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MIRA
INFORM REPORT
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Report No. : |
502872 |
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Report Date : |
17.04.2018 |
IDENTIFICATION DETAILS
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Name : |
PT. INDO VEGETABLE OIL INDUSTRI |
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Registered Office : |
Kawasan Surabaya Industrial Estate Rungkut, Jl. Rungkut
Industri IV No. 34 |
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Country : |
Indonesia |
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Financials (as on) : |
2017 |
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Date of Incorporation : |
03.07.2004 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
·
Manufacture of food products ·
Manufacture of vegetable and animal
oils and fats |
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No. of Employees : |
80 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Poor |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Indonesia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
COMPANY IDENTIFICATION
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Company Name |
PT. Indo Vegetable Oil Industri |
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Address |
Kawasan Surabaya Industrial Estate
Rungkut, Jl. Rungkut Industri IV No. 34 |
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Telephone |
+62318416356 |
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Fax |
+62318411496 |
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Mobile Phone |
N.A. |
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Email |
bambang@indovegetableoil.com |
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Web |
N.A. |
PROFILE
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Address |
Kawasan Surabaya Industrial Estate Rungkut, Jl. Rungkut Industri
IV No. 34 |
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Office Building |
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Date of Establishment |
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Start Operation |
2004 |
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Legal Status |
Private Limited Liability Company or Perseroan Terbatas (PT) |
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Legalization (historical) |
No. C-21372 HT.01.01.TH.2004 |
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Government Permit (s) |
Direktorat Jenderal Pajak |
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Significant change |
PT. Indo Vegetable Oil Industri
(the Company) was established in Surabaya, East Java, on July 3, 2004, with
the authorized capital of IDR 5,000 million, of which IDR 1,250 million
was issued and paid up. It was founded and initially owned by Ms. The Sui An
(60%), Ms. Merry Tombokan (15.04%), Ms. Yoanita Tombokan (12.48%), and Mr.
Ferdinan Tombokan ( 12.48%). On July 1, 2008, the Company’s
issued and paid-up capital was increased to IDR 2,500 million, and its
shareholder structure comprised of Ms. Merry Tombokan (15.04%), Ms. The
Sui An ( 60.00%), Ms. Yoanita Tombokan (12.48%) and Mr. Ferdinan
Tombokan (12.48%). Meanwhile, the Company’s authorized capital remained
unchanged. On 4 May 2009, the Company’s
shareholder structure changed, to consist of Ms. Merry Tombokan (15.04%), Ms.
The Sui An (60.00%) and Ms. Yoanita Tombokan (24.96%). Meanwhile, the
Company’s capitalization structure remained unchanged. On 3 June 2013, there was a
change in the notarial act with the authorized capital increased to become
IDR 20,000 million, which was issued and paid up entirely. The Company’s
shareholder structure changed to consist of Ms. Yoanita Tombokan
(25.000%), Ms. Merry Tombokan (15.000%) and Ms. The Sui
An (60.000%). As far as we know, there has
been no change in the Company’s notarial act as published by the
Ministry of Justice. |
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Capitalization |
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SHAREHOLDERS & MANAGEMENT
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Shareholders |
Total No. of Shareholders: 3 |
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Name of Shareholders |
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Management Board |
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Name |
Ms. Merry Tombokan |
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Position |
Director |
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Nationality |
Indonesian |
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Supervisory Board |
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Name |
Ms. The Sui An |
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Position |
President Commissioner |
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Nationality |
Indonesian |
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Name |
Ms. Yoanita Tombokan |
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Position |
Commissioner |
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Nationality |
Indonesian |
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Management Assessment |
The management is deemed to have sufficient experience and
industry expertise to manage subject properly. |
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Authorized Signatories |
Ms. Merry Tombokan as Director of the Company which must be
approved by shareholder meeting. |
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Affiliate (s) / Associate (s) |
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KEY DATA ON OPERATIONS
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Registered Activities |
SIC Code 10 : Manufacture of food products |
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Employee |
Per 2017 |
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Business Category |
SIC Code 10.4 : Manufacture of vegetable and animal oils and
fats |
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Line of Business |
SIC Code 10.41 : Manufacture of oils and fats |
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Product & Capacity |
- Crude Coconut Oils - 100,000 MT p.a. |
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Status of Investment |
Non-facilities based Company |
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Sales Territory |
Local |
35% |
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International |
65% |
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Main Items Imported |
- |
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Main Items Exported |
RBD Coconut Oil |
Pakistan |
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Major Customers |
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Major Supplier |
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Terms of Payment |
Purchase Payment |
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Activity Comment |
PT.
