PILAR BISNIS SOEHARTO Liem Sioe Liong and Salim Group

Total Page:16

File Type:pdf, Size:1020Kb

PILAR BISNIS SOEHARTO Liem Sioe Liong and Salim Group Review Buku LIEM SIOE LIONG DAN SALIM GRUP: PILAR BISNIS SOEHARTO Liem Sioe Liong and Salim Group: Business Pillars of Suharto Rohani Budi Prihatin Pusat Penelitian Badan Keahlian DPR RI Jl. Gatot Subroto Senayan Jakarta Naskah diterima: 12 September 2016 Naskah dikoreksi: 28 Oktober 2016 Naskah diterbitkan: 22 Desember 2016 Judul Buku : Liem Sioe Liong dan Salim Grup: Pilar Bisnis Soeharto Penulis : Richard Borsuk dan Nancy Chng Penerjemah : Noor Cholis Penerbit : Kompas Tahun : 2016. (Diterbitkan pertama kali dalam bahasa Inggris oleh ISEAS-Yusof Ishak Insitutue Publishing dengan judul “Liem Sioe Liong’s Salim Group: The Business Pillar of Suharto’s Indonesia”) Pembahasan mengenai hubungan antara Penelitiannya dilakukan di Jakarta, Singapura, penguasa dengan pengusaha selalu menarik dan Kudus, Semarang, Hong Kong, dan Fuqing, tiada habis-habisnya untuk dikaji. Sebagaimana kampung halaman Liem di Tiongkok. Alasan utama diketahui, Soeharto meraih kekuasaan di Indonesia Borsuk dan Chng memilih topik ini adalah minat pada pertengahan 1960-an dan menjadi presiden mereka untuk mendokumentasikan kehidupan selama tiga dekade lebih, ditopang oleh militer dan era Liem, sosok penting dunia bisnis Asia yang kuat, bantuan asing yang melimpah, dan pendiri konglomerasi yang pada masa jayanya dukungan dari sekelompok kroni. Penopang bisnis merupakan yang terbesar di Asia Tenggara. Oleh pokok bagi pemerintahan Orde Barunya adalah karena Liem adalah cukong (pengusaha Tiongkok Liem Sioe Liong, seorang migran dari Tiongkok, yang menyediakan dana bagi para petinggi yang tiba di Jawa pada 1938. Kombinasi koneksi militer dan politik dengan imbalan patronase dan Soeharto di militer, kemujuran, dan pesona pribadi perlindungan) utama Soeharto, maka kisahnya melambungkan nama Liem sebagai taipan terkaya menawarkan wawasan tentang bagaimana Soeharto di Asia Tenggara. mampu bertahan di puncak kekuasaan selama tiga Buku yang ditulis oleh Richard Borsuk dan dekade. Pada waktu penelitian tersebut dilakukan, Nancy Chng ini menyajikan wawasan-wawasan kebanyakan teman-teman Liem sudah meninggal baru tentang Salim Grup dan Soeharto. Terdiri dari dunia sehingga tidak bisa memanfaatkan masukan 22 bab dan 575 halaman. Buku ini secara lengkap mereka. Ada beberapa keluarga yang juga menolak mendokumentasikan kehidupan dan era Liem diwawancara sehingga penulis sadar betul adanya sesuai dengan siklus hidupnya, dengan memuat kesenjangan informasi dalam buku ini. masukan langsung atau wawancara dari sang taipan. Pada awal buku, kedua penulis meyakinkan Beberapa tokoh bisnis, militer, politik dan lain-lain pembaca bahwa merekalah yang memegang kontrol juga diceritakan dalam buku ini, sejauh masih ada penuh atas naskah tersebut sehingga pihak Liem hubungan dan konteks sejarah antara Soeharto dan sendiri, keluarga Liem atau para eksekutif Grup Liem. Mengingat ikatan yang terjalin erat antara Salim tidak bisa sama sekali melihat naskah buku mereka berdua, bahkan dengan para jenderal sejak sebelum diterbitkan. Di samping itu, kedua penulis permulaan Orde Baru, kisahnya mencerminkan juga menyatakan penerbitan buku ini bukan atas potongan-potongan sejarah negara Indonesia. mandat maupun dana dari kelompok atau keluarga Rohani Budi Prihatin, Book Review: Liem Sioe Liong dan Salim Grup | 209 Liem. Wawancara dengan dengan Liem terjadi pendudukan Jepang –disembunyikan dalam karung- antara tahun 2006 dan 2007 ketika kesehatannya lenyap dalam tempo semalam ketika dinyatakan masih mengizinkan. tidak berlaku (hlm. 42). Pemerintah baru memberi Richard Borsuk merupakan jurnalis Asian Wall kompensasi setiap rumah tangga menurut jumlah Street