MIRA INFORM REPORT

 

 

Report No. :

502284

Report Date :

14.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

PT. KUTAI REFINERY NUSANTARA

 

 

Formerly Known As :

PT. BINTANG GARUDA MAS RAYA

 

 

Registered Office :

Jl. Teluk Betung No. 36 , Kelurahan Kebon Melati, Kecamatan Tanah Abang
Kota Jakarta Pusat 10230 , DKI Jakarta - Indonesia

 

 

Country :

Indonesia

 

 

Date of Incorporation :

05.05.1997

 

 

Legal Form :

Private Limited Liability Company or Perseroan Terbatas (PT)

 

 

Line of Business :

Manufacture of oils and fats

Mineral oil refining

 

 

No. of Employees :

200

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

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

 

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 IDENTIFICATION

 

 

Company Name

PT. Kutai Refinery Nusantara ( Previous Name : PT. Bintang Garuda Mas Raya )

 

Address

Jl. Teluk Betung No. 36
Kelurahan Kebon Melati, Kecamatan Tanah Abang
Kota Jakarta Pusat 10230
DKI Jakarta - Indonesia

 

 

Telephone

+622122391600

Fax

N.A.

Mobile Phone

N.A.

 

 

Email

yenty_citra@indonesiapartners.com

Web

N.A.

 

 

 PROFILE

 

 

 

Address

Jl. Teluk Betung No. 36
Kelurahan Kebon Melati, Kecamatan Tanah Abang
Kota Jakarta Pusat 10230
DKI Jakarta - Indonesia

 

 

Office Building

a.

Area - Commercial

b.

Status - Leased

 

 

Date of Establishment

- 

05 May 1997 as PT. Bintang Garuda Mas Raya

- 

03 October 2016 as PT. Kutai Refinery Nusantara

 

 

Start Operation

1999

 

 

Legal Status

Private Limited Liability Company or Perseroan Terbatas (PT)

 

 

Legalization (historical)

No. C-16169 HT.01.01.Th.99
Dated, 08 September 1999

No. AHU-0002680.AH.01.02.Tahun 2016
Dated, 11 February 2016

No. AHU-AH.01.03-0022405
Dated, 11 February 2016

No. AHU-0018624.AH.01.02.Tahun 2016
Dated, 12 October 2016

No. AHU-0020604.AH.01.02.Tahun 2016
Dated, 04 November 2016

 

 

Government Permit (s)

Direktorat Jenderal Pajak
NPWP - 01.823.971.5-072.000

 

 

Significant change

Formerly known as PT. Bintang Garuda Mas Raya was established on May 5, 1997 in Central Jakarta. The Company’s authorized capital was IDR 1,000 million – of which IDR 250 million was issued and paid up by Mr. Sukanto Tanoto (50%), and Ms. Tinah Bengei (50%). 

On January 22, 2016, notarial act of the Company was changing. As written on that change, the Company’s authorized capital was IDR 750,000 million – of which IDR 200,000 million was issued and paid up by Spring Palm Hodlings Ltd of British Virgin Island (95%), and Star palm Holdings Ltd of  British Virgin Island (5%). 

On October 3, 2016, there was a change in the notarial act where the Company changed its name to PT. Kutai Refinery Nusantara (the Company). But the structures of capitalization and shareholder did not changed.

On November 2, 2016, there was a change of notarial act, but the structure of capitalization and shareholder has not change.

Up to the completion of this report, structure of the Company's capitalization and shareholders remain unchanged.

 

 

Capitalization

     -    Authorized Capital
     -    Issued Capital
     -    Paid Up Capital



IDR 750,000,000,000
IDR 200,000,000,000
IDR 200,000,000,000

 

 

 

 SHAREHOLDERS & MANAGEMENT

 

Shareholders

Total No. of Shareholders: 2
Shareholders as 04 November 2016
Total Shareholding private – 200,000 shares

 

Name of Shareholders

- 

Spring Palm Hodlings Ltd of British Virgin Island
(190,000 shares) - 95.000 %

- 

Star palm Holdings Ltd of British Virgin Island
(10,000 shares) - 5.000 %

 

 

Management Board

 

 

Name

Mr. Julianus Tarigan

 

 

Position

Director

 

 

Nationality

Indonesian

 

 

Supervisory Board

 

 

Name

Mr. Erwin

 

 

Position

Commissioner

 

 

Nationality

Indonesian

 

 

Management Assessment

The management is deemed to have sufficient experience and industry expertise to manage subject properly.

 

 

Authorized Signatories

Mr. Julianus Tarigan as a Director which must be approved by shareholders meeting.

