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Report No. : |
330391 |
|
Report Date : |
13.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
P.T. INDOFERRO |
|
|
|
|
Registered Office : |
Jalan Sunan Demak No. 8, Kelurahan Kepuh,
Kecamatan Ciwandan, Cilegon, 42400, Banten Province |
|
|
|
|
Country : |
Indonesia
|
|
|
|
|
Date of Incorporation : |
23.11.2006 |
|
|
|
|
Com. Reg. No.: |
AHU-AH.01.10-09107 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing
of Nickel Pig Iron Manufacturing |
|
|
|
|
No. of Employees : |
820
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 |
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|
|
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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 |
Name
of Company :
P.T. INDOFERRO
A
d d r e s s :
Head Office & Factory
Jalan
Sunan Demak No. 8
Kelurahan
Kepuh, Kecamatan Ciwandan,
Cilegon,
42400
Banten
Province
Indonesia
Phones -
(62-254) 601 318 (Hunting)
Fax - (62-254) 602 818
Land Area - 230,000 sq.
meters
Building Space - 150,000 sq.
meters
Region - Industrial
Zone
Status - Owned
Corporate Office
Equity
Tower Building 28th Floor Unit A
Jalan Jend. Sudirman Kav. 52-53
Jakarta Selatan, 12190
Indonesia
Phones -
(62-21) 2903 5373 (Hunting)
Fax - (62-21) 2903 5372
E-mail - sales@indoferro.com
Website - http://www.indoferro.com
Building Area - 44 storey
Office Space - 100 sq. meters
Region - Commercial
Status - Rent
Puri Indah Office (Logistics)
Jalan Raya Puri Ayu Raya Block T 7 No. & T 32
Puri Indah
Jakarta
Barat, 11610
Indonesia
Phones -
(62-21) 5830 4788 (Hunting)
Fax - (62-21) 5830 4789
Building Area - 2 storey
Office Space - 230 sq. meters
Region - Commercial
Status - Rent
Date of Incorporation :
23 November 2006
Legal
Form :
P.T.
(Perseroan Terbatas) or Limited Liability Company
Company
Reg. No. :
The Ministry of Law and Human Rights
- No. C-01121.HT.01.01.TH.2007
Dated 24 October 2007
- No. AHU-05379.AH.01.02.TH.2011
Dated 1 February 2011
- No. AHU-AH.01.10-28674
Dated 3 August 2012
- No. AHU-AH.01.10-11009
Dated 26 March 2013
- No. AHU-06260.AH.01.02.TH.2014
Dated 13 February 2014
- No. AHU-AH.01.10-09107
Dated 6 March 2014
Company
Status :
Foreign
Investment (PMA) Company
Permit
by the Government Department :
The Department of Finance
NPWP
No. 02.634.946.4-415.000
The Capital Investment Coordinating
Board
No.
122/I/PMA/2006
Dated
16 November 2006
Related
Company :
A
Member Company of the GROWTH STEEL Group (see attachment)
Capital
Structure :
Authorized
Capital : US$
150,000,000.-
Issued
Capital : US$
100,000,000.-
Paid
up Capital :
US$ 100,000,000.-
Shareholders/Owners
:
a. SYNERGIST INTERNATIONAL LTD - US$ 62,750,000.-
Address : Palm Grove House
PO. Box. 438
Road Town, Tortola
British Virgin Island
b. ORIGIN HOLDINGS (HK) LIMITED - US$
25,000,000.-
Address :
Unit 2802 – 2802 28/F
663 Kings Road North Point
Hong Kong
c. LMG INDOFERRO PTE, LTD. - US$ 10,500,000.-
Address :
7 Tuas Ave 16
Jurong, Singapore
d. Mr. Fajar Suhendra -
US$ 1,050,000.-
Address : Jl. Taman Polonia II No. 27
Kelurahan Sukadamai,
Kecamatan Medan
Polonia, Medan, North Sumatera
Indonesia
e. Mr. Sugih Suhendra -
US$ 700,000.-
Address : Jl. Taman Polonia II No. 3
Kelurahan Sukadamai,
Kecamatan Medan
Polonia, Medan, North Sumatera
Indonesia
Lines
of Business :
Nickel
Pig Iron Manufacturing
Production
Capacity :
A. Initial
Plant
Nickel Pig
Iron - 500,000
tons p.a.
