|
Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. PINDAD (PERSERO) |
|
|
|
|
Registered Office : |
Jalan Jend. Gatot Subroto No. 517 Kiaracondong, Bandung 40284 West Java |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
29.04.1983 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
· Metalworking · Manufacturing of Machine Tools and Industrial Machinery · Manufacturing of Generators, Mining Pumps, Railway Components including Rail Fastener, Airbrake Systems Vacuum Circuit Breakers, Forge Components & Casting Parts · Manufacturing of Armaments and Defense Equipments ·
Investment Holding |
|
|
|
|
No. of Employees : |
3,181 |
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, grew more than 6%
annually in 2010-12. The government made economic advances under the first administration
of President YUDHOYONO (2004-09), introducing significant reforms in the
financial sector, including tax and customs reforms, the use of Treasury bills,
and capital market development and supervision. During the global financial
crisis, Indonesia outperformed its regional neighbors and joined China and
India as the only G20 members posting growth in 2009. The government has
promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of
less than 25%, a fiscal deficit below 3%, 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 in
2013 faces the ongoing challenge of improving Indonesia''s insufficient
infrastructure to remove impediments to economic growth, labor unrest over
wages, and reducing its fuel subsidy program in the face of high oil prices
Source
: CIA
P.T. PINDAD
(PERSERO)
Head Office &
Factory 1
Jalan Jend. Gatot Subroto No. 517
Kiaracondong, Bandung 40284
West Java
Indonesia
Phones - (62-22) 7312073, 7312076
Fax - (62-22) 7301222, 7304292
E-mail - info@pindad.com
Website - http://www.pindad.com
Land Area - 30,000 sq. meters
Building Space - 15,000 sq. meters
Region - Industrial Zone
Status - Owned
Factory II
Jalan Jend.
Sudirman No. 1
Turen, Malang,
65175
East Java
Indonesia
Phones - (62-341) 824462
Fax - (62-341) 824200
E-mail - divmu@indo.net.id
Land Area - 12,000 sq. meters
Building Space - 8,000 sq. meters
Region - Industrial Zone
Status - Owned
Branch
Jalan Batu Ceper
No. 28
Jakarta Pusat
Indonesia
Phones - (62-21) 3806929, 3802886
Fax - (62-21) 3814039
E-mail - pindadjkt@pindad.com
Building Area - 2 storey
Office Space - 200 sq. meters
Region - Commercial
Status - Rent
Date of Incorporation
:
a. 29 April 1950 as Pusat Perindustrian Angkatan Darat (Army Industrial Centre)
b. 29 April 1983 as P.T. PINDAD (Persero)
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of Law
and Human Rights
- No. C2-4134.HT.01.01.TH.1984
Dated 20 January 1984
- No. AHU-AH.01.10-10889
Dated 21 July 2009
- No. AHU-AH.01.10-18229
Dated 22 May 2012
Company Status :
State Owned Company
Permit by the Government Department :
The Department of
Finance
- NPWP No. 01.060.008.051.000
- No. 307/KMK.011/1983
Dated 27 April 1983
The Department of
Defense and Security
No. SKEP/65/M/IV/1983
Dated 29 April 1983
Related Companies :
a. P.T. CAKRA MANDIRI PRATAMA (Hospital Management Services)
b. P.T. GOODRICH PINDAD AURONAUTICAL SYSTEM INDONESIA (Aircraft Component Manufacturing)
c. P.T. INTI PINDAD MITRA SEJATI (General Contacting and Trading)
d. P.T. MAN TURBO MANDIRI PRATAMA (Maintenance and Installation of Turbine Machinery)
Capital Structure :
Authorized Capital Rp. 1,000,000,000,000.-
Issued Capital : Rp. 367,542,000,000.-
Paid up Capital : Rp. 367,542,000,000.-
Shareholder/Owner :
The Government of
the Republic of Indonesia - Rp.
