MIRA INFORM REPORT

 

 

Report No. :

339026

Report Date :

02.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. KIDECO JAYA AGUNG

 

 

Registered Office :

Mulia Tower, 17th Floor, Suite 1701, Jalan Jend. Gatot Subroto Kav. 9-11 Jakarta 12930

 

 

Country :

Indonesia

 

 

Date of Incorporation :

07.09.1982

 

 

Com. Reg. No.:

AHU-AH.01.10-10172

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Coal Mining and Distillation

 

 

No. of Employees :

1,245 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 – 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, 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

 

Basis Search

 

Name of Company:

P.T. KIDECO JAYA AGUNG

 

Address:

 

Head Office

Mulia Tower, 17th Floor, Suite 1701

Jalan Jend. Gatot Subroto Kav. 9-11

Jakarta 12930

Indonesia

Phones             - (62-21) 525 7626 (hunting)

F a x                 - (62-21) 525 7662

Email                - info@kideco.com or yusuf@kidecom.com or taufik@kideco.com

Website            - http://www.kideco.com

Building Area    - 32 storey

Office Space    - 460 sq. meters

Region              - Commercial

Status               - Rent

 

Mining Site

Desa pasir, Batu Kajang

Tanah Grogot, East Kalimantan

Indonesia

Phones             - (62-543) 22 522 (hunting)

F a x                 - (62-543) 22 520

Land Area         - 50,399 hectares

Building Area    - 1,200 sq. meters

Region              - Mining Zone

Status               - Rent

 

Date of Incorporation:

07 September 1982

 

Legal Form:

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

 

Company Reg. No.:

The Ministry of Law and Human Rights

a. No. C-02651.HT.01.04.TH.2003

    Dated 07 February 2003

b. No. AHU-19829.AH.01.02.Tahun 2009

    Dated 11 May 2009

c. No. AHU-AH.01.10-37422

    Dated 21 November 2011

d. No. AHU-AH.01.10-10172

    Dated 12 March 2014

 

Company Status :

Foreign Investment Company (PMA)

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.060.102.9-056.000

 

b. The President of the Republic of Indonesia

    No. B-65/Pres/8/1982

    Dated 31 August 1982

 

c. The Investment Coordinating Board

    - No. 1016/III/PMA/2001

      Dated 03 August 2001

    - No. 319/III/PMA/2003

      Dated 28 March 2003

 

Parent Company :

P.T. INDIKA INTI CORPINDO (Investment Holding)

 

Related Companies :

A company member of the INDIKA Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - US$. 37,000,000 (Rp. 24,605,000,000,-)

Issued Capital               - US$. 25,034,600 (Rp. 16,648,009,000.-)

Paid up Capital             - US$. 25,034,600 (Rp. 16,648,009,000.-)

 

Shareholders/Owners :

a. P.T. INDIKA INTI CORPINDO                            - US$. 11,515,900 (46%)

    Address : Jl. Jend. Sudirman Kav. 45-46

                    Jakarta Selatan

                    Indonesia

b. P.T. MUJI INTI UTAMA                                    - US$.   1,251,700 (  5%)

    Address : Jl. Jend. Gatot Subroto Kav. 9-11

                    Jakarta Selatan

                    Indonesia

c. SAMTAN CO. LTD.                                           - US$. 12,267,000 (49%)

    Address : 13.7 KA Asaniketon D-3

                    Road Nuber 2, Shyamoli, Mohad

                    South Korea

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining and Distillation

 

Production Capacity :

Coals – 40.3 million tons p.a.

 

Total Investment :

a. Owned Capital           - US$.   37.0 million

b. Loan Capital              - US$. 130.0 million

c. Total Investment        - US$. 167.0 million

 

Started Operation :

March 1993

 

Brand Name :

Kideco Jaya Agung

 

Technical Assistance :

None

 

Number of Employee :

1,245 persons

 

Marketing Area :

Domestic (Local)     - 30%

Export                    - 70%

 

Main Customers :

a. P.T. Perusahaan Listrik Negara (PLN)

b. Overseas buyer in China, India, South Korea, Japan, Slovenia, Taiwan, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Adaro Indonesia

b. P.T. Kaltim Prima Coal

c. P.T. Arutmin Indonesia

d. P.T. Berau Coal

e. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a.   P.T. Bank CENTRAL ASIA Tbk

      Barclays Building

      Jalan Jend. Sudirman Kav. 22-23

      Jakarta Selatan

      Indonesia

 

b.   JP MORGAN CHASE Bank

      Chase Plaza

      Jalan Jend. Sudirman Kav. 27

      Jakarta Selatan

      Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales/Revenue :

