MIRA INFORM REPORT

Report No. :	516070
Report Date :	25.06.2018

IDENTIFICATION DETAILS

Name :	PT. TRIGOLDENSTAR WISESA
Formerly Known As :	PT. TRISTAR WISESA INDUSTRIES
Registered Office :	Jl. Gajah Mada No.156 Blok LL Kelurahan Keagungan, Kecamatan Taman Sari Kota Jakarta Barat 11130, DKI Jakarta
Country :	Indonesia
Financials (as on) :	2017 (Summarized)
Date of Incorporation :	25.06.1991
Legal Form :	Private Limited Liability Company or Perseroan Terbatas (PT)
Line of Business :	Manufacture of wearing apparel
No. of Employees :	1500 (2018)

RATING & COMMENTS

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

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Maximum Credit limit :	USD 200,000
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 (31.12.2017)	Current Rating (01.04.2018)
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 34% today. In May 2017 Standard & Poor’s became the last major ratings agency to upgrade Indonesia’s sovereign credit rating to investment grade.

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. Trigoldenstar Wisesa ( Previous Name : PT. Tristar Wisesa Industries )
Address	Jl. Gajah Mada No.156 Blok LL Kelurahan Keagungan, Kecamatan Taman Sari Kota Jakarta Barat 11130 DKI Jakarta - Indonesia
Telephone	+62216490542, +62216494582
Fax	+62216318754
Mobile Phone	N.A.
Email	asst@trigoldenstar.com
Web	www.trigoldenstar.com (underconstruction)
Date of Last Research	25/06/2018

PROFILE

Address

Jl. Gajah Mada No.156 Blok LL
Kelurahan Keagungan, Kecamatan Taman Sari
Kota Jakarta Barat 11130
DKI Jakarta - Indonesia

Office Building

a.	Area - Commercial
b.	Status - Leased

Date of Establishment

-	22 December 1989 as PT. Tristar Wisesa Industries
-	25 June 1991 as PT. Trigoldenstar Wisesa

Start Operation

1991

Legal Status

Private Limited Liability Company or Perseroan Terbatas (PT)

Legalization (historical)

No. C2-4728.HT.01.01.TH.91
Dated, 13 September 1991

No. C-718.HT.01.04.TH.2001
Dated, 24 January 2001

No. AHU-88830.AH.01.02.Tahun 2008
Dated, 21 November 2008

No. AHU-AH.01.10-06826
Dated, 22 March 2010

No. AHU-AH.01.10-06491
Dated, 23 February 2012

No. AHU-AH.01.03-0041476
Dated, 19 April 2016

Government Permit (s)

Kementerian Perdagangan
Business License - 145/T/INDUSTRI/1995
Dated, 14 March 1995

Badan Koordinasi Penanaman Modal (BKPM)
PMA - 1660/III/PMA/2006
Dated, 18 December 2006

Direktorat Jenderal Pajak
NPWP - 01.061.936.9-057.000

Significant change

PT. Trigoldenstar Wisesa (the Company) was established on December 22, 1989 in Jakarta with the name PT. Tristar Wisesa Industries with the authorized capital of IDR 3,590 million, fully issued and paid-up by Mr. Hartono Prasetyo (25.5%), Mr. Suwandi Gunawan (25.5%), Ban Choon Garment Pte., Ltd of Singapore (26.5%) and Tainan Enterprises Co. Ltd of Taiwan (22.5%).   

On June 25, 1991, the Company’s name was changed to PT. Trigoldenstar Wisesa and at the same time the composition of shareholders changed to Mr. Hartono Prasetyo (31.0%), Mr. Wachid Hendriadi (20.0%), Ban Choon Garment Pte., Ltd of Singapore (24.5%) and Tainan Enterprises Co. Ltd of Taiwan (24.5%).

On September 12, 2008, the Company published a notarial act in with an increase in the authorized capital to IDR 7,628,750,000, issued and paid up at IDR 3,590,000,000 by Mr. Chang Pi Jung (40.0%), Mr. Murdaya Widyawimarta (25.0%), Mr. Wachid  Hendriadi (15.0%) and Mr. Hartono  Prasetyo (20.0%).

On February 15, 2010, the Company published a notarial act, but there was no change in capital and composition of shareholders.

On April 18, 2016, the Company published a notarial act in which the compositions of the shareholder were Mr. Chang Pi Jung (40.000%), Mr. Wachid Hendriadi (15.000%), Mr. Murdaya Widyawimarta (25.000%), Mr. Budi Prasetyo (10.000%) and Mr. Wientoro Prasetyo (10.000%).

Up to the completion of this report, there has been no change in the Company’s notarial act.