367,542,000,000.-
Lines of Business :
a. Metalworking
b. Manufacturing of Machine Tools and Industrial Machinery
c. Manufacturing of Generators, Mining Pumps, Railway Components including Rail Fastener,
Airbrake Systems Vacuum Circuit Breakers, Forge Components & Casting Parts
d. Manufacturing of Armaments and Defense Equipments
e. Investment Holding
Production Capacity :
A. Centre of Excellent Products
- SS1-VI (Assault Rifles) - 100,000 pieces p.a.
- Ammunition 38 - 20,000,000 pieces p.a.
- Ammunition SS.109 - 20,000,000 pieces p.a.
- Morter Tampela - 90,000 pieces p.a.
- Hand Grenades - 110,000 pieces p.a.
B. Energy Sector Products
- Generators - 50 units p.a.
- Breakers - 400 pieces. p.a.
C. Transportation Sector Products
- Air Brake System for Rail Ways - 400 units p.a.
- Rail Fastener for Rail Ways - 250,000 sets p.a.
- Marine Equipment - 12 units p.a.
D. Machine Tools
- CNC Machine (Fanuc Tape Drill) - 140 units p.a.
- Conventional Machine Tools
(Milling Leather) - 300 units p.a.
E. Other Products
- Metal Spare Parts - 1,500 tons p.a.
- Pump for Mining - 300 units p.a.
Total Investment :
Owned Capital - Rp. 367.5 billion
Started Operation :
1950
Brand Name :
Pindad
Technical Assistance :
None
Number of Employee :
3,181 persons
Marketing Area :
Local - 100%
Main Customer :
Indonesian Army
Market Situation :
Very Competitive
Main Competitors :
None
Business Trend :
Growing
B a n k
e r s :
a. P.T. Bank MANDIRI Tbk
Jalan Asia Afrika No. 92
Bandung, West Java
Indonesia
b. P.T. Bank NEGARA INDONESIA Tbk
Jalan Asia Afrika No. 119
Bandung, West Java
Indonesia
Auditor :
Hendrawinata Gani & Hidayat (Grant Thornton)
Litigation :
No litigation record in our database
Annual Sales :
2010 – Rp. 1,105.8 billion
2011 – Rp. 1,265.9 billion
2012 – Rp. 1,300.0 billion
2013 – Rp. 1,000.0 billion (January – June) estimated
Net Profit :
2010 – Rp. 34.2 billion
2011 – Rp. 37.0 billion
2012 – Rp. 40.8 billion
2013 – Rp. 50.0 billion (January – June) estimated
Payment Manner :
Average
Financial Comments :
Satisfactory
Board
of Management :
President Director - Mr. Dr. Ir. Adik Avianto Soedarsono
Directors - a. Mr. Ir. Slamet Irianto, MM
c. Mr. Ir. Tri Hardjono
d. Mrs. Dra. Lenggogeni, MM
e. Mr. Ir. Wahyu Utomo, MM
Board
of Commissioners :
President
Commissioner - Mr. Jend. TNI
Pramono Edhie Wibowo
Vice
President Commissioner - Mr. Ali Yusuf
Susanto
Commissioners - a. Mr. Dr. Ir. Richard Mengko
b. Mr. Brigjend. TNI (Retired) Heri Supraba,
SIP
c. Mr. Brigjend. TNI Maman Soemantri
Signatories
:
President
Director (Mr. Dr. Ir. Adik Avianto Soedarsono) or one of the Directors (Mr. Ir.
Slamet Irianto, MM., Mr. Ir. Tri Hardjono, Mrs. Dra. Lenggogeni, or Mr. Ir.
