MIRA INFORM REPORT

 

 

Report Date :

13.10.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. TRUBAINDO COAL MINING

 

 

Registered Office :

Pondok Indah Office Tower III, 3rd Floor, Jalan Sultan Iskandar Muda Pondok Indah Kav. V-TA Jakarta Selatan, 12310

 

 

Country :

Indonesia

 

 

Date of Incorporation :

13.03.1990

 

 

Com. Reg. No.:

AHU-AH.01.10-18993

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Coal Mining

 

 

No. of Employees :

727 persons

 

 

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. TRUBAINDO COAL MINING

 

Address :

Head Office

Pondok Indah Office Tower III, 3rd Floor

Jalan Sultan Iskandar Muda

Pondok Indah Kav. V-TA

Jakarta Selatan, 12310

Indonesia

Phones             - (62-21) 2932 8100 (Hunting)

Fax                   - (62-21) 2932 7999

E-mail               - indotambang@banpuindo.co.id

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

Building Area    - 15 storey

Office Space    - 230 sq. meters

Region              - Commercial

Status               - Rent

 

Site Office

Camp. Adong, Kecamatan Muara Lawa

Kabupaten Kutai Barat

East Kalimantan, 75775

Indonesia

Phones             - (62-21) 2932 8100 ext. 1300

Fax                   - (62-21) 2932 8100 ext. 1400

Land Area         - 2,500 sq. meters

Building Space  - 1,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

13 March 1990

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-7058.HT.01.01.TH.96

  Dated 6 March 1996

- No. AHU-28802.AH.01.02.TH.2008

  Dated 29 May 2008

 

 

- No. AHU-AH.01.10-18993

  Dated 17 May 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.543.059.8-091.000

The Department of Industry and Trade

TDP No. 090315113068

Dated 20 August 1996

The Department of Energy Mineral Resources

- No. 017/PK/PTBA-TCM/1994

  Dated 15 August 1994

- No. 314.K/40.00/DJG/2005

  Dated 17 May 2005

 

Related Company :

A Member Company of the INDOTAMBANG RAYA MEGAH Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 100,000,000,000.-

Issued Capital                                 : Rp.   63,500,000,000.-

Paid up Capital                               : Rp.   63,500,000,000.-

 

Shareholders/Owners :

a. P.T. INDO TAMBANGRAYA MEGAH Tbk                        - Rp. 63,499,000,000.-

    Address : Pondok Indah Office Tower III, 3rd Floor

                    Jalan Sultan Iskandar Muda

                    Pondok Indah Kav. V-TA

                    Pondok Indah, Kebayoran Lama

                    Jakarta Selatan, Indonesia          

b. P.T. KITADIN                                                                - Rp.          1,000,000.-

    Address : Pondok Indah Office Tower III, 3rd Floor

                    Jalan Sultan Iskandar Muda

                    Pondok Indah Kav. V-TA

                    Pondok Indah, Kebayoran Lama

                    Jakarta Selatan, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coal                                               - 7.7 million tons p.a.

 

Total Investment :

Owned Capital                                 - Rp. 100.0 billion

 

Started Operation :

2005

 

Brand Name :

Trubaindo Coal Mining (TCM)

 

Technical Assistance :

None

 

Number of Employee :

727 persons

 

Marketing Area :

Local       - 10%

Export    - 90%

 

Main Customer :

Buyers in Southeast Asia

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ADARO INDONESIA

b. P.T. ARUTMIN INDONESIA

c. P.T. BERAU COAL

d. P.T. KALTIM PRIMA COAL

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank CENTRAL ASIA Tbk

      Barclays Building

      Jalan Jend. Sudirman Kav. 22-23

      Jakarta Selatan

      Indonesia

b.   JP MORGAN CHASE Bank

      Chase Plaza

      Jalan Jend. Sudirman Kav. 27

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – US$ 676.4 million

2012 – US$ 682.9 million

2013 – US$ 610.0 million

2014 – US$ 298.0 million (January – June)

 

Net Profit (estimated) :

2011 – US$ 40.6 million

2012 – US$ 44.4 million

2013 – US$ 39.6 million

2014 – US$ 16.8 million (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Pongsak Thongampai

Directors                                         - a. Mr. Serm Munkong

                                                        b. Mr. Leksono Poeranto

                                                        c. Mr. Andre Herman Bramantya Putra

 

Board of Commissioners :

President Commissioner                  - Mr. Somyot Ruchirawat

Commissioner                                 - Mr. Ir. Lukmanul Hakim, MM

 

Signatories :

President Director (Mr. Pongsak Thongampai) or one of the Directors (Mr. Serm Munkong, Mr. Leksono Poeranto or Mr. Andre Herman Bramantya Putra) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

 

OVERALL PERFORMANCE

 

