MIRA INFORM REPORT

 

 

Report No. :

335345

Report Date :

06.08.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. NONFERINDO UTAMA

 

 

Registered Office :

Manis Industrial Estate, Jl. Raya Manis II No. 1, Desa Kadu, Curug, Tangerang 15810, Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

02.06.1986

 

 

Com. Reg. No.:

AHU-AH.01.10-54220

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Used Batteries Smelting Industry

 

 

No. of Employees :

402

 

 

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

 

Correct Name of Company :

P.T. NONFERINDO UTAMA

 

A d d r e s s :

Head Office & Factory

Manis Industrial Estate

Jl. Raya Manis II No. 1

Desa Kadu, Curug, Tangerang 15810

Banten Province

Indonesia

Phones             - (62-21) 5565 0563 (hunting)

Fax                   - (62-21) 5565 0561

Land Area         - 20,000 sq. meters

Building Area     - 12.600 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Date of Incorporation :

02 June 1986

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-8056.HT.01.01.TH.86

    Dated 19 November 1986

b. No. C2-1935.HT.01.04.TH.90

    Dated 03 April 1990

c. No. AHU-26469.AH.01.02.Tahun 2013

    Dated 16 May 2013

d. No. AHU-AH.01.10-54220

    Dated 13 December 2013

 

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.398.590.8-415.000

b. The Capital Investment Coordinating Board

    - No. 506/I/PMDN/1991

      Dated 29 July 1991

    - No. 7/II/PMDN/1997

      Dated 14 January 1997

 

Related/Affiliated Companies :

a. P.T. UNITRAS PERTAMA (Investment Holding)

b. P.T. PANDU DIAN PERTIWI (Investment Holding)

c. A member of the EDWIN SOERYADJAYA Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital          - Rp.  1,000,000,000,000.-

Issued Capital                - Rp.     450,000,000,000.-

Paid up Capital              - Rp.     450,000,000,000.-

 

Shareholders/Owners :

a. P.T. UNITRAS PERTAMA      - Rp. 295,000,000,000.-

   Address : Jl. Ir. H. Juanda II No. 8

                   Jakarta Pusat

                   Indonesia

b. P.T. PANDU DIAN PERTIWI   - Rp. 155,000,000,000.-

   Address : Menara Kadin Indonesia, 28th Floor

                   Jl. H.R. Rasuna Said No. 2-3

                   Jakarta Selatan

                   Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Used Batteries Smelting Industry

 

Production Capacity :

a. Melted Lead Ingots                 - 36,000 tons p.a.

b. Lead Components                  -   1,750 tons p.a.

 

Total Investment :

a. Equity Capital            - Rp.  450.0 billion

b. Loan Capital              - Rp.         0 billion

c. Total Investment         - Rp.  450.0 billion

 

Started Operation :

1 9 8 7

 

Brand Name :

NONFERINDO UTAMA

 

Technical Assistance :

None

 

Number of Employee :

402 persons

 

 

Marketing Area :

a. Domestic    - 90%

b. Export        - 10%

 

Main Customers :

a. P.T. GS BATTERY

b. P.T. CENTURY BATTERIES INDONESIA

c. P.T. TRIMITRA BATERAI PRAKARSA

d. P.T. YUASA BATTERY INDONESIA, etc.

 

Market Situation :

Competitive

 

Main Competitors :

a. P.T. INDRA ERA MULTI LOGAM

b. P.T. MUHTOMAS

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   The Hong Kong and Shanghai Banking Corp. Ltd.

