|
Report Date : |
15.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
P.T. THE MASTER STEEL MANUFACTORY |
|
|
|
|
Registered Office : |
Jl. Pangeran
Jayakarta 107 |
|
|
|
|
Country : |
|
|
|
|
|
Date of Incorporation : |
02.02.1972 |
|
|
|
|
Com. Reg. No.: |
AHU-AH.01.10-20047 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is
engaged in Steel Building Material Manufacturing |
|
|
|
|
No. of Employees |
470 |
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 : |
Exist |
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 |
P.T. THE MASTER STEEL MANUFACTORY
Head Office
Jl. Pangeran Jayakarta
107
Jakarta Pusat
10730
Indonesia
Phones -
(62-21) 6393608 (6 lines)
Fax - (62-21) 6597766
Building Area - 2 storey
Office Space - 700 sq. meters
Region - Commercial
Building
Status - Owned
Factory
Jl. Raya Bekasi
Km. 21-22, Rawa Terate Cakung
Pulogadung,
Jakarta Timur
Indonesia
Phones -
(62-21) 460 6188
Fax - (62-21) 460 6185
Land Area - 12.0 hectares
Building Space - 2.5 hectares
Region - Industrial
Zone
Status - Rent
Date of Incorporation :
02 February 1972
Legal Form :
P.T. (Perseroan
Terbatas) or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and Human Rights
a. No.
C2-14.808.HT.01.04.TH.98
Dated 23 September 1998
b. No.
AHU-100389.AH.01.02.Tahun 2008
Dated 30 December 2008
c. No.
AHU-AH.01.10-20047
Dated 6 August 2010
Company Status
:
Domestic
Investment Company (PMDN)
Permits by the
Government Department :
a. The Department of Finance
NPWP No. 01.003.056.7-007.000
b. The Department of Industry and Trade
No. 325/DD/U/1972
Dated 14 May 1972
c. The Investment Coordinating Board
- No. 1310/Sekr/Sp.PMDN/1972
Dated 19 July 1972
- No. 204/II/PMDN/1991
Dated 31 October 1991
- No. 307/III/PMDN/1994
Dated 21 July 2994
Related/Affiliated
Companies :
a. P.T. PANGERAN KARANG MURNI (Steel Billet
Industry and Investment Holding)
b. P.T. PULOGADUNG STEEL MANUFACTURING (Steel
building Material Manufacturing)
c. TOKO ABADI INTI (Trading and Distributor of
Steel Products)
Capital
Structure :
Authorized
Capital - Rp.
25,000,000,000.-
Issued Capital - Rp.
20,000,000,000.-
Paid up Capital - Rp.
20,000,000,000.-
Shareholders/Owners
:
a. PT. PANGERAN
KARANG MURNI - Rp. 4,000,000,000.-
Address : Jl. Raya Pegangsaan Dua
Km.1
Jakarta Utara - Indonesia
b. Mr. Herman Soemedi -
Rp. 4,150,000,000.-
Address :
Jl. Cempaka Putih Tengah IV/4
Jakarta Pusat - Indoneisa
c. Mrs. Diah Soemedi -
Rp. 2,060,000,000.-
Address : Jl. A Raya No. 1,
Karang Anyar
Jakarta Pusat -
Indonesia
d. Mr. Amir Soemedi -
Rp. 5,700,000,000.-
Address :
Jl. A Raya No. 1, Karang Anyar
Jakarta Pusat - Indonesia
e. Mr. Ibrahim Soemedi - Rp. 3,090,000,000.-
Address : Jl. A Raya No. 1,
Karang Anyar
Jakarta Pusat -
Indonesia
f. Mr. Leslie Soemedi -
Rp. 1,000,000,000.-
Address : Jl. Sam Ratulangi No. 24
Jakarta Pusat - Indonesia
Lines of
Business :
Steel Building
Material Manufacturing
Production
Capacity :
a. Steel Round Bars -
40,000 tons p.a.
b. Steel Angle Bars -
12,000 tons p.a.
c. Steel Channels -
36,000 tons p.a.
d.
Billet Slabs - 220,000
tons p.a.
e. Steel Plates - 80,000 tons p.a.
f.
