MIRA INFORM REPORT

 

 

Report Date :

28.11.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ADARO INDONESIA

 

 

Registered Office :

Menara Karya, 22nd & 23rd Floor, Jl. H.R. Rasuna Said Blok X-5 Kav. 1-2, Jakarta Selatan 12950

 

 

Country :

Indonesia

 

 

Date of Incorporation :

11.11.1982

 

 

Com. Reg. No.:

AHU-AH.01.10-21000

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Coal Mining

 

 

No of Employees :

1,120

 

 

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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. ADARO INDONESIA

 

A d d r e s s :

Head Office

Menara Karya, 22nd & 23rd Floor

Jl. H.R. Rasuna Said Blok X-5 Kav. 1-2

Jakarta Selatan 12950

Phones             - (62-21) 521 1265 (hunting)

Fax                   - (62-21) 521 1266

E-mail               - adarojkt@ptadaro.com

Website            - http://www.ptadaro.com

Building Area - 26 storey

Office Space - 820 sq. meters

Region           - Commercial

Status            - Rent

 

Factory

Paringin, Tutupan and Wara

Tabalong and Hulu Sungai Utara

South Kalimantan

Coal Deposit  - 1.37 billion tons

Region           - Coal mining zone

Status            - Rent

 

Date of Incorporation :

11 November 1982

 

Legal Form :

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

 

Company Reg. No. :

The Department of Law and Human Rights

a. No. C2-7797.HT.01.01.TH.83

    Dated 05 December 1983

b. No. C-06676.HT.01.04.TH.2003

    Dated 28 March 2003

c. No. AHU-59722.AH.01.02.Tahun 2008

    Dated 08 September 2008

d. No. AHU-AH.01.10-21000

    Dated 05 July 2011

 

 

 

Company Status :

Foreign Investment (PMA) Company

 

Permits by the Government Departments :

a. President of the Republic of Indonesia

    No. B-81/Pres/10/1982

    Dated 5 October 1982

 

b. The Capital Investment Coordinating Board

     -  No. 789/A.I/1982

        Dated 10 September 1982

     -  No. 332/III/PMA/91

        Dated 31 May 1991

 

Holding Companies :

a.  P.T. ALAM TRI ABADI (Investment Holding)

b.  P.T. VISCAYA INVESTMENTS (Investment Holding)

c.  P.T. DIANLIA SETYAMUKTI  (Investment Holding)

d.  INDONESIA COAL Pty. Ltd., of Australia (Investment Holding)

e.  MEC INDO COAL BV., of the Netherlands (Investment Holding)

 

Ultimate Holding Company :

P.T. ADARO ENERGY Tbk

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - US$ 177,520,000 (Rp. 119,426,580,000.-)

Issued Capital               - US$   44,380,000 (Rp.   29,856,645,000.-)

Paid up Capital             - US$   44,380,000 (Rp.   29,856,645,000.-)

 

The Latest Shareholders :

a.  P.T. ALAM TRI ABADI of Indonesia                           - US$. 27,142,700.- (61.160%)

b.  P.T. VISCAYA INVESTMENTS of Indonesia               - US$. 14,645,500.- (33.000%)

c.  P.T. DIANLIA SETYAMUKTI of Indonesia                   - US$.   2,590,800.- (  5.838%)

d.  COALTRADE SERVICES INT’L Pte Ltd of Australia    - US$.          1,000.- (  0.002%)

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coals - 48.0 million tons p.a.

 

Total Investment :       

a. Equity Capital                        - US$ 63.2 million

b. Loan Capital                          - US$ 11.4 million

c. Total Investment                    - US$ 74.6 million

 

 

Started Operation :

a. November 1990 (exploration)

b. September 1991 (production)

 

Brand Name :

Envirocoal

 

Technical Assistance :

None

 

Number of Employee :

1,120 persons

 

Marketing Area :

a. Local Market              - 25%

b. Export Market           - 75%

 

Main Customers :

Overseas Buyers in Spain, Germany, Denmark, France, the UK, Japan Taiwan, the USA and others countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BATUBARA BUKIT ASAM

b. P.T. KALTIM PRIMA COAL

c. P.T. ARUTMIN INDONESIA

d. P.T. KODECO JAYA AGUNG

e. P.T. BERAU COAL

 

Business Trend :

Declining

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   The Hong Kong and Shanghai Banking Corp. Ltd.

