MIRA INFORM REPORT

 

 

Report No. :

309977

Report Date :

28.02.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. VOKSEL ELECTRIC TBK

 

 

Registered Office :

Jalan Raya Narogong Km. 16, Desa Limusnunggal, Cieungsi, Bogor, 16820

West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

19.04.1971

 

 

Com. Reg. No.:

No. AHU-AH.01.10-07237

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Electric and Telecommunication Cable Manufacturing

 

 

No. of Employees :

1,410

 

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 :

Slow but correct

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 – June 01, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Indonesia

B1

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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. VOKSEL ELECTRIC TBK

 

Address :

Head Office & Factory 1

Jalan Raya Narogong Km. 16

Desa Limusnunggal, Cieungsi

Bogor, 16820

West Java

Indonesia

Phones             - (62-21) 8230525 (3 lines), 8230143

Fax                   - (62-21) 8230177

E-mail               - ve@voksel.co.id

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

Land Area         - 16 hectares

Building Space  - 2.2 hectares

Region              - Industrial Zone

Status               - Owned

 

Factory II

Jalan Tipar Cakung Cilincing Km. 3.3

Jakarta Utara, 14140

Indonesia

Phone               - (62-21) 4401330 (lines), 4401344, 4403145

Fax                   - (62-21) 4403035

Land Area         - 4.3 hectares

Building Area    - 1.4 hectares

Region              - Industrial Zone

Status               - Owned

 

Executive Office

Menara Karya, 3rd Floor Unit D

Jalan H.R. Rasuna Said Block X-5 Kav. 1&2

Jakarta Selatan, 12950

Indonesia

Phones             - (62-21) 5794 4622 (Hunting)

Fax                   - (62-21) 5794 4649

Building Area    - 36 storey

Office Space    - 100 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

a. 19 April 1971 as P.T. VOKSEL ELECTRIC

b. 12 June 1997 as P.T. VOKSEL ELECTRIC Tbk

 

Legal Form :

P.T. Tbk. (Perseroan Terbatas Terbatas) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. J A 5/219/17

  Dated 24 December 1971

- No. AHU-88902.AH.01.02.Tahun 2008

  Dated 21 November 2008

- No. AHU-AH.01.10-07237

  Dated 28 February 2014

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The President of the Republic of Indonesia

No. B-187/Pres/9/1989

Dated 25 December 1989

The Capital Investment Coordinating Board

- No. 11/V/PMA/1989

  Dated 5 October 1989

- No. 87/II/PMA/1990

  Dated 28 May 1990

- No. 683/III/PMA/1993

  Dated 15 November 1993

- No. 76/II/PMA/1994

  Dated 9 May 1994

 

Related Companies :

a.   P.T. ALCARINDO PRIMA (Continuous Casting and Rolling Aluminum Rod Manufacturing)

b.   P.T. ALCAS DHARMA PRATAMA (Steel Casting Manufacturing)

c.   P.T. ANUGRAH BAKTI NUSA (General Trading and Services)

d.   P.T. BANGUN PRIMA SEMESTA (General Trading)

e.   P.T. CENDEKIA GLOBAL SOLUSI (General Trading and Services)

f.    P.T. KAWAT MAS PRAKASA (Electrical and Telecommunication Cable Manufacturing)

g.   P.T. MAJU BERSAMA GEMILANG (General Trading and Services)

h.   P.T. PRIMA MITRA ELEKTRINDO (General Trading and Services)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

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

Issued Capital                                 - Rp.    415,560,259,500.-

Paid up Capital                               - Rp.    415,560,259,500.-

 

Shareholders/Owners :

a. STANDARD CHARTERED Bank, Hong Kong                  - Rp. 135,070,656,000.-

b. BNP PARIBAS WEALTH S/A Twise Group Ltd    - Rp.   45,466,848,500.-

c. SWCC SHOWA CABLE SYSTEM CO. LTD., Japan         - Rp.   41,651,016,500.-

d. The Publics                                                                  - Rp. 193,371,738,500.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Electric and Telecommunication Cable Manufacturing

b.   Investment Holding

 

