Head of BRG Must Urge Companies to Restore in Area 36 Burned Corporations

Original Indonesian text at:
http://jikalahari.or.id/kabar/rilis/kepala-brg-harus-mendesak-perusahaan-melakukan-restorasi-di-area-36-korporasi-terbakar/

This is a google translate text:
Head of BRG Must Urge Companies to Restore in Area 36 Burned Corporations

December 1, 2016 December 2, 2016 Okto Yugo Leave a comment

Jakarta, Wednesday 30 November 2016- Jikalahari report on forest and land fires within the concession areas and concessions of 49 HTI and Palm Oil Plantation Industries in Riau during 2014-2016 to Nazier Foead, Head of the Peat Restoration Agency (BRG) at BRG Jakarta office. Nazir Foead received the report directly from Woro Supartinah (Coordinator Jikalahari) in this case representing Eyes On the Forest (EoF). EoF is a coalition made up of Jikalahari, Walhi Riau and WWF Riau.

Ka. BRG in accepting the report expressed appreciation of what EoF has done in monitoring the burning land and it is an input for BRG to make the necessary efforts.

The report of 49 corporations contains the results of field investigations of forest and land fires in concessions and company areas. A total of 36 out of 49 corporations are in deep-peat areas. The 36 companies above the peat areas with depths between 0.5 and more than 4 meters consist of:

HTI 19 Company: PT Rimba Rokan Lestari, PT Riau Andalan Pulp and Paper, PT Bina Duta Laksana, PT Sumatera Riang Lestari, PT Suntara Gaja Pati, PT Siak Raya Timber, PT Bukit Raya Pelalawan, PT Dexter Timber Perkasa Indonesia, PT Ruas Utama Jaya, KUD Bina Jaya Langgam, PT Putri Lindung Bulan, PT Arara Abadi (Duri District, Nilo, Pulau Muda - Merawang and Siak Berbari), PT Sumatera Riang Lestari Block IV Rupat, PT Rimba Rokan Perkasa, PT Satria Perkasa Agung, PT Triomas FDI and PT Seraya Sumber Lestari.

Palm Oil Plantation 17 companies: PT Sinar Sawit Sejahtera, PT Andika Permata Sawit Lestari, PT Raja Garuda Mas Sejati, PT Pan United, PT Parawira, PT Alam Sari Lestari, PT Nirmala, PT Agroraya Gematrans, PT Berak Anekayasa, PT Bumireksa Nusa Sejati PT Duet Rija, PT Guntung Hasrat Makmur, PT Pancasurya Agrindo, PT Pusaka Mega Bumi Nusantara, PT Setia Agrindo Lestari, PT Tesso Indah and PT Langgam inti Hibrindo.

There are 6 companies that replant in burnt areas: PT Sinar Sawit Sejahtera, PT Parawira, PT Sumatera Riang Lestari, PT Rimba Lazuardi, PT Siak Raya Timber and PT Dexter Timber Perkasa Indonesia, PT Triomas FDI and PT Seraya Sumber Lestari.

"The average burnt area has been planted with oil palm and acacia about 1 year old. This further reinforces the notion that land burning is intentionally done to fertilize the land, so that land can then be planted.

Clearly, this action is contradictory to the Ministerial Letter of the Minister of Environment and Forestry number S.494 / MENLHK-PHPL / 2015 on the Prohibition on the Opening of Peat Land published November 3, 2015 said: (1) "Government policy is determined to no longer be able to do new opening or exploitation of peatlands. Therefore, the development of forestry and plantation business is not with land clearing in peat areas. "

And Letter of Instruction of the Minister of Environment and Forests (LHK) S.495 / 2015 dated November 5, 2015 on Peatland Management Instructions, it is stipulated that: "Land clearing is prohibited for new planters, even in areas with concession licenses , "And" It is prohibited to carry out planting activities on burned fields and forests in the process of law enforcement and recovery. "

"EoF encourages BRG to urge companies to immediately restore in the corridors of 36 corporations that have been burned for damaging peat and causing climate change," Woro Supartinah said.