2010 – US$. 1,604.9 million

2011 – US$. 2,266.6 million

2012 – US$. 2,357.3 million

2013 – US$. 2,120.6 million

2014 – US$. 2,059.4 million

 

Net Profit/Net Income:

2010 – US$. 316.3 million

2011 – US$. 456.1 million

2012 – US$. 380.0 million

2013 – US$. 212.2 million

2014 – US$. 154.4 million

 

Payment Manner :

Almost promptly

 

Financial Comments :

Fairly

 

 


KEY EXECUTIVES

 

Board of Management :

President Director            - Mr. Lee Chang-Hoon

Directors                          - a. Mr. Lucas Djunaidi

                                         b. Mr. Moh. Arsjad Rasjid Prabu Mangkuningrat

                                         c. Mr. Lee Jung-Yon

                                         d. Mr. Choi Byung-Hyun

                                         e. Mr. Park Sang-Bong

                                         f.  Mr. Aziz Armand

 

Board of Commissioner :

President Commissioner   - Mr. Kang, Tae-Whan

Commissioners                - a. Mr. Agus Lasmono

                                         b. Mr. Wishnu Wardhana

                                         c. Mr. Kim Sung-Kook

 

Signatories:

President Director (Mr. Lee Chang-Hoon) or one of the Directors (Mr. Lucas Djunaidi, Mr. Moh. Arsjad Rasjid Prabu Mangkuningrat, Mr. Lee Jung-Yon, Mr. Choi Byung-Hyun, Mr. Park Sang-Bong and Mr. Aziz Armand) which must be approved by the Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability:

Good

 

Business Morality:

Good

 

 

OVERALL PERFORMANCE

 

P.T. KIDEDO JAYA AGUNG (P.T. KJA) was established in September 1982 with an authorized capital of US$ 3,000,000.- of which US$ 800,000.- was issued and paid up. The company was founded by TAE WOONG INC., HANIL CEMENT MFG. CO. LTD., PAN OCEAN SHIPPING CO. LTD., YOUNGSAN TRANSPORTATION CO. LTD. and SAMCHOCK CONSOLIDATED COAL MINING CO. LTD. (all of South Korea) as the original shareholders. Later in August 1987 all the above shareholders withdrew and all their shares were taken over by KOREA INDONESIA RESOURCES DEVELOPMENT CO. LTD. of South Korea. In January 1996 the authorized capital was raised to US$ 25,034,600.- fully issued and paid up. In March 2003 P.T. SUMBER MITRA JAYA and P.T. MUJI INTI UTAMA, national private companies entered into the company as new shareholders. In February 2004, P.T. KIDEKO JAYA AGUNG agreed to undertake a divested tender of some 41% shares worth US$ 149.65 million.

 

In May 2004 P.T.INDIKA INTI CORPINDO jointly the company as a new shareholder. In November 2011, based on notary deed No. 40 dated 15 November 2011 was made by Arsin Effendy, SH, a notary public in Jakarta that the authorized capital was raised to US$. 37,000,000.- of which US$ 25,034,600.- was issued and fully paid up.  Since then, the shareholders of the company are P.T. INDIKA INTI CORPINDO (46%), P.T. MUJI INTI UTAMA (5%) and SAMTAN Co. Ltd., of South Korea (49%). The amendment to Deed was approved by the Minister of Law and Human Rights through Decision Letter No. AHU-AH.01.10-37422 dated 21 November  2011.

 

The most recently by notarial deed of Arsin Effendy, SH., dated March 2, 2014 the company’s board of directors and board of commissioners was changed.  The amendment to notarial Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-10172 dated 12 March 2014. No changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. INDIKA INTI CORPINDO is a subsidiary company of P.T. INDIKA ENERGY Tbk., a public listed company and the company is the parent company of the INDIKA Group, a large sized business group led by Mr. Agus Lasmono, MBA and Mr. Ir. Wiwoho Basuki Tjokronegoro.

