MIRA INFORM REPORT

 

 

Report Date :

03.09.2014              

 

IDENTIFICATION DETAILS

 

Name :

P.T. PDM INDONESIA

 

 

Registered Office :

c/o P.T. PUSAKA PRIMA MANDIRI, Jalan Brigjen. Szein Hamid Km. 6.9, Titi Kuning, Medean 20146, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

24.02.1984

 

 

Com. Reg. No.:

- No. AHU-AH.01.10-12216

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Cigarette Paper Industry

 

 

No. of Employees :

178

 

RATING & COMMENTS

 

MIRA’s Rating :

C

 

RATING

STATUS

PROPOSED CREDIT LINE

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

 

Status :

Taken over company 

Payment Behaviour :

---

Litigation :

---

 

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 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. PDM INDONESIA

 

A d d r e s s :

Head Office

c/o P.T. PUSAKA PRIMA MANDIRI

Jalan Brigjen. Szein Hamid Km. 6.9

Titi Kuning, Medean 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

 

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

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The President of the Republic of Indonesia

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. 41/I/PMA/1983

  Dated 31 December 1983

- No. 160/II/PMA/1990

  Dated 10 October 1990

- No. 96/III/PMA/2004

  Dated 06 February 2004


Related Companies :

a. SCHWEITZER MAUDUIT FRANCE (Investment Holding)

b. P.T. NOMINDOJASA RAYA (Investment Holding and Trading)
     

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$. 11,000,000.-

Issued Capital                                  : US$.   8,200,000.-

Paid up Capital                                : US$.   8,200,000.-

 

Shareholders/Owners :

a. SCHWEITZER MAUDUIT FRANCE S.A.R.L         - US$.  7,790,000.-

    Address : B.P.34, 29393 Quimperle Cedex

                    France

b. Mr. Djoni Tjandra                                               - US$.     410,000.-

    Address : Jl. Imam Bonjol Block Bo. 15/O

                    Fetisah Tengah, 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                              - US$   8.5 billion

b. Loan Capital                                - US$   7.6 billion

c. Total Investment                           - US$ 15.8 billion

 

Started Operation :

March 1985 but since July 2013 the whole assets had been sold to P.T. PUSAKA PRIMA MANDIRI

 

Brand Name :

PDM 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

 

B a n k e r s :

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.   60.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 5.8 billion

2012 – Rp. 9.2 billion

2013 – Rp. 4.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Jean-Albert Le Roux

Director                                           - Mr. Djoni Tjandra

 

Board of Commissioner :

Commissioner                                 - Mr. John Winn Rumely Junior

 

Signatories :

President Director (Mr. Jean-Albert Le Roux) or the Director (Mr. Djoni Tjandra) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

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 (P.T. PDMI). 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%). The latest 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. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-12216 dated April 11, 2012.

 

Previously P.T. PDMI is one of the producer of cigarette paper industry in the country which operation since December 1985. The company obtained its foreign capital investment (PMA) license from the Capital Investment Coordinating Board (BKPM) in cigarette paper industry including plug-wrap and tipping paper. Its factory is located at Jalan Brigjend. Zein Hamid Km. 6,9, Titi Kuning, Medan, on a land plot of three 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. The construction of this factory unit had absorbed an investment of US$ 11.7 million, consisting of US$ 8.2 million equity capital and US$ 3.5 million was covered by loan. In 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 US$ 4.1 million fully from loan. For the production of cigarette paper, P.T. PDMI 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. All the production is marketed in the country to cloves cigarette factories as well as to ordinary cigarette factories. Its marketing is handled by P.T. DUTA MENDUT. The products are sold to P.T. SUMATRA TOBACCO TRADING COMPANY, 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, etc. However according information the whole assets had been taken over by P.T. PUSAKA PRIMA MANDIRI, a national private company dealing with cigarette paper industry.

 

 

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. In overall we find the clove cigarette industries kept on rising in the last five years and nothing wrong with the global economic crisis occurred in October 2008 because they used mostly local contents. But the number of cigarettes companies in Indonesia this year is down 17% to 1,381 units in 2012 compared to 2011, according to industry association. 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 cigarette companies Indonesia in 2007 reached 5,000 units, then felt to 1,500 units in 2010.  

 

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 – 2012*

Description

2009

2010

2011

2012*

Total Production (billion stick)

245.2

249.1

270.8

278.9

Number of Companies (unit)

3,255

1,994

1,664

1,381

Number of Employee (person)

687,224

700,000

725,000

780,000

Tax Receivable (trillion Rupiah)

55.4

63.3

73.3

84.4

Source: GAPPRI (Indonesia Cigarette Producers Association)

 

Until this time P.T. PDMI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PDMI 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. As from January to June 2013 the sales turnover has amounted at Rp. 60.0 billion with a net profit Rp. 4.0 billion. Since July 2013 the whole assets including factory and employee had been took over by P.T. PUSAKA PRIMA MANDIRI.

 

The management of P.T. PDMI is led by Mr. Jean-Albert Le Roux (48) a professional manager with experience in cigarette paper industry and trading. Daily activity he is assisted by Mr. Djoni Tjandra (57) 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. Considering the whole assets had been took over by P.T. PUSAKA PRIMA MANDIRI, we recommend to stop any new proposed loan to P.T. PMD INDONESIA.


 

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 :

PDT

 

               

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.