MIRA INFORM REPORT

 

 

Report Date :

09.10.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PUSAKA PRIMA MANDIRI

 

 

Registered Office :

Jalan Brigjend. Zein Hamid Km. 6.9, Titi Kuning, Medan Johor, Medan, 20146, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

25.06.2013

 

 

Legal Form :

National Private and Domestic Investment (PMDN) Company

 

 

Line of Business :

Subject is engaged in Cigarette Paper Industry.

 

 

No of Employees :

178

 

 

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. PUSAKA PRIMA MANDIRI

 

Address :

Head Office

Jalan Brigjend. Zein Hamid Km. 6.9

Titi Kuning, Medan Johor

Medan, 20146

North Sumatra

Indonesia

Phones             - (62-61) 7867648, 7867973

Fax                  - (62-61) 7863004

Land Area         - 30,200 sq. meters

Office Space      - 15,600 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

a.   24 February 1984 as P.T. KIMSARI PAPER INDONESIA

b.   12 April 2004 as P.T. PDM INDONESIA

c.   25 June 2013 as P.T. PUSAKA PRIMA MANDIRI

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-6181.HT.01.01.TH.84

  Dated 31 October 1984

- No. AHU-100730.AH.01.02.TH.2008

  Dated 31 December 2008

- No. AHU-AH.01.10-14096

  Dated 26 August 2009

- No. AHU-AH.01.10-12216

  Dated 11 April 2012

- No. AHU-40005.AH.01.02.TH.2013

  Dated 23 July 2013

- No. AHU-AH.01.10-51543

  Dated 29 November 2013

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

 

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.060.153.2-123.001

 

The President of the Republic of Indonesia

No. B-47/Pres/12/1983

Dated 27 December 1983

 

The Capital Investment Coordinating Board

No. 859/A/PMA/2013

Dated 7 May 2013

 

Related Companies :

None

 

CAPITAL AND OWNERSHIP

 

 

Capital Structure :

Authorized Capital                            : Rp. 10,945,000,000.-

Issued Capital                                  : Rp.   8,159,000,000.-

Paid up Capital                                : Rp.   8,159,000,000.-

 

Shareholders/Owners :

a. Mr. Djoni Tjandra                                               - Rp. 7,751,050,000.-

    Address : Jl. Komplek Padang Golf Block B-2

                    Kelurahan Sukadamai, Kecamatan

                    Medan Polonia, Medan, North Sumatera

                    Indonesia

b. Mrs. Sisilia Tjandra                                            - Rp.    407,950,000.-

    Address : Jl. Komplek Padang Golf Block B-2

                    Kelurahan Sukadamai, Kecamatan

                    Medan Polonia, Medan, North Sumatera

                    Indonesia

 

BUSINESS ACTIVITIES

 

 

Lines of Business :

Cigarette Paper Industry

 

Production Capacity :

a.   Cigarette Papers                        - 6,000 tons p.a.

b.   Flug-Wrap Papers                      -    500 tons p.a.

c.   Tripping Papers                          -    900 tons p.a.

 

Total Investment :

a. Equity Capital                              - Rp.   8.2 billion

b. Loan Capital                                - Rp.   7.3 billion

c. Total Investment                           - Rp. 15.5 billion

 

Started Operation :

March 1985

 

Brand Name :

Pusaka Paper

 

Technical Assistance :

SCHWEITZER MAUDUIT FRANCE of France

 

Number of Employee :

178 persons

 

Marketing Area :

Local       - 100%

 

Main Customers :

a. P.T. BENTOEL PRIMA

b. P.T. BINTANG JAGAT SEJATI

c. P.T. HM SAMPOERNA TBK.

d. P.T. KISARAN TOBACCO

e. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ARGAPURA

b. P.T. BUKIT MURIA JAYA

c. P.T. FILTRONA INDONESIA

d. P.T. SURYA ZIG ZAG

e. Etc.

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

 

Bankers :

a. P.T. Bank CENTRAL ASIA Tbk

    Jalan Bukit Barisan, Medan

    North Sumatra

    Indonesia

b. CITIBANK N.A.

