MIRA INFORM REPORT

 

 

Report No. :

321792

Report Date :

11.05.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. CISADANE RAYA CHEMICALS

 

 

Registered Office :

Jalan Imam Bonjol No. 88, Kampung Bojong Larang, Karawaci, Tangerang, 15115, Banten Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

11.02.1974

 

 

Com. Reg. No.:

No. AHU-AH.01.10-29240

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Engaged in Producing Stearic Acids, Fatty Acids, Harder Fats, Glycerin, Crude Oleins, Stabilizer (Heavy Metal Soap), Soap Chip Toilet Soaps, Soap Powder, Margarine, Cocoa Butters, Fatty Alcohols, RBD Olein and RBD stearines

 

Subject product ranges includes:

·         Stearic Acid

·         Refined Glycerine

·         Soap Noddle

·         Fractioned Fatty Acids;

·         Soap Powder and

·         Toilet Soaps.

 

 

No of Employees :

800

                       

 

 

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. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source CIA


Name of Company

 

P.T. CISADANE RAYA CHEMICALS

 

 

company Address

 

Head Office & Factory

Jalan Imam Bonjol No. 88

Kampung Bojong Larang

Karawaci, Tangerang, 15115

Banten Province

Indonesia

Phones             - (62-21) 5531 912 (Hunting), 5520 522

Fax                   - (62-21) 5525 676, 5520 834

E-mail               - info@cisadane.co.id

                          dianatjhang@cisadane.co.id

Website            - http://www.cisadane.co.id

Land Area         - 35,000 sq. meters

Building Area    - 25,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

11 February 1974

 

 

Legal Form

 

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

 

 

Company Reg.No.

 

The Ministry of Law and Human Rights

- No. Y.A.5/376/5

  Dated 4 November 1975

- No. AHU-AH.01.10-7988

  Dated 07 April 2008

- No. AHU-35236.AH.01.02.TH.2008

  Dated 23 June 2008

- No. AHU-33228.AH.01.02.TH.2011

  Dated 4 July 2011

- No. AHU-AH.01.10-29240

  Dated 17 July 2013

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.002.663.1-038.000

 

The Capital Investment Coordinating Board

No. 26/V/PMA/2001

Dated 30 December 2001

 

 

Related Company

 

A Member Company of the CISADANE Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           : Rp. 950,000,000,000.-

Issued Capital                                 : Rp. 326,491,000,000.-

Paid up Capital                               : Rp. 326,491,000,000.-

 

Shareholders/Owners :

a. OLEO CHEM FAR EAST PTE, LTD.                               - Rp. 278,170,332,000.-

    Address : 808 French Road

                    07-163 Kitchener Complex

                    Singapore

b. P.T. DINARETTA LESTARI                                            - Rp.   31,996,118,000.-

    Address : Jl. Kali Besar Barat No. 50-HH

                    Kelurahan Roa Malaka, Kecamatan Tambora

                    Jakarta Barat, Indonesia

c. The late Mrs. Tjhang Margaret                                       - Rp.   16,324,550,000.-

    Address : Pantai Mutiara Block K. No. 9, RT. 006 RW. 016

                    Kelurahan Pluit, Kecamatan Penjaringan

                    Jakarta Utara, Indonesia

 

BUSINESS ACTIVITIES

 

Lines of Business :

Engaged in Producing Stearic Acids, Fatty Acids, Harder Fats, Glycerin, Crude Oleins, Stabilizer (Heavy Metal Soap), Soap Chip Toilet Soaps, Soap Powder, Margarine, Cocoa Butters, Fatty Alcohols, RBD Olein and RBD stearines

 

Production Capacity :

a.   Stearic Acids                            -   85,000 tons p.a.

b.   Fatty Acids                               -   97,000 tons p.a.

c.   Harder Fats                               -   20,000 tons p.a.

d.   Glycerin                                    -   25,500 tons p.a.

e.   Crude Oleins                             - 136,500 tons p.a.

f.    Crude Stearines                         -   20,700 tons p.a.

g.   Stabilizer (Heavy Metal Soap)    -   36,000 tons p.a.

h.   Soap Chip Toilet Soaps             -   27,000 tons p.a.

i.    Soap Powder                            -   18,000 tons p.a.

j.    Margarine                                  -   17,280 tons p.a.

k.    Cocoa Butters                           -   36,000 tons p.a.

