MIRA INFORM REPORT

 

 

Report Date :

15.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. ISTECH RESOURCES ASIA

 

 

Registered Office :

Graha Irama Building 9th Floor Unit G, Jalan H.R. Rasuna Said Block X-1 Kav. 1-2, Jakarta Selatan, 12950

 

 

Country :

Indonesia

 

 

Date of Incorporation :

01.02.2000

 

 

Com. Reg. No.:

AHU-AH.01.10-43213

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Construction and Management Consulting Services

 

 

No of Employees :

38 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 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

 


 

Name of Company

 

P.T. ISTECH RESOURCES ASIA

 

 

Address

 

Head Office

Graha Irama Building 9th Floor Unit G

Jalan H.R. Rasuna Said Block X-1 Kav. 1-2

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 527 4206 (Hunting)

Fax                   - (62-21) 527 4214

E-mail               - ts@istechgroup.com

Website            - http://www.istechgroup.com

Building Area     - 26 storey

Office Space      - 230 sq. meters

Region              - Commercial Building

Status               - Rent

 

 

Date of Incorporation

 

a.   13 October 1999 as P.T. INDOSPEC ISTECH INDONESIA

b.   1 February 2000 as P.T. ISTECH RESOURCES ASIA

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C-7687.HT.01.01.TH.2000

  Dated 30 March 2000

- No. AHU-07637.AH.01.02.TH.2011

  Dated 14 February 2011

- No. AHU-AH.01.10-43213

  Dated 22 October 2013

 

 

Company Status

 

National Private Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.957.716.2-058.000

The Capital Investment Coordinating Board

- No. 395/I/PMA/1999

  Dated 16 June 1999

- No. 153/III/PMA/1999

  Dated 19 November 1999

- No. 05/III/PMA/2000

  Dated 5 January 2000

The Indonesian Chamber of Commerce & Industry

KADIN Member : 20201.53292

 

 

Related Companies

 

a.   P.T. BANGADUA PETROLEUM (Oil and Natural Gas Exploration)

b.   P.T. INDOSPAC ASIA (Inspection and Certification of Platform Construction (Oil Rig) Services and Investment Holding)

c.   ISTECH RESOURCES PTE., LTD., Singapore (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 250,000.-

Issued Capital                                  : US$ 250,000.-

Paid up Capital                                : US$ 250,000.-

 

Shareholders/Owners :

a. ISTECH RESOURCES PTE., LTD.                                  - US$ 121,000.-

    Address : 3 Shenton Way

                    Singapore

b. Mrs. Noviriyanti                                                            - US$   37,500.-

    Address : Jl. Kelapa Puan XII AG 5, RT. 004 RW. 012

                    Kelurahan Kelapa Dua, Kecamatan Kelapa

                    Dua, Tangerang, Banten Province

                    Indonesia

c. Mr. Kuat Santoso                                                          - US$   31,500.-

    Address : Jl. Wirajati I/Y-11, RT. 007 RW. 007

                    Kelurahan Cipinang Melayu, Kecamatan

                    Makasar, Jakarta Timur

                    Indonesia

d. Mr. Howardi Somali                                                      - US$   30,000.-

    Address : Jl. Kelapa Puan XII AG 5, RT. 004 RW. 012

                    Kelurahan Kelapa Dua, Kecamatan Kelapa

                    Dua, Tangerang, Banten Province

                    Indonesia

e. Mrs. Siti Soleha                                                            - US$   30,000.-

    Address : Jl. Sawo 2 RT. 003 RW. 015

                    Kelurahan Jatisempurna, Kecamatan

                    Bekasi Barat, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Construction and Management Consulting Services

 

Production Capacity :

None

 

Total Investment :

None

 

Started Operation :

2000

 

Brand Name :

Istech Resources Asia

 

Technical Assistance :

Istech Resources Pte., Ltd., Singapore

 

Number of Employee :

38 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Oil and Gas Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. NIPPON STEEL CONSTRUCTION INDONESIA

b. P.T. NIPPON STEEL BATAM OFFSHORE SERVICES

c. P.T. SANTA FE SUPRACO INDONESIA

d. P.T. SPARROWS OFFSHORE

e. P.T. SUPRACO INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   Hongkong and Shanghai Banking Corp. Ltd.

