[Kabar-indonesia] 1: Tempo Cover Story: Indonesia's Super-Rich [+Top 40 List]

[JoyoNews at aol.com]

1: Tempo Magazine Cover Story (6 reports): 

- Indonesia's Super-Rich 

- Rating the Rich 

- The Path to Fame and Fortune 
  [incl: Top 40 List]

- Doing Business Without Debts 

- Interview/Trihatma Haliman: 
  Crisis creates opportunity 

- One Level Above Liem 

Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

Indonesia's Super-Rich 

Forty names were crowned by Forbes Asia magazine as the richest in Indonesia. 
Three of them joined the list at the end of the economic and financial 
crises. They are Trihatma Kusuma Haliman (Agung Podomoro), Eddy William Katuari 
(Wings Group), and Arifin Panigoro (Medco Energi). What are their business 
secrets? Here is Tempo's report. 

EDDY William Katuari may well be an unfamiliar name to people in Surabaya, 
where he originally comes from, let alone in Indonesia. Indeed, his name is 
hardly ever mentioned in the media. Only certain circles, particularly among the 
business community, may be acquainted the boss of the Wings Group. However, 
Forbes Asia magazine, in its Monday edition last week, placed him as a new star 
in the Indonesian business world. 

The name William Katuari is in the list of the country's top 10 richest 
people. Today his name can be placed side by side with top businesspeople who 
frequently make the Forbes list, such as Rachman Halim (Gudang Garam), Liem Sioe 
Liong (Salim), Budi Hartono (Djarum), or Putera Sampoerna. Today, William ranks 
above Liem and Mochtar Riady (Lippo) on the list. Besides William's, another 
surprise name is Trihatma Kusuma Haliman (Podomoro Group). 

The financial crisis of 1997 didn't just produce disasters, but blessings 
too. William and Trihatma are a few of Indonesia's businesspeople who escaped the 
onslaught of the crisis sweeping Asia, at the same time that the old giants 
crumpled. Both were able to take advantage of the situation by transforming 
their companies into new giants in Indonesia's business world. William grabbed 
the consumer goods business, while Trihatma put his feet in the property world, 
mostly in Jakarta. 

Interestingly, the two are not new players. The Wings Group has been in 
business for the past 58 years, while Trihatma is entering its 40th year. The key, 
according to Trihatma, is how to deal or not to deal with debts. Both seem 
reluctant to take out huge loans. They are very conservative and rely more on 
their own capital. "During the crisis, William's finances were very liquid," said 
Dahlan Iskan, boss of the Jawa Pos Group. Trihatma admits having debts, but 
on a small scale. "If possible, I don't borrow," he says. 

Their attitudes differ from those of other tycoons, who accelerated business 
expansions by taking out loans. Banks were established only to serve as cash 
cows. Many state-owned banks lost control and disbursed jumbo-sized loans. Not 
surprisingly, when the crisis hit and interest rates rocketed, their 
businesses collapsed under the burden of their debts. 

In total, Rp600 trillion in non-performing loans must now be borne by the 
government and the people through a banking restructuring program. The businesses 
were asked to settle their debts or surrender their assets through the 
Indonesian Bank Restructuring Agency. This agency resold the assets to acquire the 
funds to bail out the banking industry. 

William and Trihatma were sharp enough to spot the opportunities. Without 
losing time, they went after the assets, most of which were sold at low prices. 
William bought, among others, Salim Oleo Chemicals, a company that produced raw 
material for the soap and body care industry, previously owned by the Salim 
Group. Trihatma quickly bought up assets auctioned off by IBRA. "The 1997 
economic crisis offered us opportunities. It was then time to buy," Trihatma told 
Tempo. 

Eight years later, it is now time for these enterprises to harvest the seeds 
they sowed. "Now it's time to sell," said Trihatma. The results have been 
extraordinary. He is currently in the process of completing 30 property projects 
in various strategic corners of Jakarta. The projects include Kelapa Gading 
Square, Mangga Dua Square, Senayan City, and The Pakubuwono Residences. His 
assets are estimated at more than Rp15 trillion. 

