MIRA INFORM REPORT

 

 

Report No. :

341513

Report Date :

28.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. AJINOMOTO INDONESIA

 

 

Registered Office :

Jl. Laksda Yos Sudarso No. 77-78 Sunter By Pass Jakarta 14350

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.03.2014 (Consolidated)

 

 

Date of Incorporation :

07.02.1969

 

 

Com. Reg. No.:

No. AHU-AH.01.10-26862

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :
  • Monosodium glutamate (MSG), Glutamic Acid (GA) and Food Flavoring Manufacturing
  • Investment Holding

 

 

No. of Employees :

1,270 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 :

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. AJINOMOTO INDONESIA

 

Address :

Head Office

Jl. Laksda Yos Sudarso No. 77-78

Sunter By Pass

Jakarta 14350

Indonesia

Phones             - (62-21) 6530 4455 (hunting)

Fax                   - (62-21) 6517 282

P.O. Box          - 1019/JKU

Email                - info@ajinomoto.co.id

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

Building Area    - 6 storey

Office Space    - 1,200 sq. meters

Region              - Commercial

Status               - Rent

 

Factories

  a.  Desa Mlirip Jetis

      Mojokerto, East Java

      Indonesia

Phones             - (62-321) 361 710 (hunting)

Fax                   - (62-321) 361 708

P.O. Box          - 110 Mojokerto

Land Area         - 15.0 hectares

Building            -   9.5 hectares

Region              - Industrial Zone

Status               - Rent

  b.  Karawang International Industrial City (KIIC)

      Jl. Harapan Raya Blok JJ-1

      Karawang, West Java

      Indonesia

Land Area         - 16.7 hectares

Building            - 12.5 hectares

Region              - Industrial Estate

Status               - Rent

 

Date of Incorporation :

07 February 1969

 

Legal Form :

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

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. C-3721.HT.01.04.Th.2000

      Dated 23 February 2000

  b.  No. AHU-51521.AH.01.02.Tahun 2009

      Dated 26 October 2009

  c.  No. AHU-AH.01.10-26862

      Dated 02 July 2013

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

  a.  The Department of Finance

      NPWP No. 01.001.681.4-092.000

 

  b.  The President of the Republic of Indonesia

      No. B-114/Pres/10/1968

      Dated 14 October 1968

 

  c.  The Capital Investment Coordinating Board

      - No. 26/II/PMA/1979

        Dated 07 November 1979

      - No. 18/II/PMA/1980

        Dated 13 May 1980

      - No. 25/III/PMA/1982

        Dated 07 June 1982

      - No. 14/II/PMA/1987

        Dated 09 March 1987

      - No. 58/II/PMA/1989

        Dated 26 September 1989

      - No. 747/III/PMA/1991

        Dated 24 October 1991

      - No. 01/II/PMA/1995

        Dated 02 January 1995

      - No. 313/II/PMA/2000

        Dated 13 November 2000

      - No. 333/III/PMA/2002

        Dated 17 April 2002

      - No. 39/III/PMA/2003

        Dated 13 January 2003

 

Related/Affiliated Companies :

a. AJINOMOTO Co. Inc., of Japan (Investment Holding)

b. P.T. ESTIPURA KENCANA (Investment Holding)

c. P.T. AJINOMOTO SALES INDONESIA (Distribution of Ajinomoto’s Products)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - US$ 10,000,000.-

Issued Capital                                 - US$   8,000,000.-

Paid up Capital                               - US$   8,000,000.-

 

Shareholders/Owners :                  

  a. AJINOMOTO Co. Ltd.                - US$ 4,000,000.- (50%)

     Address : 1-15-1, Kyobashi Chuo-Ku

                     Tokyo, 104-0031

                     Japan

  b. P.T. ESTIPURA KENCANA        - US$ 4,000,000.- (50%)

     Address : Jl. K.S. Tubun II No.27

                     West Jakarta

                     Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Monosodium glutamate (MSG), Glutamic Acid (GA) and Food Flavoring Manufacturing

b. Investment Holding

 

Production Capacity :

a. Monosodium Glutamates (MSG)   -   56,000 tons p.a.

b. Glutamic Acids (GA)                    -   40,000 tons p.a.

c. Liquid Amina Fertilizers                - 310,000 tons p.a.

d. FML Vitra                                    -     4,500 tons p.a.

e. Gypsums                                    -   13,950 tons p.a.

f.  Amina-G (Granular)                      -        750 tons p.a.

g. Non Active Carbon (NAC)            -   12,700 tons p.a.

h. Seasoning (Masako & Sajiku)       -   23,830 tons p.a.

