MIRA INFORM REPORT

 

 

Report No. :

501078

Report Date :

03.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

PILAR BALI

 

 

Registered Office :

Jalan Raya Sakah No. 5X, Batuan Kaler, Sukawati Gianyar, 80582, Bali Province

 

 

Country :

Indonesia

 

 

Date of Incorporation :

July, 2002

 

 

Legal Form :

Sole Proprietary Company

 

 

Line of Business :

Manufacturing of Wooden Furniture

 

 

No. of Employees :

45

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

 

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

 

 

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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Indonesia

A2

A2

 

Risk Category

ECGC

Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, the largest economy in Southeast Asia, 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. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to 33% today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.

Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to 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 has not yet materialized.

 

Source : CIA

 

 

COMPANY NAME

 

PILAR BALI

 

 

BASIC SEARCH

 

Name of Company:

PILAR BALI

 

Address:

Head Office, Workshop and Warehouse

Jalan Raya Sakah No. 5X

Batuan Kaler, Sukawati

Gianyar, 80582

Bali Province

Indonesia

Phone               - (62-361) 295 838 (still trouble)

Fax                   - (62-361) 295 838 (still trouble)

Mobile Phone    - 0852 5394 9500 (Mrs. Penny Herwanto)

E-mail               - pilarbalifurniture@gmail.com

Land Area         - 1,000 sq. meters

Building Space  - 800 sq. meters

Region              - Industrial Zone

Status               - Owned

 

Date of Incorporation :

July 2002

 

Legal Form :

Sole Proprietary Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

Not Required

 

Company Status :

National Private Company

 

Permit by the Government Department :

The Department of Finance

Not Available

 

Related Company :

None

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Owned Capital                                 : Rp. 360.0 million

 

Owner:

Mr. Andi Herwanto

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Wooden Furniture Manufacturing

 

Production Capacity :

Teak Wood Furniture (Outdoor and Indoor) - 8,000 cubic meters p.a.

 

Total Investment :

None

 

Started Operation :

July 2002

 

Brand Name :

Pilar Bali

 

Technical Assistance :

None

 

Number of Employee :

45 persons

 

Marketing Area :

Local       - 70%

Export    - 30%

 

Main Customer :

Hotels, villas, houses, office building, etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. C.V. INDAH JATI

b. C.V. MERTANADI

c. C.V. SARANA INDAH PERKASA

d. C.V. TIKA MAS

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r :

P.T. Bank CENTRAL ASIA Tbk

Jalan Raya Ubud No. 10

Ubud, Gianyar

Bali Province

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2015 – Rp. 7.0 billion

2016 – Rp. 7.6 billion

2017 – Rp. 8.2 billion

 

Net Profit (estimated) :

2015 – Rp. 560 million

2016 – Rp. 600 million

2017 – Rp. 656 million

 

Payment Manner :

Average

 

Financial Comments :

Fairly strong

 

 

KEY EXECUTIVES

 

Board of Management :

Director                                          - Mr. Andi Herwanto

General Manager                             - Mrs. Penny Herwanto

 

Board of Commissioners :

None

 

Signatories :

Director (Mr. Andi Herwanto) is only the authorized person to sign the loan on behalf of the company

 

 

CAPABILITIES

 

Management Capability :

Fairly Good

 

Business Morality :

Fairly Good

 

 

OVERALL PERFORMANCE

 

PILAR BALI (PB) was incorporated in Gianyar, Bali Province in July 2002 with the status of sole proprietary company, founded by Mr. Andi Herwanto, an indigenous businessman. The company’s capitalization is not mentioned when its establishment. In general, the company status of sole proprietary company shall increase its capital continuously together with its business development. We estimated PILAR BALI (PB) has capital of Rp. 360 million.

