MIRA INFORM REPORT

 

 

Report Date :

25.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. BASF INDONESIA

 

 

Registered Office :

DBS Bank Tower 27th Floor, Ciputra World 1 Jalan Prof. Dr. Satrio Kav. 3-5 Jakarta Selatan, 12940

 

 

Country :

Indonesia

 

 

Date of Incorporation :

1984

 

 

Com. Reg. No.:

62275.AH.01.02.TH

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Polymer Dispersion and Chemical Processing

·         Pesticides Formulating Industry

·         Chemical Construction Industry

·         Trading and Export Import of Chemical

·         Styrene Butadiene Latex Industry

 

 

No. of Employees :

1,085

 

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

B1

 

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. BASF INDONESIA

 

 

address

 

Head Office

DBS Bank Tower 27th Floor, Ciputra World 1

Jalan Prof. Dr. Satrio Kav. 3-5

Jakarta Selatan, 12940

Indonesia

Phones             - (62-21) 2988 6000 (Hunting)

Fax                   - (62-21) 2988 5930

Building Area     - 30 storey

Office Space      - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Factories

a.   Jalan Daan Mogot Km. 14

      Cengkareng

      Jakarta Barat, 11750

      Indonesia

      Phones                   - (62-21) 6190007 (7 lines)

      Fax                         - (62-21) 6190741

      Land Area               - 111,651 sq. meters

      Building Space        - 90,000 sq. meters

      Region                    - Industrial Zone

      Status                     - Owned

b.   Jalan Raya Cibitung Km. 46

      Desa Sukadanau, Cibitung

      Bekasi, 17520

      West Java

      Indonesia

      Phones                   - (62-21) 88328445, 88328434

      Fax                         - (62-21) 88328423

      Land Area               - 10,000 sq. meters

      Building Space        - 7,000 sq. meters

      Region                    - Industrial Zone

      Status                     - Owned

 

c.   Jalan Jababeka V Block I No. 1

      Cikarang Industrial Estate

      Bekasi, 17530

      West Java

      Indonesia

      Phones                   - (62-21) 8934339 (Hunting)

      Fax                         - (62-21) 8934342

      Land Area               - 12,000 sq. meters

      Building Space        - 8,400 sq. meters

      Region                    - Industrial Estate

      Status                     - Owned

d.   Jalan Raya Salira Merak (ex P.T. LATEXIA INDONESIA)

      Desa Mangunrejo, Bojonegara

      Merak, 42438

      Banten Province

      Indonesia

      Phones                   - (62-254) 5750011 (Hunting)

      Fax                         - (62-254) 5750012

      Land Area               - 67,000 sq. meters

      Building Space        - 45,000 sq. meters

      Region                    - Industrial Zone

      Status                     - Owned

 

Representative Office

Jalan Raya Bogor Km. 27.3

Jakarta Timur, 13710

Indonesia

Phones             - (62-21) 87710030 (Hunting)

Fax                   - (62-21) 8729563

Land Area         - 10,000 sq. meters

Building Space  - 7,000 sq. meters

Region              - Commercial Building

Status               - Owned

 

Date of Incorporation :

a. 3 December 1974 as P.T. BASF INDONESIA MANETIS

b. 1984 as P.T. BASF INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. AHU-12973.AH.01.02.TH.2008

  Dated 17 March 2008

- No. AHU-AH.01.10-11946

  Dated 14 May 2008

- No. 62275.AH.01.02.TH.2008

  Dated 12 September 2008

 

- No. AHU-AH.01.10-05345

  Dated 6 May 2009

- No. AHU-AH.01.10-24660

  Dated 30 September 2010

- No. AHU-33683.AH.01.02.TH.2012

  Dated 20 June 2012

- No. AHU-AH.01.10-27650

  Dated 26 July 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

a. The Department of Finance

    NPWP No. 01.000.561.9-092.000

b. The President of the Republic of Indonesia

    - No. B-99/Pres/10/1974

      Dated 23 October 1974

-  No. B-01/Pres/1/1976

  Dated 6 January 1976

c. The Capital Investment Coordinating Board

      - No. 273/VI/PMA/1983

        Dated 23 March 1983

      - No. 25/II/PMA/1985

         Dated 2 November 1985

      - No. 11/III/PMA/1988

        Dated 12 January 1988

      - No. 44/III/PMA/1988

        Dated 12 February 1988

      - No. 176/III/PMA/1989

        Dated 13 May 1989

      - No. 100/III/PMA/1991

        Dated 14 February 1991

      - No. 52/II/PMA/1992

        Dated 3 July 1992

      - No. 93/II/PMA/1997

        Dated 02 June 1997

      - No. 283/II/PMA/2001

        Dated 06 November 2001

      - No. 89/II/PMA/2002

        Dated 15 May 2002

      - No. 1780/III/PMA/2009

        Dated 28 December 2009

d. The Department of Industry

    No. 31/M/SK/2/1976

    Dated 12 February 1976

 

