MIRA INFORM REPORT

 

 

Report Date :

03.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. SEMESTA CENTRAMAS

 

 

Registered Office :

World Trade Centre Building, 7th Floor Jalan Jend. Sudirman Kav. 29-32 Jakarta Selatan, 12920

 

 

Country :

Indonesia

 

 

Date of Incorporation :

17.03.2007

 

 

Com. Reg. No.:

No. AHU-AH.01.10-07060

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in the field of coal mining.

 

 

No. of Employees

35

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

 

 

 


Company name

 

P.T. SEMESTA CENTRAMAS

 

 

address

 

Head Office

World Trade Centre Building, 7th Floor

Jalan Jend. Sudirman Kav. 29-32

Jakarta Selatan, 12920

Indonesia

Phones             - (62-21) 2553 3000 (Hunting)

Fax                   - (62-21) 2553 3061, 521 1225

Building Area     - 15 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Mining Site

Balangan Regency

South Kalimantan

 

Date of Incorporation :

17 March 2007

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-51048.AH.01.02.TH.2008

   Dated 13 August 2008

- No. AHU-AH.01.10-26161

   Dated 27 June 2013

- No. AHU-AH.01.10-07060

   Dated 27 February 2014

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.005.942.4-011.000

 

 

 

 

The Regent of Balangan

No. 188.45/131/Kum/2009

Dated 21 July 2009

 

Related Company :

A Member Company of the ADARO Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 10,100,000,000.-

Issued Capital                                  : Rp.   3,000,000,000.-

Paid up Capital                                : Rp.   3,000,000,000.-

 

Shareholders/Owners :

a. P.T. ALAM TRI ABADI                                                   - Rp. 2,250,000,000.-

    Address : Jl. Jend. Sudirman Kav. 29-31

                    Kelurahan Kuningan, Kecamatan Setiabudi

                    Jakarta Selatan

                    Indonesia

b. FAR EAST INVESTMENTS LIMITED                             - Rp.    738,000,000.-

    Address : Labuan, Kuala Lumpur

                    Malaysia

c. Mr. Ruddy Tjanaka                                                       - Rp.      12,000,000.-

    Address : Permata Mediterania Jalan R/29, RT. 009 RW. 003

                    Kelurahan Srengseng, Kecamatan Kembangan

                    Jakarta Barat

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coal                                                - 77,335 tons p.a.

 

Total Investment :

Owned Capital                                 - Rp. 10.0 billion

 

Started Operation :

January 2014

 

Brand Name :

Balangan Coal

 

Technical Assistance :

None

 

 

Number of Employee :

35 persons

 

Marketing Area :

Export      - 69%

Local       - 31%

 

Main Customer :

Buyers in Thailand

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ANTANG GUNUNG MERATUS

b. P.T. BARAMULTI SUKSESSARANA Tbk

c. P.T. DAYA TURANGGA

d. P.T. KIDECO JAYA AGUNG

e. Etc.

 

Business Trend :

Growing

 

 

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

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan                         

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2014 – US$ 7.5 million (January – June)

 

Net Profit (estimated) :

2014 – None

           

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Iwan Dewono Budiyuwono

Directors                                         - a. Mr. Ruddy Tjanaka

                                                        b. Mr. Hengki

                                                        c. Mr. Priyadi

 

Board of Commissioners :

President Commissioner                   - Mr. Garibaldi Thohir, MBA

Commissioners                                - a. Mr. Jacob Suryanata

                                                        b. Mr. Christian Ariano Rachmat

                                                        c. Mr. David Tendian

                                                        d. Mr. Mohammad Syah Indra Aman

 

Signatories :

President Director (Mr. Iwan Dewono Budiyuwono) or one of the Directors (Mr. Ruddy Tjanaka, Mr. Hengki or Mr. Priyadi) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

OVERALL PERFORMANCE

 

