MIRA INFORM REPORT

 

 

Report No. :

495986

Report Date :

12.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

P.T. ORICA MINING SERVICES

 

 

Registered Office :

Pondok Indah Office Tower 3, 12th Floor Jl. Sulatan Iskandar Muda Kav. V-TA

Jakarta Selatan

 

 

Country :

Indonesia

 

 

Date of Incorporation :

20.02.1998

 

 

Com. Reg. No.:

AHU-AH.01.03-0171269

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :
  • Mining Contracting and Consulting Services
  • Mining Heavy Equipment Rental

 

 

No. of Employees :

80

 

 

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 :

Foreign Investment Company

 

 

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 summery

 

Name of Company :

P.T. ORICA MINING SERVICES

 

Address :

Head Office

Pondok Indah Office Tower 3, 12th Floor

Jl. Sulatan Iskandar Muda Kav. V-TA

Jakarta Selatan

Indonesia

Phone               - (62-21) 2765 0123 (Hunting)

Fax                   - (62-21) 2765 0132

Email                - orica.miningservices@orica.com

Building Area    - 16 storey

Office Space    - 240 sq. meters

Region              - Commercial

Status               - Rent

 

Branch

Jl. Mulawarman No. 21, RT.23

Balikpapan 76116

East Kalimantan

Indonesia

Phone               - (62-542) 750 757

Fax                   - (62-542) 750 758

Building Area    - 2 storey

Office Space    - 180 sq. meters

Region              - Commercial

Status               - Rent

 

Date of Incorporation :

20 February 1998

 

Legal Form :

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

 

Company Reg. No. :

The Law of Justice and Human Rights

a. No.C2-8.236.HT.01.01.TH.98

    Dated 03 July 1998

b. No. AHU-59877.AH.01.02.Tahun 2008

    Dated 08 September 2008

c. No. AHU-0946540.AH.01.02.Tahun 2015

    Dated 24 November 2015

d. No. AHU-AH.01.03-0171269

    Dated 13 September 2017

 

Company Status :

Foreign Investment (PMA) Company

 

Permits by the Government Department :

a. The Department of Finance

    - NPWP No. 01.824.662.9-056.000

b. The Capital Investment Coordinating Board

    - No. 96/I/PMA/1998

      Dated 10 February 1998

    - No. 1418/III/PMA/1999

      Dated 22 October 1999

 

Related/Affiliated Companies :

a.  P.T. ORICA RESINDO MAHAKAM (Formaldehyde and resin manufacturing)

b.  ORICA INVESTMENTS PTY. LTD. of Australia (Investment Holding)

c.  ORICA SINGAPORE Pte. Ltd. (Investment Holding)

c.  ORICA NOMINESS PTY. LTD. of Australia (Investment Holding

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - US$. 20,000,000 (Rp. 171,060,000,000)

Issued Capital               - US$.   5,500,000 (Rp.   47,041,500,000)

Paid up Capital             - US$.   5,500,000 (Rp.   47,041,500,000)

 

Shareholders/Owners :

a. ORICA SINGAPORE Pte. Ltd.            - US$. 5,225,000

   Address : 101 Thomson Road,

                   23-02/03 United Square

                   Singapore

b. ORICA INVESTMENTS Pty. Ltd.       - US$.    275,000

   Address : 1 Nicholson Street,

                   Melbourne

                   Australia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Mining Contracting and Consulting Services

b. Mining Heavy Equipment Rental

 

Production Capacity :

a. Mining Contracting Services   - US$.    400,000

b. Mining Consulting Services    - US$.    800,000

c. Heavy Equipment Rental        - US$. 4,500,000

 

Total Investment :

a. Equity Capital            - US$. 5,500,000

b. Loan Capital              - US$. 2,500,000

c. Total Investment        - US$. 8,800,000

 

Started Operation :

1 9 9 9

 

Brand Name :

ORICA

 

Technical Assistance :

ORICA INVESTMENT Pty. Ltd., of Australia

 

Number of Employee :

80 persons

 

Marketing Area :

Domestic    - 100%

 

Main Customers :

a. P.T. FREEPORT INDONESIA

b. P.T. NEWMONT SUMBAWA

c. P.T. ARUTMIN INDONESIA

d. P.T. ADARO INDONESIA

e. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. AGGREGATE MANDIRI LESTARI

b. P.T. BAKRIE CONSTRUCTION

c. P.T. KARYA LESTARI SUMBER ALAM

d. P.T. PASURA BINA TAMBANG

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. P.T. ANZ PANIN Bank

    Panin Bank Center

    Jalan Jend. Sudirman Kav. 1

    Jakarta Selatan

    Indonesia

 

b. STANDARD CHARTERED Bank

    Wisma Standard Chartered Bank

    Jalan Jend. Sudirman Kav. 33A

    Jakarta Selatan

    Indonesia

b. P.T. Bank PERMATA Tbk

    Permata Bank Tower

    Jalan Jend. Sudirman Kav. 27

    Jakarta Selatan

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Net Income/Revenues (estimated) :

2014 – US$. 19.2 million

2015 – US$. 21.8 million

2016 – US$. 24.6 million

2017 – US$. 28.0 million

 

Net Profit (estimated) :

2014 – US$. 1.5 million

2015 – US$. 1.8 million

2016 – US$. 2.1 million

2017 – US$. 2.4 million

 

Payment Manner :

Slow but Correct

 

Financial Comments :

Fairly

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                    - Mr. Jefri Christian Sormin

Directors                                   - a. Mr. Aditya Asthana

                                                  b. Mr. Antung Pandoyo

                                                  c. Mr. Goodacre Laurence

 

