MIRA INFORM REPORT

 

 

Report No. :

321598

Report Date :

18.05.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. BARA TABANG

 

 

Registered Office :

Jl. Wolter Monginsidi No. 17A, RT.07, Timbau sub-district, Tenggarong district

Kutai Kertanegara regency East Kalimantan

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.10.2004

 

 

Com. Reg. No.:

AHU-AH.01.10-42845

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Coal Mining

 

 

No. of Employees :

80 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


Company summary

 

Name of company :

P.T. BARA TABANG

 

 

Address:

 

Head Office

Jl. Wolter Monginsidi No. 17A, RT.07

Timbau sub-district, Tenggarong district

Kutai Kertanegara regency

East Kalimantan

Indonesia

Phones             - (62-21)

Fax                   - (62-21)

 

Coal Mining Site

Desa Gunung Sari

Kec. Tabang, Kab. Kutai Kartanegara

East Kalimantan

Indonesia

Total Area         - 3,015 hectares

 

Date of Incorporation :

20 October 2004

 

Legal Form :

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

 

Company Reg. No. :

The Department of Law and Human Rights

c. No. AHU-03076.AH.01.02.Tahun 2009

    Dated 14 January 2009

d. No. AHU-AH.01.10-42845

    Dated 18 October 2013

 

Company Status :

National Private Company

 

Permit by the Government Departments :

The Department of Finance

 NPWP No. 02.374.737.1-728.000

 

Holding Company :

P.T. BAYAN RESOURCES Tbk

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 400,000,000.-

Issued Capital               - Rp. 350,000,000.-

Paid up Capital             - Rp. 350,000,000.-

 

The Latest Shareholders :

a. P.T. BAYAN RESOURCES Tbk.         - Rp. 315,000,000.- (90.00%)

b. P.T. MINERAL ENERGI PRATAMA     - Rp.   12,250,000.- (  3.50%)

c. Mr. Setyo Budiwiwoho, ST                 - Rp.     8,750,000.- (  2.50%)

d. Mr. Adji Shinta Haryanto                    - Rp.     8,750,000.- (  2.50%)

e. Mrs. Roos Lina Ningsih, ST                - Rp.     5,250,000.- (  1.50%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coal Concession Area – 3,015 hectares

 

Total Investment :

a. Equity Capital                        - Rp  5.0 billion

b. Loan Capital                          - Rp 12.0 billion

c. Total Investment                    - Rp.17.0 billion

 

Started Operation :

2009

 

Brand Name :

BT

 

Technical Assistance :

None

 

Number of Employee :

80 persons

 

Marketing Area :

Local Market                 - 100%

 

Main Customer :

PT. Bayan Resources Tbk

 

Market Situation :

Very Competitive

Main Competitors :

a. P.T. BATUBARA BUKIT ASAM

b. P.T. KALTIM PRIMA COAL

c. P.T. ARUTMIN INDONESIA

d. P.T. KODECO JAYA AGUNG

e. P.T. BERAU COAL

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

   a.      P.T. Bank DANAMON INDONESIA Tbk

     Sudirman Plaza – Indofood Tower

      Jalan Jend. Sudirman Kav. 76-78

     Jakarta Selatan

  b.  P.T. Bank INTERNATIONAL INDONESIA Tbk

      Plaza BII

      Jalan M.H. Thamrin No. 53

      Jakarta Pusat

      Indonesia

 

Auditor :

Internal auditor

 

Litigation :

No detrimental filling was recorded in the local court

 

 

FINANCIAL FIGURE

 

Annual Sales/Revenue (estimated:

2011 – Rp. 65.0 billion

2012 – Rp. 84.0 billion

2013 – Rp. 75.0.billion

2014 – Rp. 62.5 billion

 

Net Profit (estimated) :

2011 – Rp. 15.2 billion

2012 – Rp. 16.0 billion

2013 – Rp. 14.6 billion

2014 – Rp. 10.8 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director         - Mr. Low Tuck Kwong AKA Dato Dr. Low Tuck Kwong

Directors                       - a. Mrs. Jenny Quantero

                                      b. Mrs. Ulina Fitriani

                                      c. Mr. Hermanto Suparman

 

Board of Commissioner :

Commissioner               - Mr. Engki Wibowo

 

Signatories :

President Director (Mr. Low Tuck Kwong AKA Dato Dr. Low Tuck Kwong) or one of Directors (Mrs. Jenny Quantero, Mrs. Ulina Fitriani or Mr. Hermanto Suparman) which must be approved by Board of Commissioner (Mr. Engki Wibowo)

 

 

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

 

OVERALL PERFORMANCE

 

