MIRA INFORM REPORT

 

 

Report Date :

13.05.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. HARTONO ISTANA TEKNOLOGI

 

 

Registered Office :

Jl. KHR Asnawi No. 310, Kaliwungu – Kudus 59332, Jawa Tengah

 

 

Country :

Indonesia

 

 

Date of Incorporation :

31.10.1992

 

 

Com. Reg. No.:

AHU-AH.01.10-18891

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject operates household electronic products like television, radio tape recorder, video campact disc, air conditioner and refrigerator

 

 

No of Employees :

6012

 

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

 

 
Name of Company

 

P.T. HARTONO ISTANA TEKNOLOGI

 

 

company Address

 

Head Office & Factory 1

Jl. KHR Asnawi No. 310

Kaliwungu – Kudus 59332

Jawa Tengah

Indonesia

Phones             - (62-291) 433255, 433266

Fax.                  - (62-291) 431001, 431030

Email                - hrdkudus@polytron-indonesia.com

Website                        - http://www.polytron.co.id

Land Area         - 20.0 hectares

Building Space  -   9.5 hectares

Region              - Industrial Zone

Status               - Owned

 

Factory 2

Jl. Raya Semarang Demak Km. 9

Sayung – Semarang 59563

Central Java

Indonesia

Phones             - (62-291) 6592220 (hunting)

Fax.                  - (62-291) 6592225

Land Area         - 16.5 hectares

Building Space  -   4.2 hectares

Region              - Industrial Zone

Status               - Owned

 

Branches

a. Jakarta Office

    Jl. Aipda KS Tubun II/15

    Jakarta 11410

    Indonesia

    Phones         - (62-21) 5322663, 5330987

    Fax.              - (62-21) 530225

b. Thailand Office (Polytron Thailand Co. Ltd.)

    514/17 SOI Ramkamhaeng 39 (Tapelila), Ramkamhaeng Road, Kwaeng

    Wangthonglang, Khet Wanghonglang

    Bangkok 10310, Thailand

    Phones         - (66-2) 1582696

    Fax.              - (66-2) 1582697

 

 

Date of Incorporation

 

31 October 1992

 

 

Legal Form

 

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

 

 

Company Reg.No.

 

The Ministry of Law and Human Rights

a. No. AHU-92955.AH.01.02.Tahun 2008

    Dated 03 December 2008

b. No. AHU-AH.01.10-18891

    Dated 20 June 2011

 

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

a. The Department of Finance

    NPWP No. 01.462.713.7-092.000

 

b. The Department of Industry and Trade

    TDP No. 11.25.1.32.00081

    Dated 18 February 2008

 

 

Holding Company

 

P.T. KUMPARAN KENCANA ELECTRINDO, a company member of the DJARUM Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp. 500,000,000,000.-

Issued Capital                - Rp. 325,000,000,000.-

Paid up Capital              - Rp. 325,000,000,000.-

 

Shareholders/Owners :

a. PT. Kumparan Kencana Electrindo             - Rp. 259,966,000,000.- (80.00%)

    Address: Jl. Kyai Haji Raden Asnawi

                   PO Box 125, Kudus

                   Indonesia

 

b. Mr. Robert Budi Hartono                              - Rp.   33,167,000,000.- (10.20%)

    Address: Jl. Tanjung No. 53

                   Kudus, Central Java

                   Indonesia

 

c. Mr. Michael Bambang Hartono                    - Rp.   31,867,000,000.- (09.80%)

    Address: Jl. Tanjung No. 53

                   Kudus, Central Java

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Electronic Household Appliance Industry

 

Production Capacity :

Factory 1

a. Color/LCD TV Sets                 - 400,000 units p.a.

b. Black & White TV Sets           -   50,000 units p.a.

c. Computer Monitors                 -   20,000 units p.a.

d. TVRO/Satellite Receivers        -   10,000 units p.a.

e. Music Center (Audio)              - 350,000 units p.a.

f.  Radio Cassettes                    - 200,000 units p.a.

g. Radios                                  - 100,000 units p.a.

