MIRA INFORM REPORT

Report No. :	329737
Report Date :	03.07.2015

IDENTIFICATION DETAILS

Name :	P.T. SOLVAY MANYAR

Formerly Known As :	P.T. JAYAKIMIA

Registered Office :	Jalan Raya Sembayat Km. 24, Desa Sukumulyo, Kec. Manyar Gresik, 61151 East Java

Country :	Indonesia

Date of Incorporation :	11.05.1978

Com. Reg. No.:	AHU-AH.01.10-25744

Legal Form :	Limited Liability Company

Line of Business :	Subject is engaged in Alkyl Benzene Sulfonate, Alcohol Ether Sulphates and Alcohol Sulphates Industry

No. of Employees :	99 persons

RATING & COMMENTS

MIRA’s Rating :

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

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 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. SOLVAY MANYAR

Address :

Head Office & Factory

Jalan Raya Sembayat Km. 24

Desa Sukumulyo, Kec. Manyar

Gresik, 61151

East Java

Indonesia

Phone - (62-31) 395 0893, 395 0388

Fax - (62-31) 395 1388

Land Area - 40,000 sq. meters

E-mail - rhodia-mnyar@rhodia.com

Factory Space - 20,000 sq. meters (including factory, building, warehouse)

Region - Industrial Zone

Status - Owned

Date of Incorporation :

a. 11 May 1978 as P.T. JAYAKIMIA

b. 15 January 1987 as P.T. MANYAR KIMINDO

c. 28 February 1991 as P.T. ALBRIGHT AND WILSON MANYAR

d. 15 June 2001 as P.T. RHODIA MANYAR

e. 25 March 2013 as P.T. SOLVAY MANYAR

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-7405.HT.01.04.TH.92

Dated 8 September 1992

- No. AHU-60253.AH.01.02.TH.2008

Dated 8 September 2008

- No. AHU-18137.AH.01.02.TH.2013

Dated 9 April 2013

- No. AHU-AH.01.10-25744

Dated 25 June 2013

Company Status :

Foreign Investment (PMA) Company

Permit by the Government Department :

a. The Department of Finance

NPWP No. 01.451.934.2-641.000

b. The President of the Republic of Indonesia

No. B-445/Pres/12/1990

Dated 17 December 1990

c. The Capital Investment Coordinating Board

- No. 06/V/PMA/1991

Dated 28 January 1991

- No. 19/II/PMA/1991

Dated 15 February 1991

- No. 92/III/PMA/1992

Dated 6 February 1992

- No. 381/III/PMA/1996

Dated 17 June 1996

- No. 1357/III/PMA/1998

Dated 29 September 1998

Related Companies :

a. A Member Company of the JAMAFAC Group (see attachment)

b. A Member Company of the LAUTAN LUAS Group (see attachment)

c. A Member Company of the SINAR ANTJOL Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 10,800,000,000.-

Issued Capital : Rp. 10,000,000,000.-

Paid up Capital : Rp. 10,000,000,000.-

Shareholders/Owners :

a. RHODIA UK LIMITED - Rp. 5,000,000,000.-

Address : Oak House, Reed Crescent

Wetford, Hertefordshire, Netherlands

b. Mr. Kusman Wongsodihardjo AKA Wong Kin Man - Rp. 2,000,000,000.-

Address : Jl. R.A. Kartini No. 53

Surabaya, East Java, Indonesia

c. P.T. SINAR ANTJOL - Rp. 1,000,000,000.-

Address : Jl. Orpa No. 1-3

Jakarta Barat, Indonesia

d. P.T. SUMBER INDOKEMJAYA - Rp. 1,000,000,000.-

Address : Jl. Danau Sunter Komplek Royal Sunter

Block A No. 5-6, Jakarta Utara, Indonesia

e. P.T. LIKU TELAGA - Rp. 1,000,000,000.-

Address : Jl. Waspada No. 69-C

Surabaya, East Java, Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Alkyl Benzene Sulfonate, Alcohol Ether Sulphates and Alcohol Sulphates Industry

Production Capacity :

a. Dodecyl Benzene S.A. - 10,800 tons p.a.

b. Natural Lauryl E.S. - 1,000 tons p.a.

c. Synthetic Lauryl E.S. - 1,000 tons p.a.

d. Oxo Alcohol E.S.S. - 880 tons p.a.

e. Alkyl Benzene Sulfonates - 3,600 tons p.a.

f. Alcohol Ether Sulphates - 8,500 tons p.a.

g. Alcohol Sulphates - 2,500 tons p.a.