Journal dan Reuters dengan total pengalaman penghuninya: berapapun uang yang anda punya, lebih dari 40 tahun menjadi koresponden Thailand setiap kepala hanya berhak mendapatkan satu Asian Wall Street Journal dari 1981 hingga 1987 rupiah. Ada delapan orang yang tinggal di rumah dan menduduki posnya di Indonesia dari 1987 Liem, maka mereka pun hanya menerima delapan hingga 1998. Setelah kejatuhan Soeharto pada rupiah. Meskipun harus kembai ke titik nol, Liem 1998, ia pindah ke Singapura untuk menduduki lebih beruntung dari kebanyakan orang, karena ia posisi reporter regional dan redaksi pada surat kabar bisa memanfaatkan kekerabatan Hockchia yang yang sama. Ia sarjana dalam Asian Studies pada kuat, meminjam modal dari orang-orang seklannya Universitas Wisconcin di Madison. untuk memulai kembali bisnisnya. Bahkan ia sudah Sementara Nancy Chng adalah sarjana lulusan memiliki basis konsumen baru yaitu para pejuang University of California, Berkeley. Dia turut kemerdekaan. Liem bergabung bersama pedagang mendirikan toko buku dan penerbit Select Book lainnya yang menyelundupkan kebutuhan pokok di Singapura, yang mengkhususkan tema-tema bagi tentara republik, membangun persiapan bagi bukunya merupakan kajian wilayah Asia Tenggara. peran yang akan melebar jauh dari sekadar pemasok. Salah satu kelebihan dari buku ini adalah Pada masa itulah, Liem membangun kontak-kontak pembahasannya yang detail mengenai seluk beluk penting yang nantinya membantu menempatkan tokoh yang terlibat dalam hubungan antara Liem dan dirinya di jalan menuju kaya raya. Soeharto. Walau terkadang ada kesan menghakimi Menurut Twang Peck Yang (1998) dengan menggunakan istilah yang bombastis, bergabungnya pengusaha Tionghoa dan kaum namun penulis berusaha untuk tetap objektif antara revolusioner Republik adalah faktor signifkan lain dengan menjelaskan secara detail maksudnya. bagi terciptanya struktur ekonomi dan politik Salah satu istilah yang digunakan dalam buku Indonesia pascamerdeka. Kemitraan ini memiliki ini adalah cukong. Oleh karena maknanya yang sebuah sinergi alami: orang Tionghoa tahu begitu pejoratif, Borsuk dan Chng di awal bukunya di mana sumber barang berada dan punya sudah mendefsikannya secara jelas sebagai sarana untuk membayarnya; sementara militer pengusaha Tiongkok yang menyediakan dana bagi Republik menjamin jalur pasokan. Peck Yang para petinggi militer dan politik dengan imbalan menambahkan bahwa mudah bagi militer melihat patronase dan perlindungan (hlm. vii). Defnisi atau membenarkan arti penting peran mereka dalam inilah yang menjadi inti analisis buku tersebut. perekonomian dalam situasi perang. Tangan militer Awal kedatangan Liem di Indonesia mengalami dalam perekonomian dalam keadaan tertentu masa-masa sulit khususnya saat kedatangannya adalah kebijakan Republik. Beberapa perusahaan yang kemudian disusul pendudukan Jepang. perdagangan milik negara juga berakar pada Sebagaimana diketahui, Jepang memantau ketat penyelundupan barang, yang biasanya dilakukan perhimpunan dan bisnis orang Tionghoa, bahkan dengan barter karena kelangkaan uang tunai. ada beberapa yang diperintahkan untuk ditutup Pada tahun 1952, Liem memutuskan (hlm. 37). Walaupun melarang semua peminjaman memboyong keluarganya ke Jakarta dengan uang dan praktik kredit jangka panjang, Jepang keyakinan karena Jakarta memiliki peluang bisnis membiarkan penyelundupan barang-barang tertentu yang lebih baik. Jakarta pada tahun 1950-an adalah dan komoditas pokok yang sangat langka. Banyak kota yang semrawut. Menurut penulis James orang Hokchia yang memang suka mengambil risiko Michener yang mengunjungi Jakarta pada tahun dan menggunakan kesempatan bagus ini. Sterling 1951, Jakarta merupakan merupakan kota penuh Seagrave (1995) menyebut bahwa mereka yang sesak yang mudah tersulut amarah di mana