MIRA INFORM REPORT

 

 

Report No. :

351149

Report Date :

27.11.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. BENGAWAN SOLO GARMENT INDONESIA

 

 

Registered Office :

Dukuh Butuh, RT.004, W.002, Desa Butuh – Kec. Mojo Songo, Kabupaten Boyolali 57371, Central Java

 

 

Country :

Indonesia

 

 

Date of Incorporation :

22.01.2001

 

 

Com. Reg. No.:

AHU-AH.01.10-46860

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Garment Manufacturing

 

 

No. of Employees :

1,010

 

 

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 :

Good

Payment Behaviour :

Regular

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

 

Complete Name of Company :

P.T. BENGAWAN SOLO GARMENT INDONESIA

 

A d d r e s s :

Head Office & Factory

Dukuh Butuh, RT.004, W.002

Desa Butuh – Kec. Mojo Songo

Kabupaten Boyolali 57371

Central Java

Indonesia

Phones             - (62-276) 324 888 (hunting)

Fax                   - (62-276) 324 889

Land Area         - 30,000 sq. meters

Building Area    - 18,500 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

22 January 2001

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  - No. C-06182 HT.01.01.TH.2001

    Dated 20 August 2001

-  No. C-06413.HT.01.04.TH.2003

   Dated 25 March 2003

-  No. AHU-59505.AH.01.02.TH.2011

   Dated 5 December 2011

-  No. AHU-AH.01.10-46860

   Dated 6 November 2013

 

Company Status :

Foreign  Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 02.014.260.0-526.000

 

b. The Capital Investment Coordinating Board

    No. 467/KJRI/OSAKA/PMA/2000

    Dated 20 December 2000

 

Related/Affiliated Companies :

a.   NIPPON STEEL & SUMIKIN BUSSAN CORPORATION - Japan (Investment Holding)

b.   SUMIKIN BUSSAN INTERNATIONAL (HK) LTD., - Hong Kong (Investment Holding)

c.   P.T. NIPPON STEEL AND SUMIKIN MATERIALS (Automotive Parts Manufacturing)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 14,100,000,000.-

Issued Capital                                 - Rp. 14,100,000,000.-

Paid up Capital                               - Rp. 14,100,000,000.-

 

Shareholders/Owners :

a. NIPPON STEEL & SUMIKIN BUSSAN CORPORATION     - Rp  13,959,000,000 (99.0%)

    Address: 5 – 27 Akasaka 8-Chome Minato-Ku

                   Tokyo 107-8527

                   Japan

b. SUMIKIN BUSSAN INTERNATIONAL (HK) LTD.,              - US$     141,000,000 (  1.0%)

    Address: Canton Road, Tsimshatsui,

                   Kowloon,

                   Hong Kong

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Garment Manufacturing

 

Production Capacity :

Men’s and Lady’s Shirts, Suits, Vests and Slacks - 5,000,000 pieces per annum

 

Total Investment :

  a. Equity Capital          - Rp 14.100 million

  b. Loan Capital            - Rp.  7,050 million

  c. Total Investment       - Rp.21,150 million

 

Started Operation :

2 0 0 2

 

Brand Name :

On the order basis

 

Technical Assistance :

SUMIKIN BUSAN CORPORATION of Japan

 

Number of Employee :

1,010 persons

 

Marketing Area :

Export        - 100%

 

Main Customers :

Garment Retail Shops and Department Stores in Japan

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Apac Inti Corpora

b. PT. Argo Pantes Tbk.

c. PT. Ungaran Sari Garment

d. PT. Panasia Indosyntex Tbk

e. PT. Candratex Sejati

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. PT. Sumitomo Mitsui Banking Corporation

     Jakarta Branch

     Summitmas Building II, 9th Floor

      Jalan Jend. Sudirman Kav. 61-62

     Jakarta Selatan

b.  The Bank of Tokyo- Mitsubishi UFJ, Ltd.

     Jakarta Branch

     Mid Plaza, 1-3rd Floor

     Jalan Jend. Sudirman Kav. 10-11

     Jakarta Selatan

c.  Sumitomo Mitsui Trust Bank, Ltd.