Contact:

Woro Supartinah, Coordinator of Jikalahari, 081317566965

Okto Yugo Setiyo, Advocacy and Campaign Staff of Jikalahari, 0853 7485 6435

Indonesia's Forest-Fire Problem Is Nowhere Close to Being Solved. Here's Why

Source: http://time.com/4562009/indonesia-haze-forest-fires-palm-oil-deforestation/

By PER LILJAS / RIAU 

Updated: December 13, 2016 2:41 AM ET | Originally published: December 1, 2016

Brake lights illuminate a mound of spiny palm fruits lying beside a road outside Tesso Nilo National Park on the Indonesian island of Sumatra. Laborers are spearing them and heaving them onto the bed of a truck when two farmers approach.

“Sure, we’re growing oil palm in the national park, so what?” one of them shouts at TIME. “Foreigners always come and cause problems. If you were from an environmental organization, we would’ve smashed your car. And then you’re lucky. In the next village they would’ve killed you!”

At the moment, the threats are just that. A few months earlier, a team of forest-crime investigators stripped a nearby village before they were chased away with sticks. In August, locals detained officials investigating a fire and threatened to kill them. But the area is tense, and actual violence may only be a matter of time.

More trees are being felled in Indonesia than in any other country — most of them to create room for palm plantations. Palm oil is used for the world’s processed food, cosmetics and, increasingly, in biodiesel industries. But producing it involves clearing vast tracts of forest by burning. In 2015, flames consumed a combined area roughly the size of Massachusetts. In five months, the fires emitted more greenhouse gases than Japan or Germany do in a year; destroying orangutan and tiger habitats. The epic fires, by creating a choking annual smog that drifts across the region, may have also caused the early deaths of an estimated 100,000 people across Indonesia, Malaysia and Singapore.

Read More: Watch Eerie Drone Footage of Indonesia’s Vast Forest Fires

Wetter weather this year — compared with the tinderbox conditions created by the El Nino phenomenon in 2015 — provided some relief. Burning in many provinces occurred at only a fraction of 2015 levels, and damp vegetation meant that fewer fires burned out of control. But at the same time, relying on something as changeable as the weather is no strategy at all.

“We have to be realistic about change,” Rolf Skar, forest campaign director at Greenpeace USA, tells TIME. “There’s no magic wand.”

In central Sumatra’s Riau province — the heart of what has rapidly become the country’s primary export earner — the problems of deforestation are made plain. To find the natural rainforest that once covered the province, you need to drive for at least three hours from the airport to Tesso Nilo National Park, one of the most biodiverse lowland forests in the world. Or perhaps it was, given that half of the forest cover has been lost since 2000.

“Every time we go on patrol we find illegal loggers,” says Ruswanto, head of Flying Squad, a WWF-sponsored group monitoring the park. “We would at least need four teams to patrol all of their entrances into the forest.”

Confrontations are testy. The Flying Squad classifies local villages as red, yellow or green, depending on their hostility, and reports logging violations to park management — but the park’s armed rangers do not always respond immediately, allowing most perpetrators to get away.

The encroachment shows no signs of abating. Earlier this year, an investigation revealed that palm oil from the park ends up in products labeled as sustainable in the West. And a report by Amnesty International released Wednesday documented labor abuses at plantations in Indonesia that allegedly supply palm oil to global brands.

Asian Agri, the owner of the local mill, claims that it cuts contact with farmers in breach of logging rules. But a Edy, the farmer who threatened TIME, says the mill only refused his fruit for a week.

In a letter to TIME, Asian Agri strongly denied any wrongdoing and emphasized its commitment to sustainable practices. It said that it did not tolerate “illegal FFB” — using the industry abbreviation for “fresh fruit bunches” — and said that it was implementing “full FFB traceability” in conjunction with an NGO, Setara Jambi.

When persuaded to talk, Edy said “We want to protect the forest too, but we need to survive.” He claimed that plantation companies have taken over his village’s land. “No one brings any solutions. They only shoot at us when they see us in the forest.”

It’s easy to pick on small-time farmers like Edy. The big players reportedly responsible for the lion’s share of Riau’s approximately 2 million hectares of illegal plantations — unregistered plots owned by people with influence — are more difficult to handle.