sekitar makmur pada masa itu adalah para penyelundup 3.000.000 jiwa berjejal-jejal dalam daerah yang beras, obat-obatan, dan komoditas strategis yang semestinya dihuni 500.000 jiwa (hlm. 56). Dari dijual kepada orang-orang Jepang dengan laba 3.000.000 jiwa tersebut sekitar 250.000 jiwa di besar. antaranya adalah orang Tionghoa. Berakhirnya pendudukan Jepang pada tahun Pada saat itu (1950-1960), Liem bukanlah siapa- 1945 merupakan awal Liem memulai bisnis siapa karena bisnisnya belum punya peran strategis untuk mendapatkan kembali penghasilannya yang pada saat Soekarno berkuasa. Pada awal 1960-an, hilang. Tabungan yang dikumpulkan susah payah Soekarno semakin melemah karena memburuknya dalam bentuk uang kertas keluaran pemerintah krisis ekonomi dan konfik politik yang mendera 210 | Aspirasi Vol. 7 No. 2, Desember 2016 Indonesia sampai terjadinya peralihan kekuasaan menjadikan industri minyak sebagai kerajaannya dari Soekarno ke Soeharto pada tanggal 11 Maret dan memakai uang Pertamina untuk mendanai 1966. Selain mencengkeram kekuasaan politik, banyak kebutuhan “di luar anggaran” militer, dan Soeharto juga siap mengerahkan pengaruh atas ini membuat banyak jenderal tunduk kepadanya. bidang lain yang dekat di hatinya: menerjuni bisnis. Soetowo menjadi nyaris tak tersentuh. Baru pada Bagi Liem, yang mengenal Soeharto bertahun-tahun 1970-an, ketika dia hampir membangkrutkan sebelumnya, tetapi belum berteman pada masa- negara, Soeharto dengan berat hati memecatnya. masa dramatis 1965-1966, pembentukan Orde Baru Sesudah itu, Soeharto lebih banyak mengandalkan adalah berkah (hlm. 60). para cukongnya, terutama Liem, untuk membantu Dalam periode Orde Baru Soeharto, setiap mendanai proyek-proyeknya (hlm. 65). jenderal yang makmur pasti punya setidak-tidaknya Untuk memperkuat pilar militer, pada Agustus satu cukong sebagai mitranya (hlm. 63). Para 1966, Soeharto membentuk lingkaran penasihat perwira tinggi membutuhkan ketajaman bisnis yang disebut Spri, singkatan dari staf pribadi.Para pengusaha Tionghoa untuk mendapatkan dana, anggotanya membidangi berbagai fungsi –politik, imbalannya adalah perlindungan dan privilese. Itu
Recommended publications
  • Committed to Growth Annual Report 2017 Annual Report 2017
    GALLANT VENTURE LTD. GALLANT VENTURE LTD. COMMITTED TO GROWTH ANNUAL REPORT 2017 ANNUAL REPORT 2017 ANNUAL REPORT GALLANT VENTURE LTD. 3 HarbourFront Place #16-01 HarbourFront Tower Two Singapore 099254 Tel: (65) 6389 3535 Fax: (65) 6396 7758 www.gallantventure.com TABLE OF CONTENTS 01 OUR PROFILE 02 OUR CORE BUSINESSES • AUTOMOTIVE • PROPERTY DEVELOPMENT • INDUSTRIAL PARKS • UTILITIES • RESORT OPERATIONS 07 LETTER TO SHAREHOLDERS 09 BUSINESS REVIEW 13 FINANCIAL REVIEW 15 FINANCIAL HIGHLIGHTS 16 GROUP STRUCTURE 20 BOARD OF DIRECTORS 23 KEY EXECUTIVES 24 CORPORATE INFORMATION 25 FINANCIAL CONTENTS GALLANT VENTURE LTD Annual Report 2017 01 OUR PROFILE Gallant Venture Ltd is an Indonesia focused investment holding company headquartered in Singapore. We are an integrated automotive group with coverage across Indonesia and a master planner for industrial parks and resorts in Batam and Bintan. With vision and perseverance, we have successfully plots in Bintan. Progressive completion of the Lagoi developed Batam and Bintan into an investment and Bay project will bring our Bintan Resorts to new tourist destination offering integrated businesses and heights and significantly enhance the business services such as industrial parks, utilities, property prospects on the island. development and resort operations. Our businesses are well-positioned to leverage on the strategic With our acquired automotive arm – PT Indomobil alliance between the Singapore and Indonesia Sukses Internasional Tbk (“IMAS”), we have governments and close proximity to Singapore.