 

l.    Fatty Alcohols                           - 114,000 tons p.a.

m. RBD Oleins                               - 143,600 tons p.a.

n.   RBD Stearines                          -   25,650 tons p.a.

 

 

Total Investment :

a. Equity Capital                              - Rp. 326.5 billion

b. Loan Capital                                - None

c. Total Investment                          - Rp. 326.5 billion

 

Started Operation :

1975

 

Brand Name :

Cisadane Raya Chemicals

 

Technical Assistance :

AGITRADE International Pte., Ltd., Singapore

 

Number of Employee :

800 persons

 

Marketing Area :

Export    - 50%

Local       - 50%

 

Main Customers :

a. Distributors, soap and detergent industries, etc.

b. Buyers in Singapore, Japan, Australia, Europe Union, the USA, Middle East etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. DUA KUDA INDONESIA

b. P.T. ECOGREEN OLEOCHEMICALS

c. P.T. FLORA SAWITA

d. P.T. MEDAN OLEOCHEMICALS

e. P.T. SINAR OLEOCHEMICALS

f.  P.T. SUMIASIH OLEOCHEMICALS

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   Hongkong and Shanghai Banking Corp. Ltd.

      Jalan Jend. Sudirman Kav. 29-31

      Jakarta Pusat

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 860.0 billion

2012 – Rp. 897.0 billion

2013 – Rp. 925.0 billion

2014 – Rp. 492.5 billion (January – June)

 

Net Profit (Loss) :

2011 – Rp. 73.5 billion

2012 – Rp. 76.2 billion

2013 – Rp. 85.0 billion

2014 – Rp. 48.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mrs. Diana AKA Diana Tjhang

Director                                          - Mrs. Lusiana AKA Lusiana Tjhang

 

Board of Commissioner :

President Commissioner                  - Mr. Haji Mohamad Taha

Commissioners                               - a. Mr. Sony Suhendra

                                                        b. Mr. Johny Sanggam Edison

 

Signatories :

President Director (Mrs. Diana AKA Dia Tjhang) or one of the Directors (Mrs. Lusiana AKA Lusiana Tjhang) which must be approved by Board of Commissioners

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. CISADANE RAYA CHEMICALS (P.T. CRC) was established in Jakarta based on notary deed of Mr. Ridwan Suselo, SH., No. 134 dated 11 February 1974 in Jakarta with the authorized capital of Rp. 1,000,000,000 issued capital of Rp. 225,000,000 entirely paid up. Founder and original shareholders of the company were the late Mr. Ishak Suhendra AKA Tjang Kwen Tjong, Mr. Rudi Suhenda AKA Tjhang Jam Sen, Mr. Opo Damidi AKA Tjoeng Kauw Fo, Mr. Teddy Damidi, Mr. Oemar Sakim AKA Woen Foeng Njan, wholly are Indonesian businessmen of Chinese origins, the late Mr. Haji Andi Noerdin Pangurinseng and Mr. Mas Surjana, the latter are two indigenous businessmen. The company notary deed has frequently been revised. Since 1990 the authorized capital was raised to Rp. 20,000,000,000 with an issued capital to Rp. 19,860,000,000 entirely paid up. Since 1998 the authorized capital was raised to Rp. 500,000,000,000 issued capital Rp. 135,000,000,000 fully paid up. In November 2001, the authorized capital was raised to Rp. 1,900,000,000,000 issued capital to Rp. 485,000,000,000 entirely paid up.

