MIRA INFORM REPORT

 

 

Report No. :

340723

Report Date :

16.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. ELANGPERDANA TYRE INDUSTRY

 

 

Registered Office :

Jalan Elang, Desa Sukahati RT. 02 RW. 03 Cijayanti,Citeureup Bogor, 16810 West Java

 

 

Country :

Indonesia                                            

 

 

Date of Incorporation :

15.11.1993

 

 

Com. Reg. No.:

AHU-AH-01.10-46534

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Car and Truck Tire Manufacturing

 

 

No. of Employees :

225

 

 

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

 

Company summery

 

Company Name

 

P.T. ELANGPERDANA TYRE INDUSTRY

 

Address :

 

Head Office & Factory

Jalan Elang, Desa Sukahati RT. 02 RW. 03

Cijayanti,Citeureup

Bogor, 16810

West Java

Indonesia

Phones             - (62-21) 8765105, 8765106-08

Fax                   - (62-21) 8765111

E-mail               - marketing@eptyres.com

Website            - http://www.eptyres.com

Land Area         - 127,000 sq. meters

Building Space  - 50,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

15 November 1993

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

-           No. C2-14917.HT.01.01.TH.94

            Dated 3 October 1994

-           No. AHU-85731.AH.01.02.TH.2008

            Dated 13 November 2008

-           No. AHU-AH-01.10-46534

            Dated 4 November 2013

 

Company Status :

Foreign Investment (PMA) Company

 

Permit by the Government Department :

The Department of Finance

NPWP No. 01.638.611.2-431.000

 

Related Companies :

A Member Company of the SARI WARNA ASLI Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         : Rp. 600,000,000,000.-

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

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

 

Shareholders/Owners :

a. CRYSTAL ANGELS INVESTMENTS LIMITED                        - Rp. 217,500,000,000.-

    Address : Akara Building, 24 Castro Street

                    Vickhams Cay 1

                    British Virgin Island

b. ROYAL CROWN CORPORATION LIMITED                            - Rp. 180,000,000,000.-

    Address : 801-2, 8/F, Shiu Lam Building,

                    23 Luard Road Wancai

                    Hong Kong

c. Mr. Biantoro Setijo                                                              - Rp.   32,500,000,000.-

    Address : Jl. Teuku Nyak Arif

                    Jakarta Selatan

                    Indonesia

d. UNITED TYRE COMPANY LIMITED                                       - Rp.   25,000,000,000.-

    Address : 75 Queens Road, Clifton

                    Bristol, BS8 1 QP

                    United Kingdom

e. P.T. UTAMA KARYA MEGA                                                  - Rp.   20,000,000,000.-

    Address : DBS Bank Tower Ciputra World 1, 28th Floor

                    Jl. Prof. Dr. Satrio Kav. 3-5

                    Jakarta Selatan, Indonesia

f. Mr. Cheung Leung Sum                                                       - Rp.   12,500,000,000.-

    Address : RM 902 BLKC Westlands Gardens

                    Gardens Qurry Bay

                    Hong Kong

g. Mr. Hsu Ruei Hsing                                                             - Rp.   12,500,000,000.-

    Address : 4th Floor No. 19 Lane 299

                    Chengte Road, Taipei

                    Taiwan

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Car and Truck Tire Manufacturing

 

Production Capacity :

Car and Truck Tires        - 1,500,000 pieces p.a.

 

Total Investment :

a.  Equity Capital           - Rp. 500.0 billion

b.  Loan Capital - Rp. 138.6 billion

c.  Total Investment       - Rp. 638.6 billion

 

Started Operation :

June 1996

 

Brand Name :

Elangperdana Tyre Industry

 

Technical Assistance :

None

 

Number of Employee :

225 persons

 

Marketing Area :

Local    - 55%

Export              - 45%

 

Main Customer :

Dealer of Automotive Tires

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. BRIDGESTONE INDONESIA

b. P.T. GOODYEAR INDONESIA Tbk

c. P.T. GAJAH TUNGGAL Tbk

d. P.T. SUMI RUBBER INDONESIA

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.     P.T. Bank DANAMON INDONESIA Tbk