Production Capacity :

A.  Cakung Factory

      a. BC Draad/Bolts                                          -       1,800 tons p.a.

     b. BC Wires                                                   -       3,000 tons p.a.

      c. Enamelled Copper Wires                             -          450 tons p.a.

      d. Aluminum Conductors                                -        4,800 tons p.a.

      f.  Twisted Cables                                          -        6,600 tons p.a.

      g. Electrical Cables                                        -        3,300 tons p.a.

      h. Telecommunication Cables                          - 2,130,000 sckm p.a.

      i.  Medium Voltage for Underground Cables    -           500 sckm p.a.

 

B.  Cileungsi Factory

      a.  BC Draads                                                -           360 tons p.a.

      b.  BC Wires                                                  -           600 tons p.a.

      c.  Enamelled Copper Wires                            -        1,000 tons p.a.

      d.  Rectangular Copper Wires                         -           800 tons p.a.

      e.  Copper Wire Rods                                     -        9,600 tons p.a.

      f.   Aluminum Conductors                               -        3,000 tons p.a.

      g.  Twisted Cables                                          -        5,100 tons p.a.

      h.  Electrical Cables                                        -        1,000 tons p.a.

      i.  Medium Voltage for Underground Cables    -        9,000 sckm p.a.

 

Total Investment :

a.   Equity Capital                           - Rp.   63.0 billion

b.   Loan Capital                              - Rp. 120.4 billion

c.   Total Investment                        - Rp. 183.4 billion

 

Started Operation :

1972

 

Brand Name :

Voksel Electric

 

Technical Assistance :

SHOWA ELECTRIC WIRE & CABLE CO., Japan

 

Number of Employee :

1,410 persons

 

Marketing Area :

Local       - 65%

Export     - 35%

 

Main Customers :

a. P.T. PERUSAHAAN LISTRIK NEGARA Tbk (P.T. PLN)

b. Electric equipment stores in major cities in the country and overseas market in Japan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. TRANKA KABEL

b. P.T. KABELINDO MURNI

c. P.T. SUPREME CABLE MANUFACTURING

d. P.T. CITRA MAHASURYA INDUSTRIES

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank MANDIRI Tbk

      Jalan Pintu Besar Utara No. 5

      Jakarta Barat

      Indonesia

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Asemka No. 24-27

      Jakarta Barat

      Indonesia

 

Auditor :

Gani Sigiro & Handayani (Grant Thornton), a public accountant

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales  :

2011 – Rp. 2,014.6 billion

2012 – Rp. 2,484.2 billion

2013 – Rp. 2,510.8 billion

2014 – Rp. 1,073.6 billion (as per 30 June)

 

Net Profit :

2011 – Rp. 110.6 billion

2012 – Rp. 147.0 billion

2013 – Rp.   39.1 billion

2014 – (Rp.  27.4 billion) (as per 30 June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Kumhal Djamil

Directors                                         - a. Mr. David Lius

                                                        b. Mr. Fumiaki Nakajima

                                                        c. Mr. Muliany Anwar

                                                        d. Mr. Ferry Suarly

 

Board of Commissioners :

President Commissioner                  - Mrs. Linda Lius

Commissioners                               - a. Mr. Akihisa Takizawa

                                                        b. Mr. Hardi Sasmita

                                                        c. Mr. Christianto Wibisono

                                                        d. Mr. Tjahyadi Lukiman

 

Signatories :

President Director (Mr. Kumhal Djamil) or one of the Directors (Mr. David Lius, Mr. Fumiaki Nakajima, Mr. Muliany Anwar or Mr. Ferry Suarli)  which  must   be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Average

 

Credit Recommendation :

Credit should be proceeded with monitor

 

Proposed Credit Limit :

Small amount – periodical review

 

 

OVERALL PERFORMANCE

 