 

 

Affiliate (s) / Associate (s)

  - 

Royal Golden Eagle Group
(Unlimited Company)

  - 

PT. Riau Andalan Pulp & Paper
(Manufacture of paper and paperboard)

  - 

Spring Palm Hoding Ltd of British Virgin Island
(Activities Holding Companies)

  - 

PT. Riau Andalan Prima Energi
(Production of electricity)

  - 

PT. Anugerah Kertas Utama
(Wholesale of other intermediate products)

  - 

PT. Riau Andalan Kertas
(Manufacture of paper and paperboard)

  - 

PT. Raja Garuda Mas Pulp Rayon and Paper
(Activities of holding companies)

  - 

PT. Tanoto Danaperkasa
(Activities holding companies)

  - 

PT. Global Energy Kreasi
(Activities of Holdings Companies)

  - 

Star Palm Holdings Ltd of British Virgin Island
(Activities Holding Companies)

 

 

 KEY DATA ON OPERATIONS

 

 

 

Registered Activities

SIC Code 10 : Manufacture of food products
SIC Code 19 : Manufacture of coke and refined petroleum products

 

 

Employee

Per 2017
200

Per 2018
200

 

 

Business Category

SIC Code 10.4 : Manufacture of vegetable and animal oils and fats
SIC Code 19.2 : Manufacture of refined petroleum products

 

 

 

 

Line of Business

SIC Code 10.41 : Manufacture of oils and fats
SIC Code 19.20/1 : Mineral oil refining

 

 

Product & Capacity

N.A.

 

 

Status of Investment

Foreign-invested Company

 

 

 

Sales Territory

Local

20%

 

 

 

 

International

80%

 

 

 

 

 

Main Items Imported
And Country Origin

-

-

 

 

 

Main Items Exported
and Country Destination

Crude Palm Oil (CPO)

China
Singapore
Malaysia
Pakistan
Netherlands

 

 

Major Customers

  - 

PT. Pertamina (Persero)

  - 

AAA Oils & Fats Pte. Ltd. of Singapore

  - 

PT. AKR Corporindo Tbk

 

 

Major Supplier

  - 

PT. SGS Indonesia

  - 

PT. Mitra Pemuda Tbk

 

 

Terms of Payment

Purchase Payment
Domestic: Telegraphic Transfer (T.T) based on Agreement;
Overseas: N.A.

Sale Terms
Domestic: Telegraphic Transfer (T.T) based on Agreement;
Overseas: Telegraphic Transfer (T.T) based on Agreement;

 

 

Activity Comment

PT. Kutai Refinery Nusantara (the Company) is a foreign-invested company engaged in the palm industry and has been operating since 1999. The Company's head office is located at the registered address Jl. Teluk Betung No. 36, Kelurahan Kebon Melati, Kecamatan Tanah Abang, Kota Jakarta Pusat 10230, DKI Jakarta – Indonesia. We believe that the location is leased from another party.

The Company has a palm oil processing factory in Jl. Teluk Waru RT. 09, Kelurahan Kariangau, Kecamatan Balikpapan Barat, Kota Balikpapan 76134, Kalimantan Timur - Indonesia. 

The Company is a member of Royal Golden Eagle (RGE), which was established by Mr. Sukanto Tanoto in 1973. Total assets owned by RGE are currently exceeding USD 15 billion. With more than 50,000 employees, the RGE operates in Indonesia, Singapore, China and Brazil in the field of pulp and paper, palm oil industries, Specialty Cellulose, Viscose Staple Fiber, and Energy Resource Development.

Based on our investigation, the Company is engaged in palm industry where the Company manages the downstream palm oil processing plant in Kariangau area, West Balikpapan district, Balikpapan, East Kalimantan. The Company's main products are RBD palm oil, RBD palm olein, RBD palm stearin, palm fatty acid distillate and palm methyl ester.

The Company also operate a crude palm oil refinery and fractionation plant and a Biodiesel plant equipped with our own private jetty, storage tanks, boiler, water treatment and wastewater treatment plant.

In operation of factory development, the Company cooperates with PT. Mitra Pemuda Tbk. In addition, the Company obtained raw materials of fresh fruit palm fruit bunches from local suppliers. 

In 2016, the Company also included in APROBI member (Association of Indonesian Biofuel Producers).

The Company distributes most export products to various countries such as China, Singapore, Malaysia, Pakistan, and the Netherlands. One of the customer the Company ie AAA Oils & Fats Pte. Ltd. of Singapore. Then, 20% of the Company's product specifically for biodiesel products is sold to PT. Pertamina (Persero) and PT. AKR Corporindo Tbk.  

Based on the collected information, per November 2017, the Company is supplying biodiesel to PT. Pertamina (Persero) dan PT AKR Corporindo Tbk for the period from November to April 2018. The Company supplies biodiesel to Pertamina as much as 50,060 KL and to AKR as much as 700 KL.

According to the source, the Company's operational performance throughout 2016 to 2017 has increased. The Company's product demand is increasing both in the overseas market and in the local market. Plus the Company also started supplying biodiesel to local companies. This is because the demand for raw materials is still quite high both in consumer goods industry and in the biofuel industry.