P.T. BARA TABANG (P.T. BT) was established in East Kalimantan in October 2004. However, we don’t know the amount of the company’s capital and initial shareholders. Its articles of association have subsequently been changed for several times.   The most recently by notarial Deed of Bakhtiar, SH., No. 12 dated 6 September 2013, the authorized  capital was amounted of Rp. 400,000,000.- of which Rp. 350,000,000.- was issued and fully paid up.  The latest shareholders of the company are P.T. BAYAN RESOURCES Tbk. (90%), P.T. MINERAL ENERGI PRATAMA (3.5%), Mr. Setyo Budiwiwoho, ST (2.5%), Mr. Adji Shinta Haryanto (2.5%) and Mrs. Roos Lina Ningsih (1.5%).  The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-42845 dated 18 October 2013.  Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

Pursuant to the company’s notary deed, the principal activity of P.T. BT is in the coal mining industry.  P.T. BT has been operating since 2009 in coal mining with mining activities in the village of Gunung Sari, Tabang district, Kutai Kartanegara regency, East Kalimantan.

 

Based on Mining License (“IUP”) P.T. BT has coal exploration and exploitation in the village of Gunung Sari, Tabang district, Kutai Kartanegara regency, East Kalimantan in an area of 3,015 hectares.  P.T. BT, PT. Fajar Sakti Prima (FSB) and PT. Brian Anjat Sentosa (BAS) also known as “Tabang Concession”, the third companies are subsidiaries of P.T. BAYAN RESOURCES Tbk.

 

Tabang Concession is the combination of 3 mining companies comprising BT, FSP and BAS.  It has Production Operation IUP located in Kutai Kartanegara, East Kalimantan.  The Tabang Concession produces sub-bituminous, environmentally-friendly, low-sulfur coals.  The coal specification is around 4,000 – 4,200 Kcal/Kg GAR.  Tabang Concession utilizes two jetties, namely Gunung Sari Jetty located on the Belayan River and Senyiur Jetty located on the Kedang Kepala River.  Tabang Concession (these third companies) produced 1.9 million metric ton (MT) of coal in or 13.6% lower than 2013 production of 2.2 million metric ton of coal.  All production of coal from these companies absorbed by its parent company P.T BAYAN RESOURCES Tbk ., subsequently exported to many countries.   We observed that P.T. BT is classified as a small sized company of its kind in the country of which the operation has been declining in the last three years.

 

Generally, the mining activities for such minerals as coal, copper, gold, silver, nickel ore, coal and have fluctuated and for gold have been expanding in the country in the last five years. The trend has been in line with the weak prices of nickel and bauxite and with the firm price of gold on the international market. The mineral mining activities in Indonesia is seen from the total production of minerals as below.

 

Production Growth of Some Minerals

In Indonesia, 2005 – 2013

 

Year

Coal

(Ton)

Tin Ore Concentrate

(Ton)

Cooper Ore Concentrate

(Ton)

Nickel Ore

(Ton)

Bauxite

(Ton)

Gold

(Kg)

Silver

(Kg)

2005

152,722,438

78,404

3,553,808

3,706,998

2,502,616

142,894

326,993

2006

181,060,907

80,933

2,938,009

4,353,833

7,270,072

93,176

270,153

2007

174,832,673

66,137

2,814,952

7,118,436

11,663,144

117,851

268,967

2008

181,569,985

47,626

2,340,100

6,557,103

16,791,368

62,695

302,292

2009

209,344,688

44,941

3,484,122

5,806,887

14,720,320

126,963

321,127

2010

224,677,000

40,188

3,463,771

5,972,841

27,410,375

106,316

288,717

2011

291,164,557

40,199

2,700,826

6,336,634

40,643,852

77,722

227,173

2012

361,028,398

44,202

2,385,121

8,571,383

31,443,325

69,291

247,827

  2013 *

249,826,115

17,202

1,673,345

7,824,018

35,713,570

63,581

99,675

Source: Central Bureau of Statistics (BPS)   * as of 31 August 2013

 

Until this time P.T.  BT has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly.  P.T. BT’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2012 amounted to Rp. 84.0 billion declined to Rp. 75.0 billion in 2013 and dropped again to Rp. 62.5 billion in 2014.  The operation in 2014 yielded a net profit at least Rp. 10.8 billion and the company has a total net worth of Rp. 40.0 billion.  It is projected that total sales turnover of the company will increase at least 4% in 2015.    So far we did not hear that P.T. BT has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of P.T. BT is led by Mr. Law Tuck Kwong AKA Dato’ Dr. Law Tuck Kwong (67) as president director.  He has a Diploma in civil Engineering from the Japan Institute. In his daily activities, he is assisted by Mrs. Jenny Quantero (64), Mrs. Ulina Fitriani (46) and Mr. Hermanto Suparman (48).  The board of commissioner of the company is led by Mr. Engi Wibowo (65).  Management of this company has extensive relationships with many businessmen at home and abroad as well as with government sector. It has good business prospect in the long run for it has a good performance and image as well as a wide marketing network abroad.  So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country.

 

Considering the operation of P.T. BT declined in the last two years and economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.58

UK Pound

1

Rs.100.30

Euro

1

Rs.72.38

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.