Capitalization

     -    Authorized Capital
     -    Issued Capital
     -    Paid Up Capital

IDR 7,628,750,000
IDR 3,590,000,000
IDR 3,590,000,000

SHAREHOLDERS & MANAGEMENT

Shareholders

Total No. of Shareholders: 5
Shareholders as 19 April 2016
Total Shareholding private – 2,000 shares

Name of Shareholders

-	Mr. Chang Pi Jung (800 shares) - 40.000 %
-	Mr. Wachid Hendriadi (300 shares) - 15.000 %
-	Mr. Murdaya Widyawimarta (500 shares) - 25.000 %
-	Mr. Budi Prasetyo (200 shares) - 10.000 %
-	Mr. Wientoro Prasetyo (200 shares) - 10.000 %

Management Board

Name

Mr. Wachid Hendriadi

Position

President Director

Nationality

Indonesian

Name

Mr. Chang Pi Jung

Position

Director

Nationality

Singaporean

Name

Mr. Budi Prasetyo

Position

Director

Nationality

Indonesian

Name

Mr. Prajna Murdaya

Position

Director

Nationality

Indonesian

Name

Mr. Chang Chi Kwan

Position

Director

Nationality

Taiwanese

Supervisory Board

Name

Mr. Murdaya Widyawimarta

Position

President Commissioner

Nationality

Indonesian

Name

Ms. Andriani Prasetyo

Position

Commissioner

Nationality

Indonesian

Name

Ms. Chiu Yu Chin

Position

Commissioner

Nationality

Singaporean

Management Assessment

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

Authorized Signatories

Mr. Wachid Hendriadi as President Director or Mr. Chang Pi Jung, Mr. Budi Prasetyo, Mr. Prajna Murdaya and Mr. Chang Chi Kwan as Directors which must be approved by shareholders meeting.

Affiliate (s) / Associate (s)

-	PT. Central Cipta Murdaya (Activities of holding companies)
-	PT. Intracawood Manufacturing (Manufacture of veneer sheets and wood-based panels)
-	PT. Kencana Sakti Indonesia (Manufacture of electronic components)
-	PT. Hardaya Aneka Shoes Industry (Manufacture of footware)
-	PT. Berca Mandiri Perkasa (Wholesale of other machinery and equipment)
-	PT. Hardaya Widya Graha (Activities of real estate agents)
-	PT. Berca Sportindo (Manufacture of footwear)
-	PT. Hardaya Inti Plantation (Growing of oleaginous fruits)
-	PT. Hume Sakti Indonesia (Manufacture of concrete products for construction purposes)
-	PT. Berca Cakra Teknologi (Retail sale of computers, peripheral units and software in specialised stores)
-	PT. Berca Hardayaperkasa (Wholesale of computers, computer peripheral equipment and software)
-	PT. Cipta Cakra Murdaya (Activities of holding companies)
-	Others Member of Central Cipta Murdaya (CCM) Group (Members)

KEY DATA ON OPERATIONS

Registered Activities

SIC Code 14 : Manufacture of wearing apparel

Employee

Per 2018
1500

Business Category

SIC Code 14.1 : Manufacture of wearing apparel, except fur apparel

Line of Business

SIC Code 14.13 : Manufacture of other outerwear

Product & Capacity

- Garment Products - 300,000 dozens

Status of Investment

Foreign-invested Company

Sales Territory

Local

00%

International

100%

Main Items Imported
And Country Origin

Raw material
Raw material
Raw material

China
Taiwan
Hong Kong

Main Items Exported
and Country Destination

Garment Products
Garment Products
Garment Products
Garment Products
Garment Products

Germany
Canada
Italy
Mexico
UK

Major Customers

-	Nike De Mexico, S. DE R.L. DE C.V., of Mexico
-	Haddad Apparel Group Canada Inc., of Canada
-	Jack Wolfskin Ausrustung fur Draussen Gmbh & Co. KGaA of Germany
-	Lotto Sport Italia S.p.A of Italy
-	Stadium Corporate Clothing of UK

Major Supplier

-	PT. Indo Tai Chen Textile Industry
-	PT. YKK Zipper Indonesia
-	Central Textiles (Hong Kong) Limited of Hong Kong

Terms of Payment

Purchase Payment
Domestic: 1-30 days credit term, 31-60 days credit term, More than 60 days credit term;
Overseas: Letter of Credit (L.C) and Telegraphic Transfer (T.T) with credit term up to 30 days;

Sale Terms
Domestic: N.A.
Overseas: Telegraphic Transfer (T.T) with credit term up to 30 days or Letter of Credit (L/C) with credit term;

Activity Comment

Began the operation in 1991, PT. Trigoldenstar Wisesa (the Company) is a foreign invested company (PMA) that is engaged in garment industry. Currently, head office and registered address of the Company are located at Jl. Gajah Mada No.156 Blok LL, Kelurahan Keagungan, Kecamatan Taman Sari, Jakarta Barat 11130, DKI Jakarta - Indonesia. We believe this location is leased from another party. 

Meanwhile, given address Company’s factory address which located at Jl. Rumambe Desa Anggadita, Klari, Karawang 41371, Jawa Barat - Indonesia which occupying some 160,000 sq meters of land, with total space area of 12,000 sq meters.

The Company is part of the CCM (Central Cipta Murdaya) Group which has a business in Power Plant, Palm Plantation, Information Technology, Electrical Industry, Shoes Industry, Real Estate, Etc.

Based on the information we have obtained, the Company is engaged in garment industry, produces sports apparel such as jackets, shirts, and pants for both men and women and for children. 

