MIRA INFORM REPORT

 

 

Report No. :

308205

Report Date :

19.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. MEGASURYA MAS

 

 

Registered Office :

Jl. Tambak Sawah No. 32, Waru Sidoarjo 61256, East Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

08.01.1992

 

 

Com. Reg. No.:

AHU-AH.01.10-10627

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Soap, Detergent, Cooking Oil, Margarine/Shortening Industry

 

 

No. of Employees :

860 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. 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. MEGASURYA MAS

 

Address :

Head Office & Factory 

Jl. Tambak Sawah No. 32, Waru

Sidoarjo 61256, East Java

Indonesia

Phones             - (62-31) 866 2390, 866 8333

Fax.                  - (62-31) 867 3602

Email                - general@megasurya-mas.com

Land Area         - 90,000 sq. meters                      

Building Area    - 65,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

08 January 1992

 

Legal Form :

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

 

Company Reg. No. :

The Department of Law and Human Rights

a. No. C2-2810.HT.01.01.TH.92

    Dated 15 April 1992

b. No. AHU-14886.AH.01.02.Tahun 2010

    Dated 23 March 2010

c. No. AHU-AH.01.10-10627

    Dated 13 March 2014

 

Company Status :

Domestic Investment Company (PMDN)

 

Permits by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.546.053.8-641.000

  b.  The Capital Investment Coordinating Board

      - No. 196/I/PMDN/1992

        Dated 29 June 1992

      - No. 188/III/PMDN/1993

        Dated 10 May 1993

      - No. 133/II/PMDN/1996

        Dated 12 June 1996

 

Affiliated/Associated Companies :

A Member Company of the MUSIM MAS Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                 - Rp. 600,000,000,000.-

Issued Capital                       - Rp. 188,250,000,000.-

Paid up Capital                     - Rp. 188,250,000,000.-

 

Shareholders/Owners :

a. Mr. Bahari Karim                          - Rp. 28,800,000,000.- (15.30%)

   Address : Jl. Tambak Sawah No. 32

                   Sidoarjo, East Java

b. Mr. Burhan Karim                        - Rp. 28,800,000,000.- (15.30%)

    Address : Jl. Kalimantan No. 29/3-B

                    Medan, North Sumatra

c. Mrs. Bachtiar Karim                     - Rp. 28,800,000,000.- (15.30%)

    Address : Jl. Kalimantan No. 29/3-B

                    Medan, North Sumatra

d. P.T. WILLIAM RESOURCES         - Rp. 92,250,000,000.- (49.00%)

    Address : Jl. KL Yos Sudarso, Spring Tower 01-11

                    Medan, North Sumatra

e. P.T. MITRA SISTRA                     - Rp.   9,600,000,000.- (  5.10%)

    Address : Jl. Kalimantan No. 29/3-B

                    Medan, North Sumatra

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Soap, Detergent, Cooking Oil, Margarine/Shortening Industry

 

Production Capacity :

a. Soap Products                            -   45,000 tons p.a.

b. Detergents                                  -   10,000 tons p.a.

c. Cooking Oil                                 - 150,000 tons p.a.

d. Margarine/Shortening                   -     8,000 tons p.a.

e. Others                                         -   12,000 tons p.a.

 

Total Investment :

a. Owned Capital               - Rp. 188.2 billion

b. Loan Capital                  - Rp. 120.0 billion

c. Total Investment             - Rp. 308.2 billion

 

Started Operation :

June 1994

 

Brand Name :

Harmony, Medicare, Liesel, Eve, Lervia, Alibaba, Novina, etc

 

Technical Assistance :

None

 

Number of Employee :

860 persons

 

Marketing Area :

Domestic          - 50%

Export              - 50%

 

Main Customers :

a. Supermarket, Hypermarket, Mini-market, Retail Shops, Tradition Market, etc

b. Overseas buyers in South Africa and Asian countries

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. UNILEVER INDONESIA Tbk

b. P.T. WINGS SURYA

c. P.T. SAYAP MAS UTAMA

d. P.T. TANCHO INDONESIA

e. P.T. ORSON INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Jl. Pemuda No. 27-31

      Surabaya, East Java

      Indonesia

b.   P.T. Bank CIMB NIAGA Tbk.

      Jl. Tidar No. 23-25

      Surabaya, East Java

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Net Sales/Turnover :

2011 – Rp. 650.0 billion

2012 – Rp. 740.0 billion

2013 – Rp. 845.0 billion

2014 – Rp. 960.0 billion

 

Net Profit :

2011 – Rp. 55.0 billion

2012 – Rp. 63.6 billion

2013 – Rp. 75.0 billion

2014 – Rp. 82.0 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                     - Mr. Bahari Karim

Directors                                   - a. Mr. Bachtiar Karim

                                                  b. Mr. Surja

 

Board of Commissioners :

Commissioner                           - Mr. Burhan Karim

 

Signatories :

President Director (Mr. Bahari Karim) or one of the Directors (Mr. Bachtiar Karim or Mr. Surja) which must be approved by the Board of Commissioner (Mr. Burhan Karim)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. MEGASURYA MAS (P.T. MSM) was established in Sidoarjo, East Java on 8 January 1992 with the authorized capital of Rp. 1,000,000,000 of which Rp. 600,000,000 was issued and fully paid up. The founding shareholders are the late Mr. Anwar Karim AKA Lim Oei Lian and his children namely Mr. Bachtiar Karim AKA Lim Ek Tjioe, Mr. Bachrum Karim AKA Lim Ek Kiong, Mr. Burhan Karim AKA Lim Ek Kian and Mr. Bahari Karim AKA Lim Ek Tie, an Indonesian business family of Chinese extraction. The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C2-2810.HT.01.01.TH.92 dated 15 April 1992.

