MIRA INFORM REPORT

 

 

Report No. :

324213

Report Date :

29.05.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. MECHMAR JAYA INDUSTRIES

 

 

Registered Office :

Jalan Kolonel Yos Sudarso Km. 10, Kawasan Industri Medan, Mabar, Medan, 20242 North Sumatera

 

 

Country :

Indonesia

 

 

Date of Incorporation :

12.03.1987

 

 

Com. Reg. No.:

AHU-AH.01.10-13636

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Industrial Boiler Manufacturing and Installation Services

 

 

No of Employees :

95 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 Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

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. MECHMAR JAYA INDUSTRIES

 

A d d r e s s :

Head Office & Factory

Jalan Kolonel Yos Sudarso Km. 10

Kawasan Industri Medan

Mabar, Medan, 20242

North Sumatera

Indonesia

Phones - (62-61) 6850306 (Hunting)

Fax                   - (62-61) 6850307

E-mail               - ptmji@mechmar.com.my

Land Area         - 6,500 sq. meters

Building Space  - 4,500 sq. meters

Region              - Industrial Estate

Status               - Owned

 

Branch Office

Gedung Jamkrindo, 9th Floor

Jalan Angkasa Block B-9 Kav. 6

Jakarta Pusat, 10610

Indonesia

Phones             - (62-21) 3019 1828, 3019 1838, 3019 1868

Fax                   - (62-21) 654 2567

Building Area    - 6 storey

Office Space    - 80 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

12 March 1987

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

- No. C2-8375.HT.01.01.TH.93

  Dated 4 September 1993

- No. AHU-90167.AH.01.02.TH.2008

  Dated 26 November 2008

 

 

 

- No. AHU-AH.01.10-03264

  Dated 01 February 2012

- No. AHU-AH.01.10-13636

  Dated 12 April 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.452.821.0-123.000

 

  b.  The Capital Investment Coordinating Board

      - No. 17/V/PMA/1997

        Dated 11 March 1997

      - No. 136/II/PMA/1997

        Dated 21 August 1997

 

Holding Company :

MAXX CAPITAL LTD., Seychelles (Investment Holding)

 

Related/Affiliated Companies:

a. MECHMAR CORPORATION (Malaysia) Bhd., Malaysia

b. MECHMAR COCHRAN BOILERS Sdn. Bhd., Malaysia

c. MECHMAR COCHRAN LANKA (Pvt) Ltd., Sri Lanka

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 3,000,000,000.-

Issued Capital                                 - Rp. 3,000,000,000.-

Paid up Capital                               - Rp. 3,000,000,000.-

 

Shareholders/Owners :

a. MAXX CAPITAL LTD                                                     - Rp. 2,850,000,000.-

    Address : Room3, Dekk House, Rue De Zippora

                    Providence Mahe

                    Seychelles

b. Mr. Heffy Hartono                                                          - Rp.    150,000,000.-

    Address : Jl. Malibu Indah Permai Block G No. 1

                    Medan, North Sumatera

                    Indonesia

 

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Industrial Boiler Manufacturing and Installation Services

 

Production Capacity :

a.   Package Boilers                        - 45 unit p.a.

b.   Industrial Boilers                        - 15 unit p.a.

 

Total Investment :

a.   Equity Capital                  - Rp. 3.0 billion

b.   Loan Capital                     - Rp. 2.0 billion

c.   Total Investment               - Rp. 5.0 billion

 

Started Operation :

1 9 8 7

 

Brand Name :

Mechmar Boiler

 

Technical Assistance :

Mechmar Cohran Boilers Sdn Bhd., Malaysia

 

Number of Employee :

95 persons

 

Marketing Area :

Local       - 100%

 

Main Customer :

Industrial Manufacturing

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BOUSTEAD MAXITHERM INDUSTRIES

b. P.T. CILEGON FABRICATORS

c. P.T. GRAND KARTECH

d. P.T. HITACHI CONSTRUCTION MACHINERY INDONESIA

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Banker :