            Jalan Krekot Jaya Block B-1 No. 90

            Jakarta Pusat

            Indonesia          

 

b.    P.T. Bank MANDIRI Tbk

            Plaza Mandiri

            Jalan Jend. Gatot Subroto Kav. 36-38

            Jakarta Selatan

            Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – Rp. 428.0 billion

2013 – Rp. 440.0 billion

2014 – Rp. 472.0 billion

 

Net Profit (estimated) :

2012 – Rp. 29.9 billion

2013 – Rp. 32.0 billion

2014 – Rp. 35.0 billion

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES    

 

Board of Management :

President Director                    - Mr. Biantoro Setijo

Directors                                   - Miss. Esther Elisa

 

Board of Commissioners :

President Commissioner            - Mr. Iki Wibowo Widjojo

Commissioner                           - Mr. Ferry Susilo

 

Signatories :

President Director (Mr. Biantoro Setijo) or the Director (Miss. Ester Elisa) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Satisfactory

 

 

OVERALL PERFORMANCE

 

P.T. ELANGPERDANA TYRE INDUSTRY (P.T. ETI) was established in Jakarta in 1993 with the authorized capital of Rp. 10,000,000,000 of which Rp. 5,000,000,000 was issued and fully paid up. The founding shareholders of P.T. ETI are the late Mr. Hindoro Budiono Halim, an Indonesian businessman of Chinese extraction died on 15 June 1998 and P.T. KESEJAHTERAAN BANTENG MANUNGGAL, private company dealing with general trading and investment holding. The company notary deed had been changed a couple of times. In May 1994, the authorized capital of the company was raised to Rp. 59,407,750,000 of which Rp. 5,900,750,000 was issued and fully paid up and concurrently into the company entered new shareholders namely P.T. BUDIKARSA PRATAMA and P.T. ELANGPARAMA SAKTI both are private companies dealing with investment holding. In early 1996, the authorized capital of P.T. ETI was increased again to Rp. 150,000,000,000 of which Rp. 100,000,000,000 was issued and fully paid up and concurrently P.T. ELANGPARANA SAKTI withdrew and into the company entered a new shareholder P.T. PURIPRATAMA PERKASA.

 

In October 2003, whole shareholders withdrew and replaced by P.T. ALPINDO KARYA SEJATI, a private company, Mr. Biantoro Setijo, and Mrs. Mira Nathania Halim, both are Indonesian of Chinese extraction. In September 2008, the authorized capital of the company was increased to Rp. 600,000,000,000 of which Rp. 500,000,000,000 was issued and fully paid up and concurrently the shareholders of the company were Mr. Biantoro Setijo, Mrs. Mira Nathania Halim, both of Indonesia, ROYAL CROWN CORP.LTD of Hong Kong, UNITED TYRE CORP.LTD of the UK, CRYSTAL ANGELS INVESTMENTS LTD of British Virgin Island, Mr. Fang Chao Yuan, Mr. Hsu Ruei Hsing, both of Taiwan. On the same occasion the company status was converted into Foreign Investment (PMA) facility. The latest according to revision of notary deed Mrs. Saniwati Suganda, SH., no. 09 dated 4 October 2013 Mrs. Mira Nathania Halim, Mr. Fang Chau Yuan pulled out and into the company entered by P.T. UTAMA KARYA MEGA and Mr. Cheung Leung Sum as new shareholders. With this time the composition of its shareholders has been changed to become CRYSTAL ANGELS INVESTMENTS LIMITED (43.5%), ROYAL CROWN CORPORATION LIMITED (36.0%), Mr. Biantoro Setijo (6.5%), UNITED TYRE COMPANY LIMITED (5.0%), P.T. UTAMA KARYA MEGA (4.0%), Mr. Hsu Ruei-Hsing (2.5%) and Mr. Cheung Leung Sum (2.5%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-46534 dated November 4, 2013.

 

We observe Mr. Biantoro Setijo is a son of Mr. Bambang Setijo, the founder, prime mover and the majority business stakes owner of the SARI WARNA Group, a large sized company group in Solo, Central Java dealing with integrated textile industry.

