MIRA INFORM REPORT

 

 

Report No. :

324128

Report Date :

03.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. WONGSO PAWIRO

 

 

Registered Office :

Jalan Pattimura No. 3, Kecamatan Siantar Timur, Pematang Siantar, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

08.01.1985

 

 

Com. Reg. No.:

AHU-AH.01.10-31909

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturing of Clove Cigarette.

 

 

No. of Employees :

420 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. President Joko WIDODO - elected in July 2014 - has emphasized domestic economic growth in his first few months in office and in November 2014 reduced fuel subsidies, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

BASIC SEARCH

 

Name of Company :

P.T. WONGSO PAWIRO

 

A d d r e s s :

Head Office & Factory

Jalan Pattimura No. 3

Kecamatan Siantar Timur, Pematang Siantar

North Sumatra

Indonesia

Phones               - (62-622) 52981, 52982

Fax                   - (62-622) 50410, 51849

Land Area         - 15,000 sq. meters

Building Space  - 12,000 sq. meters

Region              - Industrial Zone

Status               - Rent

 

Date of Incorporation :

8 January 1985

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-  No. C2-10633 HT.01.04.TH.94

   Dated 11 July 1994

-  No. C-3849 HT.01.04.TH.99

   Dated 9 March 1999

-  No. AHU-54321.AH.01.02.TH.2008

   Dated 25 August 2008

-  No. AHU-AH.01.10-31909

   Dated 31 July 2013

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.229.309.8-117.000

 

Related Company :

A Member Company of the STTC Group (see attachment)

 

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

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

Issued Capital                                 : Rp.    252,000,000.-

Paid up Capital                               : Rp.    252,000,000.-

 

Shareholders/Owners :

a. Mr. Sendi Bingei Purba Siboro AKA Ng Ti Sen             - Rp. 84,000,000.-

    Address : Jl. Sutomo No. 341/343

                    Pematang Siantar, North Sumatra

                    Indonesia

b. Mr. Edwin Bingei Purba Siboro AKA Ng Ti Boon          - Rp. 84,000,000.-

    Address : Jl. Sutomo No. 341/343

                    Pematang Siantar, North Sumatra

                    Indonesia           

c. Mr. Timin Bingei Purba Siboro AKA Ng Ti Hin              - Rp. 84,000,000.-

    Address : Jl. Batang Kuis No. 10 BB

                    Medan, North Sumatra

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Clove Cigarette Manufacturing

 

Production Capacity :

Clove Cigarettes                              - 226,800,000 sticks p.a.

 

Total Investment :

Owned Capital                                 - Rp. 5.0 billion

 

Started Operation :

1986

 

Brand Name :

PANAMA

 

Technical Assistance :

None

 

Number of Employee :

420 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Cigarette distributors

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. DJARUM

b. P.T. GUDANG GARAM Tbk

c. P.T. HANDJAYA MANDALA SAMPOERNA Tbk

d. P.T. LESTARIPUTRA WIRASEJATI, Etc

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank CENTRAL ASIA Tbk

    Pematang Siantar Main Branch

    North Sumatra

    Indonesia

b. P.T. Bank MANDIRI Tbk

    Jalan Imam Bonjol No. 25

    Medan, North Sumatra

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 30.0 billion

2013 – Rp. 34.0 billion

2014 – Rp. 39.0 billion

 

Net Profit (estimated) :

2012 – Rp. 2.0 billion

2013 – Rp. 2.3 billion

2014 – Rp. 2.8 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Ian

Director                                          - Mr. Njio Tjang Tjin

 

Board of Commissioners :

President Commissioner                  - Mr. Timin Bingei Purba Siboro AKA Ng Ti Hin

Commissioners                               - a. Mr. Edwin Bingei Purba Siboro AKA Ng Ti Boon

                                                        b. Mr. Sendi Bingei Purba Siboro AKA Ng Ti Sen

 

Signatories :

President Director (Mr. Ian) or the Director (Mr. Njio Tjang Tjin) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. WONGSO PAWIRO (P.T. WP) was established in Pematang Siantar, North Sumatera on 8 January 1985 with an authorized capital of Rp. 100,000,000 entirely issued and paid up. The founding shareholders of the company are Mr. Sendi Bingei Purba Siboro AKA (also known as) Ng Ti Sen, Mr. Timin Bingei Purba Siboro AKA Ng Ti Hin, Mr. Edwin Bingei Purba Siboro AKA Ng Ti Boon, Mr. Wongso Pawiro Wijaya, Mr. Anto Simon Gik and Mr. Johan Bingei, all Indonesian businessmen of Chinese extraction. The company's notarial act has undergone revision. In March 1991 the authorized capital was increased to Rp. 1,000,000,000 with the issued and paid up capital amounting to Rp. 246,000,000. Later in November 1998 the company issued capital was raised to Rp. 252,000,000 entirely paid up. On the same occasion Mr. Wongso Pawiro Wijaya, Mr. Anto Simon Gik and Mr. Johan Bingei pulled out and the whole shares controlled by Mr. Edwin Bingei Purba Siboro (33.33%), Mr. Timin Bingei Purba Siboro (33.33%) and Mr. Sendi Bingei Purba Siboro (33.33%).