P.T. Bank CENTRAL ASIA Tbk

Medan Main Branch

North Sumatra

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2010 – Rp. 32.2 billion

2011 – Rp. 35.0 billion

2012 – Rp. 42.5 billion

2013 – Rp. 54.0 billion

2014 – Rp. 62.0 billion

 

Net Profit (estimated) :

2010 – Rp. 2.8 billion

2011 – Rp. 3.0 billion

2012 – Rp. 3.6 billion

2013 – Rp. 4.5 billion

2014 – Rp. 5.2 billion

 

Payment Manner :

Average

 

Financial Comments :

Fairly strong

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Tan Keng Ooi

 

Board of Commissioners :

Commissioner                                 - Mr. Raquib Md. Fakhrul

 

Signatories :

Director (Mr. Tan Keng Ooi) which must be approved by Board of Commissioner (Mr. Raquib Md. Fakhrul)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. MECHMAR JAYA INDUSTRIES (P.T. MJI) was established in Medan, North Sumatra in March 1987 with the authorized capital of Rp. 3,000,000,000 of which Rp. 1,000,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Jansen and Mr. Heff Hartono, both are indigenous businessmen. The company notary deed has frequently been amendments. In March 1997, into the company entered MECHMAR BOILER SDN, BHD of Malaysia and concurrently, the status of the company was changed from non Domestic Capital Investment/Foreign Capital Investment (Non PMDN/PMA) to Foreign Capital Investment (PMA) facility. Then in August 1997, Mr. Jansen withdrew and concurrently the issued capital was raised to Rp. 3,000,000,000 fully paid up. Then according to the amendment of Deed of Mr. Eddy Samin, SH., No. 40 dated 12 December 2011, MECHMAR BOILER SDN BHD of Malaysia withdrew and replaced by MAXX CAPITAL LTD of Seychelles as new shareholder. With this time the composition of its shareholders has been changed to become MAXX CAPITAL LTD (95%) and Mr. Heffy Hartono (5%). The amendment of Deed was approved by the Ministry of Law and Human Rights in its Decision Letter No. AHU-AH.01.10-03264 dated December 12, 2012.

 

      The most recently by Notarial Deed No. 27 dated 6 March 2013 of Eddy Simin, SH., concerning the change in composition of the Company’s board of Commissioners and Directors.  This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-13636 dated 12 April 2013. Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

P.T. MJI has been in operation since 1987 dealing with manufacturing, marketing and installation of industrial boilers, and associated product support services.  The plant is located at Jalan Kol. Yos. Sudarso Km. 10, Kawasan Industri Medan, North Sumatera standing on 6,500 square meters land.  The plant has annual production capacity of 60 units of boilers including titan towler water tubes, titan bi drums water tubes, water tube packages, titan verticals, titan thermal fluid heaters and others. Each boiler being produced by the company has capacities ranging from 15 HP to 1,800 HP. In producing the products, the company used British Standard, ASME (USA), DIN (Germany) and JIS (Japan). Some 50% of the company products are exported to Malaysia, Honduras, Africa and others while the rest is locally marketed.  The operation of P.T. MJI is strongly supported by its sister company of Malaysia.  In the country, the whole boiler supplied to various industries such as P.T. TOBA PULP LESTARI Tbk, (pulp and paper industry) P.T. SINAR OLEOCHEMICALS (oleo-chemical industry), P.T. FLORA MAS SAWITA (palm oil industry), P.T. MEDAN OLEOCHEMICALS (oleo-chemical industry), P.T. MUSIM SEMI MAS (oleo-chemical and cooking oil industry), P.T. WILMAR NABATI ASAHAN, WILMAR Group, P.T. MEDAN CANNING, P.T. AGRINDO INDOJAYA and other crude palm oil refinery in Medan, Riau and other cities.

 

We observed that P.T. MJI is classified as a medium sized company of its kind in the country of which the operation has been growing in the last three years.