Wire Rods - 30,000 tons p.a.
Total Investment :
a. Owned Capital - Rp. 20.0 billion
b. Loan Capital - Rp. 80.5 billion
c. Total Investment - Rp.100.5 billion
Started
Operation :
1974
Brand Name :
The Master Steel
Technical
Assistance :
None
Number of
Employee :
470 persons
Marketing Area
:
Domestic - 100%
Main Customers
:
a. Distributors
and Agents of Steel Building Materials
b. Building
Contracting Companies
c. Others
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. CIGADING HABEAM STEEL
b. P.T. JAKARTA PRIMA STEEL
c. P.T. BLUE SCOPE LYSAGH INDONESIA
d. P.T. JAKARTA STEEL MEGAH UTAMA
e. P.T. SARANA STEEL
f. Etc.
Business Trend
:
Growing
B a n k e r s :
a. P.T. Bank CENTRAL ASIA Tbk
Menara BCA
Jl. M.H.
Thamrin No. 12
Jakarta Pusat
Indonesia
b. P.T. Bank
MANDIRI Tbk
Jl. Imam
Bonjol No. 61
Jakarta
Pusat
Indonesia
Auditor :
Internal Auditor
Litigation :
On 30 July 2013,
the Attorney Corruption
Eradication Commission (KPK), indicting
the owner of the Subject Company,
Mrs. Diah Soemedi with two of her men
namely Effendy Komala
and Teddy Muliawan has made bribery
of two tax investigators Regional Office of Directorate General of Taxes in East Jakarta. Bribes in order to request a stop to the investigation of tax cases that occurred in
2008. Prosecutors
charged Mrs. Diah Soemedi,
Effendy Komala and Teddy Muliawan, have been a violation of Article 5, paragraph 1 of Law no. 31/1999
on Corruption. Based
on these charges, they could face up to
5 years in
prison.
Annual Sales
(estimated) :
2009 – Rp. 280.0
billion
2010 – Rp. 320.0
billion
2011 – Rp. 360.0
billion
2012 – Rp. 405.0
billion
2013 – Rp. 456.0
billion
Net Profit
(estimated) :
2009 – Rp. 16.6 billion
2010 – Rp. 19.0
billion
2011 – Rp. 20.4
billion
2012 – Rp. 22.9
billion
2013 – Rp. 25.8
billion
Payment Manner
:
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Istanto Burhan
Directors -
a. Mr. Herman Soemedi
b. Mrs. Diah Soemedi
Board of Commissioners :
President Commissioner -
Mr. Amir Soemedi
Commissioner -
Mrs. Muljati
Signatories :
President Director (Mr.
Istanto Burhan) or one of the Directors (Mr. Herman Soemedi and Mrs. Diah Soemedi) which must be approved
by Board of Commissioners (Mr. Amir Soemedi and Mrs. Muljati)
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded with monitor
P.T.
THE MASTER STEEL MANUFACTORY (P.T. TMSM) was established in Jakarta in February
1972 with the authorized capital of Rp. 150,000,000 of which Rp. 30,000,000 was
issued and fully paid up. The founding shareholders of the company are Mr. Amir
Soemedi, his wife Mrs. Tirtasari Setiadi, his son Mr. Herman Soemedi and his
daughter Mrs. Diah Soemedia. They are
Indonesian business family of Chinese extraction. The company’s notarial act has frequently
been revised. In August 1991 the
authorized capital was rasied to Rp. 12,000,000,000.- of which Rp.
4,000,000,000.- was issued and fully paid up.
Latest in August 2008, the authorized capital was raised again to Rp.
25,000,000,000.- of which Rp. 20,000,000,000.- was issued and fully paid
up. Since then, the shareholders of the
company are PT. PANGERAN KARANG MURNI (20%), Mr. Herman Soemedi (20.75%), Mrs.
Diah Soemedi (10.30%), Mr. Amir Soemedi (28.5%), Mr. Ibrahim Soemedi (15.45%)
and Mr. Leslie Soemedi (5%).
