MIRA INFORM REPORT

 

 

Report Date :

27.09.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. PAPERTECH INDONESIA

 

 

Registered Office :

Jalan Raya Cipeundeuy Km. 1 Desa Cipeundeuy, Kecamatan Cipeundeuy Subang, 41272 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

May 1997

 

 

Com. Reg. No.:

358/III/PMA/2001

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engaged in Industrial Paper Manufacturing

 

 

No. of Employees :

212

 

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. PAPERTECH INDONESIA

 

 

address

 

Head Office & Factory

Jalan Raya Cipeundeuy Km. 1

Desa Cipeundeuy, Kecamatan Cipeundeuy

Subang, 41272

West Java

Indonesia

Phones             - (62-260) 710 645 (Hunting)

Fax                   - (62-260) 710 644

E-mail               - pti@papertech.com

Website            - http://www.papertech.com

Land Area         - 150,000 sq. meters

Building Space  - 80,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

a.         10 July 1995 as P.T. TEXPACK INDONESIA

b.         8 January 1996 as P.T. PAPERTECH INDONESIA

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. C2-23.665.HT.01.04.TH.98

            Dated 2 November 1998

-           No. AHU-15927.AH.01.02.TH.2009

            Dated 27 April 2009

-           No. AHU-AH.01.10-44498

            Dated 13 December 2012

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.071.122.4-052.000

 

 

 

 

The President of the Republic of Indonesia

No. B-293/Pres/6/1995

Dated 7 June 1995

 

The Capital Investment Coordinating Board

-           No. 314/1/PMA/1995

            Dated 19 June 1995

-           No. 1875/III/PMA/1998

            Dated 31 December 1998

-           No. 358/III/PMA/2001

            Dated 29 March 2001

 

Related Company :

P.T. CONITEX SONOCO INDONESIA (Carton Boxes Packaging Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          : US$ 13,431,000.-

Issued Capital    : US$ 13,431,000.-

Paid up Capital  : US$ 13,431,000.-

 

Shareholders/Owners :

a. CONITEX SONOCO HOLDING B.V.                                                    - US$ 12,948,000.-

    Address : 270, Buitenhofdreef

                    Holland, The Netherlands

b. CONITEX SONOCO N.V.                                                                   - US$      483,000.-

    Address : Curaco, Netherlands

                    Antilles, The Netherlands

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Industrial Paper Manufacturing

 

Production Capacity :

Board Paper      - 60,000 tons p.a.

 

Total Investment :

a.         Equity Capital    - US$ 13.4 million

b.         Loan Capital      - US$   4.5 million

c.         Total Investment - US$ 17.9 million

 

Started Operation :

May 1997

 

Brand Name :

Papertech Indonesia

 

Technical Assistance :

None

 

Number of Employee :

212 persons

 

Marketing Area :

Export               - 25%

Local    - 75%

 

Main Customer :

Textile industries, etc

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. ADIGUNA BUANA KEMASINDO

b. P.T. ALKINDO NARATAMA

c. P.T. BILTUBE INDONESIA

d. P.T. CONITEX SONOCO INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.         P.T. Bank CIMB NIAGA Tbk

                        Jalan M.H. Thamrin

                        Lippo Cikarang, Bekasi

                        West Java, Indonesia

b.         ABN-AMRO Bank N.V.

                        Indonesia Stock Exchange Building

                        Jalan Jend. Sudirman Kav. 52-53

                        Jakarta Selatan, Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 168.0 billion

2012 – Rp. 175.0 billion

2013 – Rp. 186.0 billion

 

Net Profit (estimated) :

2011 – Rp. 13.4 billion

2012 – Rp. 14.7 billion

2013 – Rp. 16.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Yao Jie Ping

Directors           - a. Mr. Fernando Martinez Peon

                                      b. Mr. Erfan Pratomo Santoso

Sales Manager  - Mr. Kwee Ie Hung

 

Board of Commissioners :

President Commissioner - Mr. Jose Luis Artiga Perez

Commissioners  - Mr. Michael Joseph Schmidlin

 

Signatories :

President Director (Mr. Yao Jie Ping) or one of the Directors (Mr. Fernando Martinez Peon or Mr. Erfan Pratomo Santoso) 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

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Originally named P.T. TEXPACK INDONESIA, the company was established in Subang, West Java, in July 1995 with an authorized capital of US$ 3,930,000 entirely issued and paid up. The founding shareholders of the company are TEXPACK HOLDING BV of the Netherlands as foreign partner and the late Mr. Effendi Gunawan, an Indonesian businessman of Chinese extraction. The company's notarial act was since revised a couple of times. In January 1996 the company's name was changed to P.T. PAPERTECH INDONESIA (P.T. PI), and concurrently the authorized capital was increased to US$ 5,500,000 wholly issued and paid up. On 6th October 1996 Mr. Effendi Gunawan died, and all his shares in January 1997 went over into the control of his younger brother Mr. Hendra Gunawan MBA, also an Indonesian businessman of Chinese extraction.