 

      Along with line macro-economic conditions that have not improved in 2014, the vehicle sales decreased by 1.8% from 1,230,000 vehicles in 2013 to 1,208,000 vehicles in 2014.  This is due to the weak global economic growth high inflation, rising interest rates, weak commodity prices and the depreciation of the Rupiah throughout 2014.   In 2014, Indonesia’s economic growth reached 5.02%.  This is below the government’s expectation in the beginning of the year that was 6.00% and lower than the economic growth in 2013, which was 5.78%.

 

      The global economy condition is expected to remain unpredictable in 2015.  Macroeconomic indicators from China showed downward trend.  In contrary, macroeconomic indicators of the US and India showed improvement.  Both of these indicated continued uncertainties.  In Europe, concerns on the development of Greece’s economy are also expected to add uncertainties in the global economy environment.  Despite these uncertainties, many analysts expected positive outlook for the Asian region.  OECD and IMF have predicted that the China’s economy will grow 7.1% while India is expected to grow between 6.4 – 6.6%.

 

      Indonesia’s economy is expected to grow 5.5 – 5.8% due to the positive outlook of the Indonesia’s economy.  The subsidized fuel price hike is viewed positively as the subsidy will be shifted toward productive economy sectors, resulting in a positive economy growth.  Meanwhile, impact from the price hike to the inflation rate is expected be temporary.

 

      On the economic front, according to the Central Statistics Agency, Indonesia’s economic growth in 2014 experienced a downturn to 5.1%, lower from 5.8% in 2013.  The economic slowdown this year heavily impacted the country in many aspects.  First impact was the falling vital commodity prices such as mining and plantation products, which in turn declined export volume.  Second, deficit trade balance, Depreciation of Rupiah exchange rate against the US Dollar that exceeded 2.1%, lower-than-expected government spending, increased BI rate to 7.75% and slow credit expansion, as well as lower inflation compared with 6.4% inflation rate in 2013.  All of these impacts later caused purchasing power to decline.

 

Table of Indonesian Economic Indicators from 2010 to 2014

 

 Indonesian Economic Indicators

  2010

  2011

  2012

  2013

  2014

Gross Domestic Product
   (annual percentage change)

6.1

6.5

6.2

5.8

5.1

Consumer Price Index
   (annual percentage change)

5.1

5.4

4.3

8.4

8.4

Government Debt  (percentage of GDP)

27.4

26.6

27.3

28.7

--

Exchange Rate  (GBP / USD)

9,074

8,773

9,419

11,563

11,800

Population  (in millions)

241

244

247

253

255

Poverty  (percentage of population)

13.3

12.5

11.7

11.5

11.0

Unemployment  (percentage of labor

  force)

7.1

6.6

6.1

6.3

5.9

Reserves  (in billion USD)

96.2

110.1

112.8

99.4

111.9

 

 

Until this time P.T. MJI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MJI 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. 42.5 billion increased to Rp. 54.0 billion in 2013 rose again to Rp. 62.0 billion in 2014 and projected to go on rising by at least 8% in 2015. The operation in 2014 yielded an estimated net profit of at least Rp. 5.2 billion and the company has an estimated total net worth of at least Rp. 40.0 billion. We observe that P.T. MJI is supported by foreign partner 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 usually pays its debts punctually to suppliers.

 

The management of P.T. MJI is led by Mr. Tan Keng Ooi (39) as director and CEO of the company.  He is a professional manager from Malaysia, who experienced for more than 10 years in the field of trading and manufacturing of industrial boilers and pressure vessel. In his daily operation he is assisted by Mr.Raquib Md Fakhrul (40) of Bangladesh as commissioner.   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. MECHMAR JAYA INDUSTRIES is sufficiently fairly good for business transaction. However, in view of the 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. 63.90

UK Pound

1

Rs. 98.16

Euro

1

Rs. 69.73

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

DPT

 

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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