 

On the same occasion, Mr. Ishak Suhendra AKA Tjang Kwen Tjong, Mr. Opo Damidi AKA Tjoeng Kauw Fo, Mr. Teddy Damidi, Mr. Oemar Sakim AKA Woeng Foeng Njan and Mr. Mas Surjana pulled out and replaced by AGITRADE INTERNATIONAL Pte. Ltd., of Singapore, P.T. DINARETTA LESTARI and Mrs. Hiu Suk Yun, both are of Indonesia. Concurrently the company legal status was converted to Foreign Investment (PMA) facility. Later based on notary deed of Mr. Robert Purba, SH., No. 40 dated 11 March 2008, Mrs. Hiu Suk Yun and the late Mr. Haji Andi Nurdin Pangurinseng pulled out and replaced by Mr. Seman Sendjaja Suhenda, an Indonesian businessman of Chinese origin as new shareholder. Then based on notary deed of Mr. Robert Purba, SH., No. 81 dated 17 June 2008 the authorized capital was reduced to Rp. 950,000,000,000 issued capital Rp. 242,500,000,000 fully and paid up.

 

With this time the composition of its shareholders has been changed to become AGRITRADE INTERNATIONAL PTE LTD of Singapore (72.16%), P.T. DINARETTA LESTARI (27.76%) and Mr. Seman Sendjaja (0.08%). Later according to the revision of notary documents of Mr. Desman, SH., No. 36 dated 3 June 2011 the company issued capital was increased to Rp. 326,491,000,000 wholly paid up. On the same occasion AGITRADE INTERNATIONAL PTE, LTD., Singapore and Mr. Seman Sendjaja Suhendra pulled out and the whole shares was taken over by OLEO CHEM FAR EAST PTE., LTD., Singapore and Mrs. Tjhang Margaret as new shareholders. With this development the composition of its shareholders has been changed to become OLEH CHEM FAR EAST PTE LTD., (85.2%), P.T. DINARETTA LESTARI (9.8%) and the late Mrs. Tjhang Margaret (5) was died on 11 May 2014. The latest according to the revision of notary deed Mr. Ivan Gelium Luntu, SH., no. 08 dated 14 June 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.01.10-29240 dated July 17, 2013.

 

We observe that the partner local P.T. DINARETTA LESTARI is a national private company under the wing of the CISADANE Group, a developing business group and majority business stakes is controlled by Mr. Rudi Suhendra AKA Tjhang Jam Sen and his family members.

 

P.T. CRC operates in the frame works of Foreign Investment Company (PMA) facility engaged in the field of oleochemical industry. The plant is located at Jalan Imam Bonjol No. 88, Karawaci, Tangerang, Banten Province on a land 35,000 sq. meters wide of the plant’s building and other facilities. The plant has been expanding for several times to increasing production capacity. The plant has been operating since 1975 by produce of stearic acids of 85,000 tons, Fatty acids of 97,000 tons, harder fats of 20,000 tons, glycerin of 25,500 tons, crude oleins of 136,500 tons, stabilizer (heavy metal soap) of 36,000 tons, soap chip toilet soaps of 27,000 tons, soap powder of 18,000 tons, margarine of 17,280 tons, cocoa butters of 36,000 tons, fatty alcohols of 114,000 tons, RBD olein of 143,600 tons and RBD stearines of 25,650 tons per annum respectively. The plant has absorbed an investment of Rp. 326.5 billion originally from owned capital. Their processed products include: Refined Glycerine; Stearic Acid; Fractioned Fatty Acids; Soap Noddle; Soap Powder and Toilet Soaps.

 

P.T. CRC has manufacturing facilities backed by state of the art technology and uses only first rate stainless steel for the plant's machines, pipes and tanks that are designed for the highest standards of production. A majority of the oleo chemical facilities are engineered by one of the world's leading names in this field, Lurgi GmbH (Germany) while edible oil facilities are by Alfa Laval (Sweden) and soap plants are by Mazzoni (Italy). In addition to its modern production facilities, P.T. CRC has a 10,000 acre palm plantation operating at full capacity in Northern Sumatra, forming an integrated supply chain for its production activities.

