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Report No. : |
341544 |
|
Report Date : |
22.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
P.T. OKI PULP & PAPER MILLS |
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|
|
|
Registered Office : |
Gedung Ranuza, 4th Floor, Jalan timor No. 10, Kel. Gondangdia, Kec. Menteng, Jakarta Pusat 10350 |
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Country : |
Indonesia
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Date of Incorporation : |
02.05.2012 |
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|
|
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Com. Reg. No.: |
C-UM.02.01.39627 |
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Legal Form : |
Limited Liability Company |
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|
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Line of Business : |
Pulp and Paper Industry |
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No. of Employees : |
10,000 [Planned] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Yet to Commence it’s Business Operations |
|
Payment Behaviour : |
Unknown |
|
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 |
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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.
OKI PULP & PAPER MILLS
A d d r e s s :
Head
Office
Gedung Ranuza, 4th
floor
Jalan timor No. 10
Kel. Gondangdia, Kec.
Menteng
Jakarta Pusat 10350
Phones - (62-21) 391 2089 (hunting)
Fax -
(62-21) 391 2180
Building Area - 5 storey
Office Space - 240 sq. meters
Region - Commercial
Status - Rent
Factory
Desa Air Sugihan
Kecamatan Air Sugihan
Kabupaten Ogan
Komering Ilir
South Sumatra
Indonesia
Land Area - 2,800 hectares
Region - Industrial
Zone
Status - Rent
Date of
Incorporation :
02
May 2012
Legal Form :
P.T. (Perseroan Terbatas) or Limited Liability Company
Company Reg. No. :
The Ministry of
Law and Human Rights
a. No. AHU-25005.AH.01.01.Tahun 2012
Dated 09 May 2012
b. No. AHU-42938.AH.01.02.Tahun 2012
Dated 09 May 2012
c. No. C-UM.02.01.39627
Dated 24 September 2013
Company Status :
Foreign Investment Company (PMA)
Permits by the
Government Department :
a. The
Department of Finance
NPWP No. 03.203.481.1-076.000
b. The Capital
Investment Coordinating Board
No. 361/1/IP/PMA/2012
Related/Affiliated Companies :
A member of the SINAR MAS Group or APP Group of Companies
CAPITAL AND OWNERSHIP
|
Capital Structure
:
Authorized Capital - Rp.
1,000,000,000,000.-
Issued Capital -
Rp. 850,000,000,000.-
Paid up Capital -
Rp. 850,000,000,000.-
Shareholders/Owners
:
a.
Mr. P.T. MUBA GREEN INDONESIA -
Rp. 250,000,000,000.- (29.4%)
Address : Gedung Ranuza, 4th Floor
Jl. Timor No. 10
Jakarta Pusat
Indonesia
b.
P.T. PABRIK KERTAS TJIWI KIMIA Tbk. -
Rp. 300,000,000,000.- (35.3%)
Address : Plaza BII Menara 2, 9th Floor
Jl. M.H. Thamrin No. 51
Jakarta Pusat
Indonesia
c.
P.T. PINDO DELI PULP & PAPER MILLS -
Rp. 300,000,000,000.- (35.3%)
Address : Plaza BII Menara 2, 9th Floor
Jl. M.H. Thamrin No. 51
Jakarta Pusat
Indonesia
BUSINESS ACTIVITIES
|
Lines of Business
:
Pulp and Paper Industry
Production
Capacity :
a. Pulps -
2,000,000 tons p.a.
b. Tissue papers - 500,000 tons p.a.
Total Investment :
It’s estimated - US$ 3.0 billion
(planned)
Started Operation
:
2 0 1 6 (planned)
Brand Name :
OKI PULP & PAPER
Technical
Assistance :
None
Number of Employee
:
10,000 persons (planned)
Marketing Area :
Local and Export (planned)
Main Customer :
No Comment
Market Situation :
Very Competitive
Business Trend :
No Comment
BANKER, AUDITOR & LITIGATION
|
B a n k e r :
P.T. Bank SINARMAS
Tbk
Sinar Mas Land Plaza,
Tower 1
Jalan M.H. Thamrin No. 51
Jakarta 10350
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
FINANCIAL FIGURE
|
Annual Sales/Revenues:
None
Net Profit (Loss)
:
None
Payment Manner :
No Comment
Financial Comments
:
No Comment
KEY EXECUTIVES
|
Board of Management :
President Director - Mr. Liu Han Hung
Vice President Director - Mr. Hendra Jaya Kosasih
Director s -
a. Mr. Lin Shun Keng
b. Mr. Wong Hong Siong
c. Mr. Suhendra Wiriadinata
d. Mr. Kurniawan Yuwono
e. Mr. Frenky Loa
Board of Commissioners :
President Commissioner - Mr. Teguh Ganda Wijaya AKA Oei
Tjie Goan
Commissioners - a. Mrs. Linda Suryasari Wijaya Limantara
b. Mr. Herawan Hadidjaja
Signatories :
President Director (Mr. Liu Han Hung)
or Vice President Director (Mr. Hendra Jaya Kosasih) or one of the Directors (Mr.
Lin Shun Keng, Mr. Wong Hong Siong, Mr. Suhendra Wiriadinata, Mr. Kurniawan
Yuwono or Mr. Frenky Loa) which must be approved by President Commissioner (Mr.