 

Total Investment :

a. Owned Capital           - US$. 10.0 million

b. Reinvested Profit      - US$. 28.0 million

b. Loan Capital              - US$. 47.8 million

c. Total Investment        - US$. 85.8 million

 

Started Operation :

1 9 7 0

 

Brand Name :

Ajinomoto Indonesia

 

Technical Assistance :

Ajinomoto Co. Inc., of Japan

 

Number of Employee :

1,270 persons

 

Marketing Area :

a. Local   - 86%

b. Export - 14%

 

Main Customers:

a. PT. Ajinomoto Indonesia (as sole distributor)

b. Export of Middle East and North Afrika

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Sasa Inti

b. PT. Unilever Indonesia Tbk

c. PT. Miwon Indonesia

d. PT. Indofood CBP Sukses Makmur Tbk

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers:

  a.  The Bank of Tokyo Mitsubishi UFJ Ltd.

      MidPlaza Building

      Jl. Jend. Sudirman Kav. 10-11

      Jakarta Selatan

  b.  P.T. Bank MANDIRI Tbk

      Mandiri Plaza

      Jl. Gatot Subroto Kav. 36-38

      Jakarta Selatan

  c.  P.T. Bank MIZUHO INDONESIA

      Sinar Mas Land Plaza, Menara 2

      Jl. M.H. Thamrin No. 51

      Jakarta Pusat

  d.  CITIBANK N.A.

      Citibank Tower

      Jl. Jend. Sudirman Kav.54-55

      Jakarta Selatan

 

Auditor :

Purwantono, Suherman & Surja (Registered Public Accountant)

 

Litigation :

No litigation record in our database

 

FINANCIAL FIGURE

 

Annual Sales/Net Sales :

2012 – Rp. 3,066.6 billion (estimated)

2013 – Rp. 3,484.8 billion

2014 – Rp. 3,664.9 billion

 

Net Profit (Loss) :

2012 – Rp. 229.5 billion (estimated)

2013 – Rp. 260.9 billion

2014 – Rp. 238.6 billion

 

Total Assets :

2012 – Rp. 2,248.2 billion (estimated)

2013 – Rp. 2,443.7 billion

2014 – Rp. 2,642.5 billion

 

Payment Manner :

Almost promptly

 

Financial Comments :

Strong and sound

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Kaoru Kurashima

Vice President Directors                  - a. Mr. Shuhei Sato

                                                        b. Mr. Akio Nishi

 

Directors                                         - a. Mr. Naoto Hirano

                                                        b. Mr. Kenichiro Nakamura

                                                        c. Mr. Danie Tjandra

                                                        d. Mrs. Evita Maria Tjen

                                                        e. Mr. Wilyanto Ariifn

                                                        f. Mr. Eddy Sungkono

                                                        g. Mrs. Aili Susanto

                                                        h.  Mrs. Santa Agustian

                                                        i.  Mr. Soetanto

 

Board of Commissioners :

President Commissioner                  - Mr. Etsuhiro Takato

Commissioner                                 - Mr. Victor Fungkong

 

Signatories :

President Director (Mr. Kaoru Kurashima) or one of Vice President Directors (Mr. Shuhei Sato or Mr. Akio Nishi) or one of the directors (Mr. Naoto Hirano, Mr. Kenichiro Nakamura and others director) which must be approved by Board of Commissioners (Mr. Etsuhiro Takato and Mr. Victor Fungkong)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. AJINOMOTO INDONESIA (P.T. AI) was established based on notary Deed No. 7 dated February 7, 1969 of J.F.B.T. Sinyal, SH.,  with the authorized capital of US$ 1,000,000.- of which US$ 200,000.- was issued and fully paid up. The founding shareholders of the company are Ajinomoto Co. Inc., of Japan (50%) and PT. Soda Indonesia of Indonesia (50%).  The Company’s Articles of Association have been amended several times.  In 1998, PT. Soda Indonesia pulled out and the whole shares are sold to PT. Estipura Kencana as a new shareholder.  The Company’s Articles of Association has been amended from time to time.  In August 1998, the authorized capital was raised to US$ 10,000,000.- of which US$ 8,000,000.- was issued and fully paid up.  The shareholders of the company are Ajinomoto Co. Ltd., (50%) and PT. Estipura Kencana (50%).

