MIRA INFORM REPORT

 

 

Report No. :

350752

Report Date :

25.11.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDONESIA TORAY SYNTHETICS

 

 

Registered Office :

Summitmas II Building, 3rd Floor, Jalan Jend. Sudirman Kav. 61-62, Jakarta 12910

 

 

Country :

Indonesia

 

 

Date of Incorporation :

11.10.1971

 

 

Com. Reg. No.:

AHU-AH.01.10-55937

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Polyester Staple Fiber, Nylon Filament Yarn and Polyester Filament Yarn Manufacturing.

 

 

No. of Employees :

1,220

 

 

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 – 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

 


 

BASIC SEARCH

 

Name of Company :

P.T. INDONESIA TORAY SYNTHETICS

 

A d d r e s s :

Head Office

Summitmas II Building, 3rd Floor

Jalan Jend. Sudirman Kav. 61-62

Jakarta 12910

Indonesia

Phones             - (62-21) 2526841, 5201217-9, 5524467-8

Fax                   - (62-21) 5201222, 5524909

P.O. Box          - 12/KBY

Building Area    - 32 storey

Office Space    - 2,400 sq. meters

Region              - Commercial

Status               - Owned

 

Factory

Jalan Moh. Toha Km. 1, Pasar Baru

Tangerang, Banten, Indonesia

Phones             - (62-21) 5523948, 5524467-8

Fax                   - (62-21) 5524909

Land Area         - 52.0 Ha

Building Area    - 16.5 Ha

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

11 October 1971

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Justice and Human Rights

a. No. W7-09950.HT.01.04.TH.2007

    Dated 10 September 2007

b. No. W7-HT.01.10-13162

    Dated 20 September 2007

c. No. AHU-90359.AH.01.02.Tahun 2008

    Dated 26 November 2008

d. No. AHU-AH.01.10-25707

    Dated 16 July 2012

e. No. AHU-48092.AH.01.02.Tahun 2013

    Dated 12 September 2013

f. No. AHU-AH.01.10-55937

    Dated 24 December 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permits by the Government Department:

a. The Department of Finances

        NPWP No. 01.000.596.5-092.000

        (VAT or Tax License)

 

b. The President of the Republic of Indonesia

        No. B-29/Pres/2/1971

        Dated 26 February 1971

 

c. The Capital Investment Coordinating Board

            No. 165/II/PMA/1990

        Dated 30 October 1990

 

d. The Department of Industry and Trade

        No. 443/DJAI/IUT-III/PMA/XI/1988

        Dated 17 November 1988

 

Related/Affiliated Companies :

a. P.T. TORAY INDUSTRIES INDONESIA (Management Trust of Toray Group members)

b. P.T. INDONESIA SYNTHETICS TEXTILE MILLS or P.T. ISTEM (Synthetic Textile Mfg)

c. P.T. ACRYL TEXTILE MILLS or ACTEM (Wool and Acrylic Yarn Industry)

d. P.T. EASTERNTEX (Integrated Textile Industry and Investment Holding)

e. P.T. CENTURY TEXTILE INDUSTRY Tbk. or P.T. CENTEX (Textile Industry)

f.  P.T. TORAY INTERNATIONAL INDONESIA  (International Trading)

g. P.T. PETNESIA RESINDO (Polyester PET Bottle Resin Manufacturing)

h. P.T. JABATO INTERNATIONAL (Tour and Travel Agency)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - US$  104,800,000

Issued Capital               - US$  104,800,000

Paid up Capital             - US$  104,800,000

 

Shareholders/Owners :

a. TORAY INDUSTRIES Inc., of Japan                          - US$  96,800,000 (92.37%)

    Address: 2-1, Nihonbashi-Muromachi

                   2-Chome, Chuo-Ku,

                   Tokyo, Japan

 

b. P.T. EASTERNTEX of Indonesia                               - US$    8,000,000 (  7.63%)

    Address: Summitmas II, 3rd Floor

                   Jl. Jend. Sudirman Kav. 61-62

                   Jakarta, Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Polyester Staple Fiber, Nylon Filament Yarn and Polyester Filament Yarn Manufacturing.

 

Production Capacity :

Initial Unit

   a. Polyester Staple Fibers (PSF)       - 19,900 tons p.a.

   b. Nylon Filament Yarns (NFY)        -   7,920 tons p.a.

   c. Polyester Filament  Yarns (PFY)   -   8,350 tons p.a.

 

Expansion Unit I

   Polyester Filament Yarns  (PFY)       -   9,000 tons p.a.

 

Expansion Unit II

   a. Nylon Filament Yarns (NFY)         -   6,000 tons p.a.

   b. Polyester Filament Yarns (PFY)    - 25,200 tons p.a.

   c. Polyester Staple Fibers  (PSF)     - 43,200 tons p.a.