Teguh Ganda Wijaya AKA Oei Tjie Goan) or Commissioners (Mr. Mrs. Linda
Suryasari Wijaya Limantara or Mr. Herawan Hadidjaja)
CAPABILITIES
|
Management Capability :
Good
Business Morality :
Good
OVERALL PERFORMANCE
|
P.T. OKI PULP & PAPER MILLS (P.T. OPPM)
was established in Jakarta based on Notary Deed of Sri Hadianingsih Adi Sugijanto,
SH., No. 02 dated May 2, 2012 with the authorized capital of Rp.
1,000,000,000,000 of which Rp. 250,000,000,000 was issued and fully paid
up. The founding shareholders of the
company are P.T. MUBA GREEN INDONESIA of Indonesia (99%) and GREEN UNITY
HOLDING Pte. Ltd., of Singapore (1%).
The Deed of establishment was approved by the Minister of Justice of the
Republic of Indonesia through its Decision Letter No. AHU-25005.AH.01.01.Tahun
2012 dated May 9, 2012.
Its articles of association have subsequently
been changed for several times. In
August 2013, the authorized capital was raised to Rp. 3,000,000,000,000 of
which Rp. 850,000,000,000 was issued and fully paid up. Since at the time, the shareholders of the
company are P.T. MUBA GREEN INDONESIA (29.4%), P.T. PABRIK KERTAS TJIWI KIMIA
Tbk. (33.3%) and P.T. PINDO DELI PULP AND PAPER MILLS (35.3%). The amendment to Deed has been approved by the
Minister of Law and Human Rights of the Republic of Indonesia through Decree
No. AHU-AH.01.10-39627 dated September 24, 2013. Since then, no changes have
been effected in term of its shareholding composition and capital structures to
date.
P.T. OPPM obtained a foreign investment
company (PMA) facility issued by Investment Coordinating Board (BKPM) in 2012
for dealing with pulp and paper industry with is plant located in Desa Air
Sugihan, Air Sugihan district, Ogan Komering Ilir regency, South Sumatra, where
it stands on a 2,800 hectares landsite.
According to plant, P.T. OPPM will produce 2.0 million of pulps per year
and need at least wood raw materials of 8.6 million tons per year. Total investment will be absorbed to the
construction of the plant is estimated at US$ 3.0 billion. In addition, the company will also be
producing tissue paper with a production capacity of 500,000 tons per
year. It’s estimated that total
investment for the construction of the plant tissue to absorbed investment of
US$ 500 million. Mr. Gandhi Sulistiyanto,
managing director of SINAR MAS Group explained that P.T. OPPM already signed a
loan agreement with China Development Bank (CDB) on October 3, 2013. For the first stage of CDB provide a loan of
US$.1.8 billion. The construction of the
pulp mill is expected to be completed in early of 2016 and could produce at the
end of 2016.
On August 28, 2015, the Indonesian government granted PT OPPM and dried to obtain exemption of corporate income tax for eight years. It is approved by the decision of the Minister of Finance No. 803 / K.010 / 2015 of the Facility Exemption and Reduction of Corporate Income Tax to PT. OPPM. Mr. Gandi Sulistiyanto, managing director of the Sinar Mas Group said that PT OPPM get income tax exemption (VAT) Board for eight years, coupled with drought Firm PPH by 50% over two years.
Generally, the demand for pulp and papers
has kept on rising about 7% to 8% per year in the last five years. The global
economy condition is expected to remain unpredictable in 2015. Macroeconomic
indicators from China showed downward trend.
In contrary, macroeconomic indicators of the US and India showed
improvement. Both of these indicated
continued uncertainties. In Europe,
concerns on the development of Greece’s economy are also expected to add
uncertainties in the global economy environment. Despite these uncertainties, many analysts
expected positive outlook for the Asian region.
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 |
6.1 |
6.5 |
6.2 |
5.8 |
5.1 |
|
• Consumer Price Index |
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. OPPM 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. We have checked to Department of Trade and
Industry and found that no financial statement has been reported. P.T. OPPM’s
management is very reclusive to outsider and rejecting to disclose its
financial condition. In view of P.T.
OPPM having yet to be in operation commercially as told above, so the financial
condition of the company is the same as its fully paid up capital of Rp.
850,000,000,000 as stated in the company’s Notary Deed. Observing P.T. OPPM having yet to be in
operation, we are not in position of appraise the company’s financial
condition. So far, we did not heard that
the company registered with the black list of Bank of Indonesia (Central Bank)
or involved in the civil case that settled through the local courts.
The management of P.T. OPPM is led by Mr.
Liu Han Hung (54) as president director and CEO of the company. He is a professional manager from
Taiwan. In his daily activities, he is
assisted by Mr. Hendra Jaya Kosasih (55) of Indonesia as vice president
director, and also assited by five directors.
The company’s management has wide relations with private businessmen
within and outside the country and with the government sector. So far we have never heard that the board of
directors and commissioners of the company involved in business malpractices or
detrimental cased that settled through at the local courts. The company’s litigation record is clean and
they have never involved in civil or criminal cases or politics in the country.
Considering P.T. OPPM has yet been commercial operation we recommend to treat
prudently in extending a loan to the company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.75 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.74.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.