B. Expansion
Plant (Planned)
Nickel Pig Iron - 550,000 tons p.a.
Total
Investment :
A. Initial
Plant
a. Equity Capital - US$ 40.0 million
b. Loan Capital - US$ 40.0 million
c. Total Investment - US$ 80.0 million
B. Expansion
Plant (Planned)
a. Equity Capital - US$ 120.0 million
b. Loan Capital - US$
40.0 million
c. Total Investment - US$ 160.0 million
Started
Operation :
August
2012 (First Stage)
Brand
Name :
Indoferro
Technical
Assistance :
LMG
INDOFERRO PTE LTD., Singapore
Number
of Employee :
820
persons
Marketing
Area :
Local - 50%
Export - 50%
Main
Customer :
Steel
Mills Industry
Market
Situation :
Very
Competitive
Main
Competitors :
a. P.T. BUMI MODERN SEJAHTERA
b. P.T. JOGJA MANGASA IRON
c.
P.T. MANDAN STEEL
d.
P.T. MERATUS JAYA IRON & STEEL
e.
P.T. SEMERU SURYA STEEL
Business
Trend :
Growing
B
a n k e r s :
a. P.T. Bank MANDIRI Tbk
Jalan Raya Suprapto No. 2
Cilegon, Banten Province
Indonesia
b. P.T. Bank CENTRAL ASIA Tbk
Menara BCA Grand Indonesia
Jalan M.H. Thamrin No.1
Jakarta Pusat
Indonesia
c. P.T. Bank DBS INDONESIA
Plaza Permata, 8th – 9th
and 12th Floor
Jalan M.H. Thamrin Kav.
57
Jakarta Pusat, 10350
Indonesia
d. Hongkong and Shanghai Banking Corp. Ltd.
World Trade Centre
Jalan Jend. Sudirman Kav. 29-31
Jakarta
Selatan
Indonesia
Auditor :
Internal Auditor
Litigation
:
No
litigation record in our database
Annual
Sales (estimated) :
2012
– Rp. 85.5 billion (August – December)
2013
– Rp. 650.0 billion
2014
– Rp. 780.0 billion
Net
Profit (estimated) :
2012
– None
2013
– Rp. 25.0 billion
2014
– Rp. 37.0 billion
Payment
Manner :
Average
Financial
Comments :
Satisfactory
Board of Management :
President Director - Mr. Radius Suhendra
Directors -
a. Mr. Dharmawi, SE
b. Mr. Tan Jung Sen
c. Mr. Li Qiang
d. Mr. Ir. Sun Pu Wui
Board of Commissioners :
President Commissioner - Mr. Fajar Suhendra
Commissioners - a. Mr. Sugih Suhendra
b. Mr. Louis Suhendra
c. Mr. Peter Suhendra
d. Mr. Chan Chun Keung
e. Mr. Leissner Judy
Signatories :
President
Director (Mr. Radius Suhendra) or one of the Directors (Mr. Dharmawi, SE, Mr.
Tan Jung Sen, Mr. Li Qiang or Mr. Ir. Sun Pu Wui) which must be approved by
Board of Commissioner.
Management Capability :
Good
Business Morality :
Good
P.T. INDOFERRO was incorporated in Cilegon, Banten
Province based on notary deed of Mrs. Esther Mercia Sulaiman, SH., No. 80 dated
23 November 2006 with the authorized capital of US$ 20,000,000 issued capital
of US$ 10,000,000 entirely paid up. The company was founded by SYNERGIST
INTERNATIONAL LTD., of British Virgin Island, LEE METAL GROUP of Singapore,
both are as foreign partners, with Mr. Fajar Suhendra and Mr. Sugih Suhendra
both are Indonesian business family of Chinese descents as local partners. The
company notary deed had been changed a couple of times. In January 2011 the
company authorized capital was increased to US$ 100,000,000 issued capital to
US$ 70,000,000 fully and paid up. On the same occasion LEE METAL GROUP of Singapore
withdrew and into the company joined by LMG INDOFERRO PTE, LTD., Singapore and
ORIGIN HOLDINGS (HK) LTD., Hong Kong as new shareholders. With this development
the composition of its shareholders has been changed to become SYNERGIST
INTERNATIONAL LTD., British Virgin Island (67.5%), LMG INDOFERRO PTE, LTD.,
Singapore (15.0%), ORIGIN HOLDINGS (HK) LTD., Hong Kong (15.0%), Mr. Fajar
Suhendra (1.5%) and Mr. Sugih Suhendra (1.0%).
