MIRA INFORM REPORT

 

 

Report No. :

306817

Report Date :

11.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. PETRO OXO NUSANTARA

 

 

Registered Office :

Jl. Gubernur Suryo No. 134, Tlogopojok, Gresik 61118, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

09.05.1996

 

 

Com. Reg. No.:

AHU-AH.01.10-56445

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of 2 Ethyl Hexanol (2EH), N-Buthyl Alcohol (NBA) and I-Buthyl Alcohol (IBA)

 

 

No. of Employees :

280

 

 

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. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA


 

BASIC SEARCH

 

Name of Company :

P.T. PETRO OXO NUSANTARA

 

Registration Address :

Head Office & Factory

Jl. Gubernur Suryo No. 134

Tlogopojok, Gresik 61118

East Java, Indonesia

Phones                - (62-31) 3973960 (hunting)

Fax.                     - (62-31) 3973558

Email                   - admin@pon.co.id or marketing@pon.co.id

Website               - http://www.pon.co.id

Land Area            - 10.0 hectares

Building Space     -   4.8 hectares

Region                 - Industrial Estate

Status                  - Owned

 

Date of Incorporation :

09 May 1996

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Laws and Human Rights

a. No. C2-8325 HT.01.01.TH.96

    Dated 08 August 1996

b. No. C-17992.HT.01.04.TH.2006

    Dated 20 June 2006

c. No. AHU-AH.01.10-0688

    Dated 09 January 2008

d. No. AHU-55814.AH.01.02.Tahun 2012

    Dated 20 June 2012

e. No. AHU-AH.01.10-56445

    Dated 30 December 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

  a.  The Department of Finance (Tax License)

      NPWP No. 01.071.555.5-052.000

 

  b.  The Capital Investment Coordinating Board

      - No.387/I/PMA/1995

        Dated 12 July 1995

      - No.420/III/PMA/2007

        Dated 29 March 2007

 

Holding Companies :

a. P.T. TUBAN PETROCHEMICAL INDUSTRIES (Investment Holding)

b. WELLINGTON CAPITAL INVESTMENT Corp., of BVI (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital            - US$. 47,000,000

Issued Capital                  - US$. 47,000,000

Paid up Capital                - US$. 47,000,000

 

Shareholders/Owners :

a. P.T. TUBAN PETROCHEMICAL INDUSTRIES      - US$ 23,500,000.- (50%)

    Address: MidPlaza Building II, 18th Floor

                   Jl. Jend. Sudirman Kav. 10-11

                   Jakarta Pusat

b. WELLINGTON CAPITAL INVESTMENT Corp.      - US$ 23,500,000.- (50%)

    Address: Commonwealth Trust Limited

                   Drake Chambers, BVI

                   British Virgin Islands

 

BUSINESS ACTIVITIES

 

Lines of Business :

Manufacturing of 2 Ethyl Hexanol (2EH), N-Buthyl Alcohol (NBA) and I-Buthyl Alcohol (IBA)

 

Production Capacity :

a. 2 Ethyl Hexanol (2 EH)                 - 100,000 tons p.a.

b. N-Buthyl Alcohol (NBA)                -   20,000 tons p.a.

c. I-Buthyl Alochol (IBA)                   -   13,000 tons p.a.

 

Total Investment :

a. Equity Capital         - US$   51.0 million

b. Loan Capital           - US$ 136.0 million

c. Total Investment     - US$ 187.0 million

 

Started Operation :

September 1998

 

Brand Name :

PON

 

Technical Assistance :

Mitsubishi Chemical Corp., of Japan

Number of Employee :

280 persons

 

Marketing Area :

Domestic (Local)  - 60%

Export                 - 40%

 

Main Customers :

PVC Plasticizer and Solvent Industries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Indo Acidatama

b. P.T. Perkebunan Nusantara XI

c. P.T. Sumber Kita Indah

d. Etc.

 

Business Trend :

Growing

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Mandiri Building

    Jalan Jend. Sudirman Kav. 36-38

    Jakarta Selatan

    Indonesia

b. CITIBANK N.A.

    CITIBANK Tower 1

    Jalan Jend. Sudirman Kav. 1

    Jakarta Selatan

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Total Income (estimated) :

2010 – Rp.   660.0 billion

2011 – Rp.   758.0 billion

2012 – Rp.   860.0 billion

2013 – Rp.   980.0 billion

2014 – Rp.1.060.0 billion

 

Net Profit (estimated) :

2010 – Rp. 33.0 billion

2011 – Rp. 38.0 billion

2012 – Rp. 43.0 billion

2013 – Rp. 49.0 billion

2014 – Rp. 53.0 billion

 

Payment Manner :

Fairly good

 

Financial Comments :

Satisfactory

 

KEY EXECUTIVES

 

Board of Management :

President Director                                                - Mr. Beh Soo Hee

Vice President Director                             - Mr. Abdul Ghafur

Directors                                                  - a. Mr. Yudianto Kosman

                                                                 b. Mrs. Nila Damayanti

                                                                 c. Mr. Hendro Waskito

 

Board of Commissioners :

President Commissioner                           - Mr. Yudi Pramadi

Vice President Commissioner                   - Mr. Quah Ban Huat

Commissioner                                          - a. Mrs. Dewy Soewaty Minaria

                                                                 b. Mr. Budi Harto

 

Signatories :

President Director (Mr. Beh Soo Hee) or Vice President Director (Mr. Abdul Ghafur) or one of directors (Mr. Yudianto Kosman, Mrs. Nila Damayanti or Mr. Hendro Waskito) which must be approved by the Board of  Commissioners.