 

PILAR BALI (PB) is a sole proprietary company started with operating in July 2002 dealing with teak wood wooden furniture manufacturing. In its operation the company produces of furniture (outdoor and indoor) wholly raw materials from teak wood. The company manages workshop and warehouse as well as showroom located at Jalan Raya Sakah No. 5X, Batuan Kaler, Sukawati, Gianyar, Bali Province. PB has experience manufacturing furniture specializing in indoor and outdoor furniture from low to high end. Cutter, Profiler, Grinder, Sanding, and Bore-machine are the types of machines used in this company. Those machines are made in China, but purchased locally. All production steps except finishing is done in Eastern Java. Finishing will be processed in Bali until packing.

 

All materials are sourced in Situbondo, Eastern Java. In Situbondo, the company runs a facility of 3,000 sq. meters as the main workshops. There are also another two workshops located in Gianyar (Bali) that covers area of 1,000 sq. meters each. A separate showroom on 20 acre land is also located near to those workshops in Gianyar (Bali). In Bali, the company employed six full timers and 10 part timers. One picnic table measuring 50x50x50cm can be offered as the lowest priced item for $13.88. And the highest priced item is a gazebo made of teak with dimension 6x4x3mtr at $7,223. Teakwood is the main material used for outdoor furniture. Coco wood is commonly used for gazebos and pavilions. Other materials such as mahogany and tamarind wood are applied for indoor furniture aside teakwood.

 

One third of the output is outdoor furniture made of teak wood. Forty per cent of our output goes to regular customers from Japan. The rest goes to India, Australia, the US, Italy, Germany, Belgium, Venezuela and South Africa. OEM orders takes up 70 per cent of the production. The other 30 per cent is based on old designs that been reproduced, and sampling time is one week. The company provides all types of outdoor furniture including chairs, tables, benches, sofas, dining sets, chaise lounges, gazebos and pavilions. Chair is the biggest part of production, accounting for 30 per cent. Mrs. Penny Herwanto, Manager of the company explained some 70% of the products marketed locally through hotels, villas, office building, houses, and many more, while the rest is exported to Japan, Australia, India, Europe (Italy, Germany, Belgium), USA, Venezuela, and South Africa. We observe PB operation has been growing and developing well in the last three years.

 

Generally the demand for furniture products has basically been increasing in the last five years. However, the lack of woods as the basic materials becomes serious problem faced by wooden furniture producers. Therefore, lots of wooden furniture producers unable to fulfill the market demand. Besides, the price of woods in the country has highly been increasing in the last several years. In addition, the tight government policy in wooden products seems to burden the wooden product industries. The demand for wooden furniture products is estimated to be rising next year. However, the lack of woods and high prices of woods are estimated to influence the performance of wooden furniture products.

 

The Export Volume and Value of Indonesian Wooden Furniture, 2010 – 2016

Year

Volume (Thousand Ton)

Value (US$ Million)

2010

565.1

1,355.2

2011

453.3

1,134.2

2012

447.9

1,177.8

2013

427.1

1,203.2

2014

444.3

1,277.4

2015

437.1

1,352.2

2016

463.3

1,433.3

 

Until this time PB has not been registered with Indonesian Stock Exchange, so that they had not obliged to announce their financial statement. The management of PB is very reclusive towards outsiders and rejected to disclose its financial condition. We observed that total sales turnover of the company in 2015 amounted to Rp. 7.0 billion increased to Rp. 7.6 billion in 2016 rose to Rp. 8.2 billion in 2017 and projected to go on rising by at least 5% in 2018. The operation in 2017 yielded an estimated net profit of at least Rp. 656 million. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers.

 

The management of PB is led by Mr. Andi Herwanto (53) a businessman with experience in teak wood wooden furniture manufacturing. 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. PILAR BALI is sufficiently fairly good for business cooperation.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.04

UK Pound

1

INR 92.28

Euro

1

INR 80.62

IDR

1

INR 0.0047

 

Note: Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIS

 

 

Report Prepared by :

NIT

 

 

 

RATING EXPLANATIONS

 

Credit Rating

 

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.