MIRA INFORM REPORT

 

 

Report Date :

17.10.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. KTC COAL MINING & ENERGY

 

 

Registered Office :

Jalan Trikora RT. 11 No. 52, Samarinda 75242, East Kalimantan

 

 

Country :

Indonesia

 

 

Date of Incorporation :

27.12.2004

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Coal Mining and Trading

 

 

No of Employees :

600

 

 

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. KTC COAL MINING & ENERGY

 

A d d r e s s :

Head Office

Jalan Trikora RT. 11 No. 52

Samarinda 75242

East Kalimantan

Indonesia

Phones             - (62-541) 621 2460, 621 2461

Fax                   - (62-541) 621 2462, 621 2463

E-mail               - coal@ktcgroup.com.sg

Website            - http://www.ktcgroup.com.sg

Land Area         - 60,000 sq. meters

Building Space  - 20,000 sq. meters

Status               - Rent

 

Date of Incorporation :

27 December 2004

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. C-07686 TH.01.01.TH.2005

   Dated 23 March 2005

-  No. C-23068 HT.01.04.TH.2006

   Dated 07 August 2006

-  No. AHU-87474.AH.01.02.Tahun 2008

   Dated 18 November 2008

-  No. AHU-AH.01.10-24179

   Dated 27 September 2010

-  No. AHU-28993.AH.01.02.Tahun 2011

   Dated 09 June 2011

-  No. AHU-AH.01.10-20833

   Dated 04 July 2011

 

Company Status :

Foreign Investment Company

 

 

 

 

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.414.349.7-056.000

 

The Department of Trade

TDP No. 09.04.1.71.23088

 

The Capital Investment Coordinating Board

a. No. 865/I/PMA/2004

    Dated 15 December 2004

b. No. 242/II/PMA/2008

    Dated 06 June 2008

c. No. 309/1/IP/III/PMA/2010

    Dated 3 September 2010

 

Related Companies :

a.   P.T. TATINDO HEAVY EQUIPMENT (Heavy Duty Equipment Rental and Management)

b.   A Member Company of the KOK TONG CONSTRUCTION PTE LTD Group of Singapore

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - US$. 540,000.-

Issued Capital                                 - US$. 540,000.-

Paid up Capital                               - US$. 540,000.-

 

Shareholders/Owners :

a. Mrs. Lau Kwee Ein                                                        - US$. 270,000.- (50%)

    Address : 23 Rochdale Road, Govt Co-Op,

                    Hsingestwindsor Park, 535839

                    Singapore

b. Mr. Chua Lai Seng                                                        - US$. 270,000.- (50%)

    Address : 23 Rochdale Road, Govt Co-Op,

                    Hsingestwindsor Park, 535839

                    Singapore

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining and Trading

 

Production Capacity :

Coal                             - 8.0 million tons per annum

 

Total Investment :

Owned Capital               - US$. 10.0 billion

 

Started Operation :

2005

 

 

Brand Name :

KTC

 

Technical Assistance :

KTC Group of Singapore

 

Number of Employee :

600 persons

 

Marketing Area :

Local       - 10%

Export    - 90%

 

Main Customers :

a.   P.T. HARFA TARUNA MANDIRI

b.   Mining Company

 

Market Situation :

Very Competitive

 

Main Competitors :

a.   P.T. BAKRIE CONSTRUCTION

b.   P.T. KARYA LESTARI SUMBER ALAM

c.   P.T. PASURA BINA TAMBANG

d.   P.T. AGGREGATE MANDIRI LESTARI

e.   P.T. THIESS CONTRACTORS INDONESIA

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. BANK MANDIRI Tbk

Jalan Mulawarman No. 23

Samarinda, East Kalimantan

Indonesia

b.   P.T. BANK CIMB NIAGA Tbk

Jalan KH. Khalid No.32

Samarinda, East Kalimantan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – US$. 170.0 billion

2012 – US$. 182.0 billion

2013 – US$. 165.0 billion

 

Net Profit (estimated) :

2011 – US$.  23.4 billion

2012 – US$.  25.0 billion

2013 – US$.  22.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mrs. Lau Kwee Ein

Director                                          - Mr. Chua Lai Hock

 

