MIRA INFORM REPORT

 

 

Report No. :

344854

Report Date :

09.10.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. SOUTH PACIFIC VISCOSE

 

 

Registered Office :

Sampoerna Strategic Square South Tower, 22nd Floor, Jl. Jend. Sudirman Kav. 45-46, Jakarta 12910

 

 

Country :

Indonesia

 

 

Date of Incorporation :

14.01.1978

 

 

Com. Reg. No.:

AHU-AH.01.10-03706

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Viscose Fibre, Sulphuric Acid, Carbon Bisulphide, and Sodium Sulphate Manufacturing.

 

 

No. of Employees :

1,720

 

 

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. SOUTH PACIFIC VISCOSE

 

A d d r e s s :

Head Office

Sampoerna Strategic Square South Tower, 22nd Floor

Jl. Jend. Sudirman Kav. 45-46

Jakarta 12910

Indonesia

Phones             - (021) 5771630 (hunting)

Fax.                 - (021) 5771640

Email                - spv-jkt@cbn.net.id

Website            - http://www.pt-spv.com

Building Area    - 33 storey

Office Space    - 1400 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Cicadas, Cilangkap

Purwakarta 41101,

PO Box 11 PWK, West Java

Indonesia

Phones             - (0264) 200636-7, 201414, 8229752

Fax.                  - (0264) 200738, 202563

Land Area         - 12.0 hectares

Building Space  -   4.8 hectares

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

14 January 1978

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C-19924.HT.01.04.TH.2004

    Dated 06 August 2004

b. No. AHU-AH.01.10-15693

    Dated 20 June 2008

c. No. AHU-00109.AH.01.02.Tahun 2009

    Dated 05 January 2009

d. No. AHU-AH.01.10-08722

    Dated 25 June 2009

e. No. AHU-AH.01.10-03706

    Dated 08 February 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.000.573.4-052.000

 

b. The President of the Republic of Indonesia

    No. B-40/Pres/11/1977

    Dated 28 November 1977

 

c. The Capital Investment Coordinating Board

    -  No. 113/VI/PMA/1980

       Dated 21 November 1980

    -  No. 470/III/PMA/1991

       Dated 30 July 1991

    -  No. 741/II/PMA/1994

       Dated 6 May 1994

    -  No.89/II/PMA/1999

       Dated 18 May 1999

    -  No.673/II/PMA/2001

       Dated 05 June 2001

 

d. The Department of Industry

    No. 267/DJAI/IUT/III/PMA/VII/88

    Dated 12 July 1988

 

Related/Affiliated Companies :

 a. LENZING A.G. (Industrial Chemical Manufacturing)

 b. ZENITH Steel Pipes and Industries Ltd. (Steel Making)

 c. AVIT Investment Ltd. (Investment Holding)

 d. PENIQUE S.A. (Investment Holding)

 e. TUNGABHADRA Industries Ltd. (Textile Milling)

 f.  P.T. PURA GOLDEN LION (Trading)

 g. P.T. INDO BHARAT RAYON (Viscose Industry)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 290,000,000,000.-

Issued Capital                                 - Rp.   72,500,000,000.-

Paid up Capital                               - Rp.   72,500,000,000.-

 

 

 

Shareholders/Owners  :

a. LENZING A.G. of Austria                               - Rp  30,435,265,000.- (41.98%)

b. AVIT INVESTMENT Ltd. of Turks

    & Caicos Islands British West India                - Rp  23,086,012,000.- (31.84%)

c. PENIQUE SA of Panama                               - Rp    8,678,356,000.- (11.97%)

d. P.T. PURA GOLDEN LION of Indonesia          - Rp    8,643,664,000.- (11.92%)

e. Mr. Bakti Santoso Luddin of Indonesia           - Rp    1,656,703,000.- (  2.29%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Viscose Fibre, Sulphuric Acid, Carbon Bisulphide, and Sodium Sulphate Manufacturing

 

Production Capacity :

Initial Units

 a. Viscose Rayon Staple Fibres   - 125,000 tons p.a.

 b. Anhydrous Sodium Sulphates  -   70,000 tons p.a.

 c. Carbon Bisulphites                  -   18,150 tons p.a.

 d. Sulphuric Acids                       -   71,800 tons p.a.

 e. Filament Yarns                        -   15,000 tons p.a.

 

Expansion Units

 a. Viscose Rayon Staple Fibres   - 15,000 tons p.a.

 b. Sodium Sulphate                     - 10,500 tons p.a.

 c. Sulphuric Acid (H2SO4)           - 13,500 tons p.a.