Indo Vegetable Oil Industri (the Company) is a
non-facilities based that engaged in the processing and refinery of coconut
oil. It has been operating since 2004. The Company's head office and factory
are located at the registered address Kawasan Surabaya Industrial Estate
Rungkut, Jl. Rungkut Industri IV No. 34, Kota Surabaya 60293, Jawa Timur,
Indonesia. We believe that the location is owned by the Company. Based on our investigation, the
Company is engaged in the processing of RBD coconut oil with 'SAHABAT' brand,
crude coconut oil, coconut fatty acid distillate, and copra meal
expeller/extract. The Company's other production capacity for crude coconut
oils is 100,000 MT per year, RBD Coconut Oil is 60,000 MT per year, coconut fatty
acid distillate is 2,500 MT per year, and copra meal expeller is 32,000 MT
per year. The coconut oil product
specification that the Company produces under the brand of SAHABAT, which is
Ffa 5% Max Mi 1% Max Iv 7-10.5, packing flexy bag, drums and plastic jerry
cans. The Company obtains a supply of
copra from Djaja Makmur Group's plantations in Sulawesi and some of the other
local coconut plantations. In operation, the Company has production machines
for oil processing which are supplied from local suppliers. For product marketing in
Indonesia, the Company previously distributed its products to food and
beverages, fast-moving consumer goods (FMCG) and oil industries throughout
Indonesia. However, the Company currently
only distributes products for cooking oil industry only. At present, the
composition of the Company's export sales is higher, which is 65% of the
Company's total production. The Company no longer sells its products to
Singapore and Malaysia, but to China, Thailand, Pakistan and USA. The increase of the Company's
export quantity does not necessarily improve the Company performance.
Recognized in terms of production capacity, the Company's actual production
capacity decreased in 2017 and the number of Company employees decreased from
early 2017 to approximately 100 employees to approximately 80 employees in
2018. According to the source, the
Company's operational performance throughout 2015 to 2016 had decreased
significantly. The Company's production is down by more than 40%. Even the
Company had to reduce more than 100 employees. This was due to the economic
meltdown and the Company's lack of ability to compete in local markets. So
the Company mostly only distributes products to the home industry in East
Java region. Finally, throughout 2017, the
Company again experienced a decrease in sales performance. Several factors
which the Company believes are the decline in business performance is still
dominating the use of crude palm oil for various industries compared with the
use of coconut oil itself. Moreover, Indonesia became one
of the largest CPO suppliers in the world, so indirectly, the Company's
products can easily be replaced with the CPO. Moreover, the CPO price is much
cheaper when compared with the price of coconut oil sold by the Company. In addition to such challenges,
the Company also complains about the supply of copra (as raw material) from
the coconut farmers, whose numbers are erratic from time to time. This
condition causes the Company difficulty to prepare the production strategy
plan carefully. In the midst of a significant
decline in business performance, the Company has so far not had any plans to
improve its sales performance. The Company considers that this is indeed the
period when the Company experienced significant business performance
degradation. The Company's sales decline has
implications for the Company's drastically reduced ability to repay its debt.
