MIRA INFORM REPORT

 

 

Report Date :

12.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. CG POWER SYSTEMS INDONESIA

 

 

Formerly Known As :

P.T. PAUWELS TRAFO ASIA

 

 

Registered Office :

Kawasan Industri Menara Permai Kav. 10, Jalan Raya Narogong Km. 23.852, Desa Dayeuh, Kecamatan Cileungsi, Bogor, 16820, West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.11.1990

 

 

Com. Reg. No.:

No. AHU-AH.01.10-31715

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Power Transformer

 

 

No. of Employees :

298

 

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

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

 

 

 


BASIC SEARCH

 

Name of Company :

P.T. CG POWER SYSTEMS INDONESIA

 

A d d r e s s :

Head Office & Factory

Kawasan Industri Menara Permai Kav. 10

Jalan Raya Narogong Km. 23.852

Desa Dayeuh, Kecamatan Cileungsi

Bogor, 16820

West Java

Indonesia

Phones             - (62-21) 823 0430 (Hunting)

Fax                   - (62-21) 823 4222, 823 0268

E-mail               - inquiry@cgglobal.com

Website                        - http://www.cgglobal.com

Land Area         - 35,000 sq. meters

Building Space  - 25,000 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Branch Office

Menara FIF, 12th Floor

Jalan T.B. Simatupang Kav. 15

Lebak Bulus, Cilandak

Jakarta Selatan, 12240

Indonesia

Phones             - (62-21) 290 45195 (Hunting)

Fax                   - (62-21) 290 45196

E-mail               - inquiry@cgglobal.com

Building Area     - 17 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

a.         20 November 1990 as P.T. PAUWELS ARYASADA TRAFO INDONESIA

b.         3 December 1996 as P.T. PAUWELS TRAFO ASIA

c.         15 October 2009 as P.T. CG POWER SYSTEMS INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. AHU-AH.01.10-0764

            Dated 9 January 2008

-           No. AHU-50039.AH.01.02.TH.2009

            Year 2009

-           No. AHU-38183.AH.01.02.TH.2010

            Dated 3 August 2010

-           No. AHU-AH.01.10-31715

            Dated 4 October 2011

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.069.333.1-055.000

 

The President of the Republic of Indonesia

No. B-255/Pres/8/1990

Dated 7 August 1990

 

The Capital Investment Coordinating Board

No. 261/I/PMA/1990

Dated 20 August 1990

 

Related Companies :

a.         CG POWER SYSTEMS BELGIUM N.V., Belgium (Investment Holding)

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

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 20,000,000.-

Issued Capital                : US$ 12,692,000.-

Paid up Capital              : US$ 12,692,000.-

 

Shareholders/Owners :

a. CG POWER SYSTEMS BELGIUM N.V.                                              - US$ 12,057,000.-

    Address : Antwerpsesteenweg 167

                    B-2800 Mechelen

                    Belgium

b. P.T. MAHESA ENGINEERS AND CONSTRUCTION     - US$      635,000.-

    Address : Jl. D.I. Panjaitan Kav. 2

                    Kelurahan Rawabunga, Kecamatan Jatinegara

                    Jakarta Timur

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Power Transformer Manufacturing

Production Capacity :

Power Transformers       - 6,000 MVA p.a.

 

Total Investment :

a.         Equity Capital    - US$ 12.7 million

b.         Loan Capital      - US$ 14.7 million

c.         Total Investment- US$ 27.4 million

 

Started Operation :

April 1994

 

Brand Name :

CG Power Systems Indonesia

 

Technical Assistance :

CG Power Systems Belgium N.V., Belgium

 

Number of Employee :

298 persons

 

Marketing Area :

Export               - 80%

Local    - 20%

 

Main Customer :

Buyers in Europe Union and the USA

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ASATA UTAMA ELECTRICAL INDUSTRIES

b. P.T. MORAWA ELECTRIC TRANSBUANA

c. P.T. TATUNG ELECTRIC INDONESIA

d. P.T. TRAFOINDO PRIMA PERKASA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         P.T. Bank INTERNATIONAL INDONESIA Tbk

                        Wisma BII

                        Jalan M.H. Thamrin No. 51

                        Jakarta Pusat

                        Indonesia

b.         P.T. Bank PANIN Tbk

                        Jalan Jend. Sudirman Kav. 1 (Senayan)

                        Jakarta Pusat, 10270

                        Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 332.0 billion

2012 – Rp. 344.0 billion

2013 – Rp. 351.0 billion

 

Net Profit (estimated) :

2011 – Rp. 27.2 billion

2012 – Rp. 29.4 billion

2013 – Rp. 30.1 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Hukumchand Lakhotiya

Directors                                   - a. Mr. Jayant Govindrao Kulkarni

                                                  b. Mr. Dileep Sahebrao Patil

                                                  c. Mr. Martin Kelly

 

Board of Commissioners :

President Commissioner - Mr. Laurent Dominique Leon Demortier

Commissioners                          - a. Mr. Ir. Syahril Anwar

                                                  b. Mr. Wilton Henriques

 

Signatories :

President Director (Mr. Hukumchand Lakhotiya or one of the Directors (Mr. Jayant Govindrao Kulkarni, Mr. Dileep Sahebrao Patil or Mr. Martin Kelly) which must be approved by Board of Commissioner.