PT. TRUBAINDO COAL MINING (PT. TCM) was established with authorized capital of Rp. 1,000,000,000 of which Rp. 200,000,000 was issued and fully paid up based on articles of association of the company No. 179 dated 13 March 1990 made by Benny Kristianto SH, a notary public in Jakarta. The shareholders of the company were PT. TRI USAHA BHAKTI, Mr. Johannes Kotjo, Mr. Frans Yusuf and Mr. Rudyan Kopot. The articles of association of the company have frequently been revised. In March 2003 the company authorized capital was increased to Rp. 100,000,000,000 issued capital of Rp. 63,500,000,000 entirely paid up. Through the articles of association of the company No. 3 dated 10 January 2007, PT. TRI USAHA BHAKTI sold its whole shares in PT. TCM to PT. MULIA BHAKTI ABADI. The articles of association of the company have been legalized by Department of Law and Human Right under Decree No. W7.HT.01.10-769 dated 17 January 2007.

 

In May 2007, some 99.99% shares of the company were controlled by P.T. INDO TAMBANGRAYA MEGAH Tbk and the rest of 0.01% was controlled by PT. KITADIN. At that time, the authorized capital of the company was Rp. 100.0 billion of which Rp. 63.5 billion was issued and fully paid up. The revision was stated in the articles of association of the company No. 7, dated 7 September 2007 made by Fathiah Helmi SH, a notary public in Jakarta.

 

Then the amendment was made to P.T. TCM’s Articles of Association based on Notarial Deed No. 32 dated 10 April 2008, of Popie Savitri Martosuhardjo Pharmanto, S.H., notary in Jakarta to conform with the requirements of Indonesian Limited Company Law No. 40/2007. This Deed was approved by Minister of Law and Human Rights of the Republic of Indonesia in Decree No. AHU-28802.AH.01.02.Tahun 2008 dated 29 May 2008.

 

Later according to the latest revision of notary deed Mrs. Popie Savitri Martosuhardjo Pharmanto, SH., No. 71 dated 17 April 2013 the company board of director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-18993 dated May 17, 2013.

 

P.T. TCM has been operating since June 2005 dealing with coal mining by manages concession area 23,650 hectares in the districts of Muara Lawa, Bentian Besar, Muara Pahu and Damai of the regency of West Kutai in the province of East Kalimantan. Concession area 23,650 hectares comprises the North Block and South Block. The coal exploitable by this 30-years contract, which was valid from the start of production on February 28, 2005 until February 27, 2035. Originally on 15 August 1994, TCM entered into a Coal Agreement No. 017/PK/PTBA-TCM/1994 with P.T. BA for Muara Lawa area, West Kutai, East Kalimantan Province. Based on Presidential Decree No. 75/1996 dated 25 September 1996, all rights and obligations of PTBA under the Coal Agreement were transferred to the Government of the Republic of Indonesia represented by the Minister of Mining and Energy effective 1 July 1997.

 

P.T. TCM has been in commercial operation since June 2005 dealing with coal mining by managing a coal mining area of 23,650 hectares located in Muara Lawa, Bentian Besar, Muara Pahu dan Damai, Kutai Regency, East Kalimantan Province. Based on the Decree of the Minister of Energy and Mineral Resources No. 314.K/40.00/DJG/2005, dated 17 May 2005, regarding the Commencement of the Exploitation (Production) Stage under TCM’s Coal Agreement, the mining area retained by TCM in this exploitation stage shall be 23,650 hectares and this approval is valid from 28 February 2005 until 27 February 2035.

 

Based on the Decree of the Minister of Forestry No. SK.215/Menhut-II/2008, dated 6 June 2008, regarding the Exploitation of Forest Area for Coal and Supporting Infrastructure, TCM has been given a license to use limited production forest area and fixed production forest area of 5,956.72 hectares located in Kutai Barat regency, East Kalimantan Province. This approval is valid for five years.

 

The operation of PT. TCM has been growing well. In 2005, the annual production capacity of P.T. TCM was 1.5 million tons of coal increased to 4.4 million tons in 2006 to 5 million tons in 2007 and estimated to be rising in 2008. PT. TCM also owns a barge jetty equipped with stockyard with capacity of 360,000 tons of coal. From the stockyard, the coal products are loaded to barge ships using conveyors directly to barge loader. The jetty has barge-loading capacity 2,000 tons per hour and is able to serve barge ships with capacity of 8,000 tons up to 10.000 tons. P.T. TCM’s concession area of 23,650 hectares with reserves and resources of sub-bituminous coal in two blocks: the North Block and newly opened South Block in the out put of 78.27 metric tons and 296.50 metric tons, respectively, at the end of 2009. The sub-bituminous coal has calorific value ranging from 6,500 to 7,300 kcal/kg and sulfur content of 0.8-1.4%. The coal is trucked north from mine stockyard 38 kilometres to the Bunyut Barge loader on the Mahakam River, and is barged to the BoCT or directly to market. Production in 2009 was 5.2 metric tons up from 4.5 metric tons in 2008. With the recent opening of the South Block and development of P.T. Bharinto Ekatama’s project, the major infrastructure projects involve the construction of a hauling road, bridge and a washing plant usable by both mines. The coal seam was formed in the Pamaluan and Kutai Basin formations, and has calorific value ranging from 6,500 to 7,300 kcal/kg and sulfur content of 0.8-1.4%.