Until the second quarter of 2018, the Company is still operating quite well. In the case of payments, the Company does not experience significant problems with either payment from customers or suppliers.

 

 

Litigation

At the time this report is written, this Company has not been involved in any criminal or civil cases. This statement is based on a result of searches for cases conducted at the State Court in the area where the Company was established and operates today.

 

 

 

 

Factory Address

Jl. Teluk Waru RT. 09
Kelurahan Kariangau, Kecamatan Balikpapan Barat
Kota Balikpapan 76134
Kalimantan Timur - Indonesia
Phone : +6281350084416 (Mr. Hendra Hermawan as Export Staff of the Company)
Fax : -
Email : -

 

 

 BANKING INFORMATION

 

Banker (s)

- 

PT. Bank Central Asia Tbk

 

 

Insurance

- 

Badan Penyelenggara Jaminan Sosial (BPJS)

 

 

 BUSINESS PROSPECTS

 

Business Prospects

According to the Chairman of the Palm Oil Council, the world vegetable oil production in 2020 depends on the population growth and the increasing demand of each country as well as the type of oil production. 

The total production of 17 types of vegetable oils and fats will reach to 236 million tons in 2020 at the global scale. This rate is higher than 2016, which has amounted to 189.5 million tons. 

According to the Chairman of the palm oil council, he said the rise in edible oil production in 2020 is expected to be absorbed by the high global demand. The growth in production is followed by the increase in per capita consumption of vegetable oils and fats of the world's population. In addition, there will be the effect on the economy of a country on vegetable oils and fats.

Prospects for production and consumption of crude palm oil (CPO) in 2018 are predicted to increase, one of which is supported by government's crop rejuvenation program. In 2018, global CPO production and consumption is projected to increase 7.0% YoY, historically weather conditions tend to improve in the medium term following El Nino and La Nina events. 

Considering the expected weather in 2018 is more conducive, it is projected global CPO production will reach 71.3 million tons (+ 7.0% YoY), while global CPO consumption should also grow 7.0% YoY to 65.5 million tons.

Meanwhile, Indonesia will become the world's leading producer of biodiesel. Biodiesel production in Indonesia which currently reaches 2 million kiloliters (KL) per year will soon increase to 5 million KL per year. Indonesia will continue to increase biodiesel production, especially with the declining prices of palm oil, the palm oil businessmen encourage the use of palm oil in the country for the production of biodiesel to be enlarged.

The consumption of biofuels as renewable energy in Indonesia and the world today is still low, under 10% of total energy consumption. Fossil energy (petroleum, gas and coal, Red) is expected to remain dominant for the next 20-30 years. In order to encourage the development and utilization of biofuel, the government issued various policies, including rules on the use of biodiesel. In the National Energy Policy, the government targets 2025 on the use of biofuel to reach 5% in the national energy mix.

Based on this explanation, we believe that palm oil industry will remain prospective in the future.

 

 

 FINANCIAL STATEMENT

 

Sales Turn Over

2015 - IDR 253,000,000,000 (Estimated)
2016 - IDR 290,950,000,000 (Estimated)
2017 - IDR 325,864,000,000 (Estimated)

 

 

Total Assets

As the Company is not a publicly listed company, we are unable to give a detailed picture of the financial condition of the Company.

 

 

Other Financial Data

As the Company is not a publicly listed company, we are unable to provide details on the financial condition of the Company.

 

 

 

 CREDITWORTHINESS

 

Management Capability

Good

 

 

Business Morality

Adequate

 

 

Payment Manner

No Complaints

 

 

Financial Condition

Satisfactory

 

 

Operating Trend

Up

 

 

Conclusive remarks

Based on our research findings, we found out that the Company is engaged in the palm industry di mana the Company managing palm oil processing plant. The Company distributes most export products to various countries such as China, Singapore, Malaysia, Pakistan and the Netherlands. Then, specifically for biodiesel products in support of local, to PT. Pertamina (Persero) and PT. AKR Corporindo Tbk.

The Company's overseas performance over the past two years looks pretty good in line with the high consumption of palm oil in various industries globally. Meanwhile, the palm oil industry is predicted to continue to grow positively, and the volume of exports is still quite high.

In addition, also seen from the domestic market, especially biodiesel products, Indonesia is the world's largest producer of palm and biodiesel. The government continues to support Indonesia's biodiesel industry by continuing to fuel its consumption growth. So, we believe that the Company is still prospective in the future

Based on the consideration shown above, thus we classify the Company’s credit rating at medium risk.

For security reason, then, we advise those wishing to make cooperation with and to grant loans to the Company to ask for adequate collateral from the owners and management.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.22

UK Pound

1

INR 92.77

Euro

1

INR 80.34

IDR

1

INR  0.0048

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIY

 

 

Report Prepared by :

KET

                                                


 

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)

 

 

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.