Wahyu Utomo, MM.) which must be approved by Board of Commissioner
Management
Capability :
Good
Business
Morality :
Good
Credit
Risk :
Average
Credit
Recommendation :
Credit
should be proceeded with monitor
Proposed Credit Limit :
Small amount – periodical review
Originally named Pusat Perindustrian Angkatan Darat (army industrial centre) abbreviated to PINDAD set-up in 1950. Based on the government's regulation (PP) of 1983 a Perseroan Terbatas (P.T.) or Limited Liability Company named P.T. PERINDUSTRIAN TENTARA NASIONAL ANGKATAN DARAT or P.T. PINDAD for short was established with the authorized capital Rp. 350,000,000,000.- issued capital of Rp. 240,000,000,000.- of which Rp. 70,000,000,000.- was paid up. P.T. PINDAD shares are entirely owned by the government. P.T. PINDAD is one of all ten state owned companies dealing with strategic industries (BUMNIS) previously headed by the Minister of Research and Technology Prof. Dr. Ir. B.J. Habibie who is also former President of the Republic of Indonesia. In August 1998, P.T. PINDAD shares were taken over by P.T. BAHANA PAKARYA INDUSTRI STRATEGIS (ex. P.T. PAKARYA INDUSTRI). P.T. PINDAD's shareholder namely P.T. BAHANA PAKARYA INDUSTRI STRATEGIS is a state-owned holding company established in August 1998 aimed to control the entire shares and controlling the operation of the above all ten BUMNIS respectively P.T. KRAKATAU STEEL, P.T. DIRGANTARA INDONESIA (ex. P.T. INDUSTRI PESAWAT TERBANG NUSANTARA), P.T. PAL INDONESIA, P.T. PINDAD, P.T. BOMA BISMA INDRA, P.T. BARATA INDONESIA, P.T. INDUSTRI TELEKOMUNIKASI INDONESIA, P.T. INDUSTRI KERETA API, P.T. LEN INDUSTRI and P.T. DAHANA.
Based on the decision of an extra-ordinary shareholders meeting of P.T. BAHANA PAKARYA INDUSTRI STRATEGI (P.T. BPIS), the government on 28 March 2002 decided to liquidize and to cease the operation of P.T. BPIS and therefore the whole of P.T. PINDAD's shares is controlled by the Government of the Republic of Indonesia. Then in July 2008 the authorized capital was raised to Rp. 1,000,000,000,000 issued capital to Rp. 367,542,000,000 entirely paid up. Later in June 2009 the board of directors and the board of commissioners had been changed. The revision of notary deed was made by Mrs. Nining Puspitaningtyas, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-10889, dated July 21, 2009.
Then according to the latest revision of notary documents of Mrs. Nining Puspitaningtyas, SH., No. 55 dated 9 March 2012 the company board of director and the board of commissioner had been changed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-18229 dated May 22, 2012.
P.T. PINDAD is engaged in armament manufacturing. The business activities in manufacturing a variety of military and commercial products formed the core activities of the company. The factories and offices located in Bandung and Turen, Malang, as well as the marketing office in Jakarta, support business success of the two product groups mentioned above. It products light arms, ammunitions, dynamites, artillery motors, hand grenades, etc. The products are produced to meet the requirements of the Department of Defense and Security (HANKAM), and besides that, the company also has succeeded to export partly of the products to a number of North Atlantic Treaty Organization (NATO) member countries. Since 1984 P.T. PINDAD has diversified its activity into non-military product manufacturing, like vacuum circuit breakers under the license of SIEMEN of Germany, air brake system for railway under the license of KNOOR, Germany, Key for railway trains licensed by HOLLANDIA KLOOS B.V. of the Netherlands.
P.T. PINDAD also produces generator sets, machine tools, pumps for mining, metal spare parts, etc. Four divisions in Bandung run the business activities for commercial products which are; Mechanical Industry and Services Division that produces ship equipments and air brakes as well as industrial machineries, Casting and Forging Division that produces forged and casting components, Special Vehicles Division, which produces a special function vehicles for both commercial and military purposes, as well as Commercial Explosives Division that produces explosives for commercial purposes such as mining. Weapon Division that specialized in the production of military products with long and short barrel weapons is also located in Bandung. The other Division in Turen, Malang, produces such various kinds of military ammunitions and explosives.
PINDAD Products:
Windlass; Naval Seat;
Steering Gear; Winches; Vacuum Circuit Breaker (VCB); BOMB
Air Brake; Munisi 5.56 x 45 mm; Eno Pindad Debarker; Law Enforcement Personal
Equipment; Mortar Grenade; Motor Traksi; Munisi 12.7 x 99 mm; Munisi 38
Special; Munisi 9 mm; Munisi 7.65 mm; Grenade Launching Adapter PGT; Water
Canon M1W-40; Combat Vehicle; Special Vihicle Purpose; Tools; Generator;
Component & Parts; Counter Weight Pump; LPG Valve; Worm; Booster and SS2-V1
Seismic.
