MIRA INFORM REPORT

 

 

Report No. :

335343

Report Date :

06.08.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDRA ERAMULTI LOGAM INDUSTRI

 

 

Registered Office :

Jalan Gardu Induk PLN No. 5, Margomulyo, Tandes Lor, Surabaya, 60187

East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

06.01.1988

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject is engage in lead and lead ally

 

 

No. of Employee :

365

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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 has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 

 

 


BASIC SEARCH

 

Name of Company :

 

P.T. INDRA ERAMULTI LOGAM INDUSTRI

 

Address :

 

Head Office

Jalan Gardu Induk PLN No. 5

Margomulyo, Tandes Lor

Surabaya, 60187

East Java

Indonesia

Phones             - (62-31) 297 7777 (Hunting)

Fax                   - (62-31) 748 4546

E-mail               - comm_support@indoprima-group.co.id

                          imliera@indosat.net.id

Website            - http://www.indoprima-group.com

Building Area     - 3 storey

Office Space      - 230 sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Jalan Raya Gununggangsir

Desa Gununggangsir, Kecamatan Beji

Pasuruan

East Java

Indonesia

Phones             - (62-343) 656 451-52

Fax                   - (62-343) 656 880

Land Area         - 20,985 sq. meters

Building Space  - 13,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

6 January 1988

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C-03620 HT.01.04.TH.2006

  Dated 9 February 2006

 

 

-  No. AHU-50436.AH.01.02.TH.2012

   Dated 27 September 2012

-  No. AHU-AH.01.10-39736

   Dated 25 September 2013

-  No. AHU-AH.01.10-01428

   Dated 13 January 2014

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.456.233.4-651.000

The Capital Investment Coordinating Board

- No. 05/35/PMA/2004

  Dated 15 June 2004

- No. 136/II/PMA/2005

  Dated 23 May 2005

The Department of Industry

No. 75/35/T/INDUSTRI/2004

Dated 18 August 2004

 

Related Company :

A Member Company of the INDOPRIMA Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 45,000,000,000.-

Issued Capital                                  : Rp. 32,500,000,000.-

Paid up Capital                                : Rp. 32,500,000,000.-

 

Shareholders/Owners :

a. Mr. Rianto Nurhadi                                                       - Rp. 22,188,000,000.-

    Address : Jl. Dr. Sutomo No. 65-67

                    Surabaya, East Java

                    Indonesia

b. P.T. INDRA PUTRA MEGA                                            - Rp.   5,625,000,000.-

    Address : Desa Brambangan

                    Kelurahan Kebomas, Kecamatan Gresik

                    Surabaya, East Java, Indonesia

c. P.T. INDONESIA ROYAL RESOURCES                - Rp.   2,500,000,000.-

    Address : Penghe, Bridge Pizhou City

                    Jiangsu 221300

                    China

d. Mrs. Indrawati Tjandra                                                  - Rp.   2,187,000,000.-

    Address : Jl. Dr. Sutomo No. 65-67

                    Surabaya, East Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Lead and Lead Ally manufacturing

 

Production Capacity :

a.   Leads                                       - 112,000 tons p.a.

b.   Leads Alloys                             -   27,200 tons p.a.

c.   Red Leads                                 -     4,600 tons p.a.

d.   Pure Tins                                  -     4,800 tons p.a.

 

Total Investment :

a.   Equity Capital                            - Rp.   38.2 billion

b.   Reinvested Profit                        - Rp.     2.0 billion

c.   Loan Capital                              - Rp. 103.8 billion

d.   Total Investment                         - Rp. 144.0 billion

 

Started Operation :

1989

 

Brand Name :

Indra Eramulti Logam Industri

 

Technical Assistance :

JIANGSU CHUNXING ALLOY GROUP, China

 

Number of Employee :

365 persons

 

Marketing Area :

Export      - 90%

Local       - 10%

 

Main Customer :

Buyers in Japan, South Korea, Malaysia, Thailand, Taiwan, China

 

Market Situation :

Competitive

 

Main Competitors :

P.T. KARABHA WIRATAMA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank MANDIRI Tbk

      Jalan Jend. Basuki Rachmat 98-104

      Surabaya, East Java

      Indonesia

b.   Hongkong and Shanghai Banking Corp. Ltd.