 

The articles of association of the company have been changed for a couple of times. In July 1993, the authorized capital of the company was raised to Rp. 9,000,000,000 of which Rp. 1,800,000,000 was issued and fully paid up. In May 1994, the issued and paid up capital of the company was increased to Rp. 2,400,000,000. Later in February 2010 the company authorized capital was increased to Rp. 600,000,000,000 issued capital to Rp. 188,250,000,000 entirely paid up. Concurrently P.T. WILLIAM RESOURCES entered into the company as new shareholder. With this time the composition of its shareholders has been changed to become P.T. WILLIAM RESOURCES (49.00%), Mr. Bachtiar Karim (15.30%), Mr. Bahari Karim (15.30%), Mr. Burhan Karim (15.30%) and Mrs. Mikie Widjaya (5.10%). In February 2013 based on Notary deed of Mr. Tjitra Sasanti Djatmiko, SH., no. 9 dated 22 February 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.01.10-15133 dated April 22, 2013.

 

Latest in March 2014, Mrs. Mikie Widjaya withdrew and her shares are sold to P.T. MITRA SISTRA, a private company.  The amendment to Deed was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-10627 dated March 13, 2014.   Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

P.T. MSM obtained a Domestic Capital Investment (PMDN) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with toilet soap and cooking oil industry. Its plant is located in Waru village, Sidoarjo, East Java standing on a land of 9.0 hectares.  The plant has frequently been expanded to increase the production capacity.  Some 60% to 70% of the basic materials are supplied by its sister company.

 

The company produces bath soaps and laundry soaps being marketed using the brands of HARMONY, LERVIA, LARK and mediated soap with the brand of MEDICARE.   LARK is sold in Sumatra and HARMONY and MEDICARE outside Sumatra. In 2000, PT. MSM started exporting bath soap HARMONY and LERVIA to various countries including Middle East, Ghana, Nigeria, Japan, South Korea, Taiwan India, Australia, Europe, Canada, Argentina, Brazil, Peru and Colombia. Currently the company exports 64% of its production.    PT. MSM also produces cooking oil and margarine with the brand of ALIBABA and VOILA. 

 

In 2000, PT. MSM started exporting bath soap Harmony and Lervia to various countries including Middle East, Ghana, Nigeria, Japan, South Korea, Taiwan India, Australia, Europe, Canada, Argentina, Brazil, Peru and Colombia. Currently the company exports 64% of its production.  Around 70% of perfume needed for its bath-soap products is supplied by the Symrise Group from Germany.  However, in 2010, there was a dispute between P.T. MSM and Symrise Asia Pacific in Singapore with P.T. MSM claiming that Symrise failed in the delivery of perfume causing it a loss of US$11.87 million. Symrise rejected the claim and brought the case to an arbitration agency in Singapore.

 

By the end of 2011, P.T. MSM and other producers of cooking oil including P.T. Salim Ivomas Pratama, Permata Hijau Group, P.T. Sinar Mas, P.T. Megasurya Mas, Wilmar Group, and P.T. Pratama Nabati Perkasa were assigned by the trade ministry to produce packaged cooking oil for the government with the brand of Minyakita for domestic supply in 2012.   P.T. MSM distributed their products to all over Indonesia as well as to more than 132 countries around the world. We observed that P.T. MSM 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.

 

In overall we find the demand for soap products (toilet soap, multipurpose and laundry soap), margarine, cooking oil and others had been rising by the average 6% to 8% per year within the last five years in line with the growth of supermarkets, mini-markets and a stable economic growth in the period.  Amidst unstable global economic conditions, Indonesia is estimated to be able to record an economic growth of over 6% in 2012. The solid and steady domestic economy, increased government activity in infrastructure development and improving investment climate in Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.  The global economy is expected to grow faster in 2015 than it did in 2013 and 2014, although it still face risks stemming from the slowing economic growth in developed countries and the on going crisis in Europe. Despite the slowing global economy, Indonesia’s economy still grew quite briskly in 2013. Indonesia’s economic growth reached 5.8% in 2013, or slightly below the projection contained in the 2013 Revised State Budget and 2012’s economic growth of 6.2%.

