MIRA INFORM REPORT

 

 

Report No. :

347132

Report Date :

27.10.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. SOCI MAS

 

 

Registered Office :

Jl. Pulau Irian No. 2, Kawasan Industri Medan, Saentis, Percut Sei Tuan, Deli Serdang 20371, North Sumatra

 

 

Country :

Indonesia

 

 

Date of Incorporation :

02.05.2008

 

 

Com. Reg. No.:

AHU-AH.01.10-14852

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Oleo-Chemical Industry

 

 

No. of Employees :

360

 

 

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

 

Name of Company :

P.T. SOCI MAS

 

A d d r e s s :

Head Office & Factory

Jl. Pulau Irian No. 2

Kawasan Industri Medan

Saentis, Percut Sei Tuan

Deli Serdang 20371

North Sumatra

Indonesia

Phones - (62-61) 685 1582, (62 882) 6161 8181

Fax                   - (62-61) 685 1930, 685 1635

Email                - marketing@soci.co.id or soci1@soci.co.id

Website            - http://www.soci.co.id


Date of Incorporation :

a. 20 October 1992 as P.T. SINAR OLEOCHEMICAL INTERNATIONAL

b. 02 May 2008 as P.T. SOCI MAS

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-30818.AH.01.02.Tahun 2008

    Dated 06 June 2008

b. No. AHU-AH.01.10-14852

    Dated 07 April 2014

 

Company Status :

Foreign Investment Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.597.299.5-125.000

 

Related/Affiliated Company :

A member of the SINAR MAS Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 93,610,000,000.- (US$.46,000,000)

Issued Capital                                 - Rp. 93,610,000,000.- (US$.46,000,000)

Paid up Capital                               - Rp. 93,610,000,000.- (US$.46,000,000)

 

Shareholders/Owners :

  a. Mr. SMART Tbk.                            - Rp. 92,673,900,000.- (99%)

     Address : Sinar Mas Land Plaza, Tower II

                     Jl. M.H. Thamrin No. 51

                     Jakarta 10350

                     Indonesia

  b. MADASCAR CAPITAL Pte. Ltd. - Rp.      936,100,000.- (  1%)

     Address : 18C Carpenter Street

                      Singapore 059907

                      Singapore

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Oleo-chemical Industry

 

Production Capacity :

  a. Fatty Acids                                - 120,000 tons p.a.

  b. Glycerin                                     -   15,000 tons p.a.

 

Total Investment :

  a. Equity Capital                - Rp.   93.6 billion

  b. Loan Capital                  - Rp. 120.0 billion

  c. Total Investment             - Rp. 213.6 billion

 

Started Operation :

1 9 9 4

 

Brand Name :

SOCI MAS

 

Technical Assistance :

None

 

Number of Employee :

360 persons

 

Marketing Area :

Domestic          - 35%

Export              - 65%

 

 

Main Customers :

a. Soap and Detergent Industries in the country

b. Overseas buyers in Hong Kong, Taiwan, India, South Korea, Philippine, USA and others

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. MUSIM SEMI MAS

b. P.T. ECOGREEN OLEOCHEMICALS

c. P.T. SINAR OLEOCHEMICAL

d. P.T. WILMAR NABATI INDONESIA

e. P.T. SALIM IVOMAS PRATAMA

f.  P.T. SUMI ASIH

g. P.T. FLORA SAWITA CHEMINDO

h. P.T. UNILEVER OLEOCHEMICAL INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.  P.T. Bank QNB KESAWAN Tbk

     Jl. Krakatau No. 88-C

     Medan, North Sumatra

b.   P.T. Bank INTERNASIONAL INDONESIA Tbk

      Jl. Diponegoro No. 18

      Medan, North Sumatra

c.   P.T. Bank MANDIRI Tbk

      Jl. Imam Bonjol No. 7

      Medan, North Sumatra

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp. 766.0 billion

2012 – Rp. 870.0 billion

2013 – Rp. 990.0 billion

 

Net Profit (estimated) :

2011 – Rp. 65.0 billion

2012 – Rp. 74.2 billion

2013 – Rp. 84.5 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Strong and Sound

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Joseph Jo Liat Tjiang

Vice President Director              - a. Mr. Ir. Stefanus Goei King An

                                                  b. Mr. Pedy Harianto

Directors                                   - a. Mr. Tan I Tjhang

                                                  b. Mr. Drs. Sardjono Soemardjo

 

Board of Commissioners :