Total Investment :

a. Equity Capital - Rp. 9.0 billion

b. Loan Capital - Rp. 23.0 billion

c. Total Investment - Rp. 32.0 billion

Started Operation :

1988 Commercial Operation

Brand Name :

Solvay Manyar

Technical Assistance :

RHODIA UK Ltd., of Netherlands

Number of Employee :

99 persons

Marketing Area :

Local - 40%

Export - 60%

Main Customers :

a. Through distributor P.T. SUMBER INDOKEMJAYA

b. Soap and detergent industry such as P.T. SINAR ANTJOL, P.T. LION WINGS, P.T. UNILEVER

INDONESIA Tbk, Etc

Market Situation :

Very Competitive

Main Competitors :

a. P.T. AKTIF INDONESIA INDAH

b. P.T. FINDECO JAYA

c. P.T. TIMUR RAYA TUNGGAL

d. P.T. KAO INDONESIA CHEMICAL

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. ABN-AMRO Bank N.V.

Jalan Pemuda No. 54

Surabaya, East Java

Indonesia

b. P.T. Bank CIMB NIAGA Tbk

Jalan Dr. Soetomo No. 142

Surabaya, East Java

Indonesia

Auditor :

Purwantono, Sarwoko & Sandjaja (ERNST & YOUNG)

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2012 – Rp. 321.0 billion

2013 – Rp. 334.0 billion

2014 – Rp. 345.0 billion

Net Profit (estimated) :

2012 – Rp. 26.0 billion

2013 – Rp. 28.0 billion

2014 – Rp. 30.0 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Ir. Suryo Wongsodihardjo

Director - Mr. Andre Arifin

Board of Commissioners :

President Commissioner - Mr. Pierre Franck Matie Yves Valentin

Vice President Commissioner - Mr. Ir. Kusnan Wongsodihardjo AKA Wong King Man

Commissioners - a. Mr. Eka Leonard Gunawan AKA Go Ka Leng

b. Mr. Jimmy Masrin

c. Mr. Sofian

Signatories :

President Director (Mr. Ir. Suryo Wongsodihardjo) or the Director (Mr. Andre Arifin) which must be approved by Board of Commissioners

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

The company originally named P.T. JAYAKIMIA set-up in 1978 with authorized capital of Rp. 600,000,000 issued capital of Rp. 120,000,000 wholly paid-up. Founders and original shareholders of the company were Mr. Ir. Kusman Wongsodihardjo AKA Wong King Man, his wife Mrs. Henniwati Chaelany AKA Chu Lan Hing, his son Mr. Ir. Suryo Wongsodihardjo, his daughter Mrs. Lily Wongsodihardjo and his other family members, Mr. Hendro Salim. They are Chinese origin Indonesian business family. Its articles of association have subsequently been revised for several times. In 1987, the company was renamed to P.T. MANYAR KIMINDO. On the same occasion, most of the above shareholders except Mr. Ir. Kusman Wongsodihardjo and Mrs. Henniwati Chaelany pulled out and then they were replaced by new shareholders Mr. Raden Pandji Soebagio. In 1991, the company was renamed to P.T. ALBRIGHT AND WILSON MANYAR and its status was changed to be a Foreign Investment (PMA) company since it was joined by a foreign investor ALBRIGHT AND WILSON LTD of the United Kingdom. In November 1991, the authorized capital was increased to Rp. 4,800,000,000 with an issued capital to Rp. 3,000,000,000 entirely paid-up.