      World Trade Centre, 1-5th Floor

      Jalan Jend. Sudirman Kav. 29-31

      Jakarta Selatan

b.   CITIBANK N.A

      Citibank Tower

      Jalan Jend. Sudirman Kav. 54-55

      Jakarta Selatan

c.   P.T. Bank MANDIRI Tbk

      Mandiri Building

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

 

Auditor :

Tanudiredja, Wibisana & Rekan

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales/Revenue :

2010 – US$. 2,412.0 million

2011 – US$. 3,386.2 million

2012 – US$. 3,343.1 million

2013 – US$. 2,984.6 million

 

Net Profit :

2010 – US$. 313.2 million

2011 – US$. 520.5 million

2012 – US$. 344.0 million

2013 – US$. 208.0 million

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director            - Mr. Garibaldi Thohir AKA Boy Garibaldi Thohir

Directors                          - a. Mr. Chia Ah Hoo

                                         b. Mr. Sandiaga Salahuddin Uno

                                         c. Mr. Christian Ariano Rachmat

                                         d. Mr. David Tendian

                                         e. Mr. Tsang Edwin Kin-Wah

 

Board of Commissioner :

President Commissioner   - Mr. Edwin Soeryadjaya

Commissioners                - a. Mr. Theodore Permadi Rachmat

                                         b. Mr. Subianto AKA Benny Subianto

 

Signatories :

President Director (Mr. Boy Garibaldi Thohir) or one of Directors (Mr. Ah Hoo Chia, Mr. Sandiaga Salahuddin Uno, Mr. Christian Arianto Rachmat, Mr. David Tendian, Mr. Andre Johannes Mamuaya and Mr. Tsang Edwin Kin-Wah) which must be approved by President Commissioner (Mr. Edwin Soeryadjaja) or one of the commissioners (Mr. Thedore Permadi Rachmat and Mr. Subianto)

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. ADARO INDONESIA (P.T. ADARO) was established on 11 November 1982 with an authorized capital of US$ 400,000.-, issued and paid up capital of US$ 200,000.-. The original founding shareholders are EMPRESA NACIONAL DE INVESTIGACIONES MINERAS S.A. of Madrid, Spain, and Mr. Francisco Casero Perrote, a businessman of Spain. In December 1990 Mr. Francisco Casero Perrote resigned and joined in new three shareholders namely INDONESIA COAL Pty.,Ltd., of Australia, P.T. ASMINCO BARA UTAMA and P.T. TIRTAMAS MAJUTAMA, both are national private companies of Indonesia. Since February 1998 the authorized capital was raised to US$ 7,000,000.-, issued and paid up capital to US$ 5,080,000.-. and the shareholders of P.T. ADARO consisted of NEW HOPE Corp., Pty. Ltd., (ex. INDONESIA COAL Pty., Ltd.), of Australia (50%), MISSION ENERGY COMPANY (MEC) INDO COAL B.V. of the Netherlands (10%) and P.T. ASMINCO BARA UTAMA of Indonesia (40%).

 

In February 2002, P.T. ASMINCO BARA UTAMA, a subsidiary company of BECKKETT Pte Ltd withdrew and its shares were taken over by P.T. DIANLIA SETYAMUKTI (40%). Since then, there has been a dispute between BECKKET Pte Ltd against DEUTSCHE BANK and P.T. DIANLIA SETYAMUKTI. In September 2005, the High Court of Singapore decided that P.T. DIANLIA SETYAMUKTI was the shareholder of P.T. ADARO INDONESIA and rejected the claim of BECKKET Pte.Ltd. The high court’s decision strengthened the decision of Choo Han Teck Judge on 25 August 2005 based on claim case of BECKKETT against DEUTSCHE BANK AG, Singapore and P.T. DIANLIA SETIAMUKTI in Civil Appeal No. 65 of 2005/Y.

 

However, BECKKETT tried any legal effort again to regain its commercial rights and interest of BECKKET of shares ownership.  In February 2006, BECKKETT Pte Ltd. sued DEUCTSCHE BANK and P.T. DIANLIA SETYAMUKTI through High Court of Singapore.  In March 2006, the Supreme Court of Indonesia issued a letter for establishing the decision of South Jakarta Court and canceling the decision of South Jakarta High Court. By the issued letter, the Supreme Court rejected the claim of BECKKETT Pte. Ltd and decided that P.T. DIANLIA SETYAMUKTI is still the shareholder of P.T. ADARO INDONESIA.