The Wings Group, too, has transformed from a home industry in the suburbs of 
Surabaya into a conglomeration controlling many business sectors, ranging from 
toiletries to banks. The Wings Group is now on a par with multinational 
producers like Unilever (Dutch), Procter & Gamble (American), and Kao (Japanese). 

Besides not relying on loans, the two companies are extremely focused on 
their core products. Wings has stuck to its toiletries business, while Podomoro 
continues its foothold in the property business. "Until now we're still focusing 
on property, though this may change," said Trihatma. It's no wonder they know 
their businesses thoroughly. 

Additionally, both are low-profile companies, preferring to avoid publicity. 
"Silence is the company policy," William Katuari told Tempo last week. His 
late father, Johannes Ferdinand Katuari, taught his children to focus on the core 
business. "You don't need to be famous. It's enough to let the goods become 
famous," said Katuari senior. 

The same is true of Trihatma. He is virtually unrecognizable at the Senayan 
City shopping mall and offices. Every day, he saunters through it to monitor 
the nearly completed project and rubs elbows with visitors and employees alike 
in a lift-unnoticed. 

Thanks to Forbes, which has displayed their names prominently, they can no 
longer keep a low profile. Their names have risen while their business value has 
gone up. William, however, remains humble. He still rates himself way below 
Unilever and Indofood. "We haven't reached that level." -- MTQ, Heri Susanto, 
Bagja Hidayat 
 
-----------------------------------------------
 
Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

Rating the Rich 

FORBES Asia has started a new tradition. Two weeks ago, the Singapore-based 
business magazine published a list of Indonesia's 40 richest people. For the 
past 19 years the magazine has been announcing its list of the world's richest 
men. But it has only begun publishing a list of the super-rich among Indonesian 
businesspeople. 

Contrary to tradition, ranking is determined by calculating the wealth of the 
tycoon's families. Shares ownership includes those in public as well as in 
private companies. Calculations are based on the latest share prices and 
exchange rates. Also figured are the estimated values of the private companies if 
they are sold to the public. 

Before doing the calculations, Forbes Asia ran research on the tycoons. 
According to Justin Doebele, Forbes Asia's Contributing Editor, who wrote the 
articles, data went through tight examination stages. "We conducted the evaluation 
and research for several months," Justin told Tempo, last week. 

Besides wealth, debts were also factored in. It seems one can be categorized 
as rich, even though he has a mountain of non-performing loans. "However, we 
were very careful in separating personal from company loans," said Justin. 

The eight-member team tried to visit each businessperson for confirmation. 
However, not everyone was available. "Only a few were willing to respond," said 
Justin. One of them was Gudang Garam. 

Rachman Halim, owner of Gudang Garam, is currently in fourth place, with 
wealth of US$1.8 billion (around Rp16.4 trillion). He still ranks below the boss 
of the Raja Garuda Mas Group, Sukanto Tanoto (US$2.8 billion), who tops this 
year's list. Rachman is also below Putera Sampoerna (US$2.1 billion), and Eka 
Tjipta Widjaja (US$2 billion). At the bottom of the top five is Djarum cigarette 
businessman, R. Budi Hartono (US$1.4 billion). 

However, on the list of the world's top 746 richest people, released by 
Forbes last March, only two Indonesian names made it: Rachman Halim (410) and Budi 
Hartono (428). Rachman's wealth at that time was US$1.9 billion, while Budi 
Hartono's was US$1.8 billion. Other people such as Sukanto, Sampoerna, and Eka 
did not even make the list. 

Last year, only Budi Hartono was one of Asia's 10 richest people, with a 
total wealth of US$2.3 billion. In 2003, only Rachman Halim was on the list, 
ranked 303 out of 476 of the world's richest people, with a wealth valued at US$1.4 
billion. During the past few years, it was Rachman's name that frequented the 
list. 