Initially the company was established by the virtue of a Domestic Investment (PMDN) facility in April 1971 with an authorized capital of Rp. 200,000,000 and Rp. 40,000,000 of which was issued and paid up. The original  founding shareholders  of P.T. VOKSEL ELECTRIC were Mr. Agus Gunawan AKA Tan Foek Goan, his  wife Mrs. Singowati Widjaja AKA Wong Se Ngo, his younger brother Mr. Sugih Tjandrawinata AKA Tan Soei Tjong and his younger sister in-law Mrs. Muljati Widjaja AKA Wong Liem Fong (Mrs. Sugih Tjandrawinata). The company's notarial deed has frequently been amended. In June 1989 it was converted into a Foreign Investment (PMA) coinciding with the entry of foreign partner SHOWA ELECTRIC WIRE & CABLE CO., of Japan. In July 1990 the authorized capital was raised to Rp. 25,000,000,000 issued and paid up capital to Rp. 20,000,000,000. P.T. VE is a public listed company of the Jakarta Stock Exchange  (BEJ) by selling its 15.40% shares to the public. In July 1997, the authorized capital was increased to Rp. 250,000,000,000 issued and paid  up capital  to Rp. 63,000,000,000. Then in June 1997, the word Tbk. (Terbuka) was added behind the name to comply with the law on public listed company to become P.T. VOKSEL ELECTRIC Tbk., (P.T. VE). 

 

Then in November 2008, the authorized capital was raised to Rp. 1,000,000,000,000 of which Rp. 415,560,259,500 was issued and fully paid up. Later according to notary documents mrs. Nanette Cahyanie Handari Adi Warsito, SH., no. 25 dated 20 May 2014 the company board o director and the board of commissioner had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-07237 dated February 28, 2014. Then according to financial statement as per 30 June 2014 the composition of its shareholders has been changed to become STANDARD CHARTERED Bank Hong Kong (32.50%), BNP PARIBAS WEALTH S/A TWISE GROUP LTD., (10.94%), SWCC SHOWA CABLE SYSTEM CO, LTD., Japan (10.02%) and Publics less than 5% (46.54%).

 

P.T. VE is an Indonesia-based company primarily engaged in manufacturing cables. Its products include bare copper conductors, bare aluminum conductors, power cables, telecommunication cables and fiber optic cables. It is also engaged in trading and provisioning contractor services The Company operates its manufacturing facility in Bogor, Indonesia. As stated above that P.T. VE originally obtained a Domestic Investment (PMDN) facility in cable manufacturing. Its style however has changed to a Foreign Investment (PMA) facility after a Japanese participant joined the company in 1990.  P.T. VE initially operated a plant located on Jalan Perintis Kemerdekaan, Pulogadung, East Jakarta - over 1.0 hectare wide land started-up with commercial operation in 1972 by producing low voltage electric cable and copper wires. Later in 1982, the company expanded and concurrently relocated its plant to new location on Jalan Tipar, Cakung, East Jakarta over 4.3 hectares wide land. The company had also in 1992 developed another new factory unit in Cileungsi, Bogor, West Java over 16 hectares wide land. In the middle of 1995, its expansion in Cakung, East Jakarta and in Cileungsi, Bogor, West Java started operation in the middle of 1995. Through its continuous pursuit for quality excellence, the Company was awarded numerous international quality certificates, such as ISO 9002:1994 year 1995, ISO 9001:1994 year 1999 and ISO 9001:2000 year 2003 and ISO 9001:2008 year 2009 from SGS Yarsley International Certification Services, Ltd.  In 2008, the Company obtained KEMA Certificate from KEMA Nederland B.V.

 

The Company is highly committed to prevent environmental pollution and enhance the safety and health in the working environment. In line with this commitment, the Company has obtained ISO - 14001 and OHSAS - 18001 in January 2010.