“Of 513 palm oil companies in Riau, 378 don’t have a valid license,” alleges Made Ali, deputy coordinator of Jikalahari, a coalition of local environment groups. “They are owned by 20 people with connections to, and protection from, political parties.”

There has been some accountability — in 2014, Riau’s governor was jailed for 14 years, in part for improper handling of forest permits — but there has been little actual change.

Commuters drive through thick haze in Tumbang Nusa, Central Kalimantan, on Oct. 25, 2015.

Ba Ismoyo—AFP/Getty Images

Since last year’s fires, Jakarta has launched a string of initiatives. The national anticorruption agency is zeroing in on affected provinces like Riau. District officials have been told they will lose their jobs if they are unable to control fires. Law enforcers have doubled the number of people arrested in connection with forest fires. An agency has been created to monitor and restore destroyed peatlands. (Drained for cultivation, these areas can burn several meters underground, making them the chief contributor to the seasonal haze that blankets this part of Southeast Asia.) President Joko “Jokowi” Widodo has also promised to issue a new moratorium on further deforestation before year’s end.

“If translated properly into law, this could be a game changer,” says Arief Wijaya, climate-and-forests associate of the environmental organization World Resources Institute (WRI).

Hopes are best kept tempered. The last moratorium, from 2011, did not cover the vast amount of forest that companies had already been approved to clear. Neither were violations subject to criminal punishment. More drastic measures face opposition from those within the administration who claim that a comprehensive ban on deforestation would hurt the vital palm oil industry. But last year’s fires cost Indonesia at least $16 billion — almost as much as its annual palm oil exports, and double the cost of damage and losses from the 2004 tsunami. If Indonesia is successful in curbing its CO2 emissions, the country could even expect an inflow of funds. Norway, for one, has promised $1 billion as part of the U.N. initiative REDD+. (An equivalent pledge to Brazil in 2008 accelerated a precipitous drop in deforestation of the Amazon.)

“As soon as the moratoriums are implemented, we are ready to release our funds,” Vidar Helgesen, the Norwegian Minister of Environment, tells TIME.

Read More: How Indonesia’s Fires Are Choking the World

For proper implementation, improved law enforcement is crucial. A dozen companies have been taken to court for involvement in the 2015 fires, but only one was found guilty. Activists on the ground report an unwillingness by police to advance cases, because evidence collection is difficult. This feeds a climate of impunity, and is aggravating relations with neighboring countries. Singapore is hit with debilitating haze every year. In 2015, air pollution reached hazardous levels, closing schools and costing the city-state an estimated $517 million in economic losses. It spawned the campaign We Breathe What We Buy, which led to supermarkets banning Indonesian agribusiness products.

As the financial center of the region — and hub for many of the agribusiness conglomerates — Singapore’s signals carry weight. In July, Indonesia’s pulp-and-paper giant APP, which has been targeted by Singaporean campaigns, announced a $20 million investment in fire prevention and monitoring. This year, fires in its concessions reportedly dropped greatly.

Smoke rises from a forest fire in this aerial photograph taken in Ogan Komering Ilir, South Sumatra province Indonesia, on Oct. 30, 2015

Dimas Ardian—Bloomberg/Getty Images

“It’s too early to say, but a number of companies facing prosecution under [Singapore’s] Transboundary Haze Act have become very cautious,” Susan Minnemeyer, director of WRI’s program Global Forest Watch, tells TIME.

Technology is playing increasingly important role in monitoring the fires. Global Forest Watch has developed a satellite model that is used by the Singapore government, mapping out land types, concession rights and fire hot spots. With it, the city-state and others are able to track the direction and origin of smoke plumes. In August, a group of NGOs used satellite imagery to pin a South Korean company to the burning of 50,000 hectares of virgin rainforest in the eastern provinces in Papua region and Maluku Islands.

Read More: Solving Southeast Asia’s Choking Haze Will Require Massive Agricultural Change

At the same time, connecting the data with specific companies can be tricky. Land permits have been handled in such a haphazard way that authorities use several competing maps. Reconciling them has proven hard.