Then in the early May 2001 ALBRIGHT AND WILSON MANYAR pulled out and its shares was entirely taken over by RHODIA ASIA PACIFIC Pte., Ltd., of Singapore. By the same time the company was renamed P.T. RHODIA MANYAR effective as from 15 June 2001. Then in August 2008, RHODIA ASIA PACIFIC Pte., Ltd., of Singapore withdrew and replaced by RHODIA UK LIMITED of Netherlands as new shareholders. On the same occasion the authorized capital was raised to Rp. 10,000,000,000 entirely issued and paid up. With this development the composition of its shareholders changed to become RHODIA UK LIMITED (50%), Mr. Kusman Wongsodihardjo (20%), P.T. LIKU TELAGA (10%), P.T. SINAR ANTJOL (10%) and P.T. SUMBER INDOKEMJAYA (10%). The deed of amendment was made by Mr. Jusuf Patrianto Tjahjono, SH., was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-60253.AH.01.02.TH.2008, dated September 8, 2008. Later in March 2013 the company name was changed to P.T. SOLVAY MANYAR (P.T. SM). Then according to the latest revision of notary documents of Mr. Jusuf Patrianto Tjahjono, SH., No. 75 dated 27 May 2013 the company board of director and the board of commissioner has been reappointed (see profile of this report). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-25744 dated May 27, 2013.

P.T. RM is affiliated to several other companies among others are RHODIA UK LIMITED of Netherlands, a subsidiary of RHODIA Co., of France. Mr. Ir. Kusman Wongsodihardjo AKA Wong King Man is the main founder and majority business stakes owner of the JAMAFAC Group, a business group with main business in match, detergent and plastic industries. While P.T. LIKU TELAGA is a member of the LAUTAN LUAS Group, the largest private business group in chemical industry headed by Mr. Ng Adiyansyah Masrin. While P.T. SINAR ANCOL and P.T. SUMBER INDOKEMJAYA, the other two shareholders are members of the SINAR ANTJOL Group.

P.T. RM is engaged in detergent and soap raw materials manufacturing including alkyl benzene sulfonate, alcohol ether sulphates and alcohol sulphates. It present, it operates a plant located at Jalan Raya Sembayat Km.24, Desa Sukomulyo, Kecamatan Manyar, Gresik, East Java. In Indonesia, P.T. Solvay Manyar, located in Surabaya, produces surfactants mainly for the home & personal care and agrochemical formulations industries, both for local consumption as well as for export to mostly Asian countries. The plant stands over around 4.0 hectares wide land with total factory building, office, warehouses and other facilities wide of around 20,000 square meters. Originally, the plant is having a capacity to produce 10,000 tons of dodecyl benzene SA, 1.000 tons of natural lauryl E.S., 1,000 tons of synthetic lauryl E.S. and 880 tons of oxo alcohol E.S.S., per annum respectively. In 1991, P.T. RM expanded its existing plant to respectively produce 3,600 tons of alkyl benzene sulfonates, 8.500 tons of alcohol ether sulphonates and 2,500 tons of alcohol sulphates respectively per annum. Construction of its plant has absorbed a total investment of Rp. 32.0 billion, coming from owned capital of Rp. 9.0 billion and the rest from loans, mainly from the ABN-AMRO Bank Jakarta and P.T. Bank CIMB NIAGA Tbk., Gresik branch.

The production realization has reached the average 2,200 tons to 2,400 tons per month within the last three years some 80% to 90% belongs to Linier Alkyl Benzene Sulforic Acid (LABSA) and some 75% to 80% to Sodium Lauryl Ether Sulfate (SLES). P.T. SM produces surfactants mainly for home & personal care and agrochemical formulation industries, both for local consumption as well as for export market mostly Asian countries and distributed by BRENTAG Singapore. Besides, some of the raw materials bought from P.T. UNGGUL INDAH CAHAYA Tbk. Some 60% of the products used to be exported to Asian and Middle East countries like Singapore, Thailand, Malaysia, the Philippines, Vietnam, Bangladesh, India, Taiwan, Japan and Jordan at the average price of some US$ 350.- to US$ 365.- (fob) per metric ton.