 

Factory 2

a. Refrigerators                          - 150,000 units p.a.

b. Air Conditioners                     - 100,000 units p.a.

c. Smart Phones                        - 360,000 units p.a.

 

Total Investment :

Owned Capital   - Rp. 325.0 billion

 

Started Operation :

1993

 

Brand Name :

POLYTRON

 

Technical Assistance :

None

 

Number of Employee :

6,012 persons

 

Marketing Area :

Domestic          - 85%

Export               - 15%

 

Main Customers :

a. P.T. SARANA KENCANA MULYA (as Sole Distributor)

b. Dealers in Banjarmasin, Palu, Makassar, Sorong, Kendari, Ambon, Padang and Manado

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Sharp Indonesia

b. PT. Panasonic Gobel Manufacturing

c. PT. Sanyo Indonesia

d. PT. Sony Indonesia

e. PT. Samsung Indonesia, etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. Bank MANDIRI Tbk

    Jl. Jend. Sudirman No. 128

    Kudus, Central Java

    Indonesia

b. P.T. Bank Negara Indonesia

    Jl. Jend. A. Yani No. 55

    Kudus, Central Java

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Annual Sales (estimated) :

2009 – Rp. 2,018.0 billion

2010 – Rp. 2,460.0 billion

2011 – Rp. 2,540.0 billion

2012 – Rp. 2,910.0 billion

2013 – Rp. 3,320.0 billion

 

Net Profit (estimated) :

2009 – Rp. 165.0 billion

2010 – Rp. 202.0 billion

2011 – Rp. 208.5 billion

2012 – Rp. 239.0 billion

2013 – Rp. 273.0 billion

 

Payment Manner :

Good

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Hariono

Director s                                  - a. Mr. Khosasih Adisusanto

                                                  b. Mr. Djunedhi Listyono

                                                  c. Mr. Robin Wijaya

                                                  d. Mr. Tekno Wibowo

 

Board of Commissioners :

President Commissioner - Mr. Robert Budi Hartono

Commissioners                          - a. Mr. Michael Bambang Hartono

                                                  b. Mr. Dwi Djaja Setiabudi

 

Signatories :

President Director (Mr. Hariono) or one of the Directors (Mr. Khosasih Adisusanto, Mr. Djunedhi Listyono , Mr. Robin Wijaya or Mr. Tekno Wibowo) which must be approved by Board of Commissioners (Mr. Robert Budi Hartono and Mr. Michael Bambang Hartono).

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. HARTONO ISTANA TEKNOLOGI (P.T. HIT) was established on October 31, 1992 in Kudus (Central Java) with an authorized capital of Rp. 500,000,000.- issued capital of Rp. 150,000,000.- wholly paid-up. Founders and original shareholders are Mr. Michael Bambang Hartono AKA Oei Hwie Siang and his younger brother Mr. Robert Budi Hartono AKA Oei Hwie Tjhong Chinese origin Indonesian businessmen. In March 1993, the authorized capital was increased to Rp. 25,000,000,000.- issued capital of Rp 5,000,000,000.- wholly paid-up. On the same occasion, the company had been joined by new shareholder P.T. KUMPARAN KENCANA ELECTRINDO (a private company). Based on the notarial act of September 2000, the authorized capital was increased to Rp. 500,000,000,000.- issued capital to Rp 325,000,000,000.- wholly paid-up.  Concurrently, shareholding composition and capital structures are P.T. KUMPARAN KENCANA ELECTRINDO (80.00%), Mr. Robert Budi Hartono (10.20%) and Mr. Michael Bambang Hartono (9.80%).  This latest Articles of Association amendment was approved by the Minister of Law and Human Rights of the Republic of Indonesia by virtue of Decision Letter No. AHU-AH.01.10-18891 dated June 20, 2011.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

We observed that  P.T. KUMPARAN KENCANA ELECTRINDO is a national private company whose shares is entirely controlled by Mr. Michael Bambang Hartono AKA Oei Hwie Siang, his younger brother Mr. Robert Budi Hartono AKA Oei Hwie Tjhong and his  family members. The Hartono family is owner of the majority business stakes and prime mover of the DJARUM Group, the third largest business group in clove cigarette manufacturing and distribution in Indonesia.