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T PAUWELS ARYASADA TRAFO INDONESIA, the company was established in Jakarta on 20 November 1990 with an authorized capital of US$ 4,500,000 and an issued capital of US$ 1,000,000 of which US$ 500,000 was paid up. The company was founded by PAUWELS INTERNATIONAL N.V. of Belgium and P.T. ARYA SADA PERKASA of Indonesia as the original shareholders. The company's notarial act was since revised a couple of times. In December 1996 the company was renamed P.T. PAUWELS TRAFO ASIA. On this occasion the authorized capital was increased to US$ 10,150,000 entirely issued and paid up. On the same occasion the entire shares were taken over by PAUWELS INTERNATIONAL N.V. (60%) and P.T. META EPSI ENGINEERING (40%), a private company. In December 2007, the authorized capital of the company was raised to US$ 20,000,000 of which US$ 12,692,000 was issued and fully paid up. Since that time the shareholder of the company have been PAUWELS INTERNATIONAL B.V. of Belgium (57.0%), LAMEWA Ltd of Malaysia (38.0%) and P.T. META FOKUS SARANA ANANDA of Indonesia (5.0%).

 

Later on 15 October 2009 the company name was changed to P.T. CG POWER SYSTEMS INDONESIA (P.T. CPSI). Then according to the latest revision of notary documents of Mr. Sutjipto, SH., No. 148 dated 4 October 2011 P.T. META FOKUS SARANA ANANDA and PAUWELS INTERNATIONAL N.V. withdrew and replaced by CG POWER SYSTEMS BELGIUM N.N. and P.T. MAHESA ENGINEERS AND CONTRACTOR as new shareholders. With this time the composition of its shareholders has been changed to become CG POWER SYSTEMS BELGIUM N.V., (95%) and P.T. MAHESA ENGINEERS AND CONTRACTOR (5%). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-31715 dated October 4, 2010.

 

The above local partner is a member of the META EPSI Group, a big-sized business group in oil contracting business in Indonesia in which the majority business stakes are controlled by Mr. Ir. Sjahril Anwar and Mr. Darmoyo Doyoatmodjo, both are indigenous businessmen. CG POWER SYSTEM BELGIUM N.V. is a member company of the CG GLOBAL Group, a big sized business group in the power transformer industry based in Belgium. The group owns a very wide business network in many big cities in various countries.

 

P.T. CPSI is a Foreign Investment (PMA) company facility to deal with power transformer manufacturing. It’s plant, located on 35,000 sq. meters land in the Menara Permai Industrial Estate, Jalan Raya Narogong Km. 23.853, Cileungsi, Bogor, West Java, has been in operation since April 1994 under the license and technology of CG POWER SYSTEMS BELGIUM N.V., Belgium. P.T. CPSI produces power transformer of 230 kV voltages and of 250 MVA capacities which is the first and biggest type of transformer in Southeast Asia. In June 1999 P.T. CPSI succeeded in acquiring the ISO 9001 certificate from KEMA. In mid-2000 P.T. CPSI planned to produce transformer of 500 kV voltages, a high-tension transformer still being imported up to now. The economic crisis since mid-1997 has adversely affected P.T. CPSI on account of the falling demand for electric equipment, including transformer, from the state electricity company P.T. PLN and private electricity companies. Since then P.T. CPSI has started focusing its marketing to overseas. The company produces transformer by order from buyers. The Company manufactures Power Transformers and Auto Transformers and forms an integral part of the Power Systems Strategic Business Unit of CG the Company has branches in New Zealand and Australia.