    [Show full text]
  • The Political Economy of Business Groups in Developing Countries
    Studies in Comparative International Development https://doi.org/10.1007/s12116-021-09339-4 Trust and Envy: the Political Economy of Business Groups in Developing Countries Nathaniel H. Lef1 · Rachael Behr2 · Jefry Frieden3 · Shelby Grossman4 Accepted: 18 June 2021 © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2021 Abstract Diversifed business groups play a major role in the economies of many developing countries. Business group members, often from the same communal, ethnic, or tribal group, have or develop interpersonal relations that make it easier to obtain informa- tion and monitor compliance related to transactions that require a strong measure of trust. This in-group cohesion facilitates proftable and productive economic activity. However, it can create resentment among other members of society who are barred from membership in a group that is, of necessity, exclusive. This envy can fuel a self-reinforcing cycle of societal hostility and group protectiveness that can deprive society of the economic benefts the groups can provide. There are several possible reactions such as “afrmative action” programs that can slow or stop the cycle of envy and group vulnerability. Keywords Diversifed business groups · Business groups · Property rights · Afrmative action · Minority trading groups Introduction Business groups are ubiquitous in the economies of many countries in Africa, Asia, and Latin America (Khanna and Yafeh 2007). They help mitigate informational and other contractual
    [Show full text]
  • In Asia Copyright © First Pacific Company Limited 7 July 2020
    Proposed Acquisition of Pinehill Company by Indofood CBP, A Subsidiary of Indofood HKEx: 00142 Creating ADR: FPAFY long-term value www.firstpacific.com in Asia Copyright © First Pacific Company Limited 7 July 2020. All rights reserved. Ownership Structure of Pinehill Company Argyle Street Management Limited Independent Third Relative of Anthoni Salim (Hong Kong-based asset manager, Parties Mr. Salim Beneficial Owner of Steele Lake) 49% 42.7% 8.3% 100% Pinehill Corpora Limited Steele Lake Limited (Affiliated) Seller (Non-Affiliated) Seller 51% 49% Pinehill Company Limited (Target Company, “Pinehill Group”) 59% 59% 59% 100% Salim Wazaran Group Limited Salim Wazaran Gida Sanayi Pinehill Arabia Food Limited Platinum Stream Profits “SAWAZ” (Egypt, Kenya, ve Yatirim Anonim Sirketi Serbia, Morocco) “PAFL” (Saudi Arabia) Limited 80% 49% Adkoturk Gida Sanayi ve DUFIL Prima Plc “DUFIL” Ticaret Limited Sirketi (Nigeria, Ghana) “Adkoturk” (Turkey) The four main Pinehill Group noodle makers. 2 Note: FPC Chairman A. Salim has a 25% economic interest in Pinehill. Pinehill Group Brings Continental Scale Four Companies In Eight Markets Serving 550 mln People DUFIL Pinehill Arabia Food (PAFL) Production2.8 from:x 4.9 1995 Production2.8 from:x 4.9 1995 2019 Sales: 4,062 mln 2019 Sales: 1,779 mln Population:13.4 x 5.0237 mln Population:19.2 x 5.035 mln SAWAZ Adkoturk Home marKets Production4.2 from:x 4.9 2010 Production2.8 from:x 4.9 2015 Neighboring marKets 2019 Sales: 1,550 mln 2019 Sales: 211 mln Population:13.4 x 8.2195 mln Population:19.2 x 8.284 mln Export markets bring total population to 885 million potential consumers Note: Sales are in units of 70g equivalent pacKs while “production from” refers to first factory operation.