 

P.T. ETI obtained a Foreign Investment (PMA) facility issued by the Capital Investment Coordinating Board (BKPM) to deal with motor vehicle tire casing industry. Its plant is located in Sukahati Village, Citeureup District, Bogor Regency, West Java on a land of 12.7 hectares having been in commercial operation since June 1996 being still in one site with sister company P.T. ELANGPERDANA PRIMA NIAGA DAN INDUSTRI (Tire Tube Industry). According to its license issued by the Capital Investment Coordinating Board (BKPM), the company has annual production capacity of 1.5 million units of tire casings of cars and trucks. The investment having been absorbed by the development of the plant amounted to Rp. 638.6 billion coming from own capital of Rp. 500.0 billion and the rest from loans.

 

In November 1995, P.T. ETI signed an agreement with VREDESTEIN BANDEN B.V. of the Netherlands to construct the plant. The signing of the agreement is a new cooperation after the signing of an agreement to build inner tube plant being managed by its sister company P.T. ELANGPERDANA PRIMA NIAGA DAN INDUSTRI. In February 1996, P.T. ETI gained a syndication loan of US$ 72.0 million from three banks of Japan and 3 foreign financial institutions led by P.T. PANIN OVERSEAS FINANCE. In October 2004, P.T. ETI obtained a certificate of ISO 9001-2000 for the acknowledgement of quality management system.

 

P.T. ETI product ranges is from High Performance Passenger Car Radial tyre, Light Truck Radial Tyre as well as Light Truck to Truck and Buses Conventional Tyres. The product is all certified with ECE, DOT, In Metro, SASO, GCC and of course our own standard SNI. That's the reason why we are able to get more share in domestic market and more market internationally. Some 55% of the production of the company is locally marketed using ACCELERA, FORCEUM, ACCELERA SNOW TYRE, and EPCO Series brands. Meanwhile the rest is exported to over 50 countries around the world. The company is also supplied the products to P.T. KIA INDONESIA (imported and authorized distributor KIA in Indonesia). The company is classified as a medium sized company in the country dealing with car and truck tyre industry of which the operation has been running smoothly and gradually growing. We believed that the company will be growing under the new owner and management.

 

In general, the demand for automotive tires, inner tubes, flaps and including vulcanize tires for motorcar, truck and heavy duty is in line with the progress achieved by Indonesian automotive manufacturing and heavy duty industries. We observe that automotive assembling and heavy duty assembling industries have kept on increasing in the last five years. However, the competition is very tight because automotive tires imported from the People Republic of Chinese are sold for cheaper compared with local made. P.T. ETI's business position is still quite good for it has established extensive marketing networks in Jakarta and surroundings. The development of automotive tires industry in the country can be seen under table below.

 

Production and Export of National Tires, 2005 – 2013

Year

Production

(units)

Export

( units)

2005

36,000,000

28,000,000

2006

38,000,000

32,000,000

2007

41,900,000

26,500,000

2008

42,840,000

29,900,000

2009

39,187,000

27,940,000

2010

50,000,000

35,100,000

2011

51,200,000

35,200,000

2012

52,000,000

35,900,000

2013

54,080,000

37,336,000

Source: Processed from Indonesian Tires Producers Association (APBI)

 

Until this time P.T. ETI has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of P.T. ETI is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2012 amounted to Rp. 428.0 billion increased to Rp. 440.0 billion in 2013 rose to Rp. 472.0 billion in 2014 and projected to go on rising by at least 4% in 2015.

 

The operation in 2014 yielded an estimated net profit of at least Rp. 35.0 billion and the company has an estimated total networth of at least Rp. 550.0 billion. We observe that P.T. ETI is supported by foreign partner with has financially strong and sound behind it.

