MIRA INFORM REPORT

Report No. :	504615
Report Date :	19.04.2018

IDENTIFICATION DETAILS

Name :	P.T. PARISINDO PRATAMA

Registered Office :	Graha 137 building, 8th floor,jl. Pangeran jayakarta no. 137,Mangga dua selatan, sawah besar district, jakarta barat

Country :	Indonesia

Date of Incorporation :	22.11.1983

Com. Reg. No.:	AHU-AH.01.03-0109256

Legal Form :	P.T. (Perseroan Terbatas) or Limited Liability Company

Line of Business :	· Special Paper Manufacturing · Investment holding

No. of Employees :	652

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Indonesia

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 and summery

Name of Company :

P.T. PARISINDO PRATAMA

A d d r e s s :

Head Office

Graha 137 building, 8^th Floor

Jl. Pangeran Jayakarta No. 137

Mangga Dua Selatan, Sawah Besar district

Jakarta Barat

Phones - (021) 6010812, 6010813, 6010815

Fax - (021) 6260727

Email - mail@parisindopratama.com

Website - http://www.parisindopratama.com

Building Area - 8 storey

Office Space - 240 sq. meters

Region - Commercial

Status - Owned

Factory

Desa Gunung Putri

Citeureup, Bogor

West Java

Phones - (021) 8672059 (5 lines)

Fax. - (021) 8671236

Email - mail@parisindopratama.com

Land Area - 11.0 hectares

Building Space - 1.2 hectares

Region - Industrial Zone

Status - Owned

Date of Incorporation :

22 November 1983

Legal Form :

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

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. AHU-17370.AH.01.02.Tahun 2008

Dated 08 April 2008

b. No. AHU-AH.01.10-9735

Dated 25 April 2008

c. No. AHU-AH.01.10-26960

Dated 03 July 2013

d. No. AHU-AH.01.03-0109256

Dated 19 December 2016

Company Status :

Domestic Investment (PMDN) Company

Permits by the Government Department :

The Department of Finance

NPWP No. 01.062.015.1-073.000

The Capital Investment Coordinating Board

a. No. 331/I/PMDN/1983

Dated 31 December 1983

b. No. 51/II/PMDN/1984

Dated 27 October 1984

Related/Affiliated Companies :

The IMORA MOTOR Group of the PROSPECT MOTOR Group members

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 40,000,000,000.-

Issued Capital - Rp. 40,000,000,000.-

Paid up Capital - Rp. 40,000,000,000.-

Shareholders/Owners :

a. P.T. PPOSPECT MOTOR - Rp. 33,000,000,000.-

b. P.T. WARGA DJAJA - Rp. 7,000,000,000.-

BUSINESS ACTIVITIES

Lines of Business :

a. Special Paper Manufacturing

b. Investment holding

Production Capacity :

a. Glassine Papers - 2,400 metric tons p.a.

b. Grease Proof Papers - 600 metric tons p.a.

c. Carbonless Papers - 2,400 metric tons p.a.

d. Embossing Papers - 1,200 metric tons p.a.

e. Computer Forms - 2,400 metric tons p.a.

f. Security Papers - 4,800 metric tons p.a.

g. Printing & Writings Papers - 4,800 metric tons p.a.

h. Others - 5,400 metric tons p.a.

Total Investment :

a. Equity Capital - Rp. 40.0 billion

b. Loan Capital - Rp. 47.2 billion

c. Total Investment - Rp. 87.2 billion

Started Operation :

July 1986

Brand Name :

PARISINDO PRATAMA

Technical Assistance :

None

Number of Employee :

652 persons

Marketing Area :

Domestic - 30%

Export - 70%

Main Customers :

a. P.T. WARGA DJAJA (as sole distributor)

b. Overseas Market in Africa, Australia, Bangladesh, China, Hong Kong, Greece, India, New

Zealand, Pakistan, Philippine, Papua New Guinea, Singapore, South Korea, Sri Lanka, Saudi

Arabia, Taiwan, Uzbekistan and Yemen

Market Situation :

Very Competitive

Main Competitors :

a. P.T. INDAH KIAT PULP AND PAPER Tbk

b. P.T. PINDO DELI PULP & PAPER

c. P.T. SURYA PEMENANG

d. P.T. TJIWI KIMIA Tbk, etc.

Business Trend :

Fluctuating

BANKER, AUDITOR & LITIGATION

B a n k e r s :

a. Bank of Tokyo – Mitsubishi UFJ Ltd.