    [Show full text]
  • Palm Oil Sustainability Assessment of Indofood Agri Resources
    Palm oil sustainability assessment of Indofood Agri Resources Commissioned by: September 2015 Colophon Report: Palm oil sustainability assessment of Indofood Agri Resources Commissioned by: Rainforest Foundation Norway, Rainforest Action Network. Authors: Albert ten Kate, Adriani Zakaria. Project number: 3152 Date: September 2015 Cover photo: IndoAgri Kedang Makmur estate, East Kalimantan May 2015, © Aidenvironment Coordinates: S 0°26'12.60"; E 116°1'31.63" Aidenvironment Barentszplein 7 1013 NJ Amsterdam The Netherlands + 31 (0)20 686 81 11 [email protected] www.aidenvironment.org Palm oil sustainability assessment of IndoAgri 2 Contents Executive Summary 4 1. Basic facts about Indofood 7 1.1 Indonesia's largest food company 7 1.2 Indofood companies 7 1.3 Ownership structure 8 2. Oil palm business 9 2.1 The number 3 private palm oil company in Indonesia 9 2.2 Oil palm planted area 9 2.3 Oil palm expansion 10 2.4 IndoAgri’s palm oil customers 11 2.5 Indofood’s joint ventures 13 3. Sustainability assessment 15 3.1 Methodology 15 3.2 Sustainability policy 15 3.3 Metau forest 18 3.4 Lonsum and its land disputes 23 3.5 Fires 25 3.6 Greenhouse gas emissions 28 3.7 Conserving biodiversity 29 3.8 Salim group clearing orangutan habitat 30 4. Stakeholders demanding sustainability 32 Conclusion 34 Glossary and explanation of terms 35 References 36 Palm oil sustainability assessment of IndoAgri 3 Executive Summary Oil palm business and ownership structure PT Indofood Sukses Makmur (Indofood) is Indonesia's largest food company. Its revenue for 2014 was IDR 63.6 trillion, equivalent to USD 5.1 billion.
    [Show full text]
  • Dieleman V8U 1..205
    The Rhythm of Strategy Publications Series General Editor Paul van der Velde The ICAS Publications Series consists of Monographs, Edited Volumes and Pro- ceedings of ICAS. The Series takes a multidisciplinary approach to issues of inter- regional and multilateral importance for Asia in a global context. The Series aims to stimulate dialogue amongst scholars and civil society groups at the local, regio- nal and international levels. The International Convention of Asia Scholars (ICAS) was founded in 1997. Its main goals are to transcend the boundaries between disciplines, between nations studied, and between the geographic origins of the Asia scholars involved. ICAS has grown into the largest biennial Asia studies event outside the US covering all subjects of Asia studies. So far five editions of ICAS have been held respectively in Leiden (1998), Berlin (2001), Singapore (2003), Shanghai (2005) and Kuala Lumpur (2007). In 2001 the ICAS secretariat was founded which guarantees the continuity of the ICAS process. In 2004 the ICAS Book Prize (IBP) was estab- lished in order to create by way of a global competition both an international fo- cus for publications on Asia while at the same time increasing their visibility worldwide. Also in 2005 the ICAS Publications Series were established. For more information: www.icassecretariat.org The Rhythm of Strategy A Corporate Biography of the Salim Group of Indonesia Marleen Dieleman Publications Series Monographs 1 Cover design: JB&A raster grafisch ontwerp, Delft Layout: The DocWorkers, Almere ISBN 978 90 5356 033 4 NUR 741 / 791 © ICAS / Amsterdam University Press, 2007 All rights reserved. Without limiting the rights under copyright re- served above, no part of this book may be reproduced, stored in or in- troduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the written permission of both the copyright owner and the author of the book.