P.T. VE markets its products both domestically and internationally. For domestic market, majority sales stems from P.T. Perusahaan Listrik Negara ("PLN') and P.T. Telekomunikasi Indonesia Tbk ("Telkom'). In addition, the Company also supplies free market cables to contractors and distributors. For export sales, the Company markets to various countries such as: Brunei, Philippines, Singapore, Malaysia, Thailand, Cambodia, Vietnam, Srilanka, Myanmar, Hong Kong, India, Bangladesh, Japan, Nepal, Korea, UAE, Yemen, Fiji Island, Australia, Eqypt, Cyprus, Brazil, Pakistan etc.

P.T. VE Product Range:

Ř  Bare Copper: Round wire, rectangular wire, stranded wire.

Ř  Bare Aluminum: Aluminum wire, stranded wire, aluminum conductor steel reinforced.

Ř  Power Cable: Cross linked polyethylene insulated cable low voltage and medium voltage, polyethylene insulated cable, polyvinyl insulated cable.

Ř  Communication Cable: Indoor cable, coaxial cable, jumper wire, burial, drop wire, aerial cable, direct buried cable, duct (conduit) cable.

Ř  Optical Fiber Cable: Loose tube type of silica glass optical fiber cable for indoor, aerial, direct buried, All Dielectric Self Supporting (ADSS) and duct installation.

 

Besides that, P.T. VE is also engaged in investment holding by controlling 90% shares of P.T. ANUGRAH BAKTI NUSA in general trading and distribution; 99.5% shares of P.T. BANGUN PRIMA SEMESTA in general contracting and trading; 99.9% shares of P.T. CENDEKIA GLOBAL SOLUSI in general trading and distribution; 99% shares of P.T. PRIMA MITRA ELEKTRINDO in general trading, development and services. We observe that P.T. VE operation has been fluctuating in the last five years.

 

Demand for power cables is expected to grow 10% -15% supported by projects government power, particularly through the National Electricity Company (PT PLN), and the demand for transmission cables from the private sector to construction of houses, buildings, and factories. However, lately, construction of power plants has been hampered by technical problems and difficulties with the realization of land acquisition. The growth in the property sector expected to decline due to rising interest rate of Bank Indonesia (BI), more tight regulatory loan-to-value (LTV) and mortgage, credit expansion more low, and political uncertainty ahead of elections. Copper cable revenue grew an impressive compound annual growth rate (CAGR) of 36% during the years 2009 to 2013 while the aluminum wires grow with a CAGR of 30%. For 2014, we estimate ISIC revenues will decline due to the current industry developments as well as a decrease in the price of copper and aluminum. However, we believe the prospects ISIC remain bright, although currently there are short-term obstacles. In addition to that, in August 2015, a new production facility for cable voltage high (made ​​of copper) will begin commercial production.

 

The global economic outlook is still at risk because of the level of inflation in the country's economic progress is still too low, although the situation is getting better. In the country, tightening fiscal and monetary policies will lead to shrinkage economic growth, as seen by the growth in first quarter which is only 5.21%, however we remain confident in the economic outlook Indonesia. Power cable demand outlook still interesting, especially if we see Indonesia's economic fundamentals are strong with growth relatively stable, the growth of a strong middle-income population, the magnitude of the housing needs continue to grow, progress in projects government

infrastructure
through the Master Plan for the Acceleration and Expansion Economic Development (MP3EI) and plans to intensify development smelters in Indonesia.

 

In the State Budget year 2014, the Government allocates Rp.145.4 trillion for construction of infrastructure to stimulate the economic growth, which consist of transportation of Rp.124.5 trillion, electricity & energy of Rp.16.3 trillion, housing of Rp.4.6 trillion. The Ministry of transportation targets to build 20 new airports, renovate 120 airports, and build new rail road track of 98.1 km (including double tracks). Meanwhile, the budget for energy infrastructure will be allocated to increase power plant capacity to 164 MW, transmission of 4,881 kms, substation of 1,020 MVA and distribution of 136.72 MVA. In addition, the Government target to increase electrification ratio to 81.4% next year.