Midplaza Building

Jl. Jend. Sudirman Kav. 10-11

Jakarta Selatan

b. CITIBANK N.A.

Citibank Tower

Jl. Jend. Sudirman Kav. 54-55

Jakarta Selatan

Auditor :

Internal Auditor

Litigation :

No litigation record in our database

FINANCIAL FIGURE

Annual Sales (estimated) :

2013 – Rp. 1,190.0 billion

2014 – Rp. 1,250.0 billion

2015 – Rp. 1,390.0 billion

2016 – Rp. 1,560.0 billion

2017 – Rp. 1,692.0 billion

Net Profit (estimated) :

2013 – Rp. 101.0 billion

2014 – Rp. 106.0 billion

2015 – Rp. 118.0 billion

2016 – Rp. 132.0 billion

2017 – Rp. 143.0 billion

Payment Manner :

Regular

Financial Comments :

Fairly

KEY EXECUTIVES

Board of Management :

President Director - Mr. Suhardi Budiman

Director - Mr. Stephen Suryadi Budiman

Board of Commissioners :

President Commissioner - Mr. Kusnadi Budiman

Commissioner - Mr. Eric Iskandar

Signatories :

President Director (Mr. Suhardi Budiman) or Director (Mr. Stephen Suryadi Budiman) which must be approved by the board of commissioner (Mr. Kusnadi Budiman and Mr. Eric Iskandar)

CAPABILITIES

Management Capability :

G o o d

Business Morality :

G o o d

OVERALL PERFOMANCE

P.T. PARISINDO PRATAMA (P.T. PP) was established in Jakarta on 22 November 1983 with the authorized capital of Rp. 4,000,000,000.- of which Rp 400,000,000.- was issued and paid up. The founding shareholders of the company are Mr. Drs. Motet, an Indonesian businessman of Chinese extraction and three indigenous businessmen namely Mr. Andi Baso, Mr. Mustafa Sjewket Salim and Mr. Islam Salim. The articles of association of the company have frequently been revised. In 1990, whole shares of the company were sold to P.T. PROSPECT MOTOR and P.T WARGA DJAJA TRADING CORPORATION (P.T. WARGA DJAJA), both are private companies. Then, the authorized capital was raised to Rp 25,000,000,000.- entirely issued and paid up.

In April 2008, the authorized capital was raised again to Rp. 40,000,000,000.- entirely was issued and fully paid up. Since the time, the shareholders of the company are PT. PROSPECT MOTOR (82.5%) and P.T. WARGA DJAJA (17.5%). The amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decision Letter No. AHU-17370.AH.01.02.Tahun 2008 dated 8 April 2008 and No. AHU-AH.01.10-9735 dated 25 April 2008. In June 2013 based on Notary Deed of Melllyani Noer Shandra, SH., No. 75 dated 12 June 2013 the company’s board of directors and the board of commissioner was changed. 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.01.10-26960 dated 3 July 2013. The most recently by notarial deed of Mellyani Noer Shandra, SH., No. 23 dated 7 December 2016, concerning the change again in composition of the Company’s board of Director. This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.03-026960 dated 19 December 2016. Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

P.T. PROSPECT MOTOR and P.T. WARGA DJAJA are members of the IMORA MOTOR Group or the PROSPECT MOTOR Group, a medium sized company group being led by Mr. Hadi Budiman AKA Ang Kok Ha. On 18 August 2006, Mr. Hadi Budiman died and since that time the company has been headed by his heirs Mr. Suhardi Budiman and Mr. Kusnadi Budiman.

P.T. PP has been in operation since 1986 dealing with special paper manufacturing. Its plant is located in Gunung Putri Village, Citeureup, Bogor, West Java on a land of 11 hectares producing various special papers such as glassine, grease proof, carbonless, embossing, computer forms, security papers, printing and writing papers and others. Mr. Gunawan, a marketing staff of the company explained that basic material like pulp is supplied by local company PT. Tanung Enim Lestari and imported from USA (Central National Gottesman Inc.), Japan (Daishowa Marubeni International Ltd.), Canada (Cariboo Pulp and Paper Co.) and Sweden (Ekman & Co. AB).

