MIRA INFORM REPORT

 

 

Report No. :

316386

Report Date :

15.04.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. MASARI DWISEPAKAT FIBER

 

 

Registered Office :

Wisma 77, 18th Floor, Jalan Letjend. S. Parman Kav. 77, Slipi, Jakarta Barat 11410

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.06.1990

 

 

Com. Reg. No.:

AHU-AH.01.10-32331

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Medium Density Fiberboard (MDF) Industry

 

 

No. of Employees :

380 Persons

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Indonesia

A2

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. President Joko WIDODO - elected in July 2014 - has emphasized domestic economic growth in his first few months in office and in November 2014 reduced fuel subsidies, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

BASIC SEARCH

 

Name of Company :

P.T. MASARI DWISEPAKAT FIBER

 

A d d r e s s :

Head Office

Wisma 77, 18th Floor

Jalan Letjend. S. Parman Kav. 77, Slipi

Jakarta Barat 11410

Indonesia

Phones             - (62-21) 5363122, 5363124, 536313, 5363838

Fax                   - (62-21) 5363230, 5363125

E-mail               - marketing@masari-board.com

Website            - http://www.masari-board.com

Building Area    - 24 storey

Office Space    - 680 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Jalan Raya Karawang Cikampek Km. 9.3

Desa Gintungkerta – Kecamatan Klari

Karawang 41371, West Java

Indonesia

Phones             - (62-267) 431471, 431473, 431474-5

Fax                   - (62-267) 431472

Land Area         - 20.0 hectares

Office Space    -   2.6 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

20 June 1990

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-5773.HT.01.01.TH.93

  Dated 7 July 1993

- No. AHU-AH.01.10-13165

  Dated 28 May 2008

- No. AHU-AH.01.10-32331

  Dated 1 August 2013

 

Company Status :

National Private and Domestic Investment (PMDN) Company

 

Permit by the Government Department :

a.   The Department of Finance

      NPWP No. 01.357.750.7-072.000

b.   The Capital Investment Coordinating Board

      - No. 402/I/PMDN/1993

         Dated 24 November 1993

      - No. 61/II/PMDN/1997

        Dated 7 April 1997

      - No. 284/III/PMA/1998

        Dated 31 August 1998

c.   The Department of Industry

      No. 101/T/Industri/1996

      Dated 8 February 1996

d.   The Department of Industry and Trade

      No. 232/APIT/PMDN/1993

      Dated 1 December 1993

 

Related Company :

A Member of the Company the MUKTI Group (see attachment)

 

 

CAPITAL AND OWNER  

 

Capital Structure :

Authorized Capital                           - Rp. 60,000,000,000.-

Issued Capital                                 - Rp. 60,000,000,000.-

Paid up Capital                               - Rp. 60,000,000,000.-

 

Shareholders/Owners :

a. Mr. Aswan Wiyono                          - Rp. 59,400,000,000.-

    Address : Jl. Pantai Mutiara 0/6

                    RT.005/RW.016, Pluit

                    Jakarta Utara

b. Mr. Jeffry Wiyono                           - Rp.      600,000,000.-

    Address : Jl. Pantai Mutiara 0/6

                    RT.005/RW.016, Pluit

                    Jakarta Utara

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Medium Density Fiberboard (MDF) Industry

 

Production Capacity :

a.   Medium Density Fiberboard       - 84,000 cu. meters p.a.

b.   Formalin                                   - 21,000 tons p.a.

c.   Urea Formaldehyde Glues          - 31,000 tons p.a.

 

Total Investment :

a.   Equity Capital                           - Rp.   60.0 billion

b.   Loan Capital                              - Rp.   89.3 billion

c.   Total Investment                        - Rp. 149.3 billion

 

Started Operation :

1995

 

Brand Name :

MASARI BOARD

 

Technical Assistance :

None

 

Number of Employee :

380 persons

 

Marketing Area :

Domestic                                        - 90%

Export                                            - 10%

 

Main Customers :

a. Furniture Manufacturing Industries

b. PCB (Printed Circuit Boards) Industries

c. Hi-Fi Equipment Industries, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. CANANG INDAH

b. P.T. HIJAU LESTARI RAYA FIBERBOARD

c. P.T. PARINDO PERMAI

d. P.T. RIMBA PARTIKEL INDONESIA

e. P.T. SUMALINDO LESTARI JAYA Tbk

f. P.T. SUMATERA PRIMA FIBERBOARD

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.  P.T. Bank MANDIRI Tbk

      Jalan Tebah III No. 36

      Jakarta Selatan

      Indonesia

 

b.   P.T. Bank NEGARA INDONESIA Tbk

      Jalan Jend. Sudirman Kav. 1

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 256.5 billion

2013 – Rp. 268.0 billion

2014 – Rp. 277.0 billion

 

Net Profit (estimated) :

2012 – Rp. 20.5 billion

2013 – Rp. 21.9 billion

2014 – Rp. 22.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Jeffry Wiyono

Director                                          - Mr. Soelaiman Dickie

 

Board of Commissioners :

President Commissioner                  - Mr. Aswan Wiyono

Commissioner                                 - Mrs. Ellen Wiyono

 

Signatories :

President Director (Mr. Jeffry Wiyono) or Director (Mr. Soelaiman Dickie) but must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. MASARI DWISEPAKAT FIBER (P.T. MDF) was established in June 1990 with the authorized capital of Rp. 20,000,000,000 issued capital of Rp. 6,000,000,000 entirely paid-up. Founders and original shareholders are Mr. Aswan Wiyono AKA Ng Hiok Swan, Mr. Santoso Pukarta and Mr. The Tjet Sen, all three Indonesian of Chinese extraction. The articles of association have frequently been revised. Lastly in May 2008 the authorized capital was raised to Rp. 60,000,000,000 entirely issued and fully paid up. By the same time the shareholders had changed and Mr. Santoso Pukarta and Mr. The Tjet Sen pulled out and the whole shares sold to Mr. Jeffry Wiyono (a son of Mr. Aswan Wiyono). With this time the composition of its shareholders has been changed to become Mr. Aswan Wiyono (99%) and his son Mr. Jeffry Wiyono (1%). The latest according to the revision of notary deed Mr. Syafril, SH., no. 8 dated 26 April 2013 the company board of director and the board of commissioner re-elected 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.01.10-32331 dated August 1, 2013.

