MIRA INFORM REPORT

Report No. :	312498
Report Date :	17.03.2015

IDENTIFICATION DETAILS

Name :	P.T. DASAR RUKUN

Registered Office :	Jalan Raya Jakarta Bogor Km. 44.8, Pakansari, Cibinong, Bogor, 16915, West Java

Country :	Indonesia

Date of Incorporation :	04.12.1986

Com. Reg. No.:	AHU-AH.01.10-09389

Legal Form :	Limited Liability Company

Line of Business :	Spinning Mills

No. of Employees :	615

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 – December 31, 2014

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Indonesia

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. 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. DASAR RUKUN

A d d r e s s :

Head Office & Factory

Jalan Raya Jakarta Bogor Km. 44.8

Pakansari, Cibinong

Bogor, 16915

West Java

Indonesia

Phones - (62-21) 8753266, 8753274, 8753021

Fax - (62-21) 8753270

E-mail - putra.widjaja@dasar-rukun.com

Website - http://www.dasar-rukun.com

Land Area - 12,500 sq. meters

Building Space - 8,000 sq. meters

Region - Industrial Zone

Status - Owned

Date of Incorporation :

4 December 1986

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-4037 HT.01.01.TH.87

Dated 6 June 1987

- No. AHU-51874.AH.01.02.TH.2010

Dated 4 November 2010

- No. AHU-AH.01.10-09389

Dated 15 March 2013

Company Status :

National Private and Domestic Investment (PMDN) Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.319.660.5-431.000

The Capital Investment Coordinating Board

No. 525/I/PMDN/1987

Dated 5 December 1987

Related Company :

A Member Company of the SARI WARNA ASLI Group (see attachment)

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital : Rp. 100,000,000,000.-

Issued Capital : Rp. 25,000,000,000.-

Paid up Capital : Rp. 25,000,000,000.-

Shareholders/Owners :

a. P.T. JAYA PERKASA TEXTILE - Rp. 12,500,000,000.-

Address : Jl. K.H. Samanhudi

Kelurahan Tambaksegaran, Kecamatan

Banmati, Sukoharjo, Central Java

Indonesia

b. Mr. Hartono Setyo - Rp. 12,500,000,000.-

Address : Jl. DR. Rajiman No. 70, RT. 005 RW. 005

Kelurahan Penumping, Kecamatan Surakarta

Solo, Central Java

Indonesia

BUSINESS ACTIVITIES

Lines of Business :

Spinning Mills

Production Capacity :

a. Weaving Yarns 30’s - 9.293 bales p.a.

b. Weaning Yarns 40’s - 13,939 bales p.a.

c. Weaving Yarns 45’s - 12,391 bales p.a.

Total Investment :

a. Equity Capital - Rp. 25.0 billion

b. Loan Capital - Rp. 38.3 billion

c. Total Investment - Rp. 63.3 billion

Started Operation :

1988

Brand Name :

Dasar Rukun

Technical Assistance :

None

Number of Employee :

615 persons

Marketing Area :

Local - 40%

Export - 60%

Main Customer :

Textile industries

Market Situation :

Very Competitive

Main Competitors :

a. P.T. ADE TEXTILE INDUSTRY

b. P.T. BITRATEX INDUSTRIES

c. P.T. GOKAK INDONESIA

d. P.T. INDO LIBERTY TEXTILE

e. Etc.

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. P.T. Bank OCBC NISP Tbk

Wisma Metropolitan II Ground Floor

Jalan Jend. Sudirman Kav. 29-31

Jakarta Selatan

b. Hongkong and Shanghai Banking Corp. Ltd.