 

 Indonesian Economic Indicators

  2009

  2010

  2011

  2012

  2013

Gross Domestic Product
   (annual percentage change)

   4.6

   6.1

   6.5

   6.2

   5.8

Consumer Price Index
   (annual percentage change)

   4.8

   5.1

   5.4

   4.3

   8.4

Government Debt  (percentage of GDP)

  28.6

  27.4

  26.6

  27.3

  28.7

Exchange Rate  (GBP / USD)

10,389

 9,074

 8,773

 9,419

11,500

Population  (in millions)

     -

 237.6

     -

     -

     -

Poverty  (percentage of population)

  14.2

  13.3

  12.5

  11.7

  11.5¹

Unemployment  (percentage of labor force)

   7.9

   7.1

   6.6

   6.1

   6.3

Reserves  (in billion USD)

  66.1

  96.2

 110.1

 112.8

  99.4

 

Until this time P.T. MSM has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MSM is very reclusive towards outsiders and rejected to disclose its financial condition.  We estimated that total income or revenues of the company in 2012 amounted to Rp. 740.0 billion increased to Rp. 845.0 billion in 2013 rose again to Rp. 960.0 billion in 2014 and projected to go on rising by at least 10% in 2015.  The operation in 2014 yielded an estimated net profit of at least Rp.82.0 billion and the company has an estimated total net-worth of at least Rp. 560.0 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. MSM is led by Mr. Bahari Karim (52) as president director and CEO of the company.  He is the fourth son of the late Mr. Anwar Karim AKA Lim Oei Lian, the founder of the MUSIM MAS Group.  Mr. Bahari Karim has more than 20 years experience in soap manufacturing and cooking oil industry. In his daily activities, he is assisted by his brother Mr. Bachtiar Karim (68) and Mr. Burhan Karim (53).  The company’s management has wide business 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. MEGASURYA MAS is sufficiently fairly good for business transaction.  But owing to economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

Attachment

 

List of the MUSIM MAS Group Members

 

1.     AGROWIRATAMA, P.T. (Oil Palm Plantation and Palm Oil Refinery and Investment Holding)

2.     BAHANA NUSA INTERINDO, P.T. (Oil Palm Plantation and Palm Oil Refinery)

3.     BERKAT SAWIT SEJATI, P.T. (Oil Palm Plantation and Palm Oil Refinery)

4.     BINA KARYA PRIMA, P.T. (Cooking Oil, Soap and Fats Industry)

5.     BERASTAGI BINTANG ASIA, P.T. (Hotels Development and Management)

6.     DAYA INDAH NUSANTARA, P.T. (Oil Palm Plantation and Refinery)

7.     GLOBALINDO ALAM PERKASA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

8.     GUNTUNG IDAMANNUSA, P.T. (Oil Palm Plantation)

9.     INDO KARYA INTERNUSA, P.T. (RBD Palm Oil and Palm Kernel Oil Processing)

10.  INDOMAKMUR SAWIT BERJAYA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

11.  INTER-CONTINENTAL OILS AND FATS, Singapore (Trading and Distributor Specializing in Tropical Oil and Derivatives Products)

12.  INTIBENUA PERKASATAMA, P.T. (Palm Oil Refinery)

13.  LAMBANG UTAMA, P.T. (Soap Manufacturing)

14.  LESTARI ABADI PERKASA, P.T. (Oil Palm Plantation Palm Oil Refinery)

15.  MAJU ANEKA SAWIT, P.T. (Oil Palm Plantation and Palm Oil Refinery)

16.  MEGASURYA MAS, P.T. (Bath Soap, Cooking Oil and Margarine Manufacturing)

17.  MIKIE OLEO NABATI INDUSTRI, P.T. (Crude Palm Oil Refinery and Investment Holding)

18.  MITRA SISTRA, P.T. (Investment Holding)

19.  MUSIM MAS-FUJI, P.T. (Specialty Fat Industry)

20.  MUSIM MAS HOLDINGS PTE., LTD., Singapore (Trading)

21.  MUSIM SEMI MAS, P.T. (Oil Palm Plantation and Refinery, Soap Manufacturing and Investment Holding)

22.  MUSIM MAS RESOURCES, P.T. (Management Consulting Services and Wholesale Trade, and Investment Holding)

23.  PELAYARAN SAMUDERA LAYAR SENTOSA, P.T. (Shipping Services)

24.  SAWIT TUNGGAL ARTA RAYA, P.T. (Oil Palm Plantation and Processing)

25.  SINAR AGRO RAYA, P.T. (Oil Palm Plantation and Palm Oil Refinery)

26.  SIRINGO-RINGO, P.T. (Oil Palm Plantation and Palm Oil Refinery)

27.  SUKAJADI SAWIT MEKAR, P.T. (Oil Palm Plantation and Palm Oil Refinery)

28.  UNGGUL LESTARI, P.T. (Oil Palm Plantation and Palm Oil Refinery)

29.  VITELIA SALAM PERDANA, P.T. (General Trading)

30.  WILLIAM RESOURCES, P.T. (Investment Holding)

31.  Etc.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.25

UK Pound

1

Rs.95.57

Euro

1

Rs.71.01

 

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.