      1/F – 3/F Hyatt Graha Bumi Modern

      Jalan Jend. Basuki Rachmat 106-128

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 430.0 billion

2013 – Rp. 446.0 billion

2014 – Rp. 458.0 billion

 

Net Profit (estimated) :

2012 – Rp. 30.1 billion

2013 – Rp. 32.0 billion

2014 – Rp. 34.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Wiranto Nurhadi

Directors                                         - a. Mr. Zhao Kaihong

                                                        b. Mr. Drs. Moch. Chanafi

 

Board of Commissioners :

President Commissioner                   - Mr. Ir. Achmaad Safiun

Commissioners                                - a. Mr. Bambang Hero Sanyoto

                                                        b. Mr. Widijono Nurhadi

                                                        c. Mr. Yang Chunming

 

Signatories :

President Director (Mr. Wiranto Nurhadi) or one of the Directors (Mr. Zhao Kaihong or Mr. Drs. Moch. Chanafi) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. INDRA ERAMULTI LOGAM INDUSTRI (P.T. IMLI) was established in January 1988 in Surabaya, East Java with an authorized capital of Rp. 5,000,000,000 issued capital of Rp. 1,500,000,000 which was entirely paid up. Founders and shareholders of the company were Mr. Haji Aboejamin (Retired Armed Forces/TNI-AD) indigenous entrepreneur, Mr. Rianto Nurhadi, Mr. Ir. Iman Santoso, Dr. Soewondo Basuki and Mr. Ir. Soetrisno Basoeki, wholly are Indonesian businessmen of Chinese origins. The articles of association has been changed a couple of times. In November 1988, the authorized capital was increased to Rp. 7,000,000,000 with an issued capital to Rp. 5,600,000,000 which was paid up. In August 2004, the authorized capital increased to Rp. 25,000,000,000 issued capital to Rp. 12,500,000,000 was paid up. On the same occasion, Mr. Haji Aboejamin, Mr. Ir. Iman Santoso, Dr. Soewandi Basoeki and Mr. Ir. Soetrisno Basoeki pulled out and replaced by JIANGSU CHUNXING ALLOY (Group) Co. Ltd., of the People Republic of China, P.T. INDOPRIMA GEMILANG and Mrs. Indrawati Tjandra as new shareholders.

 

Concurrently, the company’s status was changed to Foreign Investment (PMA) Company facility license. The latest in July 2005, the authorized capital was raised again to Rp. 45,000,000,000 issued capital to Rp. 32,500,000,000 entirely paid up. Later according to revision of notary documents Mrs. Margaretha Dyanawati, SH., No. 2039 dated 24 May 2013 P.T. INDOPRIMA GEMILANG pulled out and replaced by P.T. INDRA PUTRA MEGA as new shareholder. The latest according to revision of notary deed Mrs. Margaretha Dyanawati, SH., no. 2055 dated 26 September 2013 JIANGSU CHUNXING ALLY GROUP of China pulled out and into the company entered by P.T. INDONESIA ROYAL RESOURCES as new shareholder.

 

With this time the composition of its shareholders has been changed to become Mr. Rianto Nurhadi (68.27%), P.T. INDRA PUTRA MEGA (17.31%), P.T. INDONESIA ROYAL RESOURCES (7.69%) and Mrs. Indrawati Tjandra (6.73%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-01428 dated January 13, 2014.

 

We see that majority business stakes of the company is controlled by Mr. Rianto Nurhadi. He also majority business stakes of the INDOPRIMA or INDOSPRING Group, medium-size business group dealing with automotive component manufacturing, lead and lead alloy manufacturing, wire harness manufacturing, leaf spring and coil spring, etc.

 

P.T. IMLI has obtained a Foreign Investment (PMA) facility to be engaged in the field of lead and leads alloy manufacturing. The company is the biggest producer of leads and lead alloys whose plant located in Desa Gununggangsir, Beji, Pasuruan, East Java on a land of 20,985 sq. meters. P.T. IMLI is a Lead Ingot manufacturer located in Pasuruan, Indonesia. As a subsidiary of Indoprima Group, IMLI handles the Non Ferrous business centering in manufacture and trade of Non Ferrous Metals, Ferro Alloys, and Mining Sectors such as:

 

§         Pure Lead and Lead Alloy

§         Copper Scrap

§         Nickel Ore

§         Iron Ore

§         Steam Coal

§         Ferro Silicon

§         Electrolytic Manganese Metal

 

Imported lead crude bullion and local battery scrap is our main material on producing Lead ingot. The whole production process is carried out by skilled and experienced workers combining a technology from United States of America, Taiwan and China. With modern laboratory equipped with computerized Spectrolab Systems from Germany, we deliver a vast quality product to their customers. The plant has been operating since 1989 and has expanding frequently to increasing production capacity. The plant produce lead of 112,000 tons, leads alloy of 27,200 tons, red leads of 4,600 tons and pure tin of 4,800 tons respectively per annum. The plant has absorbed an investment of Rp. 144.0 billion, come from owned capital of Rp. 38.2 billion, reinvested profit of Rp. 2.0 billion and the rest from loans. P.T. IMLI is selling product of Pure Lead and Lead Alloy mostly to Japanese battery manufacturer in Indonesia, Malaysia, Thailand, Taiwan and Vietnam. With experienced group members in international trade and purchasing of main materials, P.T. IMLI has grown into a reputable supplier of Lead. The company production capacity of Lead Ingot is more than 5,000 MT per month.