At the world level, Microsoft founder, Bill Gates, with a wealth of US$50 
billion, 
has held the top position for the past eight years. -- Danto 
 
------------------------------------
 
Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

The Path to Fame and Fortune 

THERE seems to be a positive side to overpopulation, particularly to tycoons. 
At least that's what half of Indonesia's 40 richest people listed in the 
September 18 edition of Forbes Asia magazine, must feel. After all, Indonesia, the 
world's fourth most populous country (230 million people) provides them with 
a bottomless market. 

The tycoons naturally benefit from it all the time. Those who have benefited 
by it include the kings of cigarettes, Rachman Halim (Gudang Garam) and Budi 
Hartono (Djarum). Household goods producers like the Wings Group owned by Eddy 
William Katuari (toiletries and food products), the Salim Group with its 
Indofood (instant noodles and flour), and owner of Sosro bottled tea, Soegiharto 
Sosrodjojo, reaps an abundance of harvests. 

Others are the kings of paper and palm oil, such as Sukanto Tanoto and Eka 
Tjipta Widjaja. In fact, Sukanto has been named the richest businessman in 
Indonesia. There is also real estate king Trihatma Haliman, worth US$900 million, 
who managed to sell apartments in all corners of Jakarta. Interestingly, the 
Liem Sioe Liong family, one the top tycoons during the New Order era, "fell" to 
10th position. Here is the complete list of the 40 richest Indonesians. -- 
Danto 

1. Sukanto Tanoto & family: 
US$2.8 billion 
56 years. Married. 4 children. 

Started his business as supplier to state oil company. In 1973 converted to 
forest produce business. Ten years later established pulp company PT Inti 
Indorayon Utama. Under the flag of Raja Garuda Mas, his business continues to 
flourish in the paper, palm oil, and energy industries. He was Unibank owner, 
before the government froze it. Today, it still owes non-performing loans to Bank 
Mandiri (Rp5.3 trillion) and several other banks. 

2. Putera Sampoerna & family: 
US$2.1 billion 
58 years. Married. 4 children. 

The business empire was built by his grandfather, Liem Seeng Tee, in 1913, 
when he built a tobacco and cigarette company, today known as Hanjaya Mandala 
Sampoerna. Last year Putera sold 40 percent of his Sampoerna shares to Philip 
Morris at Rp18.6 trillion. He is now preparing to build a new business empire in 
the agrobusiness industry and infrastructure. 

3. Eka Tjipta Widjaja & family 
US$2 billion 
83 years. Married. 15 children. 

Arriving as an immigrant from China at 17, Eka started selling biscuits. His 
business' tentacles cover the paper, pulp, and palm oil industries. In 2001, 
Asia Pulp & Paper, the paper company he relied on, was mired in enormous debt 
of US$13.9 billion. Today his business empire is run by his children under the 
banner of the Sinar Mas Group. His grandchild, Eric Oei, is learning the 
construction business in China. 

4. Rachman Halim & family: 
US$1.8 billion 
59 years. Married. 2 children. 

Rachman's business came from the Wonowidjojo family, owners of the Gudang 
Garam cigarette company in Kediri. Founded in 1958, for several decades the 
company ruled over the cigarette market in Indonesia. Today the Rachman Halim 
family still relies on cigarettes as its principal business. 

5. R. Budi Hartono & family: 
US$1.4 billion 
65 years. Married. 3 children. 

The Djarum business owner started in 1951 in Kudus, Central Java. Today he 
owns 10 percent shares in Bank Central Asia through Alaerka Investment. Alaerka 
is a company owned by two brothers, R. Budi Hartono and Bambang Hartono. The 
Djarum Group is currently keen on the property business, including building 
Grand Indonesia on the land formerly occupied by Hotel Indonesia, Jakarta. 