 

P.T. HIT has been in operation since 1993 in household electronic products like television, radio tape recorder, video campact disc, air conditioner and refrigerator and now is ready to release its new water pump product. Its plant is located at Jalan K.H.R. Asnawi, Kudus, Central Java and Jalan Raya Semarang Demak, Km. 9, Semarang, Central Java.   Its Kudus plant is located on more than 20.0 hectares land with an estimated investment at least Rp 325.0 billion coming from own capital.      Some 65% to 70% of workers are women mostly coming from surrounding area.  In the location is found production unit, office, parking area, sport facilities, go down and house of worship. Previously its sister company's plant P.T. HARTONO ISTANA ELECTRONICS (P.T. HIE) also engaged in electronic industry was also in the same location.

 

P.T. HIE had been operating since 1976 in electronic household appliance assembling industry like TV, radio, tape recorder, amplifier, sound system, antenna, and parabola. It gets technical cooperation from SALORA OY of Finland and PHILIPS of the Netherlands.  But, on September 30, 2000 P.T. HIE had been merged into P.T. HARTONO ISTANA TEKNOLOGI.  Since then the whole activities and assets like factory, branch offices, liabilities of P.T. HIE had been taken over by P.T. HARTONO ISTANA TEKNOLOGI, and since then P.T. HIE had no more business activities.  According to the Indonesian Bank Restructuring Agency (IBRA), until the end 2001 P.T. HIE had bad-credit of Rp. 207.1 billion. 

 

Firstly the company only produced tape recorder and television, all components are imported from Singapore and Belgium.  At that time P.T HIT was in cooperation with PHILIP MBLE of Belgium in technology transfer but it was discontinued.  After transfer of technology with PHILIP MBLE was discontinued, now P.T. HIT is in transfer of technology cooperation with SOLORA of Finland, a leading television producer in this country.

 

 

Beside to import component from Singapore and Belgium, the company is also importing from Hong Kong and other countries (40%) and the rest 60% is obtained locally.  The whole products of P.T. HIT are marketed by using POLYTRON and DIGITEC brands. The brands of POLYTRON and DIGITEC both have been registered at Directorate Patent both of home and abroad. The television produced by P.T. HIT is consisting of 30 types, sizing from 24 inch to 32 inch. It is the less electric energy using television (absorbing 20 watt electric power). The newest television products are equipped with video compact disc and CD player which is deemed as the first domestic product. For audio products is consisting of tape recorder and video compact disc produced in 22 types.

 

Tape recorder of POLYTRON brand in July 2002 acquired the Indonesian Best Brand Award (IBBA) as the most popular brand in the country, kicked out other popular brands like SONY, SHARP, AIWA, and SAMSUNG etc. The award has been given based on market survey taken by leading research company in the country MARS jointly with SWASEMBADA magazine. The other product namely refrigerator had been produced in 2000 consisting of 4 types. The whole products use refrigerant of environmental-friendly hydrocarbon of isobutane type. While air conditioner products (AC) is containing of 2 types split and window. It has superiority than other product namely AC split using auto swing and remote control system which is not owned by other AC split.