 

Distance from mine stockyard to the port stockyard close to Bunyut Barge Loader is 40 kilometers. Coal is then barged either to Bontang Coal Terminal (BoCT), Balikpapan Coal Terminal (BCT), or directly to customers. Total coal production from P.T. Trubaindo Coal Mining concession area amounted to 7.7 Mt in 2012. This signified a hike of 8% from production volume in 2011 of 7.1 Mt. In 2012, the subsidiary improved its mining equipment from medium type PC 1250 to PC 2000, thereby increasing its production capacity. The whole coal marketed through P.T. INDO TAMBANGRAYA MEGAH Tbk’s coal sales grew by 10% year-on-year, from 24.7 million tons in 2011 to 27.2 million tons in 2012. China, Japan and India remain the biggest buyers of ITM’s coal, with a combined sales volume of 14.9 million tons, or 55% of total. For the third consecutive year, China was our biggest customer, taking up 26% of our total sales in 2012, as it continued to increase its coal imports. We observe the operation of P.T. TCM has been running smoothly and developing wee in the last five years.

 

In 2013 will likely be the year betting the mining sector. Why not be the stakes in 2013, the mining industry is still beset with anxiety for the prospects of mineral and coal commodity prices. In addition in 2013 of course, will increase the political temperature ahead of the 2014 elections. The Government Regulation as a product prepared by the government and the legislature also certainly not independent of external factors including political conditions. Thus, it is very interesting assess possible impact of regulations being developed or are likely to be published. The mining industry is one industry that is strictly regulated by various regulatory (a heavily regulated industry), so the risk factor policy (policy risk) is one of the most dominant factor for investors to consider the decision to invest in the sector which is one of the leading sector. Regulatory arrangements in the mining sector is not only the dominance of the Ministry of Energy and Mineral Resources, but will also greatly dependent regulation issued by the Ministry of Forestry, Ministry of Environment, Ministry of Finance etc,. Moreover, in the era of regional autonomy, the policies issued by the local government, be it the provincial, district / city, even can significantly affect business continuity mining sector.

 

Indonesian coal industry carries the reputation as spot sellers due to various reasons including unpredictability of production. We find that the demand for coal mining contracting services, heavy/mining equipment rental, repair and maintenance services and mining contracting services was rising by about 7% to 8% on the average per year in the five years, in close correlation with the fast development of mining companies in the country. The international market demand for coal has kept on rising within the last five years as evident from the data put-out by the Central Bureau of Statistic (BPS) regarding Indonesian coal product export as bellows. The national coal industries in Indonesia have swiftly been growing. The growth of coal production and export in Indonesia in 2001 to 2013 is pictured on the following table:

 

Year

Production

(thousand tons)

Export

(thousand tons)

Value (US$ million)

2001

90,351.8

66,505.4

1,617.5

2002

103,060.4

73,124.9

1,762.4

2003

114,610.1

89,021.8

1,980.1

2004

126,850.8

105,629.9

2,748.8

2005

152,722.4

129,044.1

4,354.0

2006

181,060.9

184,008.9

6,085.7

2007

174,832.7

195,785.8

6,681.5

2008

181,570.0

201,021.7

10,485.1

2009                         

209,344.7

234,793.1

13,817.3

2010

224,677.0

298,844.5

18,499.3

2011

274,982.9

353,397.9

27,221.8

2012

389,779.9

384,307.2

26,166.2

2013

376,933.1

424,325.1

24,501.4

 

Until this time P.T. TCM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. TCMI 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 US$ 676.4 million in 2011 increased to US$ 682.9 million in 2012 decreased to US$ 610.0 million in 2013. As from January to June 2014 the sales turnover has amounted at US$ 298.0 million with a net profit of US$ 16.8 million and projected to go on rising by at least 6% in 2014. The company has an estimated total networth of at least US$ 50.0 million. 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. TCM is led by Mr. Pongsak Thongampai (53) a professional manager of Thailand with experience in coal mining. An experienced geologist, Mr. Pongsakat past experience includes working at Chatcue Sompong Mining Co. Ltd. (1986 – 1988) as Head of Exploration Division, and was Mining Manager at Visanu Cement Co. Ltd. (1990 – 1991). He joined Banpu Group in 1992 as Senior Manager and rose to be the Managing Director of Banpu Terminal Co. Ltd., between 2001 to 2002. Following this, until 2005 he acted as the Director of Banpu Indonesia and SVP for operations. He earned his Bachelor of Science in Geology from Chulalongkorn University in 1982 and in 2002 acquired a Master of Business Administration from Kasetsart University.

 

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. TRUBAINDO COAL MINING is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.16

UK Pound

1

Rs.98.62

Euro

1

Rs.77.67

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.