MIRA INFORM REPORT

 

 

Report No. :

327702

Report Date :

23.06.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. INSANSANDANG INTERNUSA

 

 

Registered Office :

Jalan Raya Rancaekek Km. 22.5 Cikeruh, Jatinangor Sumedang, 45363 West Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.06.1988

 

 

Com. Reg. No.:

AHU-AH.01.10-44311

 

 

Legal Form :

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

 

 

Line of Business :

  • Manufacturing of Woven Fabrics
  • Investment Holding

 

 

No. of Employee :

780 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 complaint

 

 

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

 

 

Company name

 

P.T. INSANSANDANG INTERNUSA

 

Address:

Head Office & Factory

Jalan Raya Rancaekek Km. 22.5

Cikeruh, Jatinangor

Sumedang, 45363

West Java

Indonesia

Phones - (62-22) 779 8343 (Hunting)

Fax                   - (62-22) 779 8030

E-mail               - insane@bdg.centrin.net.id

Land Area         - 56,000 sq. meters

Building Space  - 38,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

20 June 1988

 

 

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

-  No. C2-3.421.HT.01.04.TH.96

   Dated 4 March 1996

-  No. AHU-53795.AH.01.02.TH.2008

   Dated 21 August 2008

-  No. AHU-AH.01.10-44311

   Dated 25 October 2013

 

 

Company Status

 

National Private and Domestic Investment (PMDN) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.463.326.5-441.000

 

The Capital Investment Coordinating Board

-  No. 640/PMDN/1988

   Dated 8 October 1988

 

-  No. 806/III/PMDN/1990

   Dated 18 October 1990

-  No. 458/II/PMDN/1990

   Dated 14 November 1990

-  No. 115/II/PMDN/1993

   Dated 23 June 1993

-  No. 101/III/PMDN/1995

   Dated 7 March 1995

-  No. 447/III/PMDN/1997

   Dated 12 September 1997

 

 

Related Companies

 

a.   P.T. GUNA KADOTA MANUNGGAL (Textile Weaving Industry)

b.   P.T. LOKOMOTIF EKA SAKTI (Graphic Printing and Exercise Book Manufacturing)

c.   P.T. SINARMULIA EKAPRATAMA (Investment Holding)

d.   P.T. SINAR FAJAR TJANDRAMAS (Investment Holding)

e.   P.T. SIPATEX PUTRI LESTARI (Textile Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 120,000,000,000.-

Issued Capital                                 : Rp.   34,500,000,000.-

Paid up Capital                               : Rp.   34,500,000,000.-

 

 

Shareholders/Owners

 

a. P.T. SINAR FAJAR TJANDRAMAS                                 - Rp. 29,500,000,000.-

    Address : Jl. Raya Rancaekek Km. 22.5

                    Kelurahan Cikeruh, Kecamatan Jatinangor

                    Sumedang, West Java

                    Indonesia

b. Mr. Teddy Wiriasugata                                                  - Rp.   2,000,000,000.-

    Address : Jl. Setrasari Indah No. 29

                    Kelurahan Sukarasa, Kecamatan Sukasari

                    Bandung, West Java

                    Indonesia

c. Mr. Koesman Hermawan                                               - Rp.   1,500,000,000.-

    Address : Jl. Karang Tengah Timur No. 5

                    Kelurahan Karang Sari, Kecamatan Karang

                    Tengah, Bandung, West Java

                    Indonesia

d. Mr. Otong Tjandradinata                                               - Rp.   1,500,000,000.-

    Address : Jl. Kejaksaan No. 2

                    Kelurahan Braga, Kecamatan Sumurbandung

                    Bandung, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Woven Fabrics Manufacturing

b.   Investment Holding

 

Production Capacity :

Suiting Fabrics                                - 27,350,000 meters p.a.

 

Total Investment :

a.   Equity Capital                           - Rp. 34.5 billion

b.   Loan Capital                              - Rp. 50.0 billion

c.   Total Investment                        - Rp. 84.5 billion

 

Started Operation :

1990

 

Brand Name :

Insansandang Internusa

 

Technical Assistance :

None

 

Number of Employee :

780 persons

 

Marketing Area :

Local       - 60%

Export    - 40%

 

Main Customer :

Filter, geotextile, medical, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. HINTEX MITRA JAYA

b. P.T. KAHATEX

c. P.T. METROPOLITAN SYNTHETIC CHEMICAL INDUSTRIES

d. P.T. MULTI SPUNINDO JAYA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank Negara Indonesia Tbk

