36.0 billion

2012 – Rp. 40.0 billion

2013 – Rp. 43.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

Director                                           - Mr. Henkie Leo

General Manager                             - Mr. Heri Purnomo

 

 

Board of Commissioners :

Commissioner                                 - Mr. Williem

 

 

Signatories :

Director (Mr. Henkie Leo) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Based on investigation the correct name of report is P.T. ZUG INDUSTRY INDONESIA not P.T. ZUG MANUFACTURE INDONESIA as stated in your order ref. no. 273290 dated 19 June 2014.

 

P.T. ZUG INDUSTRY INDONESIA (P.T. ZII) was established in Jakarta based on notary deed Mr. Umar Ali, SH., no. 5 dated 13 May 2004 with the authorized capital of US$ 400,000 issued capital of US$ 100,000 entirely paid up. The founding and shareholders of the company are Mr. Henkie Leo, Mr. Ngadiman Kosumo both are of Indonesia and Mr. Lin Tsung Chi of China. The company notary deed had been changed a couple of times. The latest according to the revision of notary deed Mr. Andy Azis, SH., no. 3 dated 12 July 2012 the company authorized capital was increased to US$ 11,613,000 issued capital to US$ 4,625,800 entirely paid up. On the same occasion Mr. Ngadiman Kosumo and Mr. Lin Tsung Chi pulled out and the whole share taken over by Mr. Williem of Indonesia and Mr. Chen Weiping of China as new shareholders. With this development the composition of its shareholders has been changed to become Mr. Henkie Leo (87.40%), Mr. Williem (12.09%) and Mr. Chen Weiping (0.57%). The deed of amendment was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-53560.AH.01.02.TH.2012 dated October 17, 2012.

 

P.T. ZII is obtained Foreign Investment (PMA) company facility from the Capital Investment Coordinating Board (BKPM) to deal with boiler manufacturing. The company manages a plant located in Pergudangan Miami, Jalan Rawa Melati Block A1 No. 5, Tegal Alur, Kalideres, West Jakarta standing on a land of 17,000 sq. meters. The plant has been in commenced operation since 2005 by produce of boiler and related equipment. In 2005, the Company got its first project in the power-generation industry, when it installed (and, later contracted to maintain) for P.T. Pabrik Kertas Tjiwi Kimia Tbk two boilers with total capacity of 90 ton per hour for captive power plant of the client. This followed by 150 ton boilers for P.T. Lontar Papyrus later the same year. With the momentum of the first 10,000 MW Fast Track Program of Indonesia, the Company started its fast development into the power segment with focus on small capacity IPP clients. To keep price attractive, the Company has secured agency of Wuxi Zozen Boilers Co. Ltd. and Hangzhou Chinen Steam Turbine. 

 

P.T. ZII is able manufacture industrial boilers with a range from 2 to 110 tons per hour and power plant boilers in the range of 20 to 250 tons per hour. With a pressure up to 130 bar, super heater temperatures up to 545ºC and sub critical temperature of 570ºC. P.T. ZII total installed capacity is up to 12,000 tons per year. This is achieved by replacing the time consuming and labour intensive jobs, such as plate/pip e bending, rolling, cutting and welding, with automated machines. The company has installed an array of heavy automated CNC machinery along their assembly line. The factory stands alongside their new office complex, ensuring engineering and manufacture are in close contact. The office and manufacturing facility are set on a total area 3 ha in prominent industrial and warehousing area. A second area of 8 ha has now been acquired for their future expansion.

 

As the market grew rapidly, the Company began its own manufacturing and assembly line of boilers and related equipments. In 2008, the Company set up its own factory in Jakarta and started manufacturing a wide range of equipment including boilers, heat exchangers, steel structures, water treatment equipment, etc. This effort enabled the Company to become an integrated EPC contractor in a faster pace. The Company soon realized that there was a growing market in Indonesia for full EPC of small coal fired power plants, both for the public and private sector. So the investment was made and a new state of the art factory was constructed in Jakarta for the manufacture of boilers. This is the most modern facility of its kind in Indonesia. Having this facility along with their in house design and engineering departments, allows Zug to offer a much faster and competitive solution to the customers, from first discussions to full project completion. Their experience covers not only coal fired Power Plants, but renewable energy solutions, such as Solar, Hydro, Biomass, and Heat Recovery Systems.

 

P.T. ZII is one of the leading boiler manufacturers and power plant contractors in Indonesia. Through co-operation with partners in Germany and China, supported by design team with international background and rich experiences in both industrial and power plant projects, they have obtained an edge over competitors in providing a reliable and integrated package solution for their customers. P.T. ZII customers are P.T. PETROKIMIA GRESIK, P.T. MUSIM MAS, P.T. RIAU POWER, P.T. RIMAU ELEKTRIK, P.T. PLN (Persero), P.T. PLN/WASKITA KARYA, P.T. REKADAYA ELEKTRIKA (Timika), P.T. TIAU ENERGI TOGA (Duri), P.T. INDUSTRI KARET DELI and many others. We observe P.T. ZII is one of the biggest producer of boilers in the country with operation has been growing and developing well in the last three years.

 

Generally outlook, the demand for industrial boilers had kept on rising by 7% to 9% per annum in the last five year in line with the rapid growth of industrial sectors as users, but later declined under the impact of global economic crisis since October 2008. The crisis caused the imported basic materials and operation cost to sky rocket amid the sluggish purchasing power. The business position of the company is still favorable for the management has built fixed customers and wide marketing network in the country. Global economic downturn and the necessity for stabilizing national economy have affected Indonesia’s economic growth. Domestic economy in 2013 was estimated to grow 5.7%, slower when compared to 2012 growth of 6.2%. In 2014, national economic growth is expected to be better, close to the lower limit of the range of 5.8%-6.2% in line with the improvement of global economy. Inflation in 2013 rose to 8.38% from 4.30% in 2012, or above the inflation target of 4.5±1%, caused by the turmoil of domestic food prices and the increase of subsidized fuel prices at the end of June 2013. Then, the increase in subsidized fuel prices has pushed the increase in prices. However, the inflation gradually returned to normal since September 2013. Looking ahead, Bank of Indonesia believes that inflation will remain under control in the range of 4.5±1% in 2014 and 4.0±1% in 2015 (Source: Bank Indonesia/Tinjauan Kebijakan Moneter Januari 2014).

 

Until this time P.T. ZII has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. ZII 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. 450.0 billion rose to Rp. 475.0 billion in 2012 increased to Rp. 510.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2007 yielded an estimated net profit of at least Rp. 1.4 billion and the company has an estimated total networth of at least Rp. 43.0 billion. We observe that P.T. ZII 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. ZII is led by Mr. Henkie Leo (44) a businessman and professional manager with experience in boiler manufacturing and trading. The company's management is handled by professional staff in the above business. They have wide relations 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 any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. ZUG INDUSTRY INDONESIA 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 loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs. 60.16

UK Pound

1

Rs. 102.23

Euro

1

Rs. 82.04

 

 

INFORMATION DETAILS

 

Analysis Done by :

SMT

 

 

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.