    [Show full text]
  • Explaining Indonesia's Relations with Singapore During the New Order Period:The Case of Regime Maintenance and Foreign Policy
    No. 10 Explaining Indonesia’s Relations with Singapore During the New Order Period: The Case of Regime Maintenance and Foreign Policy Terence Lee Chek Liang Institute of Defence and Strategic Studies Singapore MAY 2001 With Compliments This Working Paper series presents papers in a preliminary form and serves to stimulate comment and discussion. The views expressed are entirely the author’s own and not that of the Institute of Defence and Strategic Studies. IDSS Working Paper Series 1. Vietnam-China Relations Since The End of The Cold War (1998) Ang Cheng Guan 2. Multilateral Security Cooperation in the Asia-Pacific Region: (1999) Prospects and Possibilities Desmond Ball 3. Reordering Asia: “Cooperative Security” or Concert of Powers? (1999) Amitav Acharya 4. The South China Sea Dispute Re-visited (1999) Ang Cheng Guan 5. Continuity and Change In Malaysian Politics: Assessing the Buildup (1999) to the 1999-2000 General Elections Joseph Liow Chin Yong 6. ‘Humanitarian Intervention in Kosovo’ as Justified, Executed and (2000) Mediated by NATO: Strategic Lessons for Singapore Kumar Ramakrishna 7. Taiwan’s Future: Mongolia or Tibet? (2001) Chien-peng (C.P.) Chung 8. Asia-Pacific Diplomacies: Reading Discontinuity in Late-Modern (2001) Diplomatic Practice Tan See Seng 9. Framing “South Asia”: Whose Imagined Region? (2001) Sinderpal Singh 10. Explaining Indonesia’s Relations with Singapore During the New (2001) Order Period : The Case of Regime Maintenance and Foreign Policy Terence Lee Chek Liang The Institute of Defence and Strategic Studies was established in 1996 to: • Conduct research on security and strategic issues pertinent to Singapore and the region. • Provide general and post-graduate training in strategic studies, defence management, and defence technology.
    [Show full text]
  • Indoagri's New Sustainable Palm Oil Policy Fails To
    INDOAGRI’S NEW SUSTAINABLE PALM OIL POLICY FAILS TO ADDRESS KEY ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS February 2017 Salim Group’s Indofood Agri Resources Ltd (IndoAgri) has published a new “Sustainable Palm Oil Policy” amidst an ongoing RSPO complaint relating to labor rights violations on its palm oil plantations operated by subsidiaries PT. PP London Sumatra Indonesia Tbk. (Lonsum) and PT. Salim Ivomas Pratama Tbk. (Salim Ivomas). Unfortunately, IndoAgri’s policy falls short on addressing key ESG risks such as protecting valuable forests, preventing the exploitation of workers or committing to independent verification of its palm oil suppliers to No Deforestation, No Peatland and No Exploitation (NDPE) principles. Without such policy provisions, IndoAgri’s investors and financiers continue to be exposed to serious ESG risks. Figure 1: Indofood’s company structure IndoAgri, and its controlling companies Indofood and First Pacific (see Figure 1), have extensive direct ties to major financial institutions, investors, joint venture partners and palm oil supply chain customers. Prominent financiers include HSBC, Sumitomo Mitsui Financial, Malayan Banking, Deutsche Bank, Bank Mandiri, Citigroup, Mizuho, Bank of Tokyo-Mitsubishi UFJ, Bank of America, JP Morgan Chase, Royal Bank of Scotland, Rabobank, Standard Chartered, BNP Paribas and DBS. More than 200 independent institutional investors are also known to hold significant equity positions in Indofood, with significant shares held by Brandes Investment Partners and Lazard. Key joint venture partners and customers include Pepsico, Nestle, Wilmar and Unilever. These companies share responsibility with IndoAgri in relation to environmental and social violations, and continue to be exposed to serious ESG risks until IndoAgri’s policies and practices are brought into line with responsible palm oil production.