    Jakarta Main Office

    Jalan Jend. Sudirman - Jakarta

    Indonesia

 

Auditor :

KAP Purwantono, Suherman & Surja (ERNST & YOUNG)

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

 

Annual Sales :

2011 – Rp. 145.0 billion

2012 – Rp. 153.0 billion

2013 – Rp. 120.0 billion

2014 – Rp.   62.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 5.8 billion

2012 – Rp. 9.2 billion

2013 – Rp. 8.0 billion

2014 – Rp. 4.2 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

 

Board of Management :

President Director                            - Mr. Djoni Tjandra

Director                                           - Mrs. Shirley Tjandra

 

Board of Commissioner :

Commissioner                                 - Mrs. Suty Halim

 

Signatories :

President Director (Mr. Djoni Tjandra) or the Director (Mrs. Shirley Tjandra) which must be approved by Board of Commissioner

 

CAPABILITIES

 

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

 

Originally the company name is P.T. KIMSARI PAPER INDONESIA it was established in February 1984 with an authorized capital of US$ 11,000,000 of which US$ 8,200,000 was paid up. The founders and shareholders are P.T. SARIDA PERKASA, P.T. DUTA MENDUT (both are private companies) and KIMBERLY CLARK CORPORATION of USA. It’s articles of association has been amended frequently. In October 2001, P.T. SARIDA PERKASA, pulled-out and replaced by P.T. RISDA MANDALA PERKASA as new shareholder. P.T. RISDA MANDALA PERKASA majority share is controlled by Mr. Ibrahim Risjad also founder and majority business stakes owner of the RISJADSON Group, a medium-sized business group suffering from financial problem. In April 2004, the company renamed to P.T. PDM INDONESIA). In February 2005, whole shareholders of P.T. PDMI withdrew and replaced by SCHWEITZER MAUDUIT FRANCE S.A.R.L., of France (95%) and P.T. NOMINDOJASA RAYA of Indonesia (5%). The taking over of shares of the company by SCHWEITZER MAUDUIT FRANCE valued US$ 8.5 million.

 

Then in August 2009 P.T. NOMINDOJASA RAYA pulled out and replaced by Mr. Djoni Tjandra as new shareholder. With this time the composition of its shareholders has been changed to become SCHWEITZER-MANDUIT FRANCE S.A.R.L of France (95%) and Mr. Djoni Tjandra (5%). Then according to the revision of notary deed Mrs. Aryanti Artisari, SH., no. 53 dated 13 March 2012 the company board of director and the board of commissioner had been changed to lead and runs of the company’s operation. Later based on notary deed Mrs. Mala Mukti, SH., no. 112 dated 25 June 2013 the whole SCHWEITZER MAUDUIT FRANCE S.A.S’s shares sold to Mr. Djoni Tjandra. On the same occasion the company name was changed to P.T. PUSAKA PRIMA MANDIRI (P.T. PPM). Concurrently the company authorized capital was converted into Rupiah with an authorized capital of Rp. 10,945,000,000 issued capital of Rp. 8,159,000,000 entirely paid up. With this time the composition of its shareholders is controlled by Mr. Djoni Tjandra (100%). The latest according to the revision of notary deed Mr. Jhon Lansung, SH., no. 132 dated 17 September 2013 his daughter Mrs. Sisilia Tjandra entered into the company as new shareholder. With this time the composition of its shareholders has been changed to become Mr. Djoni Tjandra (95%) and his daughter Mrs. Sisilia Tjandra (5%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-51543 dated November 29, 2013.   

 

P.T. PPM is one of the producer of cigarette paper industry in the country which operation since December 1985. The company produces of cigarette paper industry including plug-wrap and tipping paper. Its factory is located at Jalan Brigjend. Zein Hamid Km. 6.9, Titi Kuning, Medan Johor, Medan, North Sumatera on a land of 3 hectares, with a building of around 15,600 square meters. This factory had initially a production capacity of 5,000 tons plug-wrap paper and 900 tons tipping paper per year respectively. In October 1990, this company received an expansion license from the BKPM for the construction of a fine cigarette paper unit with a capacity of 1,000 tons per year. The construction of this expansion unit was finished in early 1991 and its commercial production commenced at the end of 1991. The construction of this expansion had absorbed an estimated investment of Rp. 4.1 billion fully from loan.