According information from Mrs. While the rest, 40% of its products for local market distributed by parent company P.T. SUMBER INDOKEMJAYA.

Besides, some of the product supplied to P.T. UNILEVER INDONESIA Tbk., the largest consumer goods industries and also as main buyers in the country, P.T. LION WINGS, P.T. SINAR ANTJOL, P.T. SAYAP MAS UTAMA and others soap and detergent manufacturing. The operation of P.T. SOLVAY MANYAR had been running and growing well within the last four years.

We find that generally the demand for detergent and soap raw materials including alkyl benzene sulfonates, alcohol ether sulphates and alcohol sulphates have kept on increasing in the last five years. The increase was in lines with the progress achieved by its consumer industries among others are detergent and soap manufacturing soap and detergent industry is the most solid industry during the crisis occurred in the country. We can see from the production growth of detergent in the country within the last five years. Business position of P.T. SM in this case is quite well for it has controlled a wide marketing network in Asian and Middle East countries as well as in local market including its group members.

Development of Detergent Production, 2006 – 2013*

(Ton)

Year

Powder

Cream

Bar

Liquid

2006

2007

2008

2009

2010

2011

2012

2013*

165,057

174,960

185,457

196,213

207,789

220,256

231,279

245,156

450,460

477,460

504,108

529,108

560,854

594,505

624,230

661,684

78,918

83,653

88,583

93,898

99,531

104,507

110,777

117,424

56,962

60,380

64,003

67,843

71,913

75,509

80,039

84,841

Until this time P.T. SM has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. SM 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. 321.0 billion increased to Rp. 334.0 billion in 2013 rose to Rp. 345.0 billion in 2014 and projected to go on rising by at least 6% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 30.0 billion and the company has an estimated total networth of at least Rp. 297.0 billion. We observe that P.T. BBI 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. RM is led by Mr. Ir. Suryo Wongsodihardjo (59) with 23 years of experience in the field of detergent and soap raw materials manufacturing and distribution. Daily activity he is assisted by Mr. Andre Arifin (55) as director. The management of the company is handled by professional managers having wide relation with private businessmen within and outside the country and with the government sectors as well. We observed that management’s reputation in said business is fairly good.

So far, we have never heard that the company’s management involved in business malpractice 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. SOLVAY MANYAR is fairly good for business transaction.

Attachment 1:

List of the JAMAFAC Group Members

BATUMURI, P.T. Jakarta (Travel Bureau)
JAMAFAC, P.T. (Matches Manufacturing and Investment Holding)
JAMAYA PLASTIK INDONESIA PERKASA, P.T. (Plastic Goods Manufacturing)
JAYABAYA, P.T. Surabaya (Detergent Cream Industry)
MAYA SANTANA PLASTIK INDUSTRI, P.T. (Plastic Goods Manufacturing)
MEDISKA FARMA, P.T. Jakarta (Pharmaceutical)
PAKABAJA, P.T. Surabaya (Match Factory)
SETIA NASIONAL, P.T. Jakarta (General Trading, Export, Import)
SOLVAY MANYAR, P.T. (Alkyl Benzene Sulfonate, Alcohol Ether Sulphates and

Alcohol Sulphates Industry)

Etc.

Attachment 2:

List of the LAUTAN LUAS Group Member

1. ADVANCE STABILINDO INDUSTRY, P.T. (Methyltine Stabilizer Processing)

2. ASPIRASI LUHUR, P.T. (Investment Holding)

3. BUKITSUGIH SETIAMAS, P.T. (Contracting Service)

4. CATURKARSA MEGATUNGGAL, P.T. (Property Management)

5. CIPTA MAPAN LOGISTIC, P.T. (Freight Forwarding Services)

6. DAITI CARBON NUSANTARA, P.T. (Activated Carbon Manufacturing)

7. DUNIA KIMIA UTAMA, P.T. (Sulphuric Acid and Aluminum Sulphate Processing)

8. DUNIA KIMIA JAYA, P.T. (Poly Aluminum Chloride, Band Poly Lubricant and Textile Auxiliaries Processing)

9. DUTA KIMIA, P.T. (Chemical Trading)

10. FINDECO JAYA, P.T. (Alkyl Benzene Sulfonic Acid and Dodecyl Benzene Sulfonic Acid Industry)

11. HUAI AN DIAMOND CHEMICAL INDUSTRY LTD (Chemical Industry)

12. HYDRO HITECH OPTIMA, P.T. (Water Solution Provider)

13. INDONESIAN ACID INDUSTRY, P.T. (Chemical Industry)

14. KRYTON LAUTAN INDONESIA, P.T. (Specialty Cements, Concrete Additives and Specialty Paints and Coating Industries)

15. LAUTAN HON HONGZE CHEMICAL INDUSTRY LIMITED (Sodium Sulphate Anhydrous Industry and Trade)

16. LAUTAN JASINDO, P.T. (Trading & Investment Holding)

17. LAUTAN LUAS Tbk., P.T. (Industrial Chemical Distribution)

18. LAUTAN LUAS SINGAPORE PTE LTD (Trading)

19. LAUTAN LUAS THAILAND CO. LTD. (Trading)

20. LAUTAN LUAS VIETNAM CO. LTD. (Trading)

21. LAUTAN OTSUKA CHEMICAL, P.T. (Chemical Industry)

22. LAUTAN SULFAMAT LESTARI, P.T. (Sulfamic Acid Manufacturing)

23. LENTERA LAUT RAYA, P.T. (Chemical Trading)

24. LIKU TELAGA, P.T. (Chemical Processing)

25. MAHKOTA INDONESIA, P.T. (Industrial Chemical Industry)

26. METABISULPHITE NUSANTARA, P.T. (Sodium Metabisulphite Manufacturing)

27. MUSTIKA ARTA MAS, P.T. (Investment Holding)

28. PACINESIA CHEMICAL INDUSTRY, P.T. (Poly Aluminum Chlorida (PAC) Industry)

29. PKG LAUTAN INDONESIA, P.T. (Solvent, Aromatic, Alcohol, Glycol, Ketones Manufacturing)

30. PERAK TIMUR PERMAI, P.T. (Tank Terminal Management)

31. PETRO CENTRAL, P.T. (Sodium Try Poly Sulphate Processing)

32. RHODIA MANYAR, P.T. (Alkyl Benzene Sulfonate, Alcohol Ether Sulphates

and Alcohol Sulphates Industry)

33. ROHA LAUTAN PEWARNA, P.T. (Additives Colour Manufacturing)

34. SAMUDRA LUAS, P.T. (Chemical Trading)

35. SERUNI GANDAMEKAR, P.T. (Sulphur Powders Processing)

36. SIBELCO LAUTAN MINERALS, P.T. (Washed Dry Silica and Silica Flour Manufacturing)

37. SUKINDO JAYA, P.T. (Chemical Trading)

38. UNGGUL INDAH CORPORATION Tbk., P.T. (Alkyl Benzene Processing)

39. WHITE OIL NUSANTARA, P.T. (White Oil and Petroleum Sulfonate Industry)

40. Etc.

Attachment 3:

List of the SINAR ANTJOL Group Member

1. FINCO GLOBAL ARTHA, P.T. (Plastic Industry & Soap Manufacturing)

2. FINDECO JAYA, P.T. (Akyl Benzene Sulfonate Manufaccturing)

3. FIRST INDO-ETHIOPIA PVT., LTD., CO. (Trading)

4. RHODIA MANYAR, P.T. (Alkyl Benzene Sulfonate, Alcohol Ether Sulphates

and Alcohol Sulphates Industry)

5. SINAR ANTJOL, P.T. (Detergent Industry and Investment Holding)

6. SINAR INDOGHANA LTD., (Trading)

7. SUMBER INDOKEMJAYA, P.T. (Trading and Distribution of Industrial Chemical)

8. Etc.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.57
UK Pound	1	Rs. 99.20
Euro	1	Rs. 70.35

INFORMATION DETAILS

Analysis Done by :	KRN

Report Prepared by :	DPT

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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