      World Trade Centre

      Jalan Jend. Sudirman Kav. 29-30

      Jakarta Selatan

 

b.   P.T. Bank INTERNATIONAL INDONESIA Tbk

      Jalan H.R. Rasuna Said Kav. 1-A

      Jakarta Selatan

c.   STANDARD CHARTERED Bank

      Wisma Standard Chartered Bank

      Jalan Prof. Dr. Satrio No. 164

      Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 23.0 billion

2012 – Rp. 25.0 billion

2013 – Rp. 27.0 billion

 

Net Profit (estimated) :

2011 – Rp. 1.8 billion

2012 – Rp. 2.1 billion

2013 – Rp. 2.3 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Ir. Howardi Somali, MM.

Director                                           - Mrs. Siti Soleha

 

Board of Commissioners :

President Commissioner                   - Mr. Inder Singh

Commissioners                                - Mr. Ramles Manampang Silalahi

 

Signatories :

President Director (Mr. Ir. Howardi Somali, MM) or the Director (Mrs. Siti Soleha) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

 

OVERALL PERFORMANCE

 

The correct name of the Subject is P.T. ISTECH RESOURCES ASIA not ISTECH ENERGY EP-5 PTE LTD., as stated in your order ref. no. 284474 dated 2 September 2014.

 

Originally named P.T. INDOSPEC ISTECH INDONESIA established in Jakarta on 13 October 1999 with the authorized capital of US$ 250,000 wholly issued and paid-up. Founders and shareholders are ISTECH RESOURCES ASIA Pte., Ltd., of Singapore and P.T. INDOSPEC ASIA of Indonesia. It’s articles of association has frequently been changed for a couple of times.  On 1 February 2000, the company renamed to P.T. ISTECH RESOURCES ASIA (P.T. IRA). Later in January 2011 P.T. INDOSPECT ASIA pulled out and the whole share sold to Mr. Howardi Somali, Mrs. Noviriyanti, Mrs. Siti Soleha and Mr. Kuat Santoso as new shareholders. With this time the composition of its shareholders has been changed to become ISTECH RESOURCES PTE., LTD., Singapore (48.4%), Mrs. Noviriyani (15%), Mr. Kuat Santoso (12.6%), Mr. Ir. Howardi Somali, MM (12%) and Mrs. Siti Soleha (12%). The latest according to the revision of notary deed Mr. Rusnaldy, SH., no. 15 dated 8 October 2013 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.01.10-43210 dated October 22, 2013.

 

P.T. IRA acquired a Foreign Investment (PMA) license issued by BKPM (Investment Coordinating Board) for dealing with construction works services and management consulting services. Its services is including technical services competency based training and assessment (CBTA) services, quality assurance/quality control services, project management services, engineering services , etc. The service may range from feasibility studies, conceptual and preliminary engineering to detail offshore oil and gas industry. Some of the foreign oil contracting firms used its services are  KODECO INDONESIA, PREMIER OIL NATUNA SEA, PREMIER ANOA GAS EXPORT PROJECT Indonesia/ Singapore, SANTA FE TUBAN Field Development, LASMO LOGISTIC Indonesia, KODECO POLENG TAC, P.T. J.RAY Mc DERMOTT INDONESIA, UNOCAL WEST SENO Field Development, P.T. BANGADUA PETROLEUM, UNOCAL RAPAK LTD., P.T. McDERMOTT INDONESIA, TAHIPO (Pogo Producing) Benchamas field development in Thailand, CTOC Drilling Operations in Malaysia, CTOC Field Development in Malaysia, KELLOG BROWN & ROOT in Singapore & Australia and Japan Vietnam Petroleum Corporation in Vietnam.