 

We note that the Company’s board of directors and commissioners has been amended for several times.  Later according to the latest amendment of notary Deed of Irma Devita Purnamasari, SH., No. 91 dated 10 June 2013 the company’s board of directors and commissioners had been changed. The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-26862 dated July 2, 2013. The capital structures and shareholder composition of P.T. AI in details are as shown on page-4 of this report. No changes have been effected in term of its shareholding composition and capital structures to date.

 

Pursuant to notarial Deed, P.T. AI (“the Company”) is engaged in the production and sale of Monosodium Glutamate (MSG), Glutamic Acid (GA) and food flavoring (Masako, Sajiku, Ajiplus, Saori).  MSG, Masako, Sajiku, Ajiplus and Saori are sold, through the Company’s distributors, whilst GA is sold to other MSG Manufacturers as their main raw materials.  The Company’s by-products are sold to farmers to the used as fertilizers.

 

We observed that P.T. AI was established within the framework of foreign investment (PMA), which has received permit from the Investment Coordinating Board (BKPM) engaged in monosodium glutamate (MSG) and glutamic acid (GA) manufacturing and investment holding. Its plant is located  at Jalan Raya Mlirip, Jetis, Mojokerto, East Java, on a land of some 15.0  hectares. The plant had been operating since 1970, running and growing well as yet.  P.T. AI gets technological assistance and license from Ajinomoto Co. Inc., of Japan.  It’s production capacity has frequently been expanded and now the plant has absorbed a total investment of US$ 85.8 million coming from company a capital of US$ 10.0 million, reinvested profit of US$ 28.0 million and the remainder from loans. The products are using AJINOMOTO for monosodium glutamate (MSG), MASAKO for flavored and broth seasoning, SAJIKU for ready-to-use seasoning for dried spices, SAORI for oriental sauce, MAYUMI for mayonnaise, CALPICO and BIRDY for soft drink.

 

P.T. AI once ceased operation for four months started from the end of 2000 until the early of 2001 for the products was found to have pig enzyme which is prohibited for Moslem peoples. But as from the early of March 2001, P.T. AI resumed operation after obtaining clearance certificate issued by Indonesian Ulemas Council (MUI).  In 2012, P.T. AI obtained a license from Investment Coordinating Board (BKPM) for increasing production capacity of flavored and broth seasoning (MASAKO) with new plant in Karawang, West Java on land of some 16.7 hectares. Construction of the expansion plant absorbed an investment by JPY.3.5 billion or Rp 382.3 billion.  This will double current production capacity and respond to the ongoing rapid growth of the liquid seasoning market in Indonesia.  The start of construction was in February 2013, with operations to start in June 2014

 

Some 14% of its products are exported to including Middle East and North Africa such as Egypt, Bangladesh, Pakistan and Turkey, while the rest 86% for  domestic purpose.   Besides, P.T. MIT has also engaged  in  the investment holding, it controls 80% shares of P.T. AJINOMOTO SALES INDONESIA, engaged in the distribution and marketing agent of P.T. AI’ products.  We observed that P.T. AI is classified as the largest company of its kind in the country of which the operation has been growing in the last three years.

 

Generally the demand for Indonesian MSG, GA and food seasoning has been rising by the average 6% to 7% per year within the last five years, in line with the people's growing consumption of various foods and drinks particularly restaurant, fast food and snacks. The growth rate is now estimated at 5% to 7% per year. Market competition is very tight due to a large number of similar companies operating in the country such as Sasa, Miwon, Rayco, Mikimoto, Indomoto, Mi Pung and others. Business position of P.T. AI is favorable for it has controlled a wide marketing network at home and abroad and their product has been widely known among consumers in the country.

 

According to statement of income with audited by Purwantono, Suherman & Surya (Registered Public Accountant), the net sales/revenues of P.T. AJINOMOTO INDONESIA (P.T. AI) in fiscal 2013 (for the year ended 31 March 2013) amounted to Rp. 3,484.8 billion with a net profit of Rp. 260.9 billion increased to Rp. 3,664.9 billion with a net profit of Rp. 238.6 billion in 2014.  The company’s statement of financial position and statement of income in fiscal 2013 and 2014 are attached.    Up to present, we have yet to gain the statement of income of P.T. AI in fiscal 2015.    It is projected that total sales turnover of the company will increase at least 8% in 2015.  So far we did not hear that the P.T. AI has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.  The company usually pays its debts punctually to suppliers.