“The technology is there,” Greenpeace’s Skar tells TIME. “But there are elements within the government that benefit from status quo.”

There are other problems that need to be solved. Vast deforested tracts are still officially labeled state forest. Changing their designation could improve their management.

Hundreds of land disputes also need to be settled. Many hark back decades, to a government scheme to alleviate poverty and boost agribusiness. The scheme peaked in the 1980s when millions of poor people were moved from overpopulated areas of the archipelago to the scantily populated forests, where they were assisted to start and manage commercial plantations.

Land rights of locals, especially indigenous people, were often ignored or sidestepped. The development has pushed most Orang Rimba, an ethnic group on Sumatra whose name literally means the “people of the forest,” to a life of poverty in remote areas.

“The people from Java came here and gave my parents rice and cassava, and asked them to move to another part of the jungle,” Nggilo, chief of an Orang Rimba tribe in Jambi province, tells TIME.

“It feels like we’ve been murdered in our own homes.”

Indonesia to re-investigate 15 companies linked to 2015 forest fires

Source: https://www.theonlinecitizen.com/2016/10/03/indonesia-to-re-investigate-15-companies-suspected-in-2015-forest-fires/

Published on 2016-10-03 by Martha Soezean

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Indonesian National Chief of Police Gen. Tito Karnavian has ordered recently-appointed Riau Regional Police Chief, Brigadier General Zulkarnain to re-investigate 15 companies suspected of being involved in forest and land fires in 2015.

The companies were issued Surat Penghentian Penyelidikan Perkara (SP3), or Cessation of Case Research, letters. SP3 letters signal the termination of investigations, and are issued when there is not enough evidence, or when the case is discovered to not be criminal in nature during the investigations.

Zulkarnain replaces Riau Police Chief Brigadier General Supriyanto.

It was Supriyanto's predecessor, former Riau Police Chief Brigadier General Bambang Dolly H who had issued SP3 letters to the 15 corporations, Riau Online reported on 2 October. The issuance of the SP3 letters came to light only six months later during Supriyanto's term.

After the handover ceremony at the State Police School in Pekanbaru on Saturday (1 Oct), Zulkarnain said to reporters, "Regarding the SP3, National Chief of Police directly ordered me to form a special team to re-investigate the case."

He added that he had also been ordered to collaborate with environmental activist to resolve last year’s cases involving companies alleged to have been responsible for land and forest burning.

"Beside the special team, I also plead with other activists to help me," he said.

Zulkarnain, who was former the police chief of North Maluku, urged people and corporations to stop burning the land, regardless of the circumstances.

"The penalty is heavy, do not burn anymore. The police do not delight in arresting people for burning. The police does not hate the person, but the actions," he concluded.

Earlier, National Police Chief Gen. Tito Karnavian explained that he had summoned Supriyanto to the Police Headquarters to explore the use of rigorous forensic investigation, especially for cases involving forest and land fires in Riau.

"The problems in Riau are multi-faceted, requiring intelligence and investigation; and understanding why the SP3 letters were issued," said Karnavian at Police Headquarters in Jakarta, Friday, 30 September.

In July last year, forest fires raged across Riau. In relation to the fires,15 companies and 25 people were hauled to court. However, three months later, the police issued SP3 letters to the 15 companies in January 2016.

Head of the Police Criminal Investigation Bureau, Commissioner-General Ari Dono Sukmanto, previously explained that there were at least three reasons why the cases were halted, reported Kompas.

He said the first reason is that the burned areas no longer belonged to the companies because they had been returned. Second, although there was a dispute on burnt land, the lands were not owned by the companies.

"Third, the companies had attempted to extinguish the fire, according to the infrastructure facility studies. The experts said there was no element of intent or negligence," said Ari Dono at the Parliament Complex at Senayan, Jakarta on 26 July 2016.

Ari Dono also said they were still investigating the process by which the SP3 letters were granted. However, he gave his assurance that the release of the SP3 had been the result of a process of inquiry and investigation. Investigators had called witnesses and experts during the investigation of the 15 companies.