    [Show full text]
  • Download Case Study
    (INDF:IJ) Indonesia’s largest integrated food company PT Indofood Sukses Makmur TBK (Indofood) faces material risks related to labour, land rights and deforestation from upstream investments in the palm oil sector through its subsidiary Indofood Agri Resources, and by association with plantations controlled by the Salim Group. COMPANY PROFILE & SUSTAINABILITY COMMITMENTS CEO Anthoni Salim FOREST RISK COMMODITIES Palm oil First Pacific Co (0142:HK), majority owned Plantations, processing, manufacturing, PARENT COMPANY by Salim Group SUPPLY CHAIN EXPOSURE wholesale AFFECTED TROPICAL MARKET CAP (USD) 5.3 billion USD (FT.com) Indonesia FOREST AREAS Direct subsidiary: Indofood Agri ANNUAL REVENUE (USD) FY2015 5 billion USD (FT.com) RELEVANT SUBSIDIARIES Resources (SGX: 5JS). Plantation companies: PP London HEADQUARTERS Indonesia Sumatra Indonesia (Lonsum) (LSIP:IJ), Salim Ivomas Pratama (SIMP:IJ), PT Gunta Total: 549,287 ha across 63 concessions Samba & PT Gunta Samba Jaya. See LANDBANK (HA) Planted: 246,359 ha Figure 1. NDPE POLICY No KNOWN BUSINESS RELATIONSHIPS Joint venture Partners: PepsiCo, Nestlé, Wilmar Partial THIRD PARTY VERIFICATION RSPO member. 60% of Indofood subsidiaries’ planted area not RSPO certified (SPOTT, 2017 & SPOTT, 2017a). Salim Group-connected plantations are not covered (Mongabay, 2016). No commitment to third party verification Other buyers: Unilever, Procter & beyond RSPO for entire supply chain. Gamble, Golden Agri Resources, Musim Mas Group, Apical, Cargill, IOI Group TRACEABILITY Weak (Greenpeace, 2017) 36% of palm oil processed by IndoAgri not traceable to origin. SPOTT.org scores on traceability to mill: PP London Sumatra Indonesia: 37.5% Salim Ivomas Pratama: 25% TRANSPARENCY Partial SPOTT.org scores: PP London Sumatra Indonesia: RSPO reporting: 57.1% Landbank and maps: 62.5% Salim Ivomas Pratama: RSPO reporting: 50% Landbank and maps: 62.5% * Financiers of both Indofood and/or parent company First Pacific.
    [Show full text]
  • Using Organization Structure to Buffer Political Ties in Emerging Markets: a Case Study
    Using organization structure to buffer political ties in emerging markets: A case study Using organization structure to buffer political ties in emerging markets: A case study Marleen Dieleman National University of Singapore, NUS Business School, Singapore and Jean J. Boddewyn Zicklin School of Business, Baruch College (CUNY), USA Abstract We use and extend resource-dependence theory by analyzing how loosely-coupled organizational structures facilitate the management of political ties by business groups in emerging economies. This topic is particularly salient because business groups are a prevalent organizational form in these countries where they face both a high dependence on governments to secure key resources and a unique set of risks associated with political ties. We identify and analyze four buffering mechanisms that enable loosely-coupled business groups to protect themselves against the adverse effects of such ties. We ground and contextualize these mechanisms by relying on a longitudinal case study of the Salim Group – a very large and well- connected Indonesian business group under the Suharto regime. This study is particularly relevant in the context of the renewed interest in the study of firms’ organizational structure. Keywords: Buffering; Political ties; Resource dependence, Non-market strategy, Indonesia, Organizational structure, Salim Group, Emerging markets, strategy, crony capitalism Cite as: Dieleman, M. & Boddewyn, J.J. 2012. Using organization structure to buffer political ties in emerging markets: A case study.
    [Show full text]
  • How the Salim Group Morphed Into an Institution of Suharto's Crony Regime
    Coevolution of Institutions and Corporations in Emerging Economies: How the Salim Group Morphed into an Institution of Suharto’s Crony Regime Marleen Dieleman National University of Singapore NUS Business School, 1 Business Link, Singapore 117592 Tel. + 65 6516 3005 E-mail: [email protected] Wladimir M. Sachs † Cite as: Dieleman, M. & Sachs, W. 2008. Coevolution of institutions and corporations in emerging economies: How the Salim group morphed into an institution of Suharto's crony regime. Journal of Management Studies 45 (7), 1274-1300. http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6486.2008.00793.x/full In memory of Wladimir Sachs In the course of publishing this article, my co-author Wladimir Sachs unfortunately passed away. I would like to dedicate this article to Wlad, whom I will miss as a dear friend, an original thinker, a fierce fighter against unnecessary rules and outdated conventions, and an inspiring mentor. 2 Abstract We investigate whether large family groups in emerging economies can proactively change their environment. We use a coevolutionary approach, which accounts for the influence of context on the entrepreneur and for the freedom of the latter to modify it. We find that entrepreneurs can shape institutions to their advantage, illustrated by the Salim Group, which achieved growth by aligning with and influencing politicians, eventually “morphing into an institution”. We unravel unique coevolutionary patterns, which we use to extend existing theories. Our first contribution is to initiate a new line of inquiry in coevolution theory, focusing on individual companies coevolving with institutions. Secondly, we document factors that increase and decrease strategic choice for family groups in emerging economies.