Related Company :

A Member Company of the BASF Group, Germany

 


 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : US$ 28,517,000.-

Issued Capital                                  : US$ 28,517,000.-

Paid up Capital                                : US$ 28,517,000.-

 

Shareholders/Owners :

a. BASF SE                                                            - US$ 28,516,900.-

    Address :  Carl – Bosch Strasse 38

                     67057 Ludwigshafen AM Berlin

                     Germany

b. Mr. Human Effendi                                             - US$             100.-

    Address :  Puspita Loka Block F.2/18

                     Bumi Serpong Damai

                     Tangerang, Banten

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Polymer Dispersion and Chemical Processing

b. Pesticides Formulating Industry

c. Chemical Construction Industry

d. Trading and Export Import of Chemical

e. Styrene Butadiene Latex Industry

 

Production Capacity :

A.   Initial Plant

      a. Pigment and Pigment Dispersions                -   2,600 tons p.a.

      b. Polymer Dispersions (Styrene Butadiene

           Latex, Acrylonitrile Butadiene Latex and

           Supplementary Products)                            - 97,000 tons p.a.

      c. Demulsifiers                                                -      600 tons p.a.

      d. Flocculation Agents                                     -      400 tons p.a.

      e. Vitamin Concentrates                                  -      250 tons p.a.

      f.  Premixes                                                    -      750 tons p.a.

      g. Liquide Pesticides                                       -   2,000 kiloliters p.a.

      h. Powder Pesticides                                      -   1,000 tons p.a.

      i. Brake Fluids                                                -      500 kiloliter p.a.

      j. Concrete admixture products                         -   8,400 tons p.a.

      k.Grout products                                             -   3,600 tons p.a.

      l. Floor Protection products                              -   2.800 tons p.a.

      m. Concrete repair products                             -   1,000 tons p.a.

      n. Water proofing & others                  

          protection products                                     -   1,600 tons p.a.

 

B.   Factory (ex. P.T. LATEXINDO INDONESIA)

      o. Styrene Butadiene Latex                  - 30,000 tons p.a.

      p. Styrene Acrylic Latex                      -   5,000 tons p.a.

      q. Polymer Dispersion                         -   5,000 tons p.a.

      r. Precipitated Calcium                        - 20,000 tons p.a.

 

Total Investment :

A.   Initial Plant

      a. Equity Capital                        - US$ 13.1 million

      b. Reinvested Profit                    - US$   3.8 million

      c. Total Investment                     - US$ 53.1 million

      d. Total Investment                     - US$ 70.0 million

B.   Styrene Butadiene (ex. P.T. LATEXINDO INDONESIA)

      a. Equity Capital                        - US$ 16.4 million

      b. Total Investment                     - None

      c. Total Investment                     - US$ 16.4 million

 

Started Operation :

1988

 

Brand Name :

BASF

 

Technical Assistance :

BASF SE of Germany

 

Number of Employee :

1,085 persons

 

Marketing Area :

Export    - 100%

 

Main Customers :

a. Chemical Industries

b. Paint Industries

c. Feed Mill Industries

d. Agricultural Industries

e. Other Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ARISTEK HIGHPOLYMER

b. P.T. INKOMAS LESTARI

c. P.T. REHAU INDONESIA

d. P.T. TUNAS TASIK

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.       DEUTSCHE Bank AG

Deutsche Bank Building

Jalan Imam Bonjol 80

Jakarta 10310

Indonesia

b.       CITIBANK N.A.

Landmark Center

Jalan Jend. Sudirman No. 1

Jakarta Pusat

Indonesia

c.       P.T. Bank MANDIRI Tbk

Jalan Jend. Gatot Subroto Kav. 36-38

Jakarta Selatan

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 2,289.0 billion

2012 – Rp. 2,320.0 billion

2013 – Rp. 2,372.0 billion

2014 – Rp. 1,210.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 175.0 billion

2012 – Rp. 190.0 billion

2013 – Rp. 201.6 billion

2014 – Rp. 111.5 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Henry Choo Kim Hong

Directors                                         - a. Mr. Drs. Prawira Atmadja

                                                        b. Mr. Soehari Liono

                                                        c. Mr. Nabil Farid Tamzil

 

Board of Commissioners :