     Jakarta Branch

     Summitmas Building II, 9th Floor

     Jalan Jend. Sudirman Kav. 61-62

     Jakarta Selatan

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 268.0 billion

2012 – Rp. 302.0 billion

2013 – Rp. 340.0 billion

2014 – Rp. 390.0 billion

2015 – Rp. 212.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 16.5 billion

2012 – Rp. 18.6 billion

2013 – Rp. 21.0 billion

2014 – Rp. 24.0 billion

2015 – Rp. 13.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                     - Mr. Toshihiko Ogino

Directors                                   - a. Mr. Ayumu Kuga

                                                  b. Mr. Fumihiro Ueda

                                                  c. Mr. Yoshimura Minoru

 

Board of Commissioners :

Commissioner                           - Mr. Kojima Shigeru

 

Signatories :

President Director (Mr. Toshihiko Ogino) or one of the Directors (Mr. Ayumu Kuga, Mr. Fumihiro Ueda or Mr. Yoshimura Minoru) which must be approved by the  Board of Commissioner (Mr. Kojima Shigeru)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

 

 

OVERALL PERFOMANCE

 

P.T. BENGAWAN SOLO GARMENT INDONESIA (P.T. BSGI) was established in Boyolali (Central Java) on January 22, 2001 with an authorized capital of Rp. 9,400,000,000 (US$.1,000,000) entirely was issued and fully paid up.  The founding shareholders of the company are SUMIKIN BUSSAN CORPORATION of Japan (99%) and Mr. Eiichi Nakamura of Japan (1%). The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No. C-06182.HT.01.01.TH.2001 dated August 20, 2001. The Articles of association was converted for several times.   The most recently by Notary Deed No. 29 dated October 29, 2013 of Adang Tri Sunoko, SH., the authorized capital was raised to Rp. 14,100,000,000 (Rp.1,500,000) was issued and fully paid up.  Since then, the shareholders of the company are NIPPON STEEL & SUMIKIN BUSSAN CORPORATION of Japan (99%) and SUMIKIN BUSSAN INTERNATIONAL (HK) Ltd., of Hong Kong (1%).  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.01.10-46860 dated November 6, 2013.

 

We observe that NIPPON STEEL & SUMIKIN BUSSAN CORPORATION is a large-size company is engaged in marketing and import/export of steel, industrial supply and infrastructure, textiles, foodstuffs and others.  SUMIKIN INTERNATIONAL (HK) Ltd., is engaged in wholesales and distributes men’s and boys’ apparel and furnishings.

 

P.T. BSGI obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) in 1995 for dealing with garment manufacturing with its plant located at Boyolali, Central Java.   For the first time, the production process of cutting, sewing up to finish started only with 80 employees.   The Company only produces Men’s shirts with a simple style and small capacity. Then, the Company continues to invest in the most up-date technology with automatic machine to satisfy customer demands.  In 2012, the Company build new factory Suites located at Desa Butuh. RT.004, RW.002, Mojo Songo District, Boyolali Regency, Central Java Province and now a company with a total of 1000 employees.   Manufacturing business continue to flourish, the company begin producing various styles, both men’s and lady’s shirts, but also suits, vest and slack.  The brands and types of garment products being produced by P.T. BSGI are based on the customers’ request like; Mazzo, Nissen, Marui, Onward, Belluna, Oaki, Orihica, Aeon and Murotani.  The customers of the company entirely come from Japan such as; Orihica, Les Mues, Enter G, Rochi and Intimage.   We observed that P.T. BSGI 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 .

 

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. BSGI is appraised to be favorable for having established regular customers and wide marketing networks in Japan.  We believe that P.T. BSGI is in position to thrive its business in the future.

 

Until this time P.T. BSGI 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. 302.0 billion increased to Rp. 340.0 billion in 2013 and rose again to Rp. 390.0 billion in 2014.   The operation in 2014 yielded an estimated net profit at least Rp. 24.0 billion and the company has an estimated total net-worth at Rp. 180.0 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. BSGI 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. Toshihiko Ogino (55) as president director.  In daily activities he is assisted by three directors namely Mr. Ayumu Kuga (48), Mr. fumihiro Ueda (53) and Mr. Yoshimura Minoru (51).  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. BSGI 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.66.55

UK Pound

1

Rs.100.64

Euro

1

Rs.70.70

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

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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