 

The factory has an annual capacity of 6,000 MVA, per annum. It produces Power Transformers up to 250MVA and 275kV. P.T. PLN is a major local customer and around 80% of the Company's production is exported to Australasia, SE Asia and Middle East Asia countries. Till date, approximately 1500 units of power transformers have been delivered across 5 continents, facilitating supply of electricity to more than 72 million people. The Company's Transformers have following industrial and residential applications: mines, wind farms, aluminum smelters, oil and gas applications, steel mills, geothermal substation, severe seismic and coastal areas and residential complexes (low noise transformers). The Company is self-contained with in-house design, procurement, manufacturing and testing capabilities. The Company also provides full after sales service for the erection and commissioning of Power Transformers. After sales services remain throughout the warranty period and service life of its manufactured products. P.T, CPSI employs staff and workers with Tertiary and technical qualifications in electrical and mechanical engineering disciplines. Key staff and workers have had significant periods of training at CG's Belgium factories, with periodic updating both in Belgium and CG Power Systems Indonesia, via worker exchange. The Company operates proven design programs to individually design products to customer specifications and satisfaction.

 

The products of the company are locally sold particularly to a number of company members of the META EPSI Group whose main businesses are dealing with engineering and drilling contracting services; P.T. PERUSAHAAN LISTRIK NEGARA (P.T. PLN); P.T. CHEVRON PACIFIC INDONESIA; TOTAL E&P INDONESIE and a number of foreign oil companies. Besides, a large extent of products of P.T. CPSI is exported to various countries including Vietnam, Thailand, Australia, the Philippines and others. We observe that the operation of the company has been running smoothly and growing in the last three years.

 

The local demand for electrical equipment products like transformer and others electrical equipment has been growing in the last five years in line with the demand and need of electric energy in the country in the last five years. PLN is the main supplier of electricity to the national grid and originally supplied all electricity from its own plants which is financed and built. Between 1996 and 2006 PLN set up 27 Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) and 22 of these had to be renegotiated following the 1998-1999 economic crisis. There was almost no investment in new power plants between 2000 and 2006.

 

PLN launched its 10,000 MW electricity expansion program, comprising 35 new coal-fired power stations, to meet the growing demand for power amid power shortage, especially in the provinces, and to replace the use of fuel oil. PLN aimed to generated 6,900 MW from 10 new power plants in Java, alongside 25 power plants on other island outside The Java-Bali System generating 3,100 MW. The second 10,000 MW program would comprise 93 power stations, to be built between 2010 and 2014, with a total capacity of 10,153 MW. Of this 5,770 MW or 57% would be for The Java-Bali-Madura gird and the rest would be for Sumatra, Kalimantan, Sulawesi and Eastern Indonesia. PLN originally planned that up to 48% of the second 10,000 MW power program would be generated from geothermal sources, 26% from coal, 14% from natural gas and 12% from hydropower. The proposed fuel mix was then amended to 37% geothermal 33% coal-fired, 16% from gas and 12% from hydroelectric power.

 

The Production and Sales of National Electricity, 2005 – 2012

 

Year

Electricity Production (GWh)

Electricity Sales (GWh)

2005

127,371

107,032

2006

133,109

112,610

2007

142,440

121,247

2008

149,438

                    129,019

2009

155,333

134,582

2010

165,621

147,297

2011

172,246

157,997

2012

177,383

163,527

Source: Department of Mines and Energy Resources

 

Until this time P.T. CPSI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CPSI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 332.0 billion rose to Rp. 344.0 billion in 2012 increased to Rp. 351.0 billion in 2013 and projected to go on rising by at least 5% in 2014. The company’s operation in 2013 yielded a net profit of Rp. 30.1 billion. The company has an estimated total networth of at least Rp. 187.0 billion. We observe that P.T. BBI 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. CPSI is led by Mr. Hukumchand Lakhotiya (45) a professional manager of India with experience in power transformer manufacturing and trading. Daily activity he is assisted by Mr. Jayant Govindrao Kulkarni (60), Mr. Dileep Sahebrao Patil (58) and Mr. Martin Kelly (54) as Directors. 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. CG POWER SYSTEMS INDONESIA is sufficiently fairly good for business transaction.

 

 

Attachment

 

List of the METAEPSI Group Members

 

ANDIRA AGRO, P.T. (Palm Oil Plantation)

CG POWER SYSTEMS INDONESIA, P.T. (Power Transmission Manufacturing)

MAHESA ENGINEERS AND CONTRACTORS, P.T. (Mechanical Electrical Contractors and Investment Holding)

MAHESA REKATAMA ENJINEERING, P.T (General Contractors)

META EPSI, P.T. (Mechanical Works, Engineering Construction and Investment Holding)

MESITECHMITRA PURNABANGUN, P.T. (Plant Maintenance Services)

META EPSI MINATARA, P.T. (Fish Farming)

MESA INTI KEBUN, P.T. (Palm Oil Plantation)

MENAMAS MITRA ENERGY, P.T. (Electrical Power Plant) 

Etc.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.07

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NNA

 

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.