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Report Date : |
27.09.2014 |
IDENTIFICATION DETAILS
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Name : |
P.T. PAPERTECH |
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Registered Office : |
Jalan Raya Cipeundeuy Km. 1 Desa Cipeundeuy, Kecamatan |
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Country : |
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Date of Incorporation : |
May 1997 |
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|
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Com. Reg. No.: |
358/III/PMA/2001 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in Industrial Paper Manufacturing |
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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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 |
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Very High |
C1 |
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Restricted |
C2 |
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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. PAPERTECH INDONESIA
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 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
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
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
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
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
Management
Capability :
Good
Business
Morality :
Good
Credit
Risk :
Average
Credit
Recommendation :
Credit should
be proceeded with monitor
Proposed Credit Limit :
Small amount – periodical review
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 |
|
|
1 |
Rs.100.42 |
|
Euro |
1 |
Rs.78.44 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
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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 |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.