 

Pursuant to the amendment deed of P.T. ADARO INDONESIA, in August2008, the shareholders of P.T. ADARO INDONESIA are P.T. ALAM TRI ABADI (60.22%), P.T. VISCAYA INVESTMENTS (28.33%), P.T. DIANLIA SETYAMUKTI (5.83%), INDONESIA COAL Pty. Ltd., (4.67%) and MEC INDO COAL BV., (0.95%).   This amendment notary deed has obtained registration number from the Department of Law and Human Rights under No. AHU-59722.AH.01.02.Tahun 2008 dated September 8, 2008.

 

Lastly in July 2011, the shareholders of P.T. ADARO INDONESIA are P.T. ALAM TRI ABADI (61.16%), P.T. VISCAYA INVESTMENTS (33.00%), P.T. DIANLIA SETYAMUKTI (5.84%) and COALTRADE SERVICES INTERNATIONAL Pte Ltd. of Australia (0.002%). The latest amendment notary deed has obtained registration number from the Department of Law and Human Rights under No. AHU-AH.01.10-21000 dated July 5, 2011.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

We observe that P.T. ALAM TRI ABADI, P.T. VISCAYA INVESTMENTS and P.T. DIANLIA SETYAMUKTI, third are private companies of which the majority shares are controlled by P.T. ADARO ENERGY Tbk., a public listed company.  The shareholders of P.T. ADARO ENERGY Tbk., are P.T. ADARO STRATEGIC INVESTMENTS (43.91%), Mr. Garibaldi Thohir (6.15%), Mr. Edwin Soeryadjaya (4.25%), Mr. Theodore Permadi Rachmat (2.21), Mr. Sandiaga Salahuddin Uno (1.98%), Mr. Ir. Subianto (1.30%) and publics (40.20%).

 

P.T. ADARO INDONESIA (ADARO) was established as a foreign capital investment (PMA) company dealing with coal mining with its first concession in Tutupan Utara, Wara and Paringin,  East Kalimantan, operating since 1985. Then its mining concession area was relocated to Tabalong and Hulu Sungai Utara in South Kalimantan. The survey shows that both concessions have a deposit of 1.37 billion tons coal. Commercial production started in 1991 and its production capacity has frequently been increased. Presently it has a production capacity of 45.0 million tons per year.  P.T. ADARO has used Minescape 4 Minicom application for the activities of management.

 

Some 70% of the products are exported to Spain, Germany, Denmark, France, the UK, Japan, Taiwan, the USA and other countries, while the rest is sold to local factories in Cirebon, West Java, and PLTU (Steamed Power Electric Plant) Paiton Swasta I in East Java. n November 1999 P.T. ADARO received a reward as the World Best Coal Mining Company of 1999 issued by Financial Times Energy Awards held in Waldof Astoria, New York, the USA. P.T. ADARO won the best predicate after fulfilling three main criterias mainly the very efficient operation, innovative marketing for ultra-clean sub bituminous coal that internationally known as Envirocoal, and an extra-ordinary commitment on environment and social care, mainly in the development of surrounding people.  Coal production of P.T. ADARO in 2006 amounted to 34.29 million tons increased to 36.08 million tons in 2007 to 38.52 million tons in 2008 to 40.60 million tons in 2009 to 42.20 million tons in 2010 and to 47.7 million tons in 2011.

 

In 2013, P.T. ADARO produced 52.3 million tons of Envirocoal from three pits: Tutupan, Wara and Paringin, approximately 10.8% more than 2012’s 47.2 million tons achievement.  The increase was supported by strong demand from India in the first half of the year and consistent demand from Indonesia’s domestic market, North Asia and China.  P.T. ADARO’s total concession area of around 35,000 hectares (ha) benefits from excellent mining conditions and coal quality.

 

 

With growing demand from their long-term customers, P.T. ADARO in 2013 further expanded its range of mid-calorific value products, which have typical heat values between 4,000 kcal/kg and 5,000 kcal/kg on a gross as-received (GAR) basis. In the fourth quarter, P.T. ADARO introduced its latest product installment, Envirocoal 4900 or simply E4900. During 3Q2014, P.T. ADARO produced 13.56 million tons of Envirocoal. Their coal mining, coal hauling and overburden removal was 94%, 94% and 97% of the plan as of the end of 3Q2014.