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

 

 

OVERALL PERFORMANCE

 

P.T. PETRO OXO NUSANTARA (P.T. PON) was established in May 1996 with an authorized capital of US$ 47,000,000.- entirely was issued and fully paid up. The founding and original shareholders of the company are P.T. TIRTAMAS MAJUTAMA P.T. TM (40%), P.T. ETERINDO ANUGERAH PRAKARSA (40%), both are private companies, GLOBECHEM HONG KONG Ltd of Hong Kong (10%) a subsidiary company of the P.T. TIRTAMAS MAJUTAMA and SOUTHERN PACIFIC PETROLEUM Ltd. of British Virgin Island (10%).  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-8325.HT.01.01.TH.96 dated 8 August 1996.

 

The articles of association (notary deed) of the company have frequently been changed. In June 2006, P.T. ETERINDO ANUGERAH PRAKARSA and GLOBECHEM HONG KONG Ltd., pulled out and since that time, the shareholders of P.T. PON are P.T. TIRTAMAS MAJUTAMA (50%) and SOUTHERN PACIFIC PETROLEUM Ltd., (50%).  The amendment to Deed was approved by the Minister of Law and Human Rights through its Decision Letter No. C-17992.HT.01.04.TH.2006 dated 20 June 2006.  In March 2007, P.T. TIRTAMAS MAJUTAMA and SOUTHERN PACIFIC PETROLEUM Ltd., pulled out and since that time, the shareholders of P.T. PON are P.T. TUBAN PETROCHEMICAL INDUSTRIES (50%) and WELLINGTON CAPITAL INVESTMENT Corp., of British Virgin Island (50%). The amendment to Deed was approved by the Minister of Law and Human Rights through its Decision Letter No. AHU-AH.01.10-0688, dated 9 January 2008.

 

The most recently by notarial deed of Irene Yulia, SH., No. 26 dated November 26, 2013 the company’s board of director and board of commissioner were changed.  The latest amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-56445 dated December 30, 2013.

 

We observed that the shareholders of P.T. TUBAN PETROCHEMICAL INDUSTRIES (TUBAN PETRO) at present are P.T. PERUSAHAAN PENGELOLA ASSET – Ex. IBRA (70%) and P.T. SILAKENCANA TIRTALESTARI (30%), a private company’s owned by Mr. Honggo Wendratno. WELLINGTON CAPITAL INVESTMENT Corp., a foreign company from British Virgin Islands.

 

   P.T. PON operates under Foreign Investment (PMA) facilities in the industry/manufacture of 2-Ethyl Hexanol or Octanol (2 EH), N-Buthyl Alcohol or Normal Butanol (NBA) and I-Buthyl Alcohol or Iso Butanol (IBA). The company's plant is located on some 10.0 hectares land on Jl. Gubernur Suryo No. 134, Tlogopojok, Gresik, East Java.

 

The plant went into trial operation since February 1998 and into commercial operation since September 1998, According to P.T. PON's licence, the plant has a production capacity of 100,000 tons of 2 EH, 20,000 tons of NBA and 13,000 tons of IBA per year. The company's basic material requirement in the form of propylene is supplied from EXOR I, Balongan (West Java) and in the form of natural gas is supplied from P.T. Perusahaan Gas Negara (P.T. PGN). The investment put into development of the project has come to US$ 187.0 million (US$ 51.0 million from company capital and the balance from a syndicated loan, including NISSHO IWAI CORPORATION, Japan).

 

The company’s processing technology use Haldor Topsøe’s for synthesis gas, UOP-DOW for Carbon dioxide removal and Japan’s Mitsubishi Chemical Corporation at their octanol plant.  Octanol is produced from propylene and synthesis gas (a mixture of Carbon monoxide and hydrogen) through an aldol condensation of butyraldehyde and followed by a hydrogenation.  Mr. Bambang Warsonggo, manager marketing of the company, said P.T. PON's production realization has now already reached 90% to 95% of the installed capacity.  He went on to say that about 60% of the company's production is marketed in the country, mainly in the ranks of PVC plasticizer and solvent industries and the rest is exported to  China, Thailand, Singapore, Vietnam, Taiwan, Hong Kong, Malaysia, Australia, Korea, Saudi Arabia, India, Iran, Sri Lanka and Philippines.   P.T. PON is as the pioneer in 2EH (2 Ethyl hexanol), Normal butanol (NBA) and Iso butanol (IBA) industry in South East Asia. We observed that P.T. PON 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.

 

Until this time P.T. PON has not been registered with Indonesian Stock Exchange, so that they shall not obligation to announce their financial statement.   P.T. PON's management is very reticent to outsiders about finances. The company's sales turnover in 2011 is estimated at amounted to Rp 758.0 billion increased to Rp 860.0 billion in 2012 to Rp 980.0 billion in 2013  and rose again to Rp. 1,060.0 billion in 2014.  The sales turnover is estimated will increase again at least 8% in 2014. . It is estimated that P.T. PON’s operation has in 2014 yielded a total net profit of Rp 53.0 billion with a total networth of Rp 650.0 billion.  So far we have never heard that P.T. PON and its subsidiary companies has been black listed by Bank Indonesia (central bank) or detrimental cases being settled in local district court.

 

The management of P.T. PON is headed by Mr. Beh Soo Hee (57), a professional manager from Singapore as the president director.  In his daily activities, he is assisted by Mr. Abdul Ghafur (51) of Indonesia as vice president director and three directors namely Mr. Yudianto Kosman (57), Mrs. Nila Damayanti (57) and Mr. Hendro Waskito (51).  The management has a good business reputation in trading of industrial chemicals and bio-diesel and 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. PETRO OXO NUSANTARA is sufficiently fairly good for business transaction. However, in view of the unstable economic in the country we recommend to treat prudently in extending a loan to the company.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.96

UK Pound

1

Rs.94.41

Euro

1

Rs.70.20

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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%)

 

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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.