The Company's current product capacity more than 300,000 dozens per year. In the production process, the Company obtains the raw materials some are from the overseas, like China, Taiwan or Hong Kong, such as from Central Textiles (Hong Kong) Limited of Hong Kong. While domestically, the Company obtains among other from PT. Indo Taichen Textile Industry and PT. YKK Zipper Indonesia.

In the present time, 100% of the Company's products are exported to the overseas, such as to UK, Germany, Canada, Italy and Mexico. Some of the Company’s customers are Nike De Mexico, S. DE R.L. DE C.V. of Mexico, Haddad Apparel Group Canada Inc., of Canada, Lotto Sport Italia S.p.A of Italy, Stadium Corporate Clothing of UK, and Jack Wolfskin Ausrüstung für Draussen Gmbh & Co. KGaA of Germany.

Based on our investigation, the Company has decreased demand by 50% in 2016. This is due to the increase of product selling price and business competition with Vietnam which has cheaper product selling price. The increase in the Company's product price is due to increased production costs, especially from labor expense. Increasing Regional Minimum Wage is the main cause. Based on the information we have obtained, the Company had proposed a suspension of the Regional Minimum Wage increase but was rejected by the Governor because the Company did not meet the requirements. Thus, the Company reduces its employees.

In 2017, the Company has increased its order by 40% compared to 2016.

Meanwhile, in quarter II 2018, the Company's production activities are still running normally. Our source stated that the Company received orders from the client even though they did not profit from the sale. This is because the demand for the price of the client is much cheaper than the Company's offer price so there is no break event point.

Our source said that the Company is still optimistic to run its business because it is waiting for the government's policy to suspend the increase of Regional Minimum Wage until 2019. In addition, the Company also awaits the ease of bureaucracy to conduct export activities.

At the beginning of 2018, the Company's employees amounted to 1,500 people which is significantly lower than in 2015 of 3,000 employees. The decline is due to the management's gradual reduction from 2016 to 2017.

Litigation

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

Sources

Mr. Indan (HR Staff of the Company, contacted on June 21, 2018)

Factory Address

Jl. Rumambe
Kelurahan Anggadita, Kecamatan Klari
Kab. Karawang 41371
Jawa Barat - Indonesia
Phone : +62267432501
Fax : +62267432068
Email : -

BANKING INFORMATION

Banker (s)

-	PT. Bank OCBC NISP Tbk
-	PT. Bank Central Asia Tbk

Insurance

-	Badan Penyelenggara Jaminan Sosial (BPJS)
-	PT. Cahaya Medika Health Care

BUSINESS PROSPECTS

Business Prospects

In the past several years, a performance of the national textile and garment industry was not favourable. Based on data from BPS, the industry only grew by minus 4.79% in 2015 and minus 0.09% in 2016. Entering the first semester of 2017, fortunately, a performance of the industry began to recover, following the increasing demand from the local market and the export market in the USA and European countries. In that year 2017, the industry could grow by 3.76%. For this year 2018, however, PT. Visi Globalindo Data Utama predicts that performance of the national textile and garment industry will again decrease, namely to only reach 3.33%, or not significantly increase if compared to the year 2017. It is mainly caused by the enormous production cost, which is still becoming the main obstacle faced by the industry in running their operation. According to Secretary-General of Asosiasi Pertekstilan Indonesia (API), Mr. Ernovian G. Ismy, the industry is still facing the same problems within the last five years. He said that the production and non-production aspects are still main problems faced by the industry to compete in the market. For example, high production cost makes the prices of the national textile and garment products becoming not compete against products from other countries. In the present time, a performance of the industry is not yet stable, and the supporting factors are not, however, bringing positive impact maximally. Apart from the fact, nevertheless, for the next several years, a performance of the industry is predicted to recover and to increase, either in operational aspect or business investment.

FINANCIAL STATEMENT

Sales Turn Over	2015 - USD 41,516,000 (Estimated) 2016 - USD 24,909,600 (Estimated ) 2017 - USD 37,364,400 (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	Slow but correct
Financial Condition	Satisfactory
Operating Trend	Fluctuated
Conclusive remarks	Based on our research findings, we come to a conclusion that the Company is engaged in the garment industry for about 27 years, with the products are entirely exported to UK, Germany, Canada, Italy and Mexico. The Company's operational performance experienced a significant decline in 2016. This is due to a significant decrease in product demand due to rising product selling prices and competition with manufacture garment in Vietnam which has lower product selling prices. Meanwhile, in quarter II 2018, the Company is still facing the obstacle of receiving orders from the client despite the loss because no break event point is reached. Even the Company must also reduce its 1,500 employees. Based on the above information, it shows that the Company's operational and financial performance are unstable. Meanwhile, in term of the business outlook, the prospect of national textile industry in 2018 is predicted to increase further, coupled with the predicted growth of 3.33%. So, we believe the Company is still prospective in the business. For security reason, then, we advise those wishing to make cooperation with and to grant loans to the Company to ask for adequate collaterals from the owners and management.
Maximum of Credit	USD 200,000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.76
UK Pound	1	INR 89.95
Euro	1	INR 78.85
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 :	SUJ

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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