President Commissioner            - Mr. Franky Oesman Widjaja

Vice President Commissioner    - Mr. Simon Lim

Commissioner                           - Mr. Samsir

 

Signatories :

President Director (Mr. Joseph Jo Liat Tjiang) or Vice President Directors (Mr. Ir. Stefanus Goei King An or Mr. Pedy Harianto) or Directors (Mr. Tan I Tjhang or Mr. Drs. Sardjono Soemardjo) which must be approved by the Board of Commissioner (Mr. Franky Oesman Widjaja)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. SINAR OLEOCHEMICAL INTERNATIONAL, the company was established in North Sumatra, on October 20, 1992. 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.  On May 2, 2008, the company's name was changed to P.T. SOCI MAS. Concurrently, the authorized capital was raised to Rp. 93,610,000,000.- (US$.46,000,000) entirely was issued and fully paid up.  Pursuant to its Notary Deed, the shareholders of the company are P.T. SMART Tbk., of Indonesia (99%) and MADASCAR CAPITAL Pte. Ltd., of Singapore (1%). The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-30818.AH.01.02.Tahun 2008 dated June 6, 2008.

The latest in April 2014 based on Notary Deed of Sri Hidianingsih Adi Sugijanto, 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.01.10-14852 dated April 7, 2014. Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

PT SOCI MAS is a subsidiary of PT SMART Tbk. one of the largest, publicly-listed, integrated palm-based consumer companies in Indonesia.  P.T. SMART Tbk., is the member company of the SINAR MAS Group, a large-sized company group focusing its business pulp and paper industry, cooking oil and oleo-chemical industry, banking and financing services, property management and development, telecommunication, etc.

 

P.T. SOCI MAS obtained a foreign investment company (PMA) facility issued by Investment Coordinating Board (BKPM) for dealing with oleo-chemical industry with its plant located at Kawasan Industri Medan, Jl. Pulau Irian No. 2, Saentis, Percut Sei Tuan, Deli Serdang, North Sumatra.  The plant has been in operation since February 1994 with an installed production capacity of 120,000 tons of fatty acids and 15,000 tons of glycerin per year.  P.T. SOCI MAS produces Fractionated and Distilled Fatty Acids and Glycerin, derived from its vast plantations operated by PT. SMART. All facets of the production of palm oil are in accordance with international and national environmental standards.  Beside, P.T. SOCI MAS's production facilities are strategically located in close proximity to their vast palm plantations in Northern Sumatra.  P.T. SOCI MAS is ISO certified (9001:2008 & 14001:2004) and their products are recognized as both Halal and Kosher.  Mr. Setiawan, an administrative staff of the company said that some 65% of the company products are exported to several countries like Taiwan, Hong Kong, India, South Korea, Philippine, the USA and other European countries and the rest is locally marketed among detergent producing industries.  We observed that P.T. SOCI MAS is classified as a large-sized company in the country dealing with oleo-chemical industry of which the operation had been running smoothly and growing in the last five years up to end 2013.

 

Generally, the demand for oleo-chemical has been growing in the last five years in the country in the line with the growth of consumer goods industries, margarine, soap and cosmetic industries. The solid and steady domestic economy, increased government activity in infrastructure development and improving investment climate in Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.

 

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. SOCI MAS 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. SOCI MAS’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of P.T. SOCI MAS in 2012 amounted to Rp. 766.0 billion increased to Rp. 870.0 billion in 2013 and rose again to Rp. 990.0 billion in 2014.  We estimated that the company operation has gained a net profit of Rp. 84.5 billion in 2014 and the company has a total assets at least Rp. 1,480.0 billion. It’s projected the sales turnover it will be higher by at least 8% in 2015.  So far, we did not hear that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

 

The management is headed by Mr. Joseph Jo Liat Tjiang (74) as President Director and CEO of the company.  However, we believe that the prime-mover of the company is Mr. Franky Oesman Widjaja (57), a son of Mr. Eka Tjipta Widjaja AKA Oei Ek Tjhong, the founder of SINAR Group Group.  Mr. Frnaky Oesman Widjaja is at present as one of prime movers of the SINAR MAS Group.  The management is having maintained a wide business relation with private businessmen at home and abroad as well as with government sectors. So far we did not hear that the company’s management having been involved in 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.

 

We have investigated to the district court and the high court in Indonesia, but there is no file contained civil or criminal cases involved the company management.

 

P.T. SOCI MAS is appraised to be 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.64.96

UK Pound

1

Rs.99.55

Euro

1

Rs.71.62

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

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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