 

a.    Criminal Check

           

Based information from Jakarta and Mojokerto District Police P.T. AJINOMOTO has never involved in criminal report. Therefore there is no criminal report that registered on the name of P.T. AJINOMOTO INDONESIA.

 

b.    Bankruptcy Check

 

We have observed to the Commercial Court in Indonesia, there is no bankruptcy report that registered on the name of P.T. AJINOMOTO INDONESIA. No found nationwide for the previous several years.

 

c.    Past and Current Litigations

 

We have observed to the Court in Indonesia, there is no litigation report that registered on the name of the Subject. P.T. AJINOMOTO INDONESIA is not engaged in any material litigation, claims and/or arbitration, either as plaintiff or defendant and has no knowledge of any proceedings, pending or threatened, or of any facts likely to give rise to any proceedings which might materially and adversely affect the financial position of business of companies.

 

No detrimental were found with the applicant involved during the investigation. Based on some information from some reliable sources, no detrimental records were found with the applicant involved during the investigation.  The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

Since June 2013, the management of P.T. AI is led by Mr. Kaoru Kurashima (55) replacing Mr. Yoshimasa Yoshimiya as President Director.  In his daily activities, he is assisted by two vice president directors namely Mr. Shushei Sato (42) and Mr. Akio Nishi (57), both are professional managers from Japan.  Beside, the Company’s management is also assisted by nine (9) directors from Japan and Indonesia.  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 in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. AJINOMOTO INDONESIA is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable and slowdown, we recommend to treat prudently in extending any new loan to the company.

 

 

Attachment

 

PT. AJINOMOTO INDONESIA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

31 March 2014 And 2013

 

                                                                                                                                                        (in million Rupiah)

DESCRIPTION

31 March

2014

2013

ASSETS

 

 

a. Current Assets

 

 

    - Cash and equivalents

581,473

251,435

    - Trade receivables, net

156,301

150,087

    - Other receivables, net

6,597

7,723

    - Inventories, net

490,860

611,836

    - Prepaid taxes - current

136,800

4,494

    - Advances and other prepaid expenses

20,537

60,335

   Total Current Assets

1,255,904

1,085,910

b. Non Current Assets

 

 

    - Investment property, net

58,843

83,743

    - Fixed assets, net

1,177,474

1,133,632

    - Prepaid taxes – non-current

15,331

14,458

    - Other assets

16,785

18,365

    - Deferred tax assets

118,167

107,620

    Total Non Current Assets

1,386,600

1,357,818

TOTAL ASSETS = TOTAL LIABILITIES AND EQUITY

2,642,504

2,443,728

LIABILITIES AND EQUITY

 

 

a. Current Liabilities

 

 

    - Short-term loans

13,685

26,241

    - Account payables

407,894

417,464

    - Accrued expenses

125,788

107,948

    - Taxes payable

21,777

14,753

   Total Current Liabilities

569,144

566,406

b. Non Current Liabilities

 

 

    - Provision for employee benefits

240,753

259,964

c. Equity

 

 

    - Share capital, issued and paid up capital

2,608

2,608

    - Exchange rate differences from paid in capital

2,709

2,709

    - Retained earnings

1,926,315

1,734,885

- Other components of equity

(57,212)

(87,891)

     Total Equity

1,832,607

1,617,358

STATEMENT OF INCOME

 

 

Net Sales

3,664,938

3,484,767

Cost of Sales

(2,500,758)

(2,268,596)

Gross Profit

1,164,180

1,216,171

Operating Expenses

(832,688)

(838,840)

Operating Profit

331,492

377,331

Other Income (Expenses)

3,102

886

Profit Before Income Tax

334,594

378,217

Income Tax Expense

(96,024)

(177,307)

Net Profit

238,570

260,910

 

Notes: Audited by Purwantono, Suherman & Surya (Registered Public Accountants)

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.10

UK Pound

1

Rs.100.89

Euro

1

Rs.73.96

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

VNT

 

               

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.