 

Total Investment :

Initial Units

 a. Equity Capital           - US$   36.2 million

 b. Reinvested Profit     - US$   27.0 million

 c. Loan Capital - US$ 188.8 million

 d. Total Investment       - US$ 252.0 million

 

Expansion Units

 a. Equity Capital           -          --- 

 b. Loan Capital             - US$ 30.0 million

 c. Total Investment       - US$ 30.0 million

 

Started Operation :

1982

 

Brand Name :

SPV

 

Technical Assistance :

LENZING A.G., of Austria

 

 

 

Number of Employee :

1,720 persons

 

Marketing Area :

Domestic (Local) - 70%

Export                 - 30%

 

Main Customers :

a. Textile Industry such as P.T. HADTEX, P.T. PUJITEX, P.T. TRISULATEX, P.T. SANDRATEX,

    P.T. PANASIA INDO SYNTEX, etc.

b. Overseas Buyers in China, Vietnam, Bangladesh, Srilanka, Malaysia, Australia, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDO BHARAT RAYON

b. P.T. TOBA PULP LESTARI Tbk

c. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.  STATE BANK OF INDIA, Singapore

    10-01 DBS Building, 6 Shenton Way

     Singapore 0106

b.  American Express Banking Corp.

     Hong Kong Branch

     28/F Connaught Centre

     Central Hong Kong

c.  American Express Banking Corp.

     ARTHALOKA Building

     Jalan M.H. Thamrin No. 2

     Jakarta Pusat

d.  DEUTCHE BANK LTD.

     Jakarta Branch

     Jalan Imam Bonjol No. 80

     Jakarta Pusat

 

Auditor :

Purwantono, Sarwoko and Sandjaja, a public accountant

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 5,490.0 billion

2013 – Rp. 5,980.0 billion

2014 – Rp. 6,240.0 billion

2015 – Rp. 3,320.0 billion (January – June)

 

Net Profit (estimated) :

2012 – Rp. 765.0 billion

2013 – Rp. 830.0 billion

2014 – Rp. 860.0 billion

2015 – Rp. 456.0 billion (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Wolfram Reinhard Kalt AKA Wolfram Kalt

Directors                                         - a. Mr. Ian Arthur Colley

                                                        b. Mr. Gerhard Danninger

                                                        c. Mr. Sutarto Budi

                                                        d. Mr. Darmawan Alim

                                                        e. Mr. Venkatachalam Sundararajan

 

Board of Commissioner :

President Commissioner                  - Mr. Peter Untersperger

Commissioners                               - a. Mr. Kunrat Hadi Tanubrata

                                                        c. Mr. Friedrich Weninger

                                                        d. Mr. Wolfgang Plasser

                                                        e. Mr. Thomas Georg Winkler

                                                        f.  Mr. Guenther Krohn

 

Signatories :

President Director (Mr. Wolfram Reinhard Kalt) or one of the Directors (Mr. Ian Arthur Colley, Mr. Gerhard Danninger, Mr. Sutarto Budi, Mr. Darmawan Alim or Mr. Venkatachalam Sundararajan) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. SOUTH PACIFIC VISCOSE (P.T. SPV) was established in Jakarta based on Notary Deed No. 71 dated January 14, 1978 drawn up by Kartini Muljadi, SH., a notary in Jakarta with an authorized capital of US$ 6,500,000.- issued capital of US$ 1,300,000.- of which US$ 130,000.- was paid-up. The founding shareholders of the Company are TUNGABHADRA Industries Ltd., of India, SNIA Viscose  SPA  of Italy,  INTERNATIONAL  Textile  Corporation Ltd., of Hong Kong  and the  late    Mr. Ali  Noor  Luddin,  an indigenous businessman.  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decree No.Y.A.5/500/24 dated November 18, 1980. Its articles of association have subsequently been changed for several times. In 1984, the authorized capital was increased to US$ 11,500,000.- wholly issued and paid-up.  On the same occasion SNIA Viscose SPA and INTERNATIONAL Textile Corporation Ltd., pulled-out and replaced by CHEMIE FASSER LENZING AG., of Austria, ZENITH Steel Pipes Industries Ltd., of India, AVIT Investment Ltd of Turks & Caicos Islands British West India.  Meanwhile, the local partner has been replaced by P.T. PURA GOLDEN LION. In 1991, its capital has been converted into rupiah and the authorized capital was set-up at Rp. 90,000,000,000.- issued  capital  of Rp. 58,614,968,000.- wholly paid-up.

 

On August 2004, its issued and paid up capital was increased to Rp. 72,500,000,000.- It seems that 41.98% shares of P.T. SPV is controlled by LENZING AG.,  a  member of the LENZING AG Group, a major business  group  of  Austria, 31.18%  is  controlled  by AVIT INVESTMENT Ltd., of Turks  &  Caicos  Islands British West India and the rest by PENIQUE SA., of Panama (11.97%), two shareholders of  Indonesia  namely P.T. PURA GOLDEN LION  (11.92%)  and  Mrs. Saparsih Noor Luddin (2.29%) and GODAVARI Corp., Ltd., of India (0.66%).  On June 2008, GODAVARI Corp., Ltd., of India pulled-out and its shares sold to AVIT INVESTMENT LTD., of Turks & Caicos Islands British West India.  At time, the shareholders of P.T. SPV are LENZING AG., (41.98%), AVIT INVESTMENT Ltd., (31.84%), PENIQUE SA., (11.97%), P.T. PURA GOLDEN LION (11.92%) and Mrs. Saparsih Noor Luddin (2.29%). The amendment notary deed of the company was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-15693, dated 20 June 2008.