 

Total Investment :

Initial Plant

   a. Equity Capital                              - US$   34.8 million

   b. Loan Capital                                - US$   82.5 million

   c. Reinvested Profit                         - US$   12.5 million

   d. Total Investment                          - US$ 129.8 million

 

Expansion Plant I

   a. Reinvested Profit                         - US$  11.0 million

   b. Loan Capital                                - US$  56.0 million

   c. Total Investment                          - US$  67.0 million

 

Expansion Plant II

   a. Reinvested Profit                         - US$ 129.0 million

   b. Loan Capital                                - US$   55.0 million

   c. Total Investment                          - US$ 184.0 million

 

Started Operation :

October 1973

 

Brand Name :

ITS (Indonesia Toray Synthetics)

 

Technical Assistance :

TORAY INDUSTRIES Inc., of Japan

 

Number of Employee :

1,220 persons

 

Marketing Area :

Domestic    - 70%

Export              - 30%

 

Main Customers :

a. Buyers in Malaysia, Singapore, Japan, etc

b. Textile Industries in Bandung (West Java) and its surrounding

c. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDORAMA SYNTHETICS Tbk

b. P.T. TEIJIN INDONESIA FIBER Tbk

c. P.T. SULINDAFIN

d. P.T. PANASIA INDOSYNTHEC Tbk

e. P.T. ERATEX DJAJA Tbk

f.  P.T. POLYSINDO EKA PERKASA

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. The Bank of TOKYO-MITSUBISHI UFJ Ltd.

    Jakarta Branch

    Mid Plaza, 1-3rd Floor

    Jalan Jend. Sudirman Kav. 10-11

    Jakarta Selatan

b. P.T. Bank NEGARA INDONESIA Tbk

    Jakarta Thamrin Branch

   Wisma NUSANTARA, 23rd Floor

   Jalan M.H. Thamrin No. 59

   Jakarta Pusat

c. CITIBANK N.A.

   Citibank Tower, 7th Floor

   Jl. Jend. Sudirman Kav. 54-55

   Jakarta 12190

 

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 2,680.0 billion

2012 – Rp. 2,910.0 billion

2013 – Rp. 3,140.0 billion

2014 – Rp. 3,390.0 billion

2015 – Rp. 1,840.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 146.0 billion

2012 – Rp. 158.0 billion

2013 – Rp. 170.0 billion

2014 – Rp. 183.0 billion

2015 – Rp.   99.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director         - Mr. Shin Ito

Vice President Director  - Mr. Kazuhiko Shiomura

Directors                       - a. Mr. Shin Yanagisawa

                                      b. Mr. Hidenori Terai

                                      c. Mr. Akira Nakano

                                      d. Mr. Hirononbu Sudo

 

Board of Commissioners :

Commissioner               - Mr. Hideyasu Okawara

 

Signatories :

President Director (Mr. Shin Ito) or  Vice President Directors (Mr. Kazuhiko Shiomura) or one of the Directors (Mr. Shin Yanagisawa, Mr. Hidenori Terai, Mr. Akira Nakano and Mr. Hirononbu Sudo) which must be approved by the  Board of Commissioner (Mr. Hideyasu Okawara)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFOMANCE

 

P.T. INDONESIA TORAY SYNTHETICS (P.T. ITS) was established in 1971 in Jakarta with an authorized capital of US$ 10,000,000 issued capital of US$ 2,000,000 of which US$ 200,000 was paid up. The founding shareholders of the company are TORAY INDUSTRIES Inc., MITSUI & Co., Ltd., MARUBENI IIDA Co. Ltd., and C. ITOH & Co. Ltd., the fourth of them are of Japan. The Articles of association was converted for several times both in term of capitalization and shareholding composition and also the board of directors and commissioners. In August 1998, the authorized capital of P.T. ITS was raised to US$ 54,800,000 entirely issued and paid up and concurrently MARUBENI IIDA CO.LTD and C. ITOH & CO.LTD withdrew and into the company entered new shareholders P.T. BNI NOMURA JAVCO INVESTMENT and P.T. EASTERNTEX, both of Indonesia.  In September 2007, the authorized capital was increased to US$ 104,800,000.- wholly issued and paid up and concurrently the shareholders of P.T. ITS were TORAY INDUSTRIES INCORPORATION of Japan (92.37%) and P.T. EASTERNTEX of Indonesia (7.63%).

 

The most recently by Notary Deed No. 02 dated December 16, 2013 of Ferry Mahendra Permana, SH., concerning the change in composition of the Company’s board of 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.01.10-55937 dated December 24, 2013.  Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

We observe that TORAY INDUSTRIES INCORPORATION is a giant company having wide operational activities in various countries. The company is also a foreign partner controlling the majority shares of P.T. EASTERNTEX dealing with integrated textile industry and investment holding.  TORAY INDUSTRIES INCORPORATION and P.T. EASTERNTEX are members of the TORAY Group fuses nanotechnology into its operations, using organic synthetic chemistry, polymer chemistry and biotechnology as its core technologies.