World Trade Center

Jalan Jend. Sudirman Kav. 29-31

Jakarta Selatan

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2012 – Rp. 227.0 billion

2013 – Rp. 238.0 billion

2014 – Rp. 246.0 billion

Net Profit (estimated) :

2012 – Rp. 18.2 billion

2013 – Rp. 19.0 billion

2014 – Rp. 20.2 billion

Payment Manner :

Average

Financial Comments :

Satisfactory

KEY EXECUTIVES

Board of Management :

President Director - Mr. Hartono Setyo

Director - Mr. Hugianto Setyo

Board of Commissioners :

President Commissioner - Mrs. Megawati

Commissioner - Mrs. Mira Christina Setiady

Signatories :

President Director (Mr. Hartono Setyo) or the Director (Mr. Hugianto Setyo) which must be approved by Board of Commissioner

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

P.T. DASAR RUKUN (P.T. DR) was established in Jakarta based on notary deed Mr. Winanto Wiryomartani, SH., no. 25 dated 4 December 1986 with the authorized capital of Rp. 10,000,000,000 issued capital of Rp. 2,000,000,000 entirely paid up. The founding and shareholders of the company originally are Mr. Bambang Setijo and Mr. Budhi Moeljono both are Indonesian businessmen of Chinese extraction. Its article of association had been changed a couple of times. In October 2010 the company authorized capital was increased to Rp. 100,000,000,000 issued capital to Rp. 25,000,000,000 entirely paid up.

On the same occasion Mr. Budhi Moeljono pulled out and into the company entered by P.T. JAYA PERKASA TEXTILE as new shareholder. With this time the composition of its shareholders has been changed to become P.T. JAYA PERKASA TEXTILE (50%) and Mr. Hartono Setyo (50%). The latest according to the revision of notary deed Mr. Vinsensius Henry, SH., no. 34 dated 20 February 2013 the company board of 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.01.10-09389 dated March 15, 2013.

P.T. DR is a national private company started to be operating since 1988 dealing with spinning mills by manages a plant located at Jalan Raya Bogor Km. 44.8, Pakansari, Cibinong, Bogor, West Java standing on a land bank of 12,500 sq. meters. The plant produces of weaving polyester 100%; knitting polyester 100%; knitting polyester slub 100% and TFO yarn polyester 100%. The product has been commercialized from National to overseas since august 1992. The plant has equipped with modern machinery with capacity of 62,640 spindles and production capacity of 1,100,000 kgs/months. P.T. DR manufactures yarns with the highest quality of raw materials from modern equipment to ensure that buyers have a pleasant working experience. The company has a firm focus set on consistent quality, timely deliveries, competitive prices and a customer friendly team. P.T. DR one of the domestic cotton yarn manufacturers targeting change the composition of the market to 60% of exports and 40% local. Step enlarge the export market is in line with the investment by replacing the new engine made in 2010 amounted to US$ 3 million.

Mr. Putra Widjaja, General Manager of the company explained during 2007 to 2009, P.T. DR was depressed because of the pressure of the global crisis. But entering in 2010 things began to improve. Mr. Putra Widjaja, added installed capacity is 32.400 spindle which produces yarn bale 3,000 per month, equivalent to 544.320 kg. In terms of sales performance, the company focuses on the local market with a composition of 60% local and the rest for export markets. But as export growth, P.T. DR increased the percentage of exports to 60% while 40% of the local market. The company export markets are Bangladesh, South Korea, Turkey, Middle East, Europe Union, the USA and North America. The occurring of the global economic crisis and sharp Rupiah depreciation against the US$ Dollar has bad impact on P.T. ENM's business performance due to the upswing its supported materials and sharp rise in production cost. 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). We observe P.T. DR’s operation has been growing and developing well in the last three years.

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. DR has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. DR 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. 227.0 billion increased to Rp. 238.0 billion in 2013 rose to Rp. 246.0 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. 20.2 billion and the company has an estimated total networth of at least Rp. 55.0 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. DR is led by Mr. Hartono Setyo (63) a businessman with experience in spinning mills. Mr. Hartono Setyo was Commissioner of PT Indo Acidatama since January 2003. He was a Director of PT. Sumber Rukun Jaya Prima Director of PT. Tubantia Kudus Spinning Mills President Direcgtor of PT. Alladintex Abadi Vice President Commissioner of PT. Indo Acidatama Chemical Industry President Director of PT. Metropolitan Synthetic Chemical Ind. President Director of PT. Dasar Rukun President Director of PT. Sari Warna Bali President Director of PT. Trisetijo Manunggal Utama President Commissioner of PT. Puri Alam Sentosa and President Director of PT. Sari Warna Asli.