No. Names Wealth (US$ millions) 

6 Aburizal Bakrie and family 1,200 
7 Eddy William Katuari and family 1,000 
8 Trihatma K. Haliman 900 
9 Arifin Panigoro 815 
10 Liem Sioe Liong and family 800 
11 Mochtar Riady and family 570 
12 Peter Sondakh 530 
13 Prajogo Pangestu 510 
14 Martua Sitorus 475 
15 Paulus Tumewu 440 
16 Murdaya Poo and Siti Hartati Cakra 430 
17 Husein Djojonegoro and family 360 
18 Chairul Tanjung 310 
19 Hadi Surya 305 
20 Tan Kian 300 
21 Sjamsul Nursalim 295 
22 George and Sjakon Tahija 265 
23 Edwin Soeryadjaya 230 
24 Kartini Muljadi and Dian Paramita Tamzil 225 
25 Harjo Sutanto and family 220 
26 Soegiharto Sosrodjojo 215 
27 Tan Siong Kie 200 
28 Aksa Mahmud 195 
29 Soetjipto Nagaria 150 
30 Ciputra and family 145 
31 Kris Wiluan 140 
32 Djuhar Sutanto and family 135 
33 Husein Sutjiadi 120 
34 Boenjamin Setiawan and family 115 
35 Tomy Winata 110 
36 Jusuf Kalla 105 
37 Soedarpo Sastrosatomo and family 100 
38 Alim Markus and family 95 
39 Jakob Oetama 90 
40 Tjandra Kusuma 80 

Source: Forbes Asia 

--------------------------------------

Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

Doing Business Without Debts 

Agung Podomoro's assets continue to grow, now valued at Rp15.2 trillion, 
thanks to Trihatma Haliman's green fingers. 

THE elevator in Senayan City, Wednesday afternoon two weeks ago, was crowded. 
Oblivious to the crowd jostling him, a man continued to speak into his 
gold-plated Vertu cell phone. But he became upset when he found himself pushed into 
the inside of an elevator. 

"What's wrong with the other elevator?" he asked the elevator attendant. 

"Broken, sir," the attendant replied. 

"How come?" He glanced at Handaka Santosa, President Director of PT Manggala 
Gelora Perkasa, management of Senayan City, standing in the other corner. 

Handaka couldn't give an immediate reply. He had to contact the mechanic 
staff to find out. Yet, he took time to give instructions that the broken elevator 
be fixed immediately. 

Overhearing the conversation, the people in the lift looked from Handaka to 
the questioner. Who was it? It turned out to be Trihatma Kusuma Haliman, owner 
of the largest mall in Southeast Asia, built with a budget of Rp1.2 trillion. 

Senayan City is a project of his that is nearing completion. Standing on a 
lot three times the size of a football field on Jalan Asia Afrika, the building 
soars eight floors, accommodating a five-star hotel, apartments and offices. 
"I built it without any loans," said the father of two children. He speaks 
quietly, in a measured manner. 

Doing business without debts is Trihatma's strategy in building the Agung 
Podomoro Group, a top property business founded by his father, the late Anton 
Haliman in 1969. Anton's name gained fame when he built the Simprug Golf Course 
on 20 hectares of land in Kebayoran Baru, South Jakarta in 1970. "We're a 
conservative family," he said. 

Holding on to this business philosophy, he is certainly no follower of Joseph 
Schumpeter's theory of business cycles. According to the theory, the formula 
for trade is "dare to be optimistic using other people's money." Trihatma has 
proven that by "daring to be optimistic" is enough to run a business. 

Podomoro's assets are now worth Rp15.2 trillion. With that, he's practically 
the king of Indonesian real estate. The figure does not include his other 
projects that are still in the planning stage. Trihatma, 54, claims that he's 
preparing the most prestigious project in his 28-year career. 

Born in Jakarta, he started getting involved in business in 1978. Trihatma 
was groomed by Anton to take over his business, sending him to the Kaiserlautern 
University in Germany, to study civil engineering. While in the fifth 
semester, he was summoned home. Since then Trihatma "interned" with his father for 
eight years. It wasn't until 1986 that he stood on his own two feet. 

Anton didn't pass on the Podomoro leadership baton immediately. Trihatma had 
to start a new company first. He started it by buying PT Indofika Housing, a 
real estate company in Sunter. He made the decision alone, because his father 
refused to give any suggestions. "Like a bird, you already have strong wings to 
fly," said Trihatma quoting his father. 