Board of Commissioner :

Commissioner                           - Mr. Todd Anthony Peate

 

 

Signatories :

President Director (Mr. Jefri Christian Sormin) or one of the Directors (Mr. Aditya Asthana, Mr. Antung Pandoyo or Mr. Goodacre Laurence) which must be approved by Board of Commissioner (Mr. Todd Anthony Peate)

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFOMANCE

 

P.T. ORICA MINING SERVICES (P.T. OMS) was established in Jakarta based on Notary Deed of Rachmat Santoso, SH., No. 137 dated February 20, 1998 with an authorized capital of US$. 20,000,000 (Rp. 171,060,000,000,000) issued and paid up capital of US$ 5,500,000 (Rp. 47,041,500,000).  The founding shareholders of the company are ORICA SINGAPORE Pte. Ltd., of Singapore (95%) and ORICA INVESTMENTS Pty., Ltd., of Australia (5%).  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Decision Letter No. C2-8.236.HT.01.01.TH.98 dated July 03, 1998.

 

Its articles of association have subsequently been changed for several times, most recently by Notary Deed of Sugih Haryati, SH., No. 8 dated September 05, 2017, concerning the change in composition of the Company’s board of Directors and Commissioners.  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.01.03-0171269 dated September 13, 2017. Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

We observe the majority shareholder of P.T. OMS namely ORICA SINGAPORE Pte. Ltd., is subsidiary company of ORICA INVESTMENTS Pty. Ltd., of Australia.   ORICA INVESTMENTS Pty., Ltd., is also shareholder of P.T. KALIMANTAN MINING SERVICES (dealing with coal mining services) and P.T. KALTIM NITRATE INDONESIA (dealing with ammonium nitrate (AN) manufacturing).

 

 

P.T. OMS is a foreign capital investment company (PMA) dealing with general mining contracting and consulting services.  It has been operating since 1999 in general contracting to cover blasting services provider and product supplier.  The Company is currently the largest supplier of commercial explosives.  The projects had been carried out by the Company are: blasting services provider and consulting for P.T. FREEPORT INDONESIA in Irian Jaya (Papua), P.T. AMMAN MINERAL NUSA TENGGARA in West Nusa Tenggara (Sumbawa Island), P.T. KALTIM PRIMA COAL, P.T. ARUTMIN INDONESIA and P.T. ADARO INDONESIA in East Kalimantan. Besides that, the company is also dealing as sub-contractor for P.T. THIES CONTRACTORS INDONESIA and P.T. PAMAPERSADA NUSANTARA both are dealing with mining contracting services. We observed that P.T. OMS is Indonesia’s larges blasting services provider and its business operation has been running in smoothly.

 

In overall we find the demand for mining contracting and blasting services provider had been rising by the average 10% to 12% per year within the last five years in line with the growth of coal mining, gold, silver, copper and other mineral products.  The solid and steady domestic economy, Indonesia with the rising of Country Rating to Investment Grade, and also supported by Indonesia’s economic indicators such as inflation, exchange rates and interest rates are expected to encourage the business sectors.  Macroeconomic indicators from China showed downward trend.  In contrary, macroeconomic indicators of the US and India showed improvement.  Both of these indicated continued uncertainties. The global economic crisis that accompanied the decline of the Indonesian Rupiah (IDR) against the US Dollar in the past two months, resulting in Indonesian people's purchasing power declined sharply. The value of the Rupiah from Rp. 11,800.- per US dollar at the end of 2014, has now slumped to Rp. 13.600 per US Dollar.

 

Table of Indonesian Economic Indicators from 2012 to 2016

 Indonesian Economic Indicators

  2012

  2013

  2014

  2015

  2016

Gross Domestic Product  (PDB)

6.0

5.6

5.0

4.8

5.0

Consumer Price Index

4.3

8.4

8.4

3.4

3.2

Government Debt

27.3

28.7

24.7

27.0

26.5

Exchange Rate  (IDR/USD)

9,419

11,563

11,800

13,400

13,300

Current Account Balance

-2.8

-3.3

-3.1

-2.1

-2.1

Population  (in millions)

247

250

253

255

258

Poverty  (percentage of population)

11.7

11.5

11.0

11.1

10.9

Unemployment  (percentage of  workforce)

6.1

6.3

5.9

6.2

5.6

Reserves  (in billion USD)

112.8

99.4

111.9

105.9

111.4

 

Until this time P.T. OMS 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. OMS’s management is very reclusive to outsider and rejecting to disclose its financial condition but we estimated the net income/revenues of the company in 2015 amounted to US$.21.8 million increased to US$.24.6 million in 2016 and rose again to US$.28.0 million in 2017.   The operation in 2017 yielded a net profit at least US$.2.4 million and the company has a total net worth of US$.12.0 million.  It is projected that net income/revenues of the company will increase at least 8% in 2018.    So far we did not hear that P.T. OMS has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of P.T. OMS is led by Mr. Jefri Christian Sormin (39) a professional manager of Indonesia with experience for some 12 years in mining contracting and consulting service.   In daily activities he is assisted by three directors namely Mr. Aditya Asthana (45), Mr. Antung Pandoyo (69) and Mr. Goodacre Laurence (50).  It is also supported and handled by a number of experienced managers in the business, having maintained a wide business relation among private businessmen within and outside the country mainly oil businessmen and government authorities. 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. ORICA MINING SERVICES is sufficiently fairly good for business transaction. However, in view of the unstable economic condition in the country we recommend to treat prudently in extending a loan to the company.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 65.08

UK Pound

1

INR 89.85

Euro

1

INR 80.16

IDR

1

INR 0.0045

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

TRU

                                                


 

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.