President Commissioner                   - Mr. Dean Trevor Draper

Commissioners                                - a. Mr. Gopalan Pillay

                                                        b. Ms. Joane Leong Lai Fun

 

Signatories :

President Director (Mr. Henry Choo Kim Hong) or one of the Directors (Mr. Drs. Prawira Atmadja, Mr. Soehari Liono or Mr. Nabil Farid Tamzil) which must be approved by Board of Commissioner.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

 

OVERALL PERFORMANCE

 

Initially named P.T. BASF INDONESIA MANETIS, the company was established in 1974 with an authorized capital of US$ 2,750,000 entirely was issued and paid up. The original founding shareholders were BASF AG of Germany and P.T. URECON UTAMA, a private company of Indonesia. Its notarial act has frequently been revised and in 1984 it was renamed P.T. BASF INDONESIA (P.T. BI). According to the revision its authorized capital was in 1984 raised to US$ 13,083,300 wholly issued and paid up, and the whole shares since were controlled by BASF AG, P.T. URECON UTAMA, P.T. ASEAM INDONESIA Bank, P.T. Bank FINCONESIA and Mr. Danny Jozal Salimsyah.

In May 2008, the whole shares of the company were controlled by BASF SE of Germany and Mr. Human Effendi, an Indonesian businessman of Chinese extraction. In November 2001, P.T. DHARMA ARDHA FORMA was merged into P.T. BASF INDONESIA (surviving company). On the same occasion, P.T. DHARMA ARDHA FORMA had dissolved without prior to liquidation. Then in May 2008 P.T. BASF CONSTRUCTION CHEMICALS INDONESIA was merged into P.T. BASF INDONESIA (surviving company) and P.T. BASF CONSTRUCTION CHEMICALS INDONESIA had also dissolved without prior to liquidation. Then in May 2009, board management of management and board of commissioner of the company has been changed. However, the capitalization structure of the company remained the same. The deed of amendment was made by Mrs. Misahardi Wilamarta, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-05345, dated May 06, 2009.

 

After that based on notary deed of Mrs. Misahardi Wilamarta, SH., No. 10 dated 21 January 2010, P.T. LATEXIA INDONESIA was merged into P.T. BASF INDONESIA (surviving company) and P.T. LATEXIA INDONESIA had dissolved without prior to liquidation. On the same occasion the authorized capital was increased to US$ 28,517,000 wholly issued and paid up. With this development the composition of its shareholders has been changed to become BASF SE of Germany (99.99%) and Mr. Human Effendi (0.01%). The merged process was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-08342.AH.01.02.TH.2010 dated 16 February 2010. Then latest based on notary deed of Mrs. Misahardi Wilamarta, SH., No. 2 dated 1 September 2010 the board of directors and the board of commissioners was reappointed 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.01.10-24660 dated September 30, 2010. Then according to the latest revision of notary documents of Mr. Bagus Nugraha Kusuma Wardhana, SH., M.Kn., No. 3 dated 10 July 2012 the board of director and the board of commissioner had been changed to lead and runs of the company’s operation (see profile). The latest revision of notary documents was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-27650 dated July 26, 2012.

 

P.T. BASF INDONESIA (P.T. BI) was incorporated the frame work of Foreign Capital Investment (PMA) to be engaged in the field manufacturing of audio & video recording, electronic data processing media, magnetic media, prerecorded tape & record assembling of audio/video equipments & pigment dispersion. It plant located at Jalan Daan Mogot Km. 14, Cengkareng,           West Jakarta over around 111,651 square meters wide land. The plant has been commercial operating since 1988 and has been expanded for several times. Prior in 1985, it was expanded for increasing the production capacity of its polymer dispersions (styrene butadiene latex, acrylonitrile butadiene latex and supplementary products), emulsifiers, flocculation agents, vitamin concentrates and premixes. Later in 2002, the plant was expanded again for increasing the production capacity of its dispersions.

 

In November 2001, P.T. DHARMA ARDHA FORMA (P.T. DAF) operation as from 1981 in pesticides formulation industry whose plant is located at Jalan Raya Cibitung Km.46, Desa Sukadanau, Cibitung, Bekasi (West Java) merged into P.T. BI and its whole assets and business activities also shifted to P.T. BI. Since May 2008, P.T. BASF CONSTRUCTION CHEMICALS INDONESIA, a company having  been in operation since 1993 dealing with chemical construction industry by managing a plant located at Jalan Jababeka V Block I No. 1, Cikarang Industrial Estate on a land of 1.2 hectares, has been merged into P.T. BI.