 

On June 2009, Mr. Thomas Michael Fahnemann resigned from a position as President Commissioner and his position replaced by Mr. Peter Untersperger.  Concurrently, Mr. Wolfram Reinhard Kalt entered into P.T. SPV as a new president director.  Latest, on December 2012, Mrs. Saparsih Noor Luddin pulled out and the whole shares are sold to Mr. Bakti Santoso Luddin. Concurrently, Mr. Venkatachalam Sundarajan entered into P.T. SPV as a new director. The amendment notary deed of the company was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-03706, dated February 8, 2013. Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. SPV is a Foreign Capital Investment (PMA) corporation engaged in viscose fibre manufacturing.  Its  plant  is  located  at  Desa  Cicadas,  Cilangkap, Purwakarta, West Java, has been operating commercially since 1982 and  running well  as yet. Besides, P.T. SPV has also produced by-products like sulphurid acid (H2SO4), carbon bisulphide (CS2) and anhydrous sodium sulphate, all for own needs.  P.T. SPV operates 3 production lines producing 300 tons per day on the average.  Its export volume comes to about 2,500 to 2,600 tons per month.

 

Mr. Cacuk Martakusuma, a senior marketing staff of P.T. SPV  disclosed  that since October 1997  it  concentrated  to overseas market and now some 30%  of  the  products exported  to  P.R. China,  Vietnam,  Bangladesh,  Srilangka,  Malaysia, the Philippines, Australia, Switzerland, the USA, Argentine, Africa, Egypt,  South Africa  and Asia, while the rest 70% remains for local textile industries  in the  HADTEX  Group, the PUJITEX Group, the TRISULATEX  Group,  the SANDRATEX Group, the PANASIA Group, etc.  We observed that P.T. SPV is classified as a large-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 product including finished fabrics, garment, cotton yarn, polyester textured yarn, 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 global economic crisis that accompanied the decline of the Indonesian Rupiah (IDR) against the US Dollar in the past two months, resulting in Indonesian people's purchasing power declined sharply. The value of the Rupiah from Rp. 9,500.- per US dollar, has now slumped to Rp. 14.300 per US Dollar. It is estimated that the financial crisis will continue until the end of 2015.

 

According to the financial statement of the company (source: the Department of Trade and Industry), the total income/revenue of P.T. SPV in 2008 amounted to Rp. 3,258.9 billion with a net profit of Rp. 110.2 billion declined to Rp. 3,195.6 billion with a net profit of Rp. 354.4 billion in 2009 and rose again to Rp. 4,562.8 billion with a net profit of Rp. 636.6 billion in 2010.  Up to present, we have yet to gain the statement of income of P.T. SPV in 2011 and 2014.  However, we observed that total income or revenues of the company in 2011 amounted to Rp. 5,110.0 billion increased to Rp. 5,490.0 billion in 2012 to Rp. 5,980.0 billion in 2013 and rose again to Rp. 6,240.0 billion in 2014. It is projected to go on rising by at least 6% in 20145.  The operation in 2014 yielded an estimated net profit of at least Rp. 860.0 billion.    So far we did not hear that the P.T. SPV has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.

 

Since January 2010, the management of P.T. SPV has been headed by Mr. Wolfram Reinhard Kalt AKA Wolfram Kalt (53) replacing Mr. Guenther Krohn (57) as the president director.   Mr. Kalt is a professional manager from Austria, with more than 23 years experience in LENZING Group with various positions.  In his daily activities, he is assisted by five directors namely Mr. Ian Arthur Colley (52), Mr. Gerhard Danninger (58), Mr. Sutarto Budi (69), Mr. Darmawan Alim (61) and Mr. Venkatachalam Sundararajan (56) of India.  The management has a good reputation in industry and trading of viscose rayon staple fibre and other textile raw materials.  The management also has wide relation with private businessmen of home and overseas as well as with the government sectors.  So far, we did not hear that the management of the company has involved in fraudulent business dealing.

 

P.T. SOUTH PACIFIC VISCOSE is sufficiently fairly good for business transaction. However, in view of the economic condition in the country is still unstable and slowdown, we recommend to treat prudently in extending any new loan to the company.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.16

UK Pound

1

Rs.99.78

Euro

1

Rs.73.33

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

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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