 

In October 1998 the authorized capital was again stepped up to US$ 12,370,000 fully issued and paid up. In March 2001 the authorized capital was raised to US$ 13,431,000 entirely issued and paid up. By the same time all shareholders above resigned and joined in new shareholders namely CONITEC SONOCO HOLDING B.V. of Netherlands, Mr. Trisno Sutarli and Mrs. Chily Lianawaty, both are Chinese Indonesian business person. After that in January 2003, Mr. Trisno Sutarli pulled out and sold to his younger brother Mr. Hendra Gunawan. Later in March 2009 Mr. Hendra Gunawan pulled out and replaced by CONITEX SONOCO N.V., of Netherlands. With this time the composition of its shareholders has been changed to become CONITEX SONOCO HOLDING B.V., Netherlands (96.40%) and CONITEX SONOCO N.V., Netherlands (3.60%). Then according to the latest revision of notary deed Mrs. Nyi Raden Kania Nursanti, SH., 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.01.10-44498 dated December 13, 2012.

 

We note that the foreign partner, CONITEX SONOCO HOLDING B.V. of the Netherlands, is a subsidiary of the TEXPACK Group of the USA operating in manufacturing of industrial paper like paper tubes, paper cones and board paper.

 

P.T. PI operates under Foreign Investment (PMA) facilities in industrial paper manufacturing with its plant located on a 15.0 hectare land area at Jalan Raya Cipeundeuy Km. 1, Desa Cipeundeuy, Subang (West Java). P.T. PI has been in operation since May 1997, producing and selling various types of high quality board paper like cone board, core board and duplex board made of 100% recycled material with a real production capacity of 60,000 tons/year. The specifications and types of paper are Cone Board (board for cones for the textile industry substance from 250 to 450 gsm), Graphic Board (board for graphic industry substance from 300 to 600 gsm), Duplex Board (board for lunch boxes substance from 200 to 600 gsm), Chip Board (board for standard industrial tube substance from 300 to 550 gsm), Ply Bond - 120 ft. lb. (H.R.) 250 J/sq.m. (H.R.) High Performance Core Board (High Performance Industrial Tubes, Barrels, Composite Cans, Packaging Edges, Lamination) and others. The products supplied to P.T. GUNAWAN TEXTINDO, P.T. EFFENDI TEXTINDO, P.T. MALAKATEX the GUNAWAN Group and other textile industries.

 

About 75% of the company's production is sold in the ranks of textile industries, food and drink processing industries, plastic industries and other manufacturing industries in the country. Some 25% of its production is exported to Singapore, Malaysia, Thailand, Taiwan, China, Australia and South Africa. In terms of quality, P.T. PI has been accorded ISO 9002 certification from SGS and UKAS Quality Management, both foreign international class accreditation companies.

 

The steep rupiah depreciation to the US$ and other strong foreign currencies has positively benefited P.T. PI's finances, because about 25% of its production has been exported to the effect of increasing the company's sales figure in rupiah. On the other hand, the protracted economic crisis has also had a negative impact on the company for having pushed up drastically its production cost. We find that P.T. PI's operations have been slow in developing in the economic crisis conditions in the country.

 

In overall we find the demand for board paper had been rising within the last five years, in line with the growth of consuming industries like textile industry, plastic sheets, electronics, pharmaceutical, cosmetics, foods industries, etc. The rising local consumption of board paper during the crisis in the last few years, according to APKI, because absorptive capacity of consuming industries has still been rising. Thick board or carton papers are used as packages for various industrial products. Business position of P.T. PI is appraised quite well for it has controlled a wide marketing network and customers at home and abroad. The growth of board paper industry is as depicted below:

 

Growth of Board Paper Industry in Indonesia 2008 – 2012 (Tons)

Year

Production

Export

Import

Consumption

2008

1.824.000

393.000

26.000

1.625.000

2009

1.896.960

411.840

27.040

1.690.000

2010

1.972.834

428.314

28.122

1.757.600

2011

2.055.693

446.303

29.3033

1.831.419

2012

2.148.199

466.386

30.622

1.913.833

 

Until this time P.T. PI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. PI 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. 168.0 billion rose to Rp. 175.0 billion in 2012 increased to Rp. 186.0 billion in 2013 and projected to go on rising by at least 6% in 2014. The operation in 2013 yielded an estimated net profit of at least Rp. 16.0 billion and the company has an estimated total networth of at least Rp. 130.0 billion. We observe that P.T. PI 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.

 

P.T. PI's management is headed by Mr. Yao Jie Ping (63), a professional manager of Taiwanese citizenship with about 25 years of experience in industrial paper manufacturing. In his daily operation he is assisted by Mr. Fernando Martinez Peon (65) and Mr. Erfan Pratomo Santoso (43) as Directors. The company has an experienced management made up of professional managers in the above business, locals and expatriates. They have wide relations with private businessmen within and outside the country, and have good ties with the government sector. So far, we did not hear that the company has been filed to the district court for detrimental cases or involved in fraudulent dealings. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. PAPERTECH INDONESIA is sufficiently fairly good for business transaction.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.57

UK Pound

1

Rs.100.42

Euro

1

Rs.78.44

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

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.