      Jalan Asia Afrika No. 119

      Bandung, West Java

b.   P.T. Bank CENTRAL ASIA Tbk

      Jalan Asia Afrika No. 122-124

      Bandung, West Java

c.   P.T. Bank CIMB NIAGA Tbk

      Jalan Asia Afrika No. 115

      Bandung, West Java

d.   P.T. Bank PERMATA Tbk

      Bandung Main Branch

      West Java

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 275.0 billion

2013 – Rp. 294.0 billion

2014 – Rp. 308.0 billion

 

Net Profit (estimated) :

2012 – Rp. 22.0 billion

2013 – Rp. 23.5 billion

2014 – Rp. 24.6 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Teddy Wiriasugata

Directors                                         - a. Mr. Alvi Titus Wiriasenjaya

                                                        b. Mr. The Pek Kiong

                                                        c. Mr. Mitra Tarun Kumar

 

 

 

Board of Commissioners :

President Commissioner                  - Mr. Otong Tjandradinata

Commissioner                                 - Mr. Koesman Hermawan

 

Signatories :

President Director (Mr. Teddy Wiriasugata) or one of the Directors (Mr. Alvi Titus Wiriasenjaya, Mr. The Pek Kiong or Mr. Mitra Tarun Kumar) which must be approved by Board of Commissioner.

 

 

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

 

Maximum Credit Limit :

US$ 2,000,000 on 90 days D/A

 

 

OVERALL PERFORMANCE

 

P.T. INSANSANDANG INTERNUSA (P.T. II) was established in Bandung, West Java, on 20 June 1988 with an authorized capital of Rp. 5,000,000,000 of which Rp. 1,000,000,000 was issued and paid-up. The company was founded by Mr. Frans Leonardi, Mr. Teddy Wiriasugata, Mr. Otong Tjandradinata and Mr. Sudirman Efendi as the original shareholders. It’s articles of association has revised a couple of times. In April 1995, the authorized capital was raised to Rp. 35,000,000,000 issued capital of Rp. 25,000,000,000. Later in January 1999, the authorized capital was increased to Rp. 120,000,000,000 issued and paid up capital of Rp. 30,000,000,000. On the same occasion the whole above shareholders pulled out and replaced by P.T. SINAR FAJAR TJANDRAMAS and Mr. Soeharto Soekendar as new shareholders. In July 2008 the company issued capital was increased to Rp. 34,500,000,000 entirely paid up. With this development the composition of its shareholders has been changed to become P.T. SINAR FAJAR TJANDRAMAS (85.50%), Mr. Teddy Wiriasugata (5.80%), Mr. Koesman Hermawan (4.35%) and Mr. Otong Tjandradinata (4.35%). The latest according to revision of notary deed Mrs. Dewi Sri Yuniarti, SH., no. 38 dated 27 September 2013 the company board of director and the board of commissioner had been resigned, so that the deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-44311 dated October 25, 2013.

 

The majority shareholder is P.T. SINAR FAJAR TJANDRAMAS, a national private company of which its shares are owned by Mr. Frans Leonardi (25%), Mr. Teddy Wiriasugata (25%), Mr. Oton Tjandradinata (25%) and Mr. Koesman Hermawan (25%).

 

P.T. INSANSANDANG INTERNUSA (P.T. II) is engaged in woven fabrics manufacturing, with its plant located in Jalan Raya Rancaekek Km. 22.5, Sumedang, West Java on a land of some 5.6 hectares. The plant has been in operation since 1990 and expansion a couple of times to increased production capacity. Some of the basic materials like polyester rayon using from local product. The plant produced 27,350,000 meters of suiting fabrics respectively. The construction of the plant had been absorbed a total investment of Rp. 84.5 billion, come from own capital of Rp. 34.5 billion and the rest from loans. About 40% of its production is exported to Singapore, Malaysia, Japan, the Middle East and Greece. The rest is marketed in the country, particularly to a number of wholesalers and garment industries based in Bandung, Jakarta, Semarang, Surabaya and surroundings to various sanitary napkin, medicines surgical drapes and warps, bag industries, and management companies for art canvas and tents; packaging industry for carrier bags and combined packaging of nonwovens; textile industry and shoes for disposable underwear & interlining; rug industry for under lay carpet  and bed lining, furniture, curtain; household industry for laundry softener and additives, vacuum cleaner bags, book covers; automotive & vehicle for insulation materials, headliners, interior roof lining; agricultural & horticulture for greenhouse shading, crop and plant protection, packaging material for fruit & vegetables and specific industrial application for filtration, abrasive materials, cable wrapping, electronics (floppy disk liners) reinforcement.

