MIRA INFORM REPORT

 

 

Report No. :

341120

Report Date :

18.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. MINEMEX INDONESIA

 

 

Registered Office :

Jl. Hayam Wuruk LRG Setia No.16, RT.07, Kel. Talangjauh, Kec. Jelutung, Jambi Province 36133, Sumatera

 

 

Country :

Indonesia

 

 

Date of Incorporation :

29.04.2008

 

 

Com. Reg. No.:

AHU-AH.01.10-10442

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Coal Mining

 

 

No. of Employees :

120

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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

 

Correct Name of Company :

P.T. MINEMEX INDONESIA

 

A d d r e s s :

Head Office

Jl. Hayam Wuruk LRG Setia No.16, RT.07

Kel. Talangjauh, Kec. Jelutung

Jambi Province 36133

Sumatera, Indonesia

Phone               - (62-741) 775 2953

Fax.                  - (62-741) 775 2953

Cellular phone   - (62) 815 880 1635

Building Area    - 3 storey

Office Space    - 260 sq. meters

Region              - Commercial

Status               - Owned

 

Mining Sites

Dusun Tebat RT.05/06, Desa Mandiangin

Mandiangain district,  Sarolangun regency

Jambi Province

Sumatera, Indonesia

Land Area         - 3,700 hectares

Building Space  - 160 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

29 April 2008

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

c.   No. AHU-27705.AH.01.01.Tahun 2008

   Dated 26 May 2008

b.   No. AHU-32543.AH.01.02.Tahun 2011

   Dated 28 June 2011

c.   No. AHU-AH.01.10-10442

   Dated 21 March 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

The Department of Finance

NPWP No. 02.763.966.5-333.000

 

Holding Company :

P.T. THRIVENI (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 34,200,000,000.-

Issued Capital                                 - Rp. 11,400,000,000.-

Paid up Capital                               - Rp. 11,400,000,000.-

 

Shareholders/Owners :

a. P.T. THRIVENI                                     - Rp. 10,260,000,000.- (90%)

    Address : Wisma Nugra Santana, 14th Floor

                    Jl. Jend. Sudirman Kav. 7-8

                    South Jakarta

                    Indonesia

b. Mr. Balasubramanian Karthikenyan     - Rp.   1,140,000,000.- (10%)

    Address : Apart. Menara Kalapa Gading No. 88

                    Jl. Pegangsaan II, Kelapa Gading

                    North Jakarta

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Coal Mining

 

Production Capacity :

Coal     - 3.0 million tons p.a.

 

Total Investment:

Owned Capital      - Rp. 34.2 billion

 

Started Operation :

January 2012

 

Brand Name :

Minemex Indonesia

 

Technical Assistance :

Thriveni Earthmovers Ptv. Ltd., of India

 

Number of Employee :

120 persons

 

 

Marketing Area :

Export  - 95%

Local    -   5%

 

Main Customer :

All coal marketing is handled by Thriveni Resomin Pte. Ltd., Singapore

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Truba Bara Banyu Enim

b. PT. Manambang Muara Enim

c. PT. Bumi Merapi Energi

d. PT. Kusuma Raya Utama

e. PT. Bara Alam Utama

f.  PT. Budi Gema Gempita

 

Business Trend :

Declining

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank NEGARA INDONESIA Tbk

Jambi Branch

Jl. Dr. Sutomo No. 20

Jambi Province

Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2012 – US$. 129.5 million

2013 – US$. 120.4 million

2014 – US$.   97.0 million

2015 – US$.   43.6 million (January – June)

 

Net Profit (loss) :

2012 –  US$. 8.4 million

2013 –  US$. 4.6 million

2014 – (US$. 5.8 million)

2015 – (US$. 4.6 million) (January – June)

 

Payment Manner :

Average

 

Financial Comments :

Weak

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Balasubramanian Karthikeyan

Directors                                         - a. Mr. Chinnarasu Kumaresan

                                                        b. Mr. Natarajan Murugesan

 

Board of Commissioner :

Commissioner                                 - Mr. Balasubramanian Prabakara

 

Signatories :

President Director (Mr. Balasubramanian Karthikeyan) or one of the Directors (Mr. Chinnarasu Kumaresan or Mr. Natarajan Murugesan) which must be approved by Board of Commissioner (Mr. Balasubramanian Prabakara)

 

 

CAPABILITIES

 

Management Capability :

Fairly

 

Business Morality :

Fairly

 

 

OVERALL PERFORMANCE

 

P.T. MINEMEX INDONESIA (P.T. MI) was established on April 29, 2008 with the authorized capital of Rp. 1,000,000,000 of which Rp. 550,000,000 was issued and fully paid up. The founding shareholders of the company are Mr. Muchlish Murtadio (5%), Mr. Nelson Oloan Siregar (5%) and Miss Renny Indah Sari (90%).  The Deed of establishment has been approved by the Minister of Law and Human Right through its Decree No. AHU-27705.AH.01.01.Tahun 2008 dated 26 May 2008.   The articles of association of the company have frequently been revised.  In June 2011, the founding shareholders withdrew and the whole shares are sold to P.T. THRIVENI, a private company and Mr. Balasubramanian Karthikesan, a businessman of India.

