MIRA INFORM REPORT

 

 

Report Date :

26.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. MAHAKAM SUMBER JAYA

 

 

Registered Office :

Jl. Alaydrus No. 80, Petojo Utara – Gambir, Jakarta Pusat 10130

 

 

Country :

Indonesia

 

 

Date of Incorporation :

22.06.1994

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Coal Mining

 

 

No of Employees :

382

 

 

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 :

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

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


Name of Company

 

P.T. MAHAKAM SUMBER JAYA

 

 

Address

 

Head Office

Jl. Alaydrus No. 80

Petojo Utara - Gambir

Jakarta Pusat 10130

Indonesia

Phones             - (62-21) 631 7257 (hunting)

Fax                   - (62-21) 631 9730

Building Area     - 3 storey

Office Space      - 260 sq. meters

Region              - Commercial

Status               - Owned

 

Branch

Jl. Batubara No. 8

Samarinda, East Kalimantan

Indonesia

Phones             - (62-451) 732 110

Fax                   - (62-451) 742848

Building Area     - 2 storey

Office Space      - 120 sq. meters

Region              - Commercial

Status               - Owned

 

Mining Sites

Desa Loa Tebu

Tenggarong, Kutai Kertanegara

North Samarinda, East Kalimantan

Indonesia

Land Area         - 20,380 hectares

Building Space  - 260 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

22 June 1994

 

Legal Form :

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

 

 

Company Reg. No. :

The Ministry of Law and Human Rights

   a.                                                No. C2-3.904 HT.01.01.TH.96

      Dated 06 March 1996

   b.                                                No. AHU-37347.AH.01.02.TH.2008

      Dated 01 July 2008

   c.                                                No. AHU-AH.01.10-06168

      Dated 28 February 2011

 

Company Status :

Private National Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.781.455.9-026.000

 

Holding Company :

P.T. HARUM ENERGY Tbk. (Coal Mining and Investment Holding)

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

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

Issued Capital                                  - Rp.   85,000,000,000.-

Paid up Capital                                - Rp.   85,000,000,000.-

 

Shareholders/Owners :

a. P.T. HARUM ENERGY Tbk                  - Rp. 68,000,000,000.- (80%)

    Address : Jl. Alaydrus No. 80

                    Jakarta Pusat

                    Indonesia

b. PERUSAHAAN DAERAH BARA

    KALTIM SEJAHTERA                          - Rp. 17,000,000,000.- (20%)

    Address : Mall Lembuswana Blok c No. 23-25

                    Jl. S. Parman, Samarinda

                    East Kalimantan

                    Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coal     - 10.0 million tons p.a.

 

Total Investment :

Owned Capital                                 - Rp. 85.0 billion

 

Started Operation :

2004

 

Brand Name :

Mahakam Sumber Jaya

 

Technical Assistance :

None

 

Number of Employee :

382 persons

 

Marketing Area :

Export   - 95%

Local    -   5%

 

Main Customers :

a. Korea Western Power Co. Ltd.

b. Hua Yang electric Power Co. Ltd.

c. Rich Bulk Corporation

d. Korea Midland Power Co. Ltd.

e. Korea Southern Power Co. Ltd.

f.  PT. Tanito Harum

g. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ADARO INDONESIA

b. P.T. BATUBARA BUKIT ASAM

c. P.T. KALTIM PRIMA COAL

d. P.T. ARUTMIN INDONESIA

e. P.T. KODECO JAYA AGUNG

f.  P.T. BERAU COAL

 

Business Trend :

Fluctuating

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

  a. P.T. Bank DBS INDONESIA

      Plaza Permata

      Jl. M.H. Thamrin Kav. 57

      Jakarta Pusat

      Indonesia

 

  b.  P.T. Bank MANDIRI Tbk.

      Mandiri Plaza

      Jl. Gatot Subroto Kav. 36-38

      South Jakarta

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – US$. 401.0 million

2011 – US$. 673.0 million

2012 – US$. 844.0 million

2013 – US$. 677.0 million

 

Net Profit (estimated) :

2010 – US$.   73.6 million

2011 – US$. 135.0 million

2012 – US$. 108.0 million

2013 – US$.   33.0 million

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Eddy Sumarsono

Director                                           - Mr. Budi Rahardja

 

Board of Commissioners :

President Commissioner                   - Mr. H. Sayid Sjafran

Commissioners                                - a. Mr. Lawrence Barki

                                                        b. Mr. Yun Mulyana

                                                        c. Mr. Bambang Setiawan Wydianto

 

Signatories :

President Director (Mr. Eddy Sumarsono) or Director (Mr. Budi Rahardja) which must be approved by Board of Commissioners (Mr. H. Sayid Sjafran, Mr. Lawrence Barkie, Mr. Yun Mulyana and Mr. Bambang Setiawan Wydianto)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

P.T. MAHAKAM SUMBER JAYA (P.T. MSJ) was established on May 4, 1998 with the authorized capital of Rp. 3,500,000,000 of which Rp. 875,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Kiki Barkie, his wife Mr. Liana Kusnadi and his son Mr. Lawrence Barik, both are Indonesian business entrepreneurs of Chinese extraction.  The Articles of association has been approved by the Minister of Law and Human Right through Decision Letter No.  C2-3.904. HT.01.01.TH.96 dated March 6, 1996.