The
latest revision of notary documents was made by Antonius Wahono Prawirodirdjo,
SH., a public notary in Tangerang and was approved by the Ministry of Law and
Human Rights in its decision letter No. AHU-100309.AH.01.02.TH.2008 dated
December 30, 2008 and No. AHU-AH.01.10-20047 dated August 6, 2010. No changes have been effected in term of its
shareholding composition and capital structures to date.
We
observed that the Soemedi family is also majority business stakes owners of
P.T. PANGERAN KARANG MURNI (steel billet industry), P.T. PULOGADUNG STEEL
MANUFACTURING (steel building material manufacturing) and TOKO ABADI INTI
(trading and distribution of steel products)
P.T.
TMSM acquired a Domestic Investment (PMDN) facility from the Capital Investment
Coordinating Board (BKPM) in steel making and steel rolling industry. Its plant
is located at Jalan Raya Bekasi Km.21-22, Pulogadung, East Jakarta, which had
been operating since 1974 with a production capacity of 40,000 tons steel round
bars, 12,000 tons steel angle bars, and 36,000 tons steel channels, all per
year. The construction has absorbed a total investment of Rp 8,326 million,
entirely came from company's capital. In
1991 P.T. TMSM got an expansion permit to increase production capacity and
absorb a total investment of Rp 41,000 million, coming from company's capital
of Rp 3,400 million and the balance from loans. But, in July 1994 the total
investment was changed into Rp 83,900 million, and Rp 3,400 million of which
from company's capital while the remainder from loans. P.T. TMSM's products are
partly distributed by its sister company TOKO ABADI INTI and the others are
sold to a number of building contractors in Jakarta and surroundings. We observed that P.T. TMSM 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.
Generally,
the domestic market demand for steel building products such as plaint bar, reinforcement
bars, steel billet, steel concrete, steel wire and others has kept on rising
about 7% to 8% per year in the last five years.
This increase is closely associated with the growth of property sectors
such as development of real estate, office building, hotels, apartments,
shopping center and infrastructure projects such as road and bridge. It's just that the
competition is also very tight,
because there are many similar companies
in the country engaged in similar fields. Business position of P.T. TMSM is good
enough because it already has a broad
marketing network and their trademark has already been very
popular in the country.
Until
this time P.T. TMSM has not been registered with Indonesian Stock Exchange, so
that they shall not obliged to announce their financial statement. The
management of P.T. TMSM 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 Rp. 360.0 billion increased to Rp. 405.0 billion in
2012 rose again to Rp. 456.0 billion in 2013 and projected to go on rising by
at least 8% in 2014. The operation in 2013 yielded an estimated net profit of
at least Rp. 25.8 billion and the company has an estimated total networth of at
least Rp. 290.0 billion. So far, we did
not heard that the company having been black listed by the Central Bank (Bank
Indonesia).
On 30 July 2013,
the Attorney Corruption
Eradication Commission (KPK), indicting
the owner of P.T. TMSM, Mrs. Diah Soemedi with
two of her men namely
Effendy Komala and Teddy Muliawan
has made bribery of two tax investigators Regional
Office of Directorate General of
Taxes in East Jakarta. Bribes in order to request a stop to the investigation of tax cases that occurred in
2008. Prosecutors
charged Mrs. Diah Soemedi,
Effendy Komala and Teddy Muliawan, have been a violation of Article 5, paragraph 1 of Law no. 31/1999
on Corruption. Based
on these charges, they could face up to
5 years in
prison.
The
management of P.T. TMSM is led by Mr. Istanto Burhan (61) a professional
manager with more than 20 years experience in steel product manufacturing and
trading. But, the prime-mover of the
company is Mr. Herman Soemedi (63) and Mrs. Diah Soemedi (62), both a son and
daughter of Mr. Amir Soemedi (90). 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.
THE MASTER STEEL MANUFACTORY is sufficiently fairly good for business
transaction. However, in view of the economic slowdown and political situation
in the country is warming we
recommend to treat prudently in extending a loan to the company.
1. Two
corrupt tax officials face time behind bars
Hans
Nicholas Jong, The Jakarta Post, Jakarta | National | Wed, December 18 2013,
7:44 AM
The Jakarta Corruption Court sentenced two tax officials, Mohamad Dian
Irwan Nuqishira and Eko Darmayanto, to nine years each in prison on Tuesday for
accepting bribes from steel company PT The Master Steel.