 

Sharp Rupiah depreciation against US$ and other hard currencies has positively affected P.T. II’s financial condition, but on the contrary, also badly affected influenced its business operation because the demand of for suiting fabrics in the local market decreased sharply and operation cost to rise highly. Meanwhile, the local TPT (Textile and Textile Products) industries and other factors causing the declining competitive ability of the national TPT products are the increasing production costs, high interest rates, expensive customs office costs, illegal retributions, textile and garment machinery restructuring costs and the rising prices of production components (oil fuel prices and electric base tariffs). Besides, P.T. II also engaged in investment holding by controls 14% shares of P.T. GUNA KADOTA MANUNGGAL dealing with textile weaving industry.

 

The textile and textile product (TTP) industry is one of the industries that has contrived to with stand the protracted global economic crisis. At a time when the average national industrial utilization rate fell to under 20% in 2008, TTP plants on the other hand were operating at an utilization rate of above 81.6%. This was attributable to the ability of textile and garment producers to maintain the utilization rate of plants at a high level by aggressively stepping up exports. According to the Central Bureau of Statistics (BPS) the Indonesian garments export in 2002 amounted to 333,100 tons (US$ 3,887.2 million) to 339,000 tons (US$ 4,037.9 million) in 2003 to 327,300 tons (US$ 4,351.9 million) in 2004 to 369,500 tons (US$ 4,967.0 million) in 2005 to 399,600 tons (US$ 5,608.1 million) in 2006, to 399,800 tons (US$ 5,712.9 million) in 2007 rose to 417,600 tons (US$ 6,092.2 million) in 2008 declined to 393,400 tons (US$ 5,735.6 million) in 2009 and 445,200 tons (US$ 6,598.0 million) in 2010 rose to 450,900 ton (US$ 7,801.5 million) in 2011 decline to 450,200 tons (US$ (7,304.8 million) in 2012 and increased to 470,200 tons (7,501.0 million) in 2013.

 

The Indonesia textile products export in 2002 amounted to 1,425.9 tons (US$ 3,075.9 million) to 1,307.5 tons (US$ 3,064.6 million) in 2003 to 1,300.4 tons (US$ 3,354.6 million) in 2004 to 1,427.3 tons (US$ 3,704.0 million) in 2005 to 1,477.8 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 decrease to 1,312.2 tons (US$ 4,127.9 million) in 2008 rose to 1,369.6 tons (US$ 3,602.8 million) in 2009 and to 1,525.9 tons (US$ 4,721.8 million) in 2010 decreased to 1,493.3 tons (US$ 5,563.3 million) in 2011 increase to 1,508.5 tons (US$ 5,278.1 million) in 2012 increased to 1,633.1 tons (US$ 5,293.6 million) in 2013. The domestic textile producers are pessimism the textile export in 2009 could match the export numbers in 2008. The blow of the global economic crisis is resulted in the reduced of demand from the export destination countries like the United States (U.S.), Japan, and European Union region. While this year’s the exports expected fall into US$ 9.7 billion. The Chairman of the Indonesian Textile Association (API), Mr. Benny Soetrisno said that the decline in global purchasing power caused of the demand in the Indonesian textile products could not be able to grow as tight as 2008. The export volume and value of the national TPT products in 2002 to 2013 are pictured on the following table.

 

      Year

Garment

Textile Products

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

3,887.2

4,037.9

4,351.9

4,967.0

5,608.1

5,712.9

6,092.2

5,735.6

6,598.0

7,801.5

7,304.8

7,501.0

1,425.9

1,307.5

1,300.4

1,427.3

1,477.8

1,473.6

1,312.2

1,369.6

1,525.9

1,493.3

1,508.5

1,633.1

3,075.9

3,064.6

3,354.6

3,704.0

3,908.6

4,178.0

4,127.9

3,602.8

4,721.8

5,563.3

5,278.1

5,293.6

 

Until this time P.T. II has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. II 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. 275.0 billion increased to Rp. 294.0 billion in 2013 rose to Rp. 308.0 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. 24.6 billion and the company has an estimated total networth of at least Rp. 70.0 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. II is led by Mr. Teedy Wiriasugata (69) a businessman with experience in woven fabrics manufacturing. 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. INSANSANDANG INTERNUSA is sufficiently fairly good for business cooperation.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.51

UK Pound

1

Rs.100.94

Euro

1

Rs.72.32

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 


 

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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