 

The articles of association of the company have frequently been revised.  In May 2008, the authorized capital was increased to Rp. 100,000,000,000 of which Rp. 85,000,000,000 was issued and fully paid up. Concurrently, whole shareholders withdrew and replaced by P.T. HARUM ENERGY Tbk., a public listed company (80%) and PERUSAHAAN DAERAH BARA KALTIM SEJAHTERA (20%), Regional Government of East Kalimantan owned company. The amendment to Articles of association has been approved by the Minister of Law and Human Right through Decision Letter No. AHU-37347.AH.01.02.Tahun 2008 dated July 1, 2008 and No. AHU-AH.01.10-06168 dated February 28, 2011.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. MSJ (MSJ) has been in operation since 2004 dealing with coal mining.  MSJ’s activities are government by the Coal Contract of Works (CCOW) entered into by the government of the Republic of Indonesia, represented by the Minister of Energy and Mineral Resources (the Department) of the Republic of Indonesia and MSJ, on December 29, 2000. The CCOW regulates the following terms and conditions:

 

·         MSJ acts as the Government contractor responsible for coal mining activities in the area in Kutai Kartanegara Regency, North Sumarinda, East Kalimantan with total concession area of 20,380 hectares.

 

 

·         The operating period shall be for 30 years, or longer period upon written request from MSJ which has to be approved by the Government, commencing on the start of mining operation.

·         MSJ is entitled to 86.5% of the total coal produced with the remaining 13.5% being the Government’s share of production.

·         MSJ is responsible to finance the exploration and general survey activities in the in the mining are and is obliged to pay taxes and/or other penalties to the government and all expenses with regard to the mining activities.

·         MSJ is entitled to have full control and sole management of all of the activities mentioned in the agreement, and takes full responsibility and bears all risks in accordance with the terms and conditions of the agreement.  MSJ is also allowed to employ related or third party registered sub-contractors, to perform various mining activities deemed necessary by MSJ, including contracting out the construction of its facilities, as well as provision of technical, managerial and administration services.

 

Pursuant to P.T. HARUM ENERGY Tbk., (holding company of MSJ), coal production of P.T. MSJ in 2009 amounted to 4.5 million tons increased to 5.0 million tons in 2010 to 8.0 million tons in 2011 to 9.2 million tons in 2012 and rose again to 9.7 million tons in 2013.  Some 5% of the products are marketed locally and the rest of some 95% is exported to South Korea (32%), China (32%), Taiwan (15%), India (85), Japan (4%) and others (4%).  We observed that P.T. MSJ is classified as a medium sized company of its kind in the country of which the operation has been fluctuating in the last three years.

 

Generally, the mining activities for such minerals as coal, copper, gold, silver, nickel ore and etc. have fluctuated and for gold have been expanding in the country in the last five years. Pursuant to Central Bureau of Statistics (BPS), the total production of coal in 2008 reached 181.6 million tons with export value of US$ 10,481.5 million rose to 209.3 million tons with export value of US$ 13,817.3 million in 2009 to 224.7 million tons with export value of US$ 18,499.3 million in 2010 to 291.2 million tons with export value of US$ 27,221.8 million in 2011 and rose again to 361.0 million tons with value of US$ 26,166.2 million in 2012.  Coal production and export value of coal as of 31 August 2013 reached 249.8 million tons with export values of US$ 22,395.0 million. Details on Indonesian last seven years coal export volume and value is listed below:

 

The Total Production and Export Value of Coal in 2007 – 2013

Description

2007

2008

2009

2010

2011

2012

2013 *

Production

(000 tons)

174,832.7

181,570.0

209,344.7

224,677.0

291,164.6

361,028.4

249,826.1

Export Value

(million US$)

6,681.5

10,485.1

13,817.3

18,499.3

27,221.8

26,166.2

22,395.6

 

Driven by strong production from Australia and Indonesia, the global thermal coal market experienced an over-supply situation where the pace of supply growth was faster than the demand growth.  This situation caused the downward pressure on global coal prices throughout the year.  The Company’s average coal sales price decreased 17.55 from US$.82.7 per ton in 2012 to US$.68.2 per ton in 2013, which was in line with the decrease of average global coal price during 2013.   The Company generated additional revenues from vessel charter and coal processing, as well as revenues from use of P.T. MSJ’s hauling road. Such additional revenue decreased slightly to US$.24 million in 2013 from US$.25 million in 2012.


Until this time P.T. MSJ has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MSJ is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2010 amounted to US$.401.8 billion increased to US$.673.0 million in 2011 to US$.844.0 million in 2012 and declined to US$.677.0 million in 2013.  The operation in 2011 yielded an estimated net profit of at least US$. 135.0 million declined to US$.108.0 million in 2012 and dropped again to US$.33.0 million in 2013.   In 2012 the company has a total asset of US$.304.8 million declined to US$.260.2 million in 2013.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. MSJ is led by Mr. Eddy Sumarsono (63) as President Director.  He is graduated from Bandung Institute of technology with a degree in Mining Engineering and from PPM Business School Management with a Master degree in management.  He was formerly a General Manager of PT. Tanito Harum (1996-2001), a General manager of PT. Berau Coal (1990-1996) and the Chief Mining engineer of PT. Nickel Indonesia where he started his career in 1977.   Currently, he is also the Director of PT. Harum Energy Tbk., and PT. Santan Batubara.  In daily activities he is assisted by Mr. Budi Rahardja (61) as Director.   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 operation and net profit of P.T. MSJ declined in the last two years and economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.02

UK Pound

1

Rs.99.43

Euro

1

Rs.77.84

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TPT

 


 

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.