Moreover, part of the Company's debt is recognized using the foreign exchange
rate so that the economic conditions of Indonesia and globally indirectly
affect the Company. The Company received Quality
Management System, ISO 9001:2008 from Global Certification Ltd., in 2011. It
also already received Halal Certification from Majelis Ulama Indonesia for
cooking oil, CNO, CFAD, and Copra Meal; and Kosher Certificate from Orthodox
Jewish Community. |
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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. |
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Factory and Warehouse Address |
Kawasan Surabaya Industrial Estate Rungkut, Jl. Rungkut Industri
IV No. 34 |
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BANKING INFORMATION
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Banker (s) |
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Insurance |
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BUSINESS PROSPECTS
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Business Prospects |
PT. Visi Globalindo Data Utama predicts that the non-oil and gas
manufacturing industry will only grow by 4.75% – 5.25% in 2018, or lower than
the 5.67% growth targeted by the government. These predicted figures are
calculated based on data issued by Central Statistics Bureau. According to data from the Central Statistics Bureau, the
non-oil and gas manufacturing industry only grew by 5.49% in QIII/2017, with
the highest growth occurred in basic metal industry (10.6%), followed by food
and beverage industry (9.49%), machinery and equipment industry (6.35%), and
transportation tool industry (5.63%). Considering the business prospect for CPO, as we learn, a
monthly monitoring report of the World Bank (WB) showed that the average
price of coconut oil, or CNO, in February (2018) fell to a three-month low of
USD 1,252 per metric ton (MT). The figure was more than a quarter lower
than the USD 1,719-per- MT quotation recorded in February 2017, according to
the bank’s monthly Pink Sheet report. In October 2017 the World Bank projected that the annual average
price of coconut oil per metric ton will suffer a downward trend from 2018 to
2030. In its commodities price forecast report, the World Bank noted
that coconut-oil price in the world market would fall to below the USD
1,600-price level this year and would steadily drop to USD 1,400 per MT by
2030. As the average price of coconut oil declines in the world
market, the price per MT of other vegetable-oil products would increase until
2030, according to the bank’s projections. Although the growth of non-oil and gas processing industry in
Indonesia is still quite positive and still an important contributor to the
state's economy. However, taking into account that the predicted price of coconut
oil drops to 2030 later when other types of vegetable oils are predicted to
have a positive price increase, the Company's products have a predicted selling
value that is not good in the future. Thus, the Company's business is still
quite risky to be developed well enough. |
FINANCIAL STATEMENT
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Sales Turn Over |
2015 - IDR 61,450,000,000 (Estimated) |
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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. |
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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
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Management Capability |
Adequate |
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Business Morality |
Adequate |
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Payment Manner |
Poor |
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Financial Condition |
Poor |
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Operating Trend |
Down |
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Conclusive remarks |
Based on our research findings,
we found out that the Company is engaged in the processing of RBD coconut
oil, crude coconut oil, coconut fatty acid distillate, and copra meal
expeller/extract. The Company only distributes
products to the food industry in East Java. In addition, the Company also
exports very small quantities of products to Malaysia, Singapore, Canada, and
currently, to Pakistan. As we learned, the Company's
operational performance over the past three years has decreased
significantly, even had time to decrease by more than 40% due to tight
competition with substitution goods, namely CPO. This condition even
continues until the second quarter of 2018. Although the growth of non-oil
and gas processing industry in Indonesia is still quite positive and still an
important contributor to the state's economy. However, taking into account
that the price of coconut oil is predicted to fall to 2030 later when other
vegetable oils are predicted to have a positive price increase, the Company's
products have a good predictive value sale in the future. Thus, the Company's business is
still quite risky to be developed well enough. In addition, the poor
financial condition becomes a high risk for the Company's current credit
risk. With these considerations, we rate the Company's credit opinion
become at high risk. However, for security reasons,
we advise those wishing to cooperate with or grant loans to the Company to
seek strong collateral from the shareholders. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.45 |
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1 |
INR 93.28 |
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Euro |
1 |
INR 80.74 |
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IDR |
1 |
INR 0.0048 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.