    [Show full text]
  • ASEAN Investment Report 2019 FDI in Services: Focus on Health Care the Association of Southeast Asian Nations (ASEAN) Was Established on 8 August 1967
    ASEAN Investment Report 2019 FDI in Services: Focus on Health Care The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967. The Member States of the Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam. The ASEAN Secretariat is based in Jakarta, Indonesia. For inquiries, contact: The ASEAN Secretariat Community Relations Division (CRD) 70A Jalan Sisingamangaraja Jakarta 12110 Indonesia Phone : (62 21) 724-3372, 726-2991 Fax : (62 21) 739-8234, 724-3504 E-mail : [email protected] Catalogue-in-Publication Data ASEAN Investment Report 2019 – FDI in Services: Focus on Health Care Jakarta: ASEAN Secretariat, October 2019 332.67395 1. ASEAN – Investment 2. Foreign Direct Investment – Services – Health Care ISBN 978-602-5798-45-0 ASEAN: A Community of Opportunities for All The text of this publication may be freely quoted or reprinted, provided proper acknowledgement is given and a copy containing the reprinted material is sent to the Community Relations Division (CRD) of the ASEAN Secretariat, Jakarta. General information on ASEAN appears online at the ASEAN Website: www.asean.org Copyright Association of Southeast Asian Nations (ASEAN) 2019. All rights reserved. This publication was prepared by the ASEAN Secretariat and the United Nations Conference on Trade and Development (UNCTAD), and supported by the Government of Australia through the ASEAN-Australia Development Cooperation Program Phase II (AADCP II). The map in this publication is only indicative and is not drawn to scale. Disclaimer The ASEAN Investment Report is produced to facilitate a better understanding of FDI developments in ASEAN.
    [Show full text]
  • Chinese Business in Indonesia and Capital Conversion: Breaking the Chain of Patronage
    Southeast Asian Studies, Vol. 49, No. 2, September 2011 Chinese Business in Indonesia and Capital Conversion: Breaking the Chain of Patronage Trissia Wijaya* Taking issues from mainstream research, which has overly coalesced the discussion around patronage-ridden relationships and money politics, this paper argues that democracy has restructured the pattern of state-ethnic Chinese business relation- ships into a dispersed network, due to the dynamics of capital convertibility within varying scales of power and interests. Offering a unique perspective on capital conversion, this paper aims to debunk the orthodox view of Chinese capital as being merely money that accommodates politics. The revival of Chinese conglomerates in the political-economic life of Indonesia in the aftermath of crises was subject to capital in various forms: economic capital, socio-political capital, ideas, and knowl- edge. At the time of capital restructuring, an ever-increasing dispersed network of Chinese businesses demonstrated that their position was neither higher than poli- tics nor independent of it, yet the arrangement allowed them to dovetail well with various forces and power holders in a pattern of horizontal connection. Keywords: political economy, Southeast Asian studies, state-business relationships, patronage, capitalism, Indonesian Chinese, democracy I Introduction From petty traders to emigrant workers in the first half of the twentieth century, who struggled over the Japanese occupation and the rise of economic nationalism in Old Order Indonesia, ethnic Chinese and their business firms have long maintained a presence in the trajectory of Indonesia’s development (Robison 1986; Thee 2006). The New Order regime under Soeharto made overtures to Chinese capital acumen to back the regime’s development policy, and a small group of Indonesian Chinese capitalists were co-opted as business clients of the New Order power holders from 1966 onward (Coppel 1983).
    [Show full text]