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. DASAR RUKUN is sufficiently fairly good for business transaction.

Attachment

List of the SARI WARNA ASLI Group Members

1. ALLADINTEX ABADI, P.T. (Textile Manufacturing)

2. BINTANG MANUNGGAL, P.T. Bank (Banking)

3. CELEBESMINAHASA SURYAADIRA, P.T. (Animal Feed Industry)

4. DASAR RUKUN, P.T. (Spinning Mills)

5. DHARMA KOLIBA, P.T. Cipanas (Real Estate)

6. ELANGPERDANA TYRE INDUSTRY, P.T. (Car and Truck Tire Industry)

7. HANIN NUSAMULYA, P.T. (Garment Manufacturing)

8. HOLLIT INTERNATIONAL, P.T. (Buying Agent)

9. INDO ACIDATAMA CHEMICAL INDUSTRY, P.T. (Alcohol & Spiritus Distillation)

10. INDOCITMAS LESTARI MANDIRI, P.T. (Distribution of Alcohol and Spiritus)

11. INTITRAS BUSANAPRANA INTERNATIONAL, P.T. (Garment Manufacturing)

12. JAYA PERKASA TEXTILE, P.T. (Investment Holding)

13. KAMALTEX, P.T. (Spinning Mills)

14. MEGA RUBBER FACTORY, P.T. Semarang (Tyre Manufacturing)

15. MEGA SAFE TYRE INDUSTRY, P.T. (Tyre and Rubber Industry)

16. METROPOLITAN SYNTHETIC CHEMICALS INDUSTRIES, P.T. (Integrated Textile Industry)

17. NIRMALA AGUNG, P.T. Sukabumi (Plantation)

18. PABRIK SEPATU FAMOUS, P.T. (Sports Shoe Manufacturing)

19. PAN BROTHERS Tbk., P.T. (Garment Manufacturing)

20. PANCA PRIMA EKABROTHERS, P.T. (Garment Manufacturing)

21. RUKUN JAYA, C.V. (Trading)

22. SAMA MANDIRI, P.T. (Industrial Chemical Processing)

23. SARI WARNA ABADI, P.T. (Industrial Chemical Processing)

24. SARI WARNA ASLI TEXTILE INDUSTRY, P.T. (Integrated Textile Industry)

25. SARI WARNA FINTEX, P.T. (Textile Dyed Chemical Manufacturing)

26. SINAR PALEM ABADI, P.T. (Trading and Supplier)

27. SUMBER RUKUN JAYA PRIMA, P.T. (General Trading and Distributor)

28. TASINDO TASSA INDUSTRIES, P.T. (Rubber Glove Manufacturing)

29. TATA RUBBERINDO INDUSTRIES, P.T. (Rubber Glove Manufacturing)

30. THE FAST CHANNEL INDONESIA ELECTRONICS, P.T. (Computer Components

Manufacturing)

31. TOPTONE ELECTRONIC INDUSTRIES, P.T. (Electronic Component Manufacturing)

32. TOYO ASAHI BICYCLE INDUSTRIES, P.T. (Bicycle Manufacturing)

33. TRINUSA OPTIMA GARMENT INDUSTRY, P.T. (Garment Industry)

34. TRISTATE GENERAL CORPORATION, P.T. (Trading and Supplier)

35. TRISTATE TEXTILE LTD., P.T. (Spinning Mills)

36. TUBANTIA KUDUS SPINNING MILLS, P.T. (Integrated Textile Industry)

37. WIDJAJA & CO., C.V. Surabaya (General Trading and Distributor)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.82
UK Pound	1	Rs.92.83
Euro	1	Rs.66.17

INFORMATION DETAILS

Analysis Done by :	KAR

Report Prepared by :	TPT

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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