Trihatma's business didn't actually soar until 2001. 

He became increasingly prominent because the other property players started 
to reel under the heavy weight of debts following the economic crisis of 
1997-1998. Seventy percent of the non-performing loans in the banks at that time 
came from the property business. Staggered by the heavy blow, even after the 
storm had receded, the old players found it difficult to rise again. Trihatma, 
however, survived. "Few debts, many advantages," he said. 

It was with such a conservative attitude that, at any sign of a crisis, he 
instantly put a brake on his ambitions to build an apartment. His savings were 
spent immediately on vacant lots from bankrupted companies. Such a strategy 
usually pays off. 

Nevertheless, there were obstacles. Three years ago, Trihatma was reported to 
the police on charges of illegally occupying land belonging to the heirs of 
Munawar bin Salbini in Tanjung Duren, West Jakarta. The root of the problem 
was, the apartment that he built stood on 2.9 hectares of land whose status is 
still in dispute. Fortunately, the charges were dropped. Today, the apartment 
and shopping mall that Trihatma is in, sells well. Just like its name: Podomoro. 
-- Bagja Hidayat 
 
---------------------------------
 
Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

Trihatma Haliman: Crisis creates opportunity 

AT a time when businesses everywhere were caught in the debt trap following 
the economic crisis, Trihatma flew higher and higher, buying up land cheaply. 
"As people slept, we worked," said Trihatma to Tempo reporter Bagja Hidayat at 
Senayan City. 

You are listed as one of the 10 ten richest men, according to Forbes 
magazine. 

What is your comment? 

I have no comment. 

According to Forbes, your wealth is Rp8.3 trillion. 

That's their calculations. I'm confused. They did ask how much my assets were 
worth. I replied I couldn't remember one by one. So what method did they use 
to calculate?

How about developing Agung Podomoro? 

We succeeded because we were focused. Podomoro started its business since 
1969. For 35 years, we never looked at other businesses, so that we were able to 
concentrate on the business and truly understand what the consumers wanted.

For 35 years, it never fluctuated? 

We went through a number of crises. From a number we learned lessons, that 
focus is the right choice. We were able to overcome the crises. Every crisis 
alway creates opportunities.

What do you mean? 

During the 1997 crisis, we bought a lot of land at cheap prices. So, when the 
economy recovered, we built buildings on top of it. Now is the time to sell 
them.

Is it true you do business without going into debt? 

I have always been conservative. Careful. Everything must be calculated.

So, you have no debts? 

I do, but very little. I am secure. If the interest is high, we don't take a 
long time in paying it. Borrowing lots of dollars might be difficult to pay 
back. Perhaps that's what enabled Agung Podomoro to escape the crisis. Before 
the crisis, I was not in debt. For 35 years we never failed, we were never late 
in paying our employees.

Did you ever have a bad experience with loans? 

No. I would not go into debt unless I was forced to. Even so, I would 
calculate the cashflow, because debts must be repaid. Banks are needed but only for 
bridging and when I'm in a bind.

Who is the most influential person in your career? 

My father. He is also conservative. People from that generation are extremely 
disciplined. They have long-term vision. To me, my father is both teacher and 
friend.

How many projects are you involved in? 

There are about 30 in the process of being constructed. I am not alone. I 
have many partners. In Kapuk, for instance, my project is with Pak Anthony Salim 
from Indofood. I am building Kelapa Gading, Mangga Dua Square with Pak Aguan 
(Sugianto Kusuma). He's my best partner.

You're not attracted to other types of businesses? 

Not yet. We are still focused on property. 

What has been your most prestigious project? 

The 20-hectare Tanjung Duren Park. That will be Agung Podomor City. A new one 
will be even bigger than The Pakubuwono Residence. But that's still secret.

Pakubuwono itself is already so luxurious. 