 

PLN will allocate more than Rp.5.5 trillion for capital expenditure in the next year. The fund will be allocated to build power plant and transmission projects in each island in Indonesia. PLN assumes that Crash Program of 10,000 MW Power Plant Phase I will finish next year, since this program already finished 80%. This is a good prospect for the Company to increase sales of power cable, especially to PLN and private sector. In 2014, PT Telkom plans to optimize the existing IP Radio contract through an amendment contract to accelerate the provision of Telkomsel backhaul Node-B and restructuring TITO contracts and add 4 global partners in the FTTH deployment. We expect demand for optical fiber will increase next year. In the property sector, Perseroan predicts the property sector will grow around 20-25%, slightly decrease compared to this year of average 30%. The Company needs to formulate marketing strategy to increase free market sales as the market is still huge and potential. The Company needs to set competitive price, increase production capacity, expand market share and improve brand image.

 

According to financial statement of P.T. VE that total sales turnover of the company in 2011 amounted at Rp. 2,014.6 billion with a net profit of Rp. 110.6 billion soaring to Rp. 2,484.2 billion with a net profit of Rp. 147.0 billion in 2012 increased to Rp. 2,510.8 billion with a net profit of Rp. 27.4 billion in 2013. As per 30 June 2014 the sales turnover reached at least Rp. 1,073.6 billion with a net loss of Rp. 27.4 billion and projected the sales turnover will be higher by at least 6% in 2015. 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 financial highlight as per 31 December 2011, 2012, 2013, and per 30 June 2014 is attached.  

                                                                                                                           (In Million Rupiah)

DECCRIPTION

30 June

2014

           31 December

2013

2012

2011

A. Operating Result

 

 

 

 

     - Net Sales

1,073,612

2,510,818

2,484,173

2,014,609

     - Gross Profit

39,595

258,011

372,106

303,541

     - Operating Income (loss)

33,933

51,602

217,239

175,309

     - Net Income (loss)

(27,423)

39,093

147,021

110,621

B. Financial Position

 

 

 

 

     - Current Assets

1,418,385

1,507,266

1,430,617

1,357,377

     - Fixed Assets Nets

476,299

448,564

267,461

193,405

     - Deferred Tax Asset

11,347

3,418

6,467

7,668

     - Other Assets

-

-

61,228

14,589

     - Total Assets

1,894,684

1,955,830

1,698,078

1,573,039

     - Short-term Liabilities

1,294,530

1,328,174

1,072,478

1,054,553

     - Total Liabilities

1,320,617

1,354,581

1,095,012

1,076,394

     - Equity

574,067

601,249

603,063

496,645

C. Stockholders Equity  

 

 

 

 

     - Share Capital 

415,560

415,560

415,560

415,560

     - Additional Paid-up Capital  

940

940

940

940

Notes: 31 December 2011, 2012, 2013 audited by Gani Sigiro & Handayani (Grant Thornton)

           30 June 2014 un audited

 

The management of P.T. VE is headed by Mr. Ir. Kumhal Djamil (76), a professional manager with experienced in electric and telecommunication cable manufacturing. Ir. Kumhal Djamil serves as the President Commissioner and Independent Commissioner of PT Voksel Electric Tbk since June 29, 2009. He was General Director of International Commerce and National Commerce. He was also appointed as the President Commissioner and Commissioner in various companies. He joined the Company in 2004 as Commissioner. He holds a degree in Economics from Universitas Indonesia in 1984 and a degree in Engineering from Rheinisch-Westfaelische Technische Hochschule Aachen in 1965. He is the Chairman of Company's Audit Committee.

 

It is also handled by a number of professional managers with experience and expertise in cable products industry and trade especially from Japan. 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. VOKSEL ELECTRIC Tbk is sufficiently fairly good for business transaction.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.79

UK Pound

1

Rs.95.42

Euro

1

Rs.69.29

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

SDA

 

               

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.