Board of Commissioners :

President Commissioner                  - Mr. Chua Lai Seng

Commissioner                                 - Mr. Rudy Mulyadi

 

Signatories :

President Director (Mrs. Lau Kwee Ein) or Director (Mr. Chua Lai Hock) which must be approved by Board of Commissioners (Mr. Chua Lai Seng or Mr. Rudy Mulyadi)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

OVERALL PERFORMANCE

 

P.T. KTC COAL MINING & ENERGY (P.T. KTC) was established with authorized capital of US$. 200,000.- entirely was issued and fully paid up based on articles of association of the company No. 62 dated 27 December 2004 made by Mr. Agus Madjid, SH., a notary public in Jakarta. The founding shareholders of the company are KOK TONG CONSTRUCTION PTE LTD of Singapore (50%) and Mrs. Lau Kwee Ein of Singapore (50%). The Article of Association was approved by the Minister of Law and Human Rights through Decision Letter No. C-07686 TH.01.01.TH.2005, dated 23 March 2005.

 

The articles of association of the company have frequently been revised. In 18 August 2010 the company authorized capital was increased to US$. 540,000.- entirely was issued and fully paid up. Concurrently, KOK TONG CONSTRUCTION PTE LTD pulled out and the whole shares are sold to Mr. Chua Lai Seng. Since the time, the shareholders of the company are Mr. Chua Lai Seng (50%) and Mrs. Lau Kwee Ein (50%). The Article of Amendment has been approved by the Minister of Law and Human Rights through Decision Letter No. AHU-AH.01.10-24179, dated 27 September 2010.

 

Later according to the latest revision of notary deed Ms. Kamelina, SH., No. 01 dated 2 May 2011 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.01.10-20833, dated 04 July 2011. No changes have been effected in term of its shareholding composition and capital structures to date.

 

Pursuant to the company’s notary deed, P.T. KTC engaged to operate in general trading, development, industry, road transportation, printing and services. The company’s registered office located Wisma Megah 1st Floor, No. E.102, Jl. Danau Sunter Utara Blok N.2, No. 2-3, North Jakarta 14350 and the company can open branch offices or representative offices at home and abroad.

 

According to the results of our investigation we noticed that previously, P.T. KTC was engaged in coal mining contracting services in February 2005. However, since July 2006 the company’s activity has been shifted to engage in coal mining and trading. P.T. KTC does not have a coal mining permit. But they work in cooperation and partnership with a mine concession owners in Kalimantan. Currently, the company has operations at three mine concessions under partnership scheme at Samarinda, Palaran, and Muara Teweh. They sell the following types of coal such as: GCV (ARB) 4450 kcal/kg, GCV (ARB) 5200 kcal/kg, and GCV (ADB) 7500 kcal/kg. When the company entered this business in 2006, their coal production was only about 0.5 million tons. This has now steadily increased to 3.1 million tons in the year. The coal products are mainly exported and supplied to China, Korea, Japan, and India. P.T. KTC is supported by some 100 units of heavy equipments such as bulldozers, excavators, loader, motor grader, drilling machines, and dump trucks. P.T. KTC obtained projects from some companies holding Work Agreement on Coal Mining Enterprises (PKP2B) such as P.T. HARFA TARUNA MANDIRI and the other mining companies. We observed that P.T. KTC is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

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. KTC has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. KTCI 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$ 170.0 million in 2011 increased to US$ 182.0 million in 2012 decreased to US$ 165.0 million in 2013 with a net profit of US$ 22.8 million and projected to go on rising by at least 6% in 2014. The company has an estimated total networth of at least US$ 20.0 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. KTC is led by Mrs. Lau Kwee Ein (55) as president director and a businesswoman of Singapore with experience in coal mining and trading. In daily activities, he is assisted by Mr. Chua Lai Hock (64) as director, Mr. Chua Lai Seng (61) as president commissioner and Mr. Rudy Mulyadi (41) as commissioner. The management of the company is handled by experienced professional manager having wide relation with private businessmen of home and overseas as well as with the government sectors. 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.

 

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. KTC COAL MINING & ENERGY is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.47

UK Pound

1

Rs.98.23

Euro

1

Rs.78.66

 

 

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%)

 

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.