But the profit is small. Only 10 percent. I will also build inexpensive 
homes. We have never wanted to be high profile. The important thing is to work good 
and hard.

You are conservative but progressive. 

Yes, but there are always calculations. 
 
--------------------------------------------

Tempo Magazine
No. 04/VII
Sept 26-Oct 02, 2006 

Cover Story 

One Level Above Liem 

>From an electrical technician Arifin Panigoro became an oil baron. 
Medco's shares are not being sold, after all. 

HIGH up in the air, Arifin Panigoro struggled under the scorching sun. 
Standing on a bamboo ladder leaning against an electricity pole, the student at the 
Electrical Engineering School, Bandung Institute of Technology, was busy 
working on a faulty streetlight. 

At another time, Arifin worked on installing electricity panels in railway 
coaches. Those were Arifin's daily activities in serving customers of CV Corona 
Electric, a company providing electricity services which he built together 
with his friends on campus. 

That was then. Today, 34 years later, Arifin has transformed into a tycoon 
with abundant wealth. Forbes Asia magazine recently crowned him as the ninth 
richest person in Indonesia. His worth is estimated at US$815 million. This is 
one position higher than Liem Sioe Liong, Indonesia's top tycoon during a bygone 
era. 

Arifin's business wheels started rolling after he changed course and turned 
his attention to the oil business. In 1980, Arifin established PT Meta Epsi 
Pribumi Drilling Company (Medco). The company was in the land oil and gas 
drilling business. 

Medco later expanded to other sectors. In addition to energy, Medco became 
involved in business such as providing financial services (PT Bank Saudara), 
food, agrobusiness, hotels (Grand Preanger Bandung; Novotel Bukit Tinggi, West 
Sumatra; Sofitel Seminyak, Bali), and property (Niaga Tower, Jakarta). 

But energy is still the largest revenue-maker to the Group through PT Medco 
Energi Internasional Tbk. Last year's sales reached US$620 million. In the last 
five years, Medco Energy International's sales grew an average of more than 
12 percent. During the same period, Medco's assets tripled to become US$1.5 
billion. 

Two years ago, he spread his wings beyond Indonesia. His subsidiary in 
Australia, MedcoEnergi Pte. Ltd., succeeded in acquiring 83.4 percent shares of 
Novus Petroleum Ltd., one of the largest oil companies in Australia. Novus is 
currently working on 26 oilfields in seven countries, including Indonesia, the 
Philippines, Australia, Oman, and the United States. Medco also has an oil field 
in Libya. 

Realizing that his task is becoming increasingly harder, Pipin-Arifin's 
nickname-has for some time handed over the company's leadership to Hilmi Panigoro. 
As top executive in the international mining company Huffco, (today it's 
called Vico), he is considered highly qualified to fill the position. "I think in 
Indonesia, he is the best in the oil industry," said Arifin. 

Another important position is held by Yani Yuhani Rodyat. The fourth sibling 
who is better known as Yani Panigoro, is tasked with Medco Holding's 
operational responsibilities. This is obviously not a light position; this is the 
company that oversees all shares of the Panigoro family in all business lines of 
the Medco Group and other business. "My task is to ensure that the Medco Group 
remains standing, whoever is at the helm," she told SWA magazine. 

So, where do Arifin's children stand in all this: Maira Arifin Panigoro and 
Yaser Raimi Panigoro? While Maira prefers to be a housewife, Yaser, 28, seems 
to be following in his father's footsteps. This graduate from American 
International University, in the US, is given the responsibility to manage Medco 
Mining, another coal and mineral division under MedcoEnergi, recently established 
at the beginning of last July. 

With these senior executives in place, Arifin can sit calmly on the advisory 
seat. All debts to PT Jasindo and PT Bahana which nearly dragged him behind 
bars have now been settled. The balance of his debts is settled. Medco's shares 
are gradually being bought back from the creditors. Due to this hard work, 
since February last year, Medco's ownership is now back in Arifin's hands. -- 
Metta Dharmasaputra 

-End 1 of 2-

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Joyo Indonesia News Service
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