 

We observed that the Wiyono family is also founders and majority business stakes owner of the MUKTI Group, a small sized business group in Indonesia with activities in oil palm plantation and wood-based product industry.

 

P.T. MDF obtained license from Indonesian Investment Coordinating Board (BKPM) for dealing with medium density fiber board (MDF) manufacturing by managing a plant located at Jalan Raya Karawang Cikampek Km. 9.3, Desa Gintungkerta, Kec. Klari, Karawang, West Java standing on 200,000 sq. meters land operating as from in 2005 with a capacity of 70,000 sq. meters of MDF per annum.  At present, it is capable of producing 7,000 M3 per month or approximately 84,000 M3 per annum of high quality thin panel Medium Density Fiberboard with the utilization of Mande – press machine installed in the mills. Besides the company also produce of formalin and formaldehyde glues. The product of P.T. MDF has been known international and domestically by the name of MASARI BOARD. P.T. MDF specializes primarily in thin MDF boards from 2.5 mm to 4.75 mm with rubber wood as its raw material.

 

P.T. MDS specializes in manufacturing “Medium Density Fiberboard” (MDF). MDF is one of the four main categories of wood based panels-laminated boards, particle boards, fiber boards and oriental strand boards.

 

The distribution of the fiber and uniform compactness throughout the Masari board enable a smooth surface and edge finish. MDF to be an excellent material for producing furniture such as drawer bottoms and cabinet backs, interior door skins, interior decorative walls, wall ceiling and panels, kitchen accessories, partitions, picture frames, package boxes, etc. Mrs. Marlina, one of P.T. MDF’s staff members disclosed that some 80% of her company products is marketed locally to furniture manufacturing industries and 20% is exported to various countries including South Asia and Middle East countries. We observe that P.T. MDF 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, demand for processed wood including medium density fiber (MDF) has been fluctuating in the last five years in line with the fluctuating export and domestic markets. It is estimated that the demand will kept on rising in the coming two-three years. Meanwhile, the competition is very tight on account of lots of similar companies operating in the country. The woodworking industry had been turning down within the last five years due to lack of raw materials, as far from transportation facility and fluctuation of export demand. It is estimated will keep going down within the coming two or three years as the impact of global economic crisis and tight banking liquidity since October 2008 hitherto. The business position of P.T. MDS is appraised to be facing difficulty for lack of basic materials in future. The growth of said business is evident from the production and utility growth of the processed wood export volume and export value of plywood and sawn timber below:

 

The Export Growth of the Indonesian Main Processed Wood Products

2008 – 2013*

Type of Commodities

2008

2009

2010

2011

2012

2013*

Plywood :

-Volume (000 tons)

-Value (US$ million)

 

1,659.3

1,527.2

 

1,430.4

1,189.5

 

1,834.7

1,635.3

 

1,891.0

1,953.4

 

1,950.5

2,011.3

 

1,692.2

1,974.1

San Timber:

-Volume (000 tons)

-Value (US$ million)

 

    51.1

    55.6

 

36.4

36.7

 

32.3

31.3

 

43.4

42.1

 

53.6

54.1

 

43.9

42.4

Other Wood Products:

-Volume (000 tons)

-Value (US$ million)

 

1,059.3

1,238.2

 

1,201.4

1,048.8

 

1,825.1

1,204.0

 

2,164.6

1,293.5

 

2,216.0

1,277.2

 

2,154.4

1,164.4

 

Until this time P.T. MDS has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. MDS is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 256.5 billion rose to Rp. 268.0 billion in 2013 increased to Rp. 277.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The company has an estimated net profit of at least Rp. 22.8 billion with an estimated total net worth of at least Rp. 77.8 billion. 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. MDF is led by Mr. Jeffry Wiyono (36) a young businessman with 11 years of experience in medium density fiberboard manufacturing.  He graduated Master of Business Administration from University Southern Carolina, LA, USA majoring in business and finance. He is a son of Mr. Aswan Wiyono (62), a founder of P.T. MDF.  Daily operation, he is assisted by Mr. Soelaiman Dickie (42) as director. The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good. 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. MASARI DWISEPAKAT FIBER is sufficiently fairly good for business transaction.

 

 


Attachment

 

List of the MUKTI  Group Members

 

1.       HESTI AGRO NIAGA, P.T. (Oil Palm Plantation)

2.       INYUTAS, P.T. (Forestry Concession)

3.       KAWEDAR MUKTI TIMBER, P.T. (Forestry Concession)

4.       KAYU MUKTI, P.T. (Forestry Concession)

5.       MASARI DWISEPAKAT FIBRE, P.T. (Medium Densityt Fibreboard Industry)

6.       MUKTI AGRO LESTARI, P.T. (Oil Palm Plantation)

7.       MUKTI SWADAYA LESTARI, P.T.  (Oil Palm Plantation)

8.       SWADAYA MUKTI PERKASA,  P.T.  (Oil Palm Plantation)

9.       Etc.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.37

UK Pound

1

Rs.91.60

Euro

1

Rs.66.49

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.