Then according to revision of notary documents of Mrs.
Popie Savitri Martosuhardjo Pharmanto, SH., No. 23 dated 17 July 2012 the
company’s board of director and the board of commissioner had been changed. The
latest according to revision of notary deed Mrs. Popie Savitri Martosuhardj,
SH., dated February 2014 the company authorized capital was raised to US$
150,000,000 issued capital to US$ 100,000,000 entirely paid up. With this
development the composition of its shareholders has been changed to become
SYNERGIST INTERNATIONAL LTD., (62.75%), ORIGIN HOLDINGS (HK) LTD., (25.00%), LMG
INDOFERRO PTE. LTD., (10.50%), Mr. Fajar Suhendra (1.05%) and Mr. Sugih
Suhendra (0.7%). The deed of amendments was approved by the Ministry of Law and
Human Rights in its decision letter No. AHU-AH.01.10-09107 dated March 6, 2014.
We observe the local partner Mr. Fadjar Suhendra is also
founder and majority business stakes owner of the GROWTH STEEL Group, a small
sized company group in Medan dealing with steel mills manufacturing steel
products, including steel billets, steel reinforcing bars, steel angel bars and
cold drawn steel shafting bars, iron and steel foundry, shrimp culture and sea
food products processing, cassava palletizing and chip manufacturing.
P.T. INDOFERRO operates under Foreign Capital Investment
(PMA) facility in the manufacturing of nickel pig iron. The company's plant is
located on a 23 hectares land at Jalan Sunan Demak No. 8, Ciwandan, Cilegon,
Banten Province. The construction of the plant has begun since 2009 and
completed since July 2012. P.T. Indoferro is processing pig iron (steel
industrial raw materials) or nickel pig iron. The company is processing iron
ore into finished goods such as concrete steel, angle steel, plate steel or
nickel ore as raw material for stainless steel. Construction of the plant has
absorbed an investment of US$ 80 million first phase. Some fresh funds sourced
from Eximbank (Export Financing Agency of Indonesia) for US$ 65 million. The
plant has been producing since August 2012 with capacity of 500,000 tons nickel
pig iron per annum. The whole basic materials like pig iron imported from
overseas. P.T. INDOFERRO is currently producing Nickel Pig Iron (NPI) to serve
stainless steel producers and nickel casting foundries in the Asian &
European markets. This is the first smelter to start operations in Indonesia
since the government implemented the new mining regulation of 2012 that
requires processing mineral ores into value added product before exporting.
Most of raw materials obtained from nickel ore and iron ore mines from Nangroe
Aceh Darusalam, West Sulawesi and others. Later in 2012, P.T. INDOFERRO also
expanded its capacity of nickel pig iron of 550,000 tons with an investment of
US$ 160.0 million. The expansion plant will be commenced production in the end
2015 to meet the demand of steel milling in the country and overseas. Some 50%
of the products supplied to P.T. GROWTH ASIA, P.T. GROWTH SUMATRA INDUSTRY,
P.T. THE MASTER STEEL and other steel industries. Besides, some 50% of the
products exported to Taiwan, Malaysia, Philippine, Thailand, Japan, Belgium,
Spain and other Asian countries.
P.T. INDOFERRO has achieved long-term export contract
from WALSIN LIHWA of Taiwan worth US$ 100 million – US$ 120 million per year.
In the sales contract, both parties can make it happen for 20-30 years. In
October 2012 P.T. INDOFERRO has made initial export 300 tons to Walsin Lihwa
Taiwan. Later in 2013 P.T. INDOFERRO will export as much as 100,000 tons –
120,000 tons with a selling price range US$ 800 – US$ 1,000 per ton. We observe the operation of P.T. INDOFERRO
has been growing and running smoothly in the last three years.