 

The continuous supply of raw materials from owned plantation in Northern Sumatra ensures the quality of the raw material used for production. Samples are checked using a batch system in every production processes in order to maintain consistency in the finished product.

 

P.T. CRC manufacturing   facility commands the latest in technology in both Edible Oil and Oleochemicals fields. Machines, piping and tanks are constructed from high quality stainless steel to meet the manufacturing requirement of high quality products. Most of the oleochemicals manufacturing facility is engineered by Lurgi GmbH of Germany, a world leader in the Oleochemicals field. As for our Edible Oil manufacturing facility, it is engineered by Alfa Laval Sweden. P.T. CRC has set up a semi-automatic facility whereby man and machine support and are dependent on each other to ensure the smooth process flow. The whole of its products are marketed under CRC brand.

 

Some of 50% of its products are distributed domestically while the rest 50% are exported to Singapore, Japan, Australia, Europe Union, the USA, Middle East and other. Oleo chemicals are used in personal care products, soaps and detergents, food, plastics, pharmaceuticals and many other industries. P.T. CISADANE RAYA CHEMICALS based in Indonesia, is one of the world’s major producers of natural fatty alcohol with total production capacity of 114,000 metric tons per annum of fatty alcohol. We observe that P.T. CRC has been operating in the last three years.

 

Generally outlook we find the demand for fatty acid, glycerin has been rising at home. It is in line with the growth of several industrial sectors, including rubber products, textile industry, cosmetic and soap industries, pharmaceutical, lubricating industry, paper making, and others as potential consumers of the products. As the largest producer of crude palm oil (crude palm oil / CPO) in the world, Indonesia should likely be the basis of the oleochemical industry world beyond Malaysia, China, India, and even the European Union. National oleochemical industries performance from year to year has been improvement. This is due to market demand and government policy support. Currently, Malaysia is still considered a benchmark constellation of global oleochemical industry because of the high acquisition and integration technology industry from upstream to downstream.

 

Indonesia must change the mindset that initially rely on the production of crude palm oil into various derivative manufacturers high value-added palm oil, oleochemicals one through industrialization, Ministry of Industry, said Mr. Abdul, continues to push the industry to support the progressive imposition of export duty on CPO exports to ensure domestic availability of raw materials. The government also encouraged the expansion of capacity and new investment in the area of ​​the proposed facility oleochemical industry through tax allowances and tax holidays. For tax holiday, there are two companies that have been filed. A company that P.T. Unilever Oleochemical Indonesia. Upon the enactment of export duty on CPO progressive, there is an increase in the oleochemical industry investments by 12 companies with a total investment value of Rp. 14 trillion. Ministry of Industry is also targeting 60% export of derivative products, including oleochemicals, and 40% of CPO.

 

Some of oleochemical products as a derivative product of Crude Palm Oil (CPO) has been able to produce in Indonesia. But, actually the case is the Indonesian oleochemical industry is not affordable yet to supply domestic demand especially in the down-streamer, because of domestic oleochemical products are still in the stage of semi-finished products. The semi-finished products which consists of fatty acid, fatty alcohol and glycerol were exported and after extending process then imported again by Indonesian as finished products like additive matters for textile industry, rubber, plastic, detergent, paint, cosmetic, processed-food, etc. Finally, as a consequence, development of Indonesian oleochemical industry is still far left behind compare to the one of Malaysian.