 

The company has developed the operation target of excellent combination of trade and industry, relying on Lead Smelter platform and expanded the business to the trade of Copper Scrap, Ferro Alloy, Electrolytic Manganese Metals, and Mining Sector such as Nickel Ore, Steam Coal and Iron Ore. As an ISO certified company, consistency in quality and customer satisfaction has been the company main goal. Basic materials such as battery scrap is imported from Japan, Taiwan, Singapore, Australia, New Zealand, Dubai, Jordan, the United Kingdom and selenium imported from Taiwan. Besides, some of the basic material likes tin plate, soda ash dense, nitrate, NaOh, arsenic and others from local products.

 

 

 

Some 90% of its products are exported to Japan, South Korea, Malaysia, Thailand, Taiwan and China. Locally, P.T. IELI has also secured customer with P.T. GS BATTERY in Jakarta and P.T. CONBAT in Surabaya, P.T. INDOBATT INDUSTRI PERMAI in Surabaya, P.T. GRAMITRAMA BATTERY in Surabaya, P.T. TRI MEGA BATERINDO in Surabaya, P.T. SELATAN JADI JAYA in Surabaya, all are in wet battery manufacturers. P.T. IELI is a member company of the INDOPRIMA Group, a medium-sized business group in Indonesia. We observe that operation of P.T. IMLI has been growing in the last five years.

 

Generally we observe that the export demand for lead and lead alloys has kept on growing around 8% to 10% per annum in the last five years. Meanwhile, the local market demand for the above products have also continued increasing in parallel lines with the progress achieved by battery manufacturers in Indonesia. Market situation is very competitive due to the fact that there are many companies now engaged in the field of lead manufacturing in Indonesia. P.T. IMLI in this case is in a good business position due to the fact that it has secured a wide range of export marketing network. Besides that, they have also secured a wide range of business connections with local battery producers. We are convinced that P.T. IMLI will have ability to further maintain its business in the future.

 

Until this time P.T. IMLI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of the company 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. 430.0 billion increased to Rp. 446.0 billion in 2013 rose to Rp. 458.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 has yielded a net profit of at least Rp. 34.0 billion and the company has an estimated total networth of at least Rp. 129.0 billion. We observe that P.T. IELI 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.

 

The management of P.T. IMLI is led by Mr. Wiranto Nurhadi (50) a professional manager with experience in lead and lead alloy manufacturing. Mr. Wiranto Nurhadi serves as President Commissioner of P.T. Indospring Tbk. He graduated from the Universitas Airlangga in Surabaya. He started his career at P.T. Indoprima Gemilang in the Production Department. The company's management is handled by professional staff in the above business. 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. INDRA ERAMULTI LOGAM INDUSTRI is sufficiently fairly good for business transaction.

 

List of the INDOPRIMA Group Members

 

1.          DIRGAPUTRA EKAPRATAMA, P.T. (Trading and Distribution of Automotive Component Part and Motorcycle Parts)

2.          HANWA ROYAL METAL, P.T. (Metal Recycle Processing)

3.          INDONESIA ROYAL RESOURCES, P.T. (Investment Holding)

4.          INDOPRIMA GEMILANG, P.T. (Automotive Component Manufacturing)

5.          INDOSPRING Tbk (Leaf Spring and Coil Spring Manufacturing)

6.          INDOPRIMA INDUSTRINDO, P.T. (Woodworking Industry)

7.          INDOWIRE PRIMA INDUSTRINDO, P.T. (PVC Tube and Cable Manufacturing)

8.          INDOPRIMA GEMILANG ENGINEERING, P.T. (Machinery, Brake Lining, Mould,

Punch & Dies)

9.          INDRA ERAMULTI LOGAM INDUSTRI, P.T. Lead Alloys Manufacturing)

10.      INDOLITHARGE MEGAHTAMA, P.T. (Litharge Manufacturing)

11.      INDOBAJA PRIMA MURNI, P.T. (Steel Products Manufacturing)

12.      JATIM TAMAN STEEL MANUFACTURING, P.T. (Iron, Steel and Foundry Industry)

13.      KONSULINDO MUTU PRIMA, P.T. (Business Management Services and

Accreditation)

14.      MCI PRIMA GASKET, P.T. (Automotive Component Manufacturing)

15.      MK PRIMA INDONESIA, P.T. (Automotive Component Manufacturing)

16.      PROPINDO MEGAHTAMA, P.T. (Sea Food Restaurant Management)

17.      SUMI INDO WIRING SYSTEM, P.T. (Wire Harness, Electric Cable and Related Parts

Manufacturing)

18.      VALQUA INDONESIA, P.T. Automotive Component Manufacturing)

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.82

UK Pound

1

Rs.99.15

Euro

1

Rs.69.31

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ASH

 

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.