 

P.T. ADARO’s Coal Sales 2013

 

Description

Volume (Million Tons)

2013

2012

2011

E5000 (Tutupan + Paringin)

34.09

37.70

41.69

E4700

8.43

--

--

E4500

--

1.95

--

E4000 (Wara)

9.64

7.76

5.48

Subtotal

52.16

47.41

47.17

CTI third-party sales

1.31

1.21

3.61

Total

53.47

48.62

50.78

Source: PT. Adaro Energy Tbk.

 

      Generally, the mining activities for such minerals as coal, copper, gold, silver, nickel ore and etc. have fluctuated and for gold have been expanding in the country in the last five years. The trend has been in line with the weak prices of nickel and bauxite and with the firm price of gold on the international market.  Pursuant to Central Bureau of Statistics (BPS), the export volume of coal in 2008 reached 201.0 million tons with value of US$ 10,481.5 million rose to 234.8 million tons with value of US$ 13,817.3 million in 2009 to 298.8 million tons with value of US$ 18,499.3 million in 2010 and rose again to 353.4 million tons with value of US$ 27,221.8 million in 2011 and rose again to 384.3 million tons with value of US$ 26,166.2 million in 2012.  Details on Indonesian last six years coal export volume and value is listed below:

 

National Coal Production 2008 – 2013

(In million tons)

 

Description

2008

2009

2010

2011

2012

2013*)

Export

187

198

208

273

304

306

Domestic

53

56

67

80

82

85

DMO Liability

--

--

64.9

63

67.3

74.3

Total Production

240

254

275

353

386

391

 

The company is neither public listed nor bond issued company. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. According to P.T. ADARO ENERGY Tbk., that the total income/revenues of P.T. ADARO INDONESIA in 2011 amounted to US$. 3,386.2 million, declined to US$. 3,343.1 million in 2012 and dropped again to US$. 2,984.6 million 2013.   The operation in 2013 yielded a net profit at least US$. 208.0 million and the company has a total asset of US$.2,912.3 million.  The key financial highlights of P.T. ADARO INDONESIA in fiscal 2010, 2011, 2012 and 2013 are below.   So far we did not hear that the P.T. ADARO INDONESIA has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.

 

 

Description

2010

2011

2012

2013

Financial Highlights (US$ million)

 

 

 

 

- Total Assets

1,885.0

2,699.6

2,927.4

2,912.3

- Total Liabilities

1,648.6

2,312.1

2,508.3

2,401.3

- Interest-bearing debt

1,141.3

1,629.7

1,806.9

1,688.2

- Total Equity

236.4

387.5

419.1

511.3

- Net Income / Revenues

2,412.0

3,386.2

3,343.1

2,984.6

Operating Statistics

 

 

 

 

- Coal Production (Million tons)

42.2

47.7

47.2

52.3

- Coal sales (Million tons)

42.5

47.2

47.4

52.2

- Overburden removal (Mbcm)

225.9

299.3

331.5

294.9

- Average planned strip ratio (%)

5.5

5.9

6.4

5.75

 

The management of P.T. ADARO INDONESIA is led by Mr. Garibaldi Thohir or Boy Garibaldi Thohir (49) as president director.   Mr. Thohir graduated in Bachelor of Science from the University of Southern California, USA in 1987and Master of Business Administration from the Northrop University, USA in 1988.  In his daily activities, he is assisted by Mr. Chia Ah Hoo (55), Mr. Sandiaga Salahuddin Uno (45), Mr. Christian Arianto Rachmat (41), Mr. David Tendian (48) and Mr. Tsang Edwin Kin-Wah (63).  The board of commissioners of the company is led by Mr. Edwin Soeryadjay (65) as president commissioner, Mr. Theodore Permadi Rachmat (71) as vice president director and Mr. Ir. Subianto AKA Benny Subianto (72) as commissioner.   The management is also handled by a number of professional staff, having maintained a wide business relation with private businessmen at home and abroad as well as with government sector. It has good business prospect in the long run for it has a good performance and image as well as a wide marketing network abroad.  So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country.

 

P.T. ADARO INDONESIA is appraised feasible for normal business transaction. In view unstable economic condition in the country, we recommend to treat prudently in extending loan to the company.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.87

UK Pound

1

Rs.97.69

Euro

1

Rs.77.37

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 


 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.