The annual production of the company has gradually been increased to 24,000 metric tons of specific papers. In marketing, P.T. PP appointed P.T. WARGA DJAJA as its sole distributor. Some 70% of its products are exported to Africa, Australia, Bangladesh, China, Hong Kong, Greece, India, New Zealand, Pakistan, Philippine, Papua New Guinea, Singapore, South Korea, Sri Lanka, Saudi Arabia, Taiwan, Uzbekistan and Yemen. Besides, P.T. PP is also dealing with investment holding by controlling 30% shares of P.T. LINTEC INDONESIA and the rest is owned by LINTEC CORPORATION of Japan (65%) and P.T. MULTIYASA SWADAYA (5%). P.T. LINTEC INDONESIA is engaged in sticker and laminated paper industry. Whole basic materials are supplied by P.T. PP. Besides marketed in the country, some 50% of its products are also exported to the above countries. We observed that the operation of P.T. PP and its subsidiary has been running smoothly and growing gradually.

Generally outlook, the national pulp and paper industries will be better in 2013 than in 2012. Market estimates of production and sales will be the norm. Additional capacity will continue price of pulp is still going up although with a slower rise in pulp price increases triggered by the low stock of pulp due to the hard efforts of pulp mills to reduce production, to balance the supply-demand, and the purchase of pulp on a large scale by China also triggered a rise in pulp prices. According to Central Bureau of Statistics (BPS) explained that the total export of paper & paper goods in 2007 amounted to 4,119,000 tons (US$.3,374.8 million), declined to 4,085,500 tons (US$.3,796.9 million) in 2008, rose again to 4,286,800 tons (US$.3,404.9 million) in 2009 and to 4,562,700 tons (US$.4,241.7 million) in 2010. The total export of paper & paper goods in 2011 declined to 4,300,900 tons (US$. 4,214.4 million) to 4,229,600 tons (US$.3,972.2 million) in 2012 to 4,297,900 tons (US$.3,802.2 million) in 2013 to 4,367,500 tons (US$.3,780.0 million) in 2014 to 5,765,600 tons (US$.3,546.3 million) in 2015 and rose again to 9,856,000 tons (US$.5,572.8 million) in 2016 (January to November). The export growth of paper and paper goods in Indonesia in 2008 to 2016 is pictured on the following table:

Year	Exports of Paper and Paper Goods
Year	Net Weight (thousand ton)	Value (million US$)
2008	4,085.5	3,796.9
2009	4,286.8	3,404.9
2010	4,562.7	4,241.7
2011	4,300.9	4,214.4
2012	4,229.6	3,972.2
2013	4,297.9	3,802.2
2014	4,367.5	3,780.0
2015	5,765.6	3,546.3
2016*	9,856.0	5,572.8

Until this time P.T. PP 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. PP’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the total sales turnover of the company in 2014 amounted to Rp 1,250.0 billion increased to Rp 1,390.0 billion in 2015 to Rp. 1,560.0 billion in 2016 and rose again to Rp. 1,692.0 billion in 2017. The operation in 2017 yielded a net profit at least Rp. 143.0 billion and the company have an estimated total net worth of Rp. 750.0 billion. So far we did not hear that the P.T. PP 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.

The management of P.T. PP is headed by Mr. Suhardi Budiman (60) as President Director and CEO of the company. He is a businessman with more than 26 years experience in the above business. He is the second generation of the IMORA Group, a medium sized company group starting its business in selling and assembling of HONDA cars in Indonesia. Daily operation he is assisted by Mr. Stephen Suryadi Budiman (34) as director and a number of professional managers having wide relation with private businessmen of home and overseas as well as with the government sectors. We observed that management’s reputation in said business is fairly good. So far, we did not hear that the company’s management involved in a dirty business practice or detrimental cases that settled 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. PARISINDO PRATAMA is sufficiently good for normal business transaction. However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

Attachment:

List of The IMORA MOTOR Group or

The IMORA Group Members

1. ALGA JAYA RAYA, P.T. (Spring Bed Manufacturing Industry)

2. ANDARILLA PLASTIC, P.T. (Plastic Bottle Manufacturing)

3. ANZEN PAKARINDO, P.T. (Brake Lining and Brake System Distribution)

4. ARTA AMAN KUAT, P.T. (Trading)

5. ARTARINDO, P.T. Asuransi (General Insurance Services)

6. BALIMORE FINANCE, P.T. (Leasing)

7. BUDIMAN SEJAHTERA DEVELOPMENT, P.T. (Office Block Rental Management)

8. BUMI ARTA REKSATAMA, P.T. Asuransi Jiwa (Life Insurance Services)

9. BUMI ARTA, P.T. Bank (Banking)

10. CENTURY FILAMENT INDONESIA, P.T. (Man Made Fibre Making)

11. CENTURY LIFINDO PERDANA, P.T. (Life Insurance Services)

12. CENTURY TEXTILE INDUSTRY Tbk., P.T. (Integrated Textile Milling)

13. CHEMCO HARAPAN NUSANTARA, P.T. (Brake System Manufacturing)

14. DAIKIN INDONESIA, P.T. (Air Conditioner Assembling and Distribution)

15. DUNIA EXPRESS TRASINDO, P.T. (Trading and Export-Import)

16. DUTA NICHIRINDO PRATAMA, P.T. (Automotive Parts Manufacturing)

17. DUTA WARGA DJAJA, P.T. (Developer and Real Estate Management)

18. EASTERNTEX, P.T. (Integrated Textile Milling)

19. FLEX INDONESIA, P.T. (Garment Manufacturing)

20. GADING PRIMA AUTOLAND, P.T. (Car Distribution, Part and Component and Service Station)

21. HONDA PROSPECT ENGINE MANUFACTURING, P.T. (Car Engine Assembling)

22. IMORA HONDA INC., P.T. (Car and Motorcycle Component Manufacturing, Fire Engines and Generator Set Manufacturing)

23. IMORA MAKMUR, P.T. (Investment Holding Sole Agent and Distributor)

24. IMORA MOTOR, P.T.

25. INDONESIA PHENOLIC RESIN INDUSTRIAL, P.T. (Phenolic Resin Industry)

26. INDOPHERIN JAYA, P.T. (Phenolic Resin Manufacturing)

27. INTISENTOSA ALAMBAHTERA, P.T. (Port Management)

28. ISTANA BANDUNG RAYA MOTOR, P.T. (Dealer of HONDA Automobiles)

29. ISTANA CARINDO, P.T. (Dealer of HONDA Automobiles, Parts Centre & Service Station)

30. ISTANA DELI KENCANA, P.T. (Dealer of HONDA Automobiles, Showroom, Parts Centre & Service Station)

31. ISTANA KEBAYORAN RAYA MOTOR, P.T. (Car Distribution)

32. ISTANA KEMAKMURAN MOTOR, P.T. (Car Distribution)

33. ISTANA MOBIL AMBENGAN INDAH, P.T. (Honda Automobiles Dealer, Showroom, Parts Centre & Service Station)

34. ISTANA PLUIT RAYA MOBIL, P.T. (Honda Automobiles Authorized Dealer)

35. JAVAMETE INDUSTRI, P.T. (Cashew Nut Oil Processing)

36. KANEMATSU TRADING INDONESIA, P.T. (Trading)

37. KGD INDONESIA, P.T. (Manufacturing of Car Parts and Components)

38. LINTEC INDONESIA, P.T. (Paper Laminating Industry)

39. MAZDA INDONESIA MANUFACTURING, P.T. (Car Engine and Component Assembling)

40. MERCU GRAMARON, P.T. (Granite, Marble and Onyx Industry)

41. MULIA COLLMAN INTERNATIONAL, P.T. (Sport and Recreation Centre)

42. MULIA DIPTA JAYA, P.T. (Golf Course Management and Investment Holding)

43. NIKAWA TEXTILE INDUSTRY, P.T. (Integrated Textile Industry)

44. PACIFIC DUARIBU INVESTINDO, P.T. (Stock Brokerage)

45. PARISINDO PRATAMA, P.T. (Paper Factory)

46. PROSPECT MOTOR, P.T. (Honda Car Assembling and Investment Holding)

47. PROSPECT PANESIA TOUR, P.T. (Travel Agency and Tourism Industry)

48. SARANA BERSAMA PEMBIAYAAN INDONESIA, P.T. (Holding & Investment Company of Collective Indonesian Banks in the Asean Finance Corp., of Singapore)

49. SUMI ASIH, P.T. (Olechemical Industry)

50. SUMI-INDO WIRING SYSTEMS, P.T. (Wiring Harness and Electrical Cable Manufacturing)

51. TIRTA GRAHA PURNAMA, P.T. (Plastic Bottle Manufacturing)

52. WARGA DJAJA, P.T. (Trading and Investment Holding)

53. WARGA PONDASINDO PERKASA (Real Estate Development and Contracting)

54. WISNU TJANDRA, P.T. (Trading)

55. WUNGU AGUNG, P.T. (Trading)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.68
UK Pound	1	INR 93.98
Euro	1	INR 81.30
IDR	1	INR 0.0048

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

INFORMATION DETAILS

Analysis Done by :	VIV

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)

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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.