The invention of Nickel Pig Iron (NPI) is credited to the
Chinese steel makers who wanted a cheaper alternative to pure nickel, although
in truth nickel pig iron was developed more than a hundred years ago.
Considered low grade, laterite nickel ores are used in the production of nickel
pig iron which in turn is then used in the production of stainless steel
instead of using pure nickel. At a time when nickel prices had reached an all
time high the production of cheaper nickel pig iron with the added benefit of
the iron also contained in the nickel pig iron gave the Chinese producers an
added advantage. Nickel laterite ores used to make nickel pig iron is mostly
found in the tropical regions where the high rain fall over many millions of
years has leached out much of the magnesium and silica of the original
olivine-rich ultramafic rocks. Nickel laterites typically occur in regions
where prolonged weathering of ultramafic rocks (containing ferro-magnesian
minerals) has occurred, favoured by warm conditions with abundant rainfall.
Nickel pig iron feed stock is composed of low-grade nickel ore, coking coal,
and a mixture of fluxes. The mixture is first calcined and sintered into
pellets before being fed into the blast furnace with additional ore and fluxes.
Impurities and slags are then removed from the reduced nickel iron melt before
the molten nickel-iron is cast into the pig-moulds forming the nickel pig iron.
The Indoferro complex uses the same process to convert
nickel laterites into nickel pig iron in the first nickel pig iron producing
sintering plant and blast furnace outside China.
Until this time P.T. INDOFERRO has not been registered with
Indonesian Stock Exchange, so that they had not obliged to announce their
financial statement. The management of the company is very reclusive towards
outsiders and rejected to disclose its financial condition. We observed that
total sales turnover of the company in the first year operation August to
December 2012 amounted to Rp. 85.5 billion increased to Rp. 650.0 billion in
2013 to Rp. 780.0 billion in 2014 and projected to go on rising by at least 6%
in 2015. The operation in 2014 has yielded a net profit of at least Rp. 37.0
billion. We observe that P.T. INDOFERRO 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. INDOFERRO is led by Mr. Radius
Suhendra (41) a professional manager with experience in nickel pig iron
industry. In its daily operation he is assisted by Mr. Dharmawi, SE (51), Mr.
Tan Jung Sen (43), Mr. Li Qiang (66) and Mr. Ir. Sun Pu Wui (51) as Directors.
The company's management is handled by professional staff in the above
business. 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. INDOFERRO is
sufficiently fairly good for business cooperation.
List of the GROWTH STEEL Group Members
1.
AGROJAYA PERDANA, P.T. (Palm Kernel Crushing
Mills)
2.
GROWTH ASIA, P.T. (Iron and Steel Casting and
Biomass Power Plant Development and Management)
3.
GROWTH PACIFIC, P.T. (Shrimp Culture and Cold
Storage)
4.
GROWTH PAKANINDO SPESIAL, P.T. (Animal Feed
Mills)
5.
GROWTH SUMATRA INDUSTRY LTD., P.T. (Iron Steel Milling and
Biomass Power Plant Development and Management)
6.
HARKAT SEJAAHTERA, P.T. (Crude Palm Oil
Processing and Biomass Power Plant Development and Management)
7.
INDOCOKE INDUSTRY, P.T. (Coke Industry)
8.
INDOFERRO, P.T. (Pig Iron Industry)
9.
LESTARI AGRIBISNIS INDONESIA, P.T.
(Peternakan)
10.
LUBUK NAGA, P.T. (Shrimp Culture)
11.
PRISCOLIN, P.T. (Crude Palm Oil Processing)
12.
RIMBA PALMA SEJAHTERA LESTARI, P.T. (Biomass
Power Plant Development and Management)
13.
SERDANG JAYA PERDANA, P.T. (Coconut Oil
Processing) Pabrik minyak kelapa
14.
UNION CONFECTIONARY, P.T. (Candy
Manufacturing)
15.
UNION FOODS, P.T. (Food Processing)
16.
Etc
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.38 |
|
|
1 |
Rs.97.65 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.