      World Trade Centre, 1-5th Floor

      Jl. Jend. Sudirman Kav. 29-31

      Jakarta Selatan

b.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jl. Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 180.0 billion

2012 – Rp. 205.0 billion

2013 – Rp. 228.0 billion

2014 – Rp. 260.0 billion

 

Net Profit (estimated) :

2011 – Rp. 11.8 billion

2012 – Rp. 13.5 billion

2013 – Rp. 15.0 billion

2014 – Rp. 17.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Arga Siswandhi

Director s                                  - a. Mr. Alfred Somanimbil Tuami Hotma Sihombing

                                                  b. Mrs. Ir. Suwastiati

 

Board of Commissioners :

President Commissioner - Mrs. Joyce Soeryadjaya Kerr

Commissioners                          - a. Mrs. Dra. Melanie Chrysanthy Setyadi

                                                  b. Mr.Michael William P. Soeryadjaya

 

 

Signatories :

President Director (Mr. Arga Siswandhi) or one of the directors (Mr. Alfred Somanimbil Tuami Hotma Sihombing or Mrs. Ir. Suwastiati)  which must be approved by the Board of Commissioner (Mrs. Joyce Soeryadjaya Kerr)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. NONFERINDO UTAMA (P.T. NU) was established in Jakarta based on Notary Deed No. 5 dated 2 June 1986 drawn up by Mrs. Rukmasanti hardjasatya, SH., notary in Jakarta with an authorized capital of Rp. 1,000,000,000.- of which Rp. 200,000,000.- was issued and fully paid up. The founding shareholders of the company are the late Mr. William Soeryadjaya AKA Tjia Kian Liong (50%), Mr. Ir. Theodore Permadi Rachmat AKA Oei Giok Eng (12.5%), Mr. Ir. Ronald Richard Tanga (17.5%) and Mr. Oei Yam Tjhio (20%). They are wholly Indonesian businessmen of Chinese extraction.  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-8056.HT.01.01.TH.86 dated 19 November 1986.

 

Its Articles of association has subsequently been changed for a couple of times. In April 1990, the authorized capital was increased to Rp. 10,000,000,000.- of which Rp. 5,000,000,000.- was issued and fully paid up.  Since then, the shareholders of the company are the late Mr. William Soeryadjaya (60%), Mr. Andreanus I. Gunardhi (20%) and P.T. SINAR INDRA MAKMUYR (20%). The Deed of amendment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-1935.HT.01.04.TH.90 dated 3 April1990.

 

The most recently by Notary Deed of Darmawan Tjoa, SH., No. 10 dated 4 December 2013 the authorized capital was raised again to Rp. 1,000,000,000,000.- of which Rp. 450,000,000,000.- was issued and fully paid up.  Since then, the shareholders of the company are P.T. UNITRAS PERTAMA (65.6%) and P.T. PANDU DIAN PERTIWI (34.4%).  The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-54220 dated 13 December 2013.  Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

 P.T. NU obtained a Domestic Capital Investment (PMDN) license for dealing with lead and tin alloy smelting industry,  whose plant is located at Manis Industrial Estate, Jalan Raya Manis II No.1, Tangerang (Banten province) standing on 2.0 hectares land.  We observed that P.T. NU is a recycling industry of used batteries.  The Company runs its used batteries smelting process using Rotary Kiln machines (Rotary Furnaces), whose operation are integrated with pollution control systems.  The plant started with operation in 1987 with annual production capacity of 24,000 tons of melted lead ingots, such as pure lead ingot, antimony lead ingot and calcium lead ingot.  The annual production capacity of the plant has frequently been expanded.  Today, the plant has annual production capacity of 36,000 tons of melted lead ingots and 1,750 tons of lead components as shown on page-3 of this report. The company supplies the recycled lead to major battery factories in Indonesia, such as PT. GS Battery, PT. Century Batteries Indonesia, PT .Trimitra Baterai Prakarsa, PT. Yuasa Battery Indonesia and cable manufactures such as PT. GT Kabel Indonesia, PT. Sucaco, PT. Jembo Cable and some 10% of its products is exported to Asian Market.

 

 In addition, P.T. NU is also dealing with investment holding, it controls 15% shares of P.T. ANEKA KOMKAR UTAMA dealing with rubber part and component manufacturing and 10% shares of P.T. ARAI RUBBER SEAL INDONESIA engaged in rubber oil seal, O-ring and valve stem manufacturing.   We observed that P.T. NU is classified as a large sized company of its kind in the country of which the operation has been growing in the last three years.