 

P.T. KJA operates under Foreign Investment (PMA) facilities in coal mining and distillation under the status of a Coal Contract of Work (PKP2B). The company controls a 50,921 hectare coal mining concession in the Tanah Grogot area of Pasir Regency (East Kalimantan) acquired in 1982. The coal concession of the company will be expired in 2023 under a first-generation Coal Contract of Works (CCoW). The concession containing 651 million tons of coal reserves has been under commercial exploitation since March 1993 with a production capacity of 16.0 million tons of coal per year.   P.T. KJA's coal production kept increasing from 22.0 million tons in 2008 to 24.7 million tons in 2009 to 29.1 million tons in 2010 to 31.5 million tons in 2011 to 34.2 million tons in 2012 to 37.3 million tons in 2013 and rose again to 40.3 million tons in 2014.   About 74% P.T. KJA's coals production are exported to China, India, Korea, Taiwan, Hong Kong, Japan, Philippines, Malaysia, Thailand and the rest 30% to local marketed like PT. Perusahaan Listrik Negara (PLN), a state power plant enterprises and private industrial sectors.   P.T. KJA also has clinched a contract for the long term supply of coal to the Steam Driven Electricity Plant (PLTU) in Paiton, East Java owned by P.T. JAWA POWER and PLTU Suralaya owned by P.T. INDONESIA POWER.

 

 

Operation Performance of P.T. KJA

 

Description

 

2010

2011

2012

2013

2014

Coal Production (million tons)

29.1

31.5

34.2

37.3

40.3

Waste Removal (million bcm)

170.1

219.0

239.4

241.1

252.0

Stripping Ratio (%)

5.9

7.0

7.0

6.5

6.8

 

Generally, the mining activities for mineral mining such as coal, copper, gold, silver, nickel ore and etc. have fluctuated and for gold have been expanding in the country in the last five years. The trend has been in line with the weak prices of coal, nickel and bauxite and with the firm price of gold on the international market. Pursuant to Ministry of Energy and Mineral Resources, the export volume of coal in 2012 reached 345 million tons, increased to 402 million tons in 2013 and declined to 382 million tons in 2014. Details on Indonesian last eight years coal export volume and value is listed below:

 

The Export Volume and Production of Coal Products 2008 – 2015

 

Year

2008

2009

2010

2011

2012

2013

2014

2015*

Export

187

198

215

287

345

402

382

323

Domestic

53

56

65

66

67

72

76

102

Total

240

254

280

353

412

474

458

425

 

The company is neither public listed nor bond issued company.  Therefore, the company has no obligation to publish financial statement publicly. According to annual report of PT. INDIKA ENERGY Tbk., the total income/revenue of P.T. KJA has been increasing in the last four years.   In 2010, P.T. KJA’s total sales/revenue reached US$1,604.9 million with a net profit of US$ 316.3 million increased to US$ 2,266.6 million with a net profit of US$ 456.1 million in 2011 to US$ 2,357.9 million with a net profit of US$ 380.0 million in 2012 declined to US$ 2,120.6 million with a net profit of US$ 212.2 million in 2013 and dropped again to US$ 2,059.4 million with a net profit of US$ 154.4 million in 2014.  P.T. KJA’s financial highlights as of 31 December 2010, 2011, 2012 and 2013, shall be as follows:

 

(expressed in million US$)

COMPREHENSIVE STTEMENT OF INCOME

2014

2013

2012

2011

- Total Sales/Revenues

2,059.4

2,120.6

2,357.3

2,266.6

- Cost of Sales

1,731.1

1,654.9

1,623.9

1,401.9

- Gross Profit

328.3

465.7

733.4

864.7

- Operating Expenses

32.7

31.6

40.4

40.8

- Operating Income

295.6

434.1

692.9

823.9

- Net Income

154.4

212.2

380.0

456.1

STATEMENT OF FINANCIAL POSITION

 

 

 

 

- Total Current Assets

396.0

457.6

523.7

604.0

- Total Non-Current Assets

206.4

229.0

221.4

213.7

- Total Assets

602.4

686.6

745.1

817.7

- Total Current Liabilities

224.3

272.0

312.1

316.5

- Total Non-Current Liabilities

51.6

51.4

46.9

45.3

- Total Liabilities

275.8

323.4

359.1

361.8

- Total Equity

326.6

363.3

386.0

456.0

- Total Liabilities & Equity

602.4

686.6

745.1

817.7

 

P.T. KIA's management is headed by Mr. Lee Chang-Hoon (50), a professional manager of South Korea as President Director.In daily activities, he is assisted by six directors namely Mr. Lucas Djunaidi (44), Mr. Moh. Arsjad Rasjid Prabu Mangkuningrat (45), Mr. Lee, Jung Yon (53), Mr. Choi, Byung Hyun (52), Mr. Park Sang-Bong (46) and Mr. Aziz Arman (52). The company is managed by professional managers with experience in the coal mining and processing industry. They have wide relations in government circles and in the ranks of domestic and overseas private businessmen. So far, we did not hear that the company's management having been involved in business malpractices.

 

Considering the operation of P.T. KJA declined in the last two years and 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.66.26

UK Pound

1

Rs.101.99

Euro

1

Rs.74.79

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

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%)

 

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.