 

P.T. ITS was brought into existence by the virtue of a Foreign Investment (PMA) facility  approved by the Capital Investment Coordinating Board (BKPM) operating in polyester staple fibre (PSF), nylon filament yarn (NFY) and polyester filament yarn (PFY) industry.  The company headquarters are at 3rd Floor Summitmas II, Jl. Jend. Sudirman Kav. 62-62, Jakarta and marketing is managed directly from the plant at Jl. Moch. Toha Km. 1, Pasar Baru, Tangerang, Banten Province, which has built facilities on 52 hectare property.  Its plant has been operating since 1973 with a production capacity of 19,000 tons PSF, 7,920 tons NFY and 8,350 tons PFY, all per year.   It has absorbed a total investment of US$ 129.8 million, originated from owned capital of US$ 34.8 million, reinvested profit of US$ 12.5 million and the remainder covered by loans.

 

Basic materials used by the company, among others are pure terephtalic acid (PTA), ethylene glycol (EG), lactam (caprolactam) and Chip (nylon).  Some 2.0 thousand tons of PTA required by the company in which some 50% are supplied by HUMPUSS Group (distributor for PTA produced by state owned oil company PERTAMINA) while the rest 50% is imported from Japan largely and small portion from England, and EG are imported from Singapore. In the meantime, the requirement for lactam is largely imported from Japan and just a few from Germany and Belgium, whiles for Chip is largely from Germany and a small portion from Japan.  The latter two basic materials can hardly recognize precisely the requirement of P.T. ITC.  Besides, the company also uses other chemical materials as auxiliary ones which are generally can be filled domestically.

 

In 1990 the company built an expansion unit of PFY milling with a production capacity of 9,000 tons per year. This expansion unit has absorbed total investment of US$ 67.5 million, came from reinvested profit of US$ 11.5 million while the balance covered by loans.  The expansion unit has been operating since February 1992. In November 1992, P.T. ITS obtained a license from the BKPM to expand its plant by adding its annual production of PFY of 6,000 tons, PSF of 25,200 tons and NFY of 43,200 tons. The expanded plant has absorbed an investment of US$ 184.0 million coming from reinvested profit of US$ 129.0 million while the rest from loans. The expanded plant has been in operation since 1996.  About 70% of P.T. ITS production is marketed domestically and the rest exported to Malaysia, Singapore, Japan and others countries.  We observed that P.T. ITS is classified as a large-sized company of its kind in the country of which the operation has been growing slowly in the last three years.

 

Generally, demand for textile and textile products including polyester synthetic fiber, polyester textured yarn, finished fabrics, garment, textile chemicals and raw materials has been fluctuating in the last five years.  According to the Central Bureau of Statistics (BPS) 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 1,477.800 tons (US$ 3,908.6 million) in 2006 to 1,473.6 tons (US$ 4,178.0 million) in 2007 declined to 1,312,200 tons (US$ 4,127.9 million) in 2008 to 1,369,600 tons (US$ 3,602.8 million) in 2009 to 1,525,900 tons (US$ 4,721.8 million) in 2010 declined to 1,493,3000 tons (US$ 5,563.3 million) in 2011 rose again to 1,508,500 tons (US$ 5,278.1 million) in 2012 to 1,633.1 thousand tons (US$ 5,293.6 million) in 2013 and to 1,815.6 thousand tons (US$ 5,379.9 million) in 2014. The export volume and value of the national TPT products in 2002 to as of January 2015 are pictured on the following table.

 

Year

Textile Products

Garment

(Thousand Ton)

(US$ Million)

(Thousand Ton)

(US$ Million)

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015*

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

1,815.6

   153.0

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

5,379.9

   421.6

333.1

339.9

327.3

369.5

399.6

399.8

417.6

393.4

445.2

450.9

450.2

470.2

463.9

   35.4

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

7,450.9

   594.5

 

The business position of P.T.ITS is appraised to be favorable for having established regular customers and wide marketing networks within and outside the country. We believe that P.T. ITS is in position to thrive its business in the future.

 

Until this time P.T. ITS has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement.   We observed that total sales turnover of the company in 2012 amounted of Rp. 2,910.0 billion increased to Rp. 2,140.0 billion in 2013 and rose again to Rp. 3,390.0 billion in 2014.   The operation in 2014 yielded an estimated net profit at least Rp. 183.0 billion and the company has an estimated total net-worth at Rp. 1,850.0 billion. It is forecasted that total sales turnover of the company will increase at least 8% in 2015.  So far we did not hear that the P.T. ASP has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of the company is led by Mr. Shin Ito (57) as president director.  In daily activities he is assisted by Mr. Kazuhiko Shiomura (57) as vice president director and four directors namely Mr. Shin Yanagisawa (47), Mr. Hidenori Terai (53), Mr. Akira Nakano (47) and Mr. Hirononbu Sudo (43).  The management, which is evaluated quite creative and dynamic, also has succeeded in expanding their overseas marketing network. We consider the management is quite capable of further developing business in the future. They have close relations with many high-ranking government officials as well as with private businessmen within and outside the country. So far, we did not hear that the company’s management involved in the business malpractices 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. INDONESIA TORAY SYNTHETICS is appraised good for business transaction. But owing to 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.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.