 

The most recently by Notary Deed No. 44 dated February 20, 2013 of Mrs. Djumini Setyoadi, SH., the authorized capital was raised to Rp. 34,200,000,000.- of which Rp. 11,400,000,000.- was issued and fully paid up.  Since then, the shareholders of the company are P.T. THRIVENI (90%) and Mr. Balasubramanian Karthikesan (1%).  This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.10-10442 dated March 21, 2013. Since then, no changes have been effected in term of its shareholding composition and capital structures to date.

 

P.T. MI has been in operation since in 2012 dealing with coal mining.  The company has taken over a coal concession of “IUP” mining authorization as per new mining law in Mandiangin district, Sarolangun regency, Jambi province in an area of 3,700 hectares. All coal marketing will be handled by Thriveni Resomin Pte. Ltd., of Singapore, a wholly owned subsidiary of Thriveni Earhmovers Ptv. Ltd. of India. In addition, the Company has constructed their own Jetty at their intermediate stockpile at Jebak for Coal Barging from Muara Jebak to their main stockpile at Talang Duku, Now Jetty is used for barging.  In order to overcome port congestion at Talang Duku, Jambi and expand their stockpile, the Company has built their own port in the name of PT. Karya Bakthi Project and is fully operational as of January 2012 with 3 berths.  The company’s coal specifications (TRPL ECO 1) are:

 

1. Commodity               : Thermal Steam Coal (Non-Coking) in Bulk
2. Country of Origin       : Indonesia, Sumatra, Jambi
3. Annual Capacity        : 1.1 million Metric Tons for 2012 and 3 million metric tons in 2013
4. Quality                      : According to ASTM testing specification as below
5. Offering                    : FOB Mother Vessel Geared and Grabbed
6. Anchorage Port         : Muara Sabak, Sumatra, Indonesia
7. Loading Rate                         : Min 7,000MT Per Day WWD SHINC

 

Description

 

Offered

Limits

Gross Calorific Value (ADB)

5,400 Kcal/kg

Below 5,200 Kcal/kg

Calorific Value As Received (GAR)

3,650

3,550

Total Moisture (ARB)

38 pct approx.

Above 41 pct approx.

Inherent Moisture (ADB)

13 pct approx.

17 pct approx.

Total Sulphur (ADB)

0.15 pct

Above 0.30 pct

Ash Content (ADB)

6 pct

Above 8 pct

Volatile Matters (ADB)

40 pct approx.

Limits

Fixed Carbon (ADB)

By difference

Below 5,200 Kcal/kg

HGI

60 approx

3,550

Size 0-50mm

85 pct approx

Above 41 pct approx.

 

Since 2005, Indonesia has become one of the largest coal producers and exporters in the world.  Data from BP Statistical Review of World Energy report (June 2014) put Indonesia as the fourth largest coal producer after China, the United States and Australia (as of 2013).  Most of the exported thermal coal is of medium quality (between 5,100 and 6,100 ca/gram) and low quality (under 5,100 ca/gram), largely absorbed by Chinese and Indian markets.  In 2014, the coal industry did not indicate any improvement, as the coal market did not move from its oversupply and declining demand positions since 2011, China, which has been the world’s largest coal importer, began to reduce the use of low ranked coal and has developed an environmentally friendly power plan as pollution levels in China’s large cities has become very high.  India, the largest coal importer after China, was hit by uncertainty due to a weakened economy and political problems.

 

In 2015, the coal market conditions are not expected to undergo significant changes as compared to 2014.  As reported in BP World Statistical Review of World Energy 2014, coal consumption would continue to grow by 3%.  Although this figure is still below the average growth in the last 10 years of 3.9%, nevertheless coal is a fossil fuel with the most rapid growth. According to the International Energy Agency (IEA), world energy demand will rise by 45% by 2030, or equivalent to an average of 1.6% growth per annum.  Around 80% of world’s energy needs will be fulfilled by fossil fuel.  Only around 20% will be covered by renewable energy.  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 tons in 2014.   Meanwhile, coal price in the international market continues to fall from US$ 86.62 per metric ton, to US$ 80.31 per metric ton in 2013 dropped again to US$ 64.65 per metric ton in 2014. Currently, coal prices continue to decline ranged US$ 58 to 60 per metric tons.

 

Until this time P.T. MI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. The management of P.T. MSJ 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 US$.129.5 million declined to US$.120.4 million in 2013 and dropped again to US$ 97.0 million in 2014.  The company's sales turnover is estimated to be down again for at least 10% in 2015, due to the falling price of coal in the last two years.  The operation in 2014 yielded an estimated net loss of US$.5.8 million and the company has a total asset of US$.40.0 million.  So far we did not hear that the P.T. MI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of P.T. MI is led by Mr. Balasubramanian karthikeyan (41) as President Director.  He also sits as Executive Director of Thriveni Earthmovers Pvt., Ltd. India. In his daily activities, he is assisted by Mr. Chinnarasu Kumaresan (44) and Mr. Natarajan Murugesan (45), both as directors respectively.  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.

 

Considering the operation of P.T. MI declined in the last two years and 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.66.50

UK Pound

1

Rs.102.00

Euro

1

Rs.75.03

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

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.