 

P.T. BASF CONSTRUCTION CHEMICAL INDONESIA produces various types of chemical construction materials such as epoxy flooring, floor hardeners, grouts, auxiliaries, air entertainment, specialty, super plasticizers, sealants, repair, composite, and others under brands of MRACE, POLYHEED, GLENIUM, POZZOLITH, BARRALASTIC, BARRAFER, BARRA, SONOPLASTIC, MASTERFLEX, RHEOMIX, RHEOMAC, MICROAIR, RHEOFINISH, MASTERKURE, MASTERTOP, MASTERFLOW and others. Since that time, whole assets and activities of P.T. BASF CONSTRUCTION CHEMICAL INDONESIA have been shifted to P.T. BASF INDONESIA.

 

P.T. BI has annual production capacity of Pigment and Pigment Dispersions of 2,600 tons, Polymer Dispersions (Styrene Butadiene Latex, Acrylonitrile Butadiene Latex and Supplementary Products) of 97,000 tons, Demulsifiers of 600 tons, Flocculation Agents of 400 tons, Vitamin Concentrates of 250 tons, Premixes of 750 tons, Liquide Pesticides of 2,000 kiloliters, Powder Pesticides of 1,000 tons, Concrete admixture products of 8,400 tons, Grout products of 3,600 tons, Floor Protection products of 2.800 tons, Concrete repair products of 1,000 tons, Water proofing & others protection products of 1,600 tons respectively per annum. The construction of the above plants has absorbed an investment of US$ 70.0 million.

 

Later P.T. LATEXIA INDONESIA was merged into P.T. BASF INDONESIA (P.T. BI) in January 2010, the whole assets and factory was taken over by P.T. BASF INDONESIA with its plant located at Jalan Salira Merak, Desa Mangunrejo, Bojonegara, Merak, West Java, on a land of some 6.7 hectares with a production capacity of 30,000 tons styrene butadiene latex, 5,000 tons styrene acrylic latex, 5,000 ton polymer dispersion and 20,000 ton precipitatet calcium, all per year. Management of the company said to our inquiry that some 85% of the products marketed locally and the other 15% is exported to PR. China, Vietnam, Malaysia, Singapore, etc. P.T. BI is the largest producers of polymer dispersions controlling 22% of the local market shares. The products marketed to various industries such as coating and paint industries, textile industries, chemical processing, agricultural industries, feed milling industries, pulp and paper industries and others industries. We observe the operation of P.T. BASF INDONESIA has been growing and developing well in the last three years.

 

Generally, the demand for pigment/pigment preparation, polymer, vitamin, and mineral premix had been rising by 8% to 10% in line with the growth of textile, paper, leather, chemicals and fertilizer industries, feed milling industry in the same period. But later it declined as the impact of the global economic crisis and tight money policy imposed by government in October 2008. Starting in the second semester 2008, many markets in various parts of the world experienced adverse economic condition. This condition was triggered by, amongst others, the housing and mortgage loans crisis in the United States of America (US) that spread to securities, structures products and commodity markets. The volatility in the US markets coupled with the sharp appreciation in the US Dollars and a series of corporate bankruptcies and takeovers enabled the crisis to spread to other parts of the world. The impact of the global economic crisis has also been felt in Indonesia as the Indonesian Rupiah weakened, demand decrease, commodity prices decreased, securities market declines, interest rate increased, followed by decreases, tightened liquidity conditions, and increased credit risks. Up to this time, the Company has not significantly suffered from the economic crisis. In response to these economic events, during 2010 the Company has plans as follows: Negotiation with main customer regarding increasing selling price. Cost reduction in business trip, pantry needs, technical support cost, etc. Reduction finishing cost and transportation cost with transferring product to customers, Improvement of internal production, increasing cycle time and increasing machine running time.

 

P.T. BI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. BI 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. 2,289.0 billion rose to Rp. 2,320.0 billion in 2012 increased to Rp. 2,372.0 billion in 2013. As from January to June 2014 the sales turnover has amounted at Rp. 1,210.0 billion with a net profit of at least Rp. 111.5 billion. It is projected the sales turnover will be increasing by at least 6% in 2015. The company has an estimated total networth of at least Rp. 397.0 billion. We observe that P.T. BI is supported by foreign partner of Germany 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. BI is headed by Mr. Henry Choo Kim Hong (61) a professional manager with experience in broad experience in polymer dispersions, chemical processing and pesticide formulating industry and trading. The company's management is handled by professional managers in the above business. The management has good reputation in the above industries and has experienced. 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. BASF INDONESIA is sufficiently fairly good for business transaction.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.99.99

Euro

1

Rs.78.37

 

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%)

 

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.