The panel of judges found the two guilty of accepting S$600,000 (US$477,327)
from the company.
The judges said Mohamad Dian and Eko were guilty of violating Article 12 of Law
No. 31/1999 on corruption.
The court also ordered Mohamad Dian and Eko to pay Rp 300 million in fines, or
serve an additional six months in prison should they fail to pay the amount.
The judges cited some incriminating factors as the fact the defendants’ actions
as public officials did not support the government’s effort to combat
corruption.
Mitigating factors were the fact they were well behaved during the trial and
had never received prison terms before.
The defendants also admitted to their crimes.
Corruption Eradication Commission (KPK) prosecutors sought 13-year prison terms
for the two defendants, who were arrested in a raid in May.
The two were arrested soon after Mohamad Dian parked a Toyota Avanza at
Terminal III of Soekarno-Hatta International Airport and handed the car keys to
Teddy Muliawan, finance manager at The Master Steel, who allegedly placed the
illicit money inside the car.
Mohamad Dian and Eko then went to the airport to pick up the money, where they
were arrested along with Teddy.
The panel of judges said the money was meant for the tax officials so that they
would halt their investigation into tax problems in The Master Steel.
Officials at the company were suspected of falsifying tax payments.
The money was provided by The Master Steel director Diah Soemedi, who had also
been named a suspect by the KPK, through her two staffers Effendi Komala and
Teddy, according to the case dossier.
While the KPK initially arrested the tax officials for The Master Steel case,
it was later found in the trial that they had also accepted bribes from two
other companies, PT Delta Internusa and PT Nusa Raya Cipta.
According to the judges, Mohamad Dian and Eko were also guilty of accepting Rp
3.25 billion in bribes from owners of PT Delta Internusa and PT Nojorono
Tobacco International.
The company wanted the two tax officials to stop an investigation into whether
it manipulated its sales report, with Delta Internusa said to be reducing its
net sales from Rp 8.1 trillion to Rp 6.1 trillion.
They were also guilty of accepting US$150,000 in bribes from PT Nusa Raya Cipta
financial director Handoko Tedjowinoto, for the same reason as the other
bribes.
Responding to the verdict, both Mohamad Dian and Eko said they had yet to make
a decision on whether to appeal.
This tax evasion case comes on the heels of another tax bribery case in April,
where a tax officer named Pargono Riyadi was caught accepting Rp 125 million in
bribes from PT Asep Hendro Racing Sport.
Pargono extorted the money from the company, saying Asep Hendro, the owner,
still had unpaid taxes. Asep claimed he had paid all of his taxes.
Pargono was sentenced to four-and-a-half years in prison in November.
Despite the sentence, Mohamad Dian and Eko are still registered as staff
members of the East Jakarta branch of the Tax Directorate General Office,
according to the office’s spokesman Chandra Budi.
Chandra said the office expected to issue a recommendation to the Home Ministry
to decide what penalties should be given to the two officials.
2. KPK
wants 5 years for Master Steel director
The
Jakarta Post, Jakarta | National | Wed, September 11 2013, 6:02 AM
The Corruption
Eradication Commission's (KPK) prosecutors demanded the Jakarta Corruption Court
to hand down a five-year prison term to steel company PT The Master Steel
president director Diah Soemedi on Tuesday for her alleged roles in a tax
evasion case.
The prosecutors
said Diah was guilty of bribing two tax officials, Mohamad Dian Irwan Nuqishira
and Eko Darmayanto, with S$600,000 (US$472,204) in cash for them to stop their
investigation into the company's tax problems.
“She is guilty of
violating Article 5 of Law No.31/1999 on corruption,” prosecutor Iskandar
Marwanto said during the demand hearing at the Jakarta Corruption Court in
Kuningan, South Jakarta.
The prosecutors
also demanded the panel of judges make Diah pay Rp 100 million in fines or
serve an additional three months in prison.
Besides Diah, the
KPK prosecutors also called on the court to sentence Diah's managers at the
company, Effendy Kumala and Teddy Mulyawan, to four and three years in prison
respectively.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.84 |
|
|
1 |
Rs.98.72 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.