 

Generally, the demand for melted lead ingots such as pure lead ingot, antimony lead ingot and calcium lead ingot has kept on rising about 7% to 8% per year in the last five years. This increase is closely associated with the growth of battery industry and cable manufactures in the country.

 

During 2014, the Government’s policy to suppress domestic demand and curb the inflation rate has moderated economic growth to 5.02% (source: Central Bureau of Statistics). This decrease was partly due to the slowing exports, especially in commodities and a slowdown in fixed investment and government spending (Source: ADB), inflation was approximately 8.4% and the Rupiah exchange rate remained depressed against the USD and stood at Rp. 12,440 at the end of the year, a depreciation of 13% during 2014.

 

The global economy condition is expected to remain unpredictable in 2015.  Macroeconomic indicators from China showed downward trend.  In contrary, macroeconomic indicators of the US and India showed improvement.  Both of these indicated continued uncertainties.  In Europe, concerns on the development of Greece’s economy are also expected to add uncertainties in the global economy environment.  Despite these uncertainties, many analysts expected positive outlook for the Asian region.  OECD and IMF have predicted that the China’s economy will grow 7.1% while India is expected to grow between 6.4 – 6.6%.

 

Indonesia’s economy is expected to grow 5.5 – 5.8% due to the positive outlook of the Indonesia’s economy.  The subsidized fuel price hike is viewed positively as the subsidy will be shifted toward productive economy sectors, resulting in a positive economy growth.  Meanwhile, impact from the price hike to the inflation rate is expected be temporary.

 

On the economic front, according to the Central Statistics Agency, Indonesia’s economic growth in 2014 experienced a downturn to 5.1%, lower from 5.8% in 2013.  The economic slowdown this year heavily impacted the country in many aspects.  First impact was the falling vital commodity  prices such as mining and plantation products, which in turn declined export volume.  Second, deficit trade balance, Depreciation of Rupiah exchange rate against the US Dollar that exceeded 2.1%, lower-than-expected government spending, increased BI rate to 7.75% and slow credit expansion, as well as lower inflation compared with 6.4% inflation rate in 2013.  All of these impacts later caused purchasing power to decline.

 

Table of Indonesian Economic Indicators from 2010 to 2014

 

 Indonesian Economic Indicators

  2010

  2011

  2012

  2013

  2014

Gross Domestic Product
  
(annual percentage change)

6.1

6.5

6.2

5.8

5.1

Consumer Price Index
  
(annual percentage change)

5.1

5.4

4.3

8.4

8.4

Government Debt  (percentage of GDP)

27.4

26.6

27.3

28.7

--

Exchange Rate  (GBP / USD)

9,074

8,773

9,419

11,563

11,800

Population  (in millions)

241

244

247

253

255

Poverty  (percentage of population)

13.3

12.5

11.7

11.5

11.0

Unemployment  (percentage of labor

  force)

7.1

6.6

6.1

6.3

5.9

Reserves  (in billion USD)

96.2

110.1

112.8

99.4

111.9

 

Until this time P.T. NU has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported. P.T. NU’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2011 amounted to Rp 180.0 billion increased to Rp 205.0 billion in 2012 to Rp. 228.0 billion in 2013 and rose again to Rp. 260.0 billion in 2014. The operation in 2014 yielded an estimated net profit of Rp. 17.2 billion and the company has an estimated total net worth of at least Rp. 450.0 billion.  It is projected that total sales turnover of the company will increase at least 8% in 2015. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

The management of P.T. NU is headed by Mr. Arga Siswandhi (53) as president director and CEO of the company.  In daily activities, he is assisted by Mr. Alfred Somanimbil Tuami Hotma Sihombing (52) and Mrs. Ir. Suwastiati (54), both as directors respectively.  The management has wide relation with private businessmen of home and overseas as well as with the government sectors.  So far, we did not hear that the management of the company has been involved in business malpractices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. NONFERINDO UTAMA is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable and slowdown, we recommend to treat prudently in extending any new loan to the company.

 

 

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 :

KAR

 

 

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%)

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.