 

In January 2008, P.T. HIT launched POLYTRON Water Dispenser. These products have three types of temperatures namely hot, normal and cold. Besides, the dispenser products are also equipped with child lock system. The products are marketed at Rp. 1.2 million per unit and the company would also launch dispenser products equipped with coffee makers. The dispenser products of P.T. HIT won a Gold Award of Indonesian Good Design Selection 2007.  P.T. HIT intensified in promotion campaign for its products through various mass media.   Some 10% to 15% of the products is exported to Pakistan, Bangladesh, Vietnam, Myanmar, Central East, Latin America and some other to European countries through its branch office in the Philippines and Thailand, and  the rest is locally distributed by its sister company P.T. SARANA KENCANA MULYA in Jakarta as sole distributor. In the country, P.T. HIT is supported by 6 authorized dealers, 11 distributors and more than 55 service centers in 48 province cities in the country.  POLYTRON is Indonesia’s biggest electronics brand with products ranging from LCD televisions, refrigerators, gadgets and more. 

 

In November 2012, P.T. HIT launched POLYTRON Smart phone type W3430 Wizard Crystal and Smart Phone type W2400 with use IPS Technology (In-Plane Switching) and also launched Smart Phone type W2500, a new Android phone by POLYTRON in December 2012, with a monthly production capacity of 30,000 units. PT. HIT plans to increase the local content of Cellular Phone from 30% to 55% in 2014. The Company aims to produce 100,000 feature phones and 100,000 smart phones each month in the long run.  In addition the company also continues to add to its cellular phone outlets from 48 outlets in 2012 to 55 stores at this time. We observed that P.T. HIT is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, the demand for electronic products such as televisions, air conditioners, refrigerators and washing machines has been fluctuating in the country in the last five years. The fluctuating demand is also influenced by the fluctuating rupiah exchanges against foreign currencies.  Besides, the electronic markets in the country are also influenced by the lustrous distribution of imported electronic products of China with cheaper prices.  It is estimated that the local demand for electronic products will be growing at least up to next year.   But, the tax of luxurious goods for electronic products of 20% seems to be very high. To anticipate the declining demand, the Indonesian Electronic Association (GABEL) has recommended the government to reduce PPn-BM to 10%. However, the business position of P.T. HIT is favorable in line with its growing marketing networks and their product has been widely known among consumers in the country.


The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. The management of P.T. HIT is very reclusive towards outsiders and rejected to disclose its financial condition but we estimated that sales turnover of the company in 2010 amounted to Rp. 2,460.0 billion increased to Rp. 2,540.0 billion in 2011 to Rp. 2,910.0 billion in 2012 and estimated to rose again to Rp. 3,320.0 billion in 2013 and projected to go on rising by at least 10% in 2014.    It is estimated that P.T. HIT’s operation has in 2013 yielded a total net profit of Rp 273.0 billion with a total networth of Rp 1,240.0 billion.   The payment habit of the company has been running smoothly ranging from 1 to 3 months. We did not hear that the company having been black listed by Bank Indonesia (Central Bank) and registered in the court for detrimental cases.

 

According to the latest amendment to Deed of the company, the management of P.T. HIT is headed by Mr. Hariono (61) as the president director. In his daily activities, he is assisted by Mr. Djunaedi Listyono (62), Mr. Khosasih Adi Susanto (59), Mr. Robin Wijaya (51) and Mr. Tekno Wibowo (44), respectively as director.  But, we believe that the prime mover is Mr. Robert Budi Hartono (73) and his older brother Mr. Michael Bambang Hartono (75), both are founder and owner of the DJARUM Group. He along with other family members are known as majority business stakes owners of P.T. DJARUM, a big sized national private company in Indonesia in cigarettes industry.  Mr. Michael Bambang Hartono and Mr. Robert Rudi Hartono are two of Indonesia’s richest individuals according to Forbes.  In 2012, their (both)assets were valued at US$13.0 increased to US$ 15.0 billion in 2013, respectively through their ownership in PT DJARUM and as the biggest shareholder in Bank BCA, the third-largest Indonesian lender and the largest by market value.  They have wide relation with home and overseas private businessmen.  So far, we did not hear that the company’s management involved in business malpractices 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. HARTONO ISTANA TEKNOLOGI is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.73

UK Pound

1

Rs.100.82

Euro

1

Rs.82.22

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

MNL

 

 

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.