 

In 2011, for example, Indonesia has some 16 oleochemical producer companies with a total capacity of 1.67 million tons, contains 1.00 million tons of fatty acid, 490,000 tons of fatty alcohol and some 177,750 tons of glycerol. Since all domestic oleochemical products were exported, afterwards Indonesia’s market share in the world would be at 15% of 6.63 million tons of fatty acid consumption whereas, fatty alcohol only has 12% of 3.95 million tons and has only 8.9% of 2.00 million tons of glycerol. It is estimated both fatty acid and glycerin will remain to rise in the coming years. Competition is very tight due to a large number of similar companies operating in the country, like P.T. ECOGREEN OLEOCHEMICALS, P.T. CISADANE RAYA CHEMICAL, P.T. SUMI ASIH, P.T. MEDAN OLEOCHEMICAL and P.T. FLORA SAWITA. In overall we find that oleo chemicals industry in the country keeps rising despite the export price was lower and fluctuated. The growth of oleo chemicals industry in the country is seen in the table below.

 

The Growth and Production of Ole Chemical, 2005-2013

 

Year

Fatty Acid

Production (Ton)

Growth (%)

Glycol

Fatty Alcohol

Total

2005

2006

2007

2008

2009

2010

2011

2012

2013

436,700

398,952

350,203

476,700

504,080

542,391

585,782

631,473

659,510

46,354

41,283

35,577

51,222

55,290

59,492

64,251

69,262

72,337

93,712

119,905

176,099

111,159

136,482

146,855

158,603

170,974

178,565

576,766

560,141

561,879

639,081

695,582

748,738

808,636

871,709

910,415

 

(2.88)

0.31

14.74

8.88

7.60

8.00

7.80

4.45

Growth, % /year

4.44

 

Until this time P.T. CRC has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. CRC is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2011 amounted to Rp. 860.0 billion rose to Rp. 897.0 billion in 2012 increased to Rp. 925.0 billion in 2013. As from January to June 2014 the sales turnover has reached at least Rp. 492.5 billion with a net profit of at least Rp. 48.0 billion. It is projected the sales turnover will be higher by at least 6% in 2015. It is company has an estimated total networth of at least Rp. 352.0 billion. We observe that P.T. CRC is supported by the CISADANE Group, a developing business group 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 is led by Mrs. Diana AKA Diana Tjhang (40), graduated and reached Master of Business Administration from Portland State University, Oregon, USA. She replaced her mother the late Mrs. Tjhang Margaret (66) who was died on 11 May 2014. Daily activity, she assisted by her young sister Mrs. Lusiana AKA Lusiana Tjhang (38) as directors. Ms. Diana role is as the Director of the Company she is responsible to lead the department of sales and marketing. Department sales and marketing job scope involve, not only maintaining good customer relationships, but also to cater to the specific needs and requirements of the customers. Ms. Diana will discuss with the Research and Development Department to create new products to suit the requirements of the customers. We observed that management’s reputation in said business is sufficiently fairly good. The company has had wide relation in the realm of the private businessmen within and outside the country. So far, we did not hear that the company’s management involved in a dirty business practice 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. CISADANE RAYA CHEMICALS is sufficiently fairly good for business transaction.

 


Attachment

 

 

List of CISADANE Group Members

 

 

1.     ADITYAWARMAN, P.T. (Trading)

2.     CISADANE ACID CORPORATION, P.T. (Stearin & Crude Olein Processing)

3.     CISADANE RAYA CHEMICALS, P.T. (Crude Palm Fractionation & Distillation)

4.     CISADANE SAWIT RAYA, P.T. (Oil Palm Plantation & Processing)

5.     CISADANE SEJAHTERA Bank, P.T. (Banking)

6.     CIQUITA TALONPAS ZIPPER CO.LTD., P.T. (Zipper Manufacturing)

7.     DINARETTA LESTARI, P.T. (Investment Holding)

8.     INTI SUMBER SARI INDUSTRI SUBUR, P.T. (Cosmetic Manufacturing)

9.     LABU MAS, P.D. (Cooking Oil Refinery & Soap Manufacturing)

10.  MADAME IKI ORIENTAL COSMETIC, P.T. (Cosmetic Manufacturing)

11.  YKK INDONESIA ZIPPER CO. LTD., P.T. (Plastic, Nylon & Metalic Zipper & Manufacturing)

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.05

UK Pound

1

Rs.99.04

Euro

1

Rs.71.76

 

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.