 

P.T. IRA’s focus is on delivering integrated project management and engineering services, provided at all project stages ranging from exploration to production, construction to maintenance, upstream and downstream. P.T. IRA’s operation had been growing slowly amid the economic crisis striking Indonesia since mid 1997. Beside that the company is also backed with technical assistance from parent company ISTECH RESOURCES Pte. Ltd., Singapore a business firm dealing with technical and engineering design facilities services.

 

The demand for construction works services, oil and gas equipment has been growing slowly in the last five years. The new investments in oil and gas exploration tended to decline within the above period. Generally we find the demand for directional drilling, mud logging, measurement while drilling services, offshore survey services like geophysics and seismic has been fluctuating within the last five years, in line with the growth of oil & natural gas industries in the country. It is projected that the demand will keep going up in five years to come. The outlook for the country's oil and gas sector is becoming increasingly uncertain. We forecast the long-term decline in total liquids production and a stagnation of gas production. This is mainly a result of the slow pace of exploration and development, exacerbated by an increasingly uncertain regulatory environment as resource nationalism creeps into the government's policy towards the sector. Opportunities for exports will be further compromised by the domestic market's increasing energy demand. Hence, falling oil and gas exports is another key trend we identify for Indonesian oil and gas. The main trends and developments we highlight for Indonesia's oil and gas sector. We forecast that oil and gas reserves will most likely be on a downward trend in the coming decade: oil reserves are expected to decrease from an estimate of 4.0 bn barrels (bbl) of oil at the beginning of 2013 to 3.7 bn bbl in 2017, falling further still to 3.4 bn bbl by 2022.

 

For gas, we expect reserves levels to be stagnant as addition from exploration successes in East Kalimantan cancels out natural depletion from existing fields. Reserves are forecast to fall from 3.07 tcm in 2013 to 2.80 tcm in 2017, and fall further to 2.51 tcm unless the pace of drilling activity picks up. The oil and gas industry makes a huge contribution to the Indonesian economy, providing energy and products that stimulate economic and social development. In addition to their core products and services, oil and gas companies and associated service industries also contribute to economic development by building capacity, using and developing local content, providing employment, investing in training and education, and introducing new technologies. Investor interest in exploration and production in Indonesia remains high, and there have been significant increases in new Production Sharing Contracts and in the number of new projects currently underway and or being planned. Current hydrocarbon reserves in Indonesia's tertiary sedimentary basins are estimated at 8.4 billion barrels of oil and 164.9 trillion cubic feet of gas.

 

Until this time P.T. IRA has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. IRA 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. 23.0 billion rose to Rp. 25.0 billion in 2012 increased to Rp. 27.0 billion in 2013 and projected to go on rising by at least 6% in 2013. The operation in 2013 yielded an estimated net profit of at least Rp. 2.3 billion and the company has an estimated total networth of at least Rp. 3.0 billion.

 

We observe that P.T. IRA is supported by foreign partner with has financially strong and sound behind it. 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. IRA is led by Mr. Ir. Howardi Somali, MM (58) a businessman and professional manager with experience in construction and management consulting services. Mr. Ir. Howardi is a Mechanical Engineer from Bandung Instiute of Technology and an MBA in management with over 30 years of experience in Project Management and Personnel Services in the field of oil and gas industries. He is vastly experienced in Inspection & Certification Services as well as Technical Support. He started his career with a company affiliated to American Bureau of Shipping and held various posts of responsibility and was their Business Development Head. He is The Director and key person in Istech Resources Asia for over 10 years. He has particularly strong experience of working in Indonesia over the past 30 years, where he has deep and broad experience in building business operations. He has an in-depth and vast knowledge and experience in management consultancy and Indonesian oil and gas laws.

 

The company's management is handled by professional staff in the above business. Daily activity he is assisted by Mrs. Siti Soleha (55) as director. 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. ISTECH RESOURCES ASIA is sufficiently fairly good for business transaction.

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.84

UK Pound

1

Rs.98.73

Euro

1

Rs.78.64 

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

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.