Some of P.T. PINDAD's major customers are Indonesian Army Forces (TNI), POLRI (Indonesian Police) Deparment of Law; Department of Forestry; Directorate of General Custom; Indonesian Oil & Gas, P.T. PERUSAHAAN LISTRIK NEGARA (P.T. PLN), P.T. KERETA API INDONESIA, P.T. INDUSTRI KERETA API (P.T. INKA), P.T. BOGASARI, P.T. KODJA BAHARI, P.T. SUMITOMO CORPORATION, FERROSTAL AG of Germany, NIIGATA DIESEL of Japan, ABC-NV of Belgium, FR LUERSSEN WERFT of Germany and many others.
In investment holding P.T. PINDAD was appointed as the local partner in the joint venture companies namely P.T. GOODRICH PINDAD AURONAUTICAL SYSTEM INDONESIA engaged in aircraft component manufacturing by controlling its 30% shares. P.T. PINDAD is classified as a large sized company in the country of which the operation had been running smoothly and growing steadily in the last three years.
The domestic demand on military equipment like submarine spare parts, battleship, other military equipments, marine equipment and spare parts and maintenance services is getting increase about 6% per year in the last five years. This matters in line with the increasing of expenditure budget in the defense and security sector in the last five years. It is forecasted that the demand will increase about 7% in the last five years. In addition, demand on military budget will increase in the next five years, in line with development of many industrial sectors who are its customer. If Gross Domestic Product growth can be maintained as an average of 10 years by 16.2% (between 5-6% economic growth) and the average state budget 18.8% of GDP, then the defense spending when projected = average of the last 10 years amounted to 4, 2% of the national budget (less than 1% of GDP) will get the number 5 years ahead is very big. Market competition is very tough on account of many other imported products being offered on the domestic market. P.T. PINDAD's business position is not too badly because it has built regular customers and extensive marketing network both on the local and overseas. We are sure that P.T. PINDAD is in position to further maintain its business in the future. Besides that, P.T. PINDAD in its operation is fully backed by the government.
Estimation of
Indonesian Defense Budget, 2010 – 2014
|
No. |
Description |
Average 2000 - 2009 |
2010 E |
2011 E |
2012 E |
2013 E |
2014 E |
|
1. 2. 3. |
GDP % Growth APBN % GDP % Growth Defense Budget % GDP % APBN % Growth |
16.2% 18.8% 20.5% 0.8% 4.2% 18.3% |
6.167.50 16.2% 1.313.76 18.8% 55.13 4.2% |
7.164.84 16.2% 1.560.55 18.8% 65.49 4.2% |
8.323.44 16.2% 1.853.70 18.8% 77.79 4.2% |
9.669.40 16.2% 2.201.92 18.8% 92.40 4.2% |
11.233.02 16.2% 2.615.56 18.8% 109.76 4.2% |
Until this time P.T. PINDAD has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. According information from Ministry of State Owned Enterprise the sales turnover of the company in 2009 was amounted at Rp. 1,007.1 billion with a net profit of Rp. 28.0 billion increased to Rp. 1,105.8 billion with a net profit of Rp. 34.2 billion in 2010 increased to Rp. 1,265.9 billion with a net profit of Rp. 37.0 billion in 2011 and to Rp. 1,300.0 billion with a net profit of Rp. 40.8 billion in 2012. We estimate the sales turnover as from January to June 2013 amounted at Rp. 1,000.0 billion with a net profit of Rp. 50.0 billion and the sales it’s projected to go on rising by at least 6% in 2014. The company has an estimated total networth of at least Rp. 525.0 billion. 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. PINDAD is led by Mr. Dr. Ir. Adik Avianto Soedarsono (53) a professional manager with experience in armament and defense equipments manufacturing and trading. He graduated from University of Missouri-Rolla, USA, 1988-1996. The company's management is handled by professional managers 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. PINDAD (Persero) is sufficiently fairly good for business transaction.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.