 

The management of P.T. ETI is led by Mr. Biantoro Setijo (47) a businessman with wide experience in trading and industry of motor vehicle tires. He replaced the position of Mr. Haji Mohammad Yasin (81) since October 2003 in which the majority shares of the company are taken over by the SARI WARNA Group. Mr. Biantoro Setijo serves as a Commissioner of P.T. Indo Acidatama Tbk since May 31, 2007. He graduated from Waseda University (Tokyo) major in Mathematics. Some of the positions he once held by, among others, he has been as a Deputy General Manager of P.T. Tritone (1992-1997) and from 1997 to 2000 as Vice President Director at the same company, as a Managing Director of PT. Multistrada (2001-2003). He also serves as President Director of P.T. Elangperdana Tyre Industry since 2003.

 

In his daily activities, he is assisted by Mrs. Esther Elisa (51) as the director. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. ELANGPERDANA TYRE INDUSTRY is sufficiently fairly good for business cooperation.

 

 

Attachment

 

List of the SARI WARNA ASLI Group Members

 

 

1.     ALLADINTEX ABADI, P.T. (Textile Manufacturing)

2.     BINTANG MANUNGGAL, P.T. Bank (Banking)

3.     CELEBESMINAHASA SURYAADIRA, P.T. (Animal Feed Industry)

4.     DASAR RUKUN, P.T. (Spinning Mills)

5.     DHARMA KOLIBA, P.T. Cipanas (Real Estate)

6.     ELANGPERDANA TYRE INDUSTRY, P.T. (Car and Truck Tire Industry)

7.     HANIN NUSAMULYA, P.T. (Garment Manufacturing)

8.     INDO ACIDATAMA CHEMICAL INDUSTRY, P.T. (Alcohol & Spiritus Distillation)

9.     INDOCITMAS LESTARI MANDIRI, P.T. (Distribution of Alcohol and Spiritus)

10.  INTITRAS BUSANAPRANA INTERNATIONAL, P.T. (Garment Manufacturing)

11.  KAMALTEX, P.T. (Spinning Mills)

12.  MEGA RUBBER FACTORY, P.T. Semarang (Tyre Manufacturing)

13.  MEGA SAFE TYRE INDUSTRY, P.T. (Tyre and Rubber Industry)

14.  METROPOLITAN SYNTHETIC CHEMICALS INDUSTRIES, P.T. (Integrated Textile Industry)

15.  NIRMALA AGUNG, P.T. Sukabumi (Plantation)

16.  PABRIK SEPATU FAMOUS, P.T. (Sports Shoe Manufacturing)

17.  PAN BROTHERS Tbk., P.T. (Garment Manufacturing)

18.  PANCA PRIMA EKABROTHERS, P.T.

19.  RUKUN JAYA, C.V. (Trading)

20.  SAMA MANDIRI, P.T. (Industrial Chemical Processing)

21.  SARI WARNA ABADI, P.T. (Industrial Chemical Processing)

22.  SARI WARNA ASLI TEXTILE INDUSTRY, P.T. (Integrated Textile Industry)

23.  SARI WARNA FINTEX, P.T. (Textile Dyed Chemical Manufacturing)

24.  SINAR PALEM ABADI, P.T. (Trading and Supplier)

25.  SUMBER RUKUN JAYA PRIMA, P.T. (General Trading and Distributor)

26.  TASINDO TASSA INDUSTRIES, P.T. (Rubber Glove Manufacturing)

27.  TATA RUBBERINDO INDUSTRIES, P.T. (Rubber Glove Manufacturing)

28.  THE FAST CHANNEL INDONESIA ELECTRONICS, P.T. (Computer Components Manufacturing)

29.  TOPTONE ELECTRONIC INDUSTRIES, P.T. (Electronic Component Manufacturing)

30.  TOYO ASAHI BICYCLE INDUSTRIES, P.T. (Bicycle Manufacturing)

31.  TRINUSA OPTIMA GARMENT INDUSTRY, P.T. (Garment Industry)

32.  TRISTATE GENERAL CORPORATION, P.T. (Trading and Supplier)

33.  TRISTATE TEXTILE LTD., P.T. (Spinning Mills)

34.  TUBANTIA KUDUS SPINNING MILLS, P.T. (Integrated Textile Industry)

35.  WIDJAJA & CO., C.V. Surabaya (General Trading and Distributor)

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.44

UK Pound

1

Rs.102.41

Euro

1

Rs.75.05

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TRU

 

               

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.