P.T. SEMESTA CENTRAMAS (P.T. SCM) was established in Jakarta in March 2007with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 500,000,000 entirely paid up. The founding and shareholders of the company are Mr. Suwiman (75%) and P.T. INDUSTRI TERMINAL BATUBARA, a national private company. The company notary deed had been changed and on 25 April 2013, P.T. ALAM TRI ABADI purchased 75% of the shares in P.T. SCM from P.T. INDUSTRI TERMINAL BATUBARA. On the same occasion the company authorized capital was increased to Rp. 10,100,000,000 issued capital to Rp. 3,000,000,000 entirely paid up. With this time the composition of its shareholders are P.T. ALAM TRI ABADI, Mr. Christopher Sumasto Tjia and Mr. Rudy Tjanaka. Later according to the revision of notary deed on 19 June 2013 Mr. Christopher Sumasto Tjia pulled out and replaced by FAR EAST TRADING LIMITED of Labuan, Malaysia as new shareholder. Concurrently the company status was changed into Foreign Investment (PMA) company facility. The latest according to the revision of notary deed Mr. Humberg Lie, SH., on 2 January 2014 the latest composition of its shareholders has been changed to become P.T. ALAM TRI ABADI (75.0%), FAR EAST TRADING LIMITED, Labuan, Malaysia (24.6%) and Mr. Ruddy Tjanaka (0.4%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-07060 dated February 27, 2014.

 

We note P.T. ALAM TRI ABADI is a national private company dealing in investment holding and majority shares controlled by Mr. Ir. Theodore Permadi Rachmat, Mr. Garibaldi Thohir, MBA, Mr. Ir. Subianto and Mr. Edwin Soeryadjaya.

 

P.T. SCM is a member company of the ADARO Group which operates in January 2014 engaged in the field of coal mining. The company manages a coal concession area located at Tawahan area, Juai district, Balangan Regency, South Kalimantan on 2,500 hectares. Balangan Coal operates under coal licenses, known in Indonesia as Ijin Usaha Pertambangan (IUP). The Balangan Coal 2012 Resource Competent Person was John Devon of Marston, a Golder company. Mr. Devon is a registered member of the Society for Mining, Metallurgy and Exploration and a certified Professional Geologist member of the American Institute of Professional Geologists, both of which are JOR C Recognized Overseas Professional Organizations or ROPO s. The Balangan Coal 2013 drilling campaign provided sufficient detailed structural, quality and geotechnical information for the re-estimation of coal resources and an initial estimation of partial reserves for SCM in preparation at the print date of this report. A significant amount of exploration still needs to be completed to fully frame the coal reserves in the three IUP’s at Balangan Coal and it’s expected that this will be completed over the next five years. Balangan Coal completed a major Lidar survey program over the three IUP areas which has provided valuable topographic, geological and hydrological information used in the reserve estimation process.

 

During 2014, we produced 77,335 tons of Balangan Coal as we completed the construction of the haul road and bridge to connect to the Adaro Indonesia infrastructure. Balangan Coal is strategically located 11km southeast of AI’s concession. They also use in-house contractors and AI’s existing infrastructures such as the privately-owned haul road and Kelanis to keep the cost to produce Balangan Coal relatively low. P.T. SAPTA INDRA SEJATI is responsible for all mining activities from overburden removal and coal hauling. SIS will deploy more heavy equipment to support Balangan Coal’s future production plan.

 

P.T. MARITIM BARITO PERKASA is responsible for the coal barging and ship loading activities. On June 6th 2014, P.T. SCM conducted first commercial shipment of 53,274 tons to a customer from Thailand. The company plan to produce up to 1.0 million tons until the end 2014 as this coal continued to receive interest from a range of customers, including those from Thailand, India and Indonesia. We observe that P.T. SCM is still relatively new commenced commercial production.

 

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. SCM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SCM is very reclusive towards outsiders and rejected to disclose its financial condition. We estimated that total sales turnover of the company in the first operation January to June 2014 amounted to US$ 7.5 million and projected to go on rising by at least 6% in 2015. The company’s operation has no yielded profit because still relatively new commenced commercial production.

 

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. SCM is led by Mr. Iwan Dewono Budiyuwono (54) a professional manager with experience in coal mining. Iwan has over 28 years of experience holding various senior positions in the mining, healthcare, and automotive industries. He joined the Balangan Coal Group in 2012 as a COO and was later appointed president director. Adaro, through its wholly owned subsidiary ATA, acquired 75% stake of Balangan in April 2013. He holds a bachelor’s degree in civil engineering from the Bandung Institute of Technology and an MBA from Institute Prasetya Mulya in Jakarta.

 

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. SEMESTA CENTRAMAS is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.61

UK Pound

1

Rs.100.48

Euro

1

Rs.79.56

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIS

 

               

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.