 

The construction of this factory unit had absorbed an investment of Rp. 15.5 billion, consisting of Rp. 8.2 billion owned capital while the rest Rp. 7.3 billion was covered by loan. For the production of cigarette paper, P.T. PPM utilizes the technology from PDM cigarette paper of France. This company does not use any trade mark since its buyers are limited and the sales continuous.

 

Most of raw materials likes precipitated calcium carbonate, gum arabicum, bevaloid, Nopco, Afranil, needle bleached kraft pulp, NBKP Caribo, NBKP Harmac, Fax pulp, Abaca pulp and others imported from Canada, South Arfica, Philippine, France, Japan, Malaysia, and the rest from locals. All the production is marketed in the country to cloves cigarette factories as well as to ordinary cigarette factories. The products are sold to P.T. SUMATRA TOBACCO TRADING COMPANY, P.T. DUTA MENDUT, P.T. PABRIK ROKOK TJAP BENTOEL, P.T. BENTOEL PRIMA, P.T. HM SAMPOERNA Tbk, P.T. KISARAN TOBACCO, P.T. WONGSO PAWIRO, P.T. NOJORONO TOBACCO INTERNATIONAL, Pabrik Rokok SUKUN, P.T. Perusahaan Dagang Dan Indsutri TRESNO, P.T. BOKOR MAS, P.T. Perusahaan Dangang Dan Industri SUBUR AMAN, P.T. LESTARIPUTRA WIRASEJATI, P.T. SAMPOERNA PRINTPACK, etc. We observe that P.T. PPM operation has been fluctuating in the last three years.

 

Generally, demand for cigarette paper, packaging cigarette paper has kept on rising in line with the rapid growth of cigarette industries in the last five years. Decrease in the number of tobacco companies influenced the tight government regulations governing the production, promotion and cigarette consumption. Mr. Hasan Aoni Aziz, Corporate Communication of the United Association of Cigarette Manufacturing Indonesia (GAPPRI), assess increasing stringent government regulation of the tobacco industry has been continuously decrease the number of firms in the sector, especially small-medium in industries. Based on data compiled by the Ministry of Industry, the industry association the number of cigarettes companies Indonesia in 2009 reached 3,255 units then felt to 2,600 units in 2010 decreased to 2,540 units in 2011 to 1,000 units in 2012 and drop to 800 units in 2013.  

 

The cigarette industries will keep going down within the coming four year years. Competition is very tight as there are 73 cigarette producers operating in the country. The most leading producers are P.T. GUDANG GARAM Tbk, of 35.5% market segment, P.T. HM SAMPOERNA Tbk., of 15.2% market segment, P.T. DJARUM of 11.9% market segment, P.T. BENTOEL PRIMA of 1.5% and the rest is controlled by other small producers. The growth cigarette industries in Indonesia is seen from the table as below:

 

The Growth of Cigarettes in Indonesia Period 2009 – 2013

 

Description

2009

2010

2011

2012

2013

Total Production (billion stick)

263.2

279.0

285.1

308.0

319.2

Number of Companies (unit)

3,255

2,600

2,540

1,000

800

Number of Employee (person)

687,224

700,000

725,000

780,000

700,000

Tax Receivable (trillion Rupiah)

54.3

59.3

77.0

95.0

35.3

 

Until this time P.T. PPM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PPM 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. 145.0 billion rose to Rp. 153.0 billion in 2012 drop to Rp. 120.0 billion in 2013. As from January to June 2014 the sales turnover has amounted at Rp. 62.0 billion with a net profit Rp. 4.2 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. PPM is led by Mr. Djoni Tjandra (57) a businessman and professional manager with experience in cigarette paper industry and trading. Daily activity he is assisted by his daughters Mrs. Shirley Tjandra (24) as director. 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. We are convinced P.T. PUSAKA PRIMA MANDIRI is sufficiently fairly good for business cooperation.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.35

UK Pound

1

Rs.98.71

Euro

1

Rs.77.47

 

 

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.