 

The latest according to revision of notary deed Mr. Eddy Simin, SH., no. 129 dated 26 June 2013 the company board of director and the board of commissioner has been restructured. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-31909 dated July 31, 2013.

 

P.T. WP has been in operation since 1986 in kretek (clove) cigarette manufacturing with its plant located at Jalan Pattimura No. 3, Pematang Siantar next to the plant of the parent company N.V. SUMATRA TOBACCO TRADING COMPANY the biggest white cigarette industry in Pematang Siantar, North Sumatra. The plants produce mechanically rolled kretek (clove) cigarettes with a capacity of 226,800,000 sticks per year. Most of raw materials like tobacco, sauce, and others imported from the USA, Canada and the rest obtained from locals. The company's production is entirely marketed in North Sumatra under the PANAMA trade mark. The types of clove cigarettes are Panama Filter King Size, Panama Filter Long and Panama Super. The raw material in the form of tobacco is bought locally from tobacco farmers and from the state plantation company P.T. Perkebunan Nusantara II (North Sumatra). We observe that the operation of P.T. WP had been growing stable in the last five years and it’s still the largest in white cigarette industry in Medan, North Sumatra.

 

In overall we find the clove cigarette industries kept on rising in the last five years and nothing wrong with the global economic crisis occurred in October 2008 because they used mostly local contents. But the number of cigarette companies in Indonesia this year is down 17% to 1,381 units in 2012 compared to 2011, according to industry association. Decrease in the number of tobacco companies influenced the tight government regulations governing the production, promotion and cigarette consumption. Mr. Hasan Aoni Aziz, Corporate Communication of the United Association of Cigarette Manufacturing Indonesia (GAPPRI), assess increasing stringent government regulation of the tobacco industry has been continuously decrease the number of firms in the sector, especially small-medium in industries. Based on data compiled by the Ministry of Industry, the industry association, the number of cigarette companies Indonesia in 2007 reached 5,000 units, then felt to 1,500 units in 2010.

 

The cigarette industries will keep going down within the coming four year years. Competition is very tight as there are 73 cigarette producers operating in the country. The most leading producers are P.T. GUDANG GARAM Tbk, of 35.5% market segment, P.T. HM SAMPOERNA Tbk., of 15.2% market segment, P.T. DJARUM of 11.9% market segment, P.T. BENTOEL PRIMA of 1.5% and the rest is controlled by other small producers. The growth cigarette industries in Indonesia is seen from the table as below:

 

The Growth of Cigarettes in Indonesia Period 2009 – 2013

Description

2009

2010

2011

2012

2013

Total Production (billion stick)

263.2

279.0

285.1

308.0

319.2

Number of Companies (unit)

3,255

2,600

2,540

1,000

800

Number of Employee (person)

687,224

700,000

725,000

780,000

700,000

Tax Receivable (trillion Rupiah)

54.3

59.3

77.0

95.0

35.3

 

Until this time P.T. WP has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. WP 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. 30.0 billion increased to Rp. 34.0 billion in 2013 rose to Rp. 39.0 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. 2.8 billion and the company has an estimated total networth of at least Rp. 5.0 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. WP is led by Mr. Ian (57) a professional manager with experience in clove cigarette manufacturing. Daily activity he is assisted by Mr. Njio Tjang Tjin (56) as Director. 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. WONGSO PAWIRO is sufficiently fairly good for business cooperation.

 

 

Attachment

 

 

List of the STTC Group Members

 

1. ADIAN INTERNATIONAL, C.V. (Importing and Distribution)

2. GUNUNG MELAYU, P.T. (Oil Palm Plantation and Palm Oil Refinery)

3. EASTER UNION, P.T. (Soap and Detergent Manufacturing)

4. PUTRA SUMATRA SEJATI, P.T. (Car Distribution)

5. SARI INCOFOOD CORPORATION, P.T. (Instant Coffee Processing)

6. SINTONG SARI UNION, P.T. (Safety Matches Manufacturing)

7. SRI DELI JAYA, P.T. (Graphic Printing)

8. SUMATRA TOBACCO TRADING COMPANY, P.T. (Cigarette Manufacturing)

9. TANI NASIONAL, P.T. Bank (Banking) Inactive

10. UNIOC Trading (Pte) Ltd., Singapore (Trading)

11. UNITED CITY Bank, P.T. (Banking) Inactive

12. WONGSO PAWIRO, P.T. (Clove Cigarette Manufacturing)

13. Etc.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.83

UK Pound

1

Rs.97.10

Euro

1

Rs.69.74

 

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%)

 

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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.