Sinar Mas Subsidiary Gets Light Sentence in Forest Fire

Source: https://en.tempo.co/read/800899/sinar-mas-subsidiary-gets-light-sentence-in-forest-fire/full&view=ok

1 September 2016 20:08 WIB

TEMPO.CO, Palembang - The High Court Palembang, South Sumatra declared Bumi Mekar Hijau (BMH), a company owned by Sinar Mas Group, responsible for the forest fire at its 20,000 hectares of concessions in Komering Ogan Ilir in 2014.

The Court fined BMH Rp78.5 billion, which is only one percent of the amount demanded by the plaintiff, in this case, the Ministry of Environment and Forestry, which is Rp7.8 trillion.

"We are not happy with the court's ruling because it does not compare to damages caused to the environment," WALHI South Sumatra director Hadi Jatmiko said on Thursday, September 1, 2016.

He added that the ruling does not have a deterrent effect to BMH, who for the past 5 years have had their concession areas on fire.

Meanwhile, BMH and their lawyers refused to say how they address the verdict because they have not received a full copy of the appeal decision. But company spokesman Iwan Setiawan said he believes the judges made their decisions based on all principles.

PARLIZA HENDRAWAN

Daftar Terbaru 150 Orang Terkaya di Indonesia 08 Agustus 2016

 https://www.liputan6.com/bisnis/read/2572132/daftar-terbaru-150-orang-terkaya-di-indonesia-08-agustus-2016

Vina A Muliana

08 Agu 2016, 20:10 WIB

Perbesar

Daftar Lengkap Orang Paling Kaya di Indonesia Versi Globe Asia

Liputan6.com, Jakarta Majalah Globe Asia merilis daftar 150 orang terkaya di Indonesia. Nama pengusaha besar seperti Eka Tjipta Widjadja, Chairul Tanjung, Sri Sultan Hamengkubuwono X, hingga Setiawan Djody berhasil masuk ke dalam daftar tersebut.

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• Sudah 8 Kali, Duo Saudara Ini Jadi Orang Terkaya RI
• Daftar Terbaru Orang Terkaya Indonesia 2016
• 500 Orang Terkaya Dunia Punya Harta Rp 55.224 Triliun

Peringkat teratas masih ditempati pengusaha pemilik grup Djarum, Robert Hartono dan Michael Hartono. Keduanya mengantongi kekayaan hingga US$ 14,8 miliar atau setara Rp 194,7 triliun.

Melansir Globe Asia, Senin (8/6/2016) berikut daftar lengkap 150 orang terkaya di Indonesia:

150. Ishak Charlie
Arga Citra Kharisma
US$ 110 juta

149. Marimutu Maniwanen
Busana Apparel Group
US$ 110 juta

148. Setiawan Djody
Setdco Group
US$ 130 juta

147. Tandean Rustandy
Arwana Citramulia
US$ 130 juta

146. Bambang Setijo
Pan Brothers
US$ 135 juta

145. A Siang Rusli
Kurnia Tetap Mulia
US$ 135 juta

144. Jacobus Busono
Pura Group
US$ 140 juta

143. Fajar Suhendra
Sumatra Growth Group
US$ 140 juta

142. Soedjono
Wira Sakti Adimulya
US$ 148 juta

141. Mintarjo Halim
Sandratex
US$ 150 juta

140. Batihalim Stefanus
Nojorono Tobacco
US$ 155 juta

139. Rudy Unjoto
Daliatex Kusuma
US$ 165 juta

136. Anna Bambang Surjo Sunindar

Kirana Tanker
US$ 180 juta

137. Honggo Wendratno
Arsari Pratama
US$ 170 juta

138. A Tong
Roda Vivatex
US$ 160 juta

135. Ricardo Gelael
Fast Food Indonesia
US$ 185 juta

134. Iskandar Widyadi
Bank Jasa Jakarta
US$ 190 juta

133. Shindo Sumidomo
Siantar Top
US$ 190 juta

132. Siti Hardijanti Rukmana
Citra Lamtoro Gung Persada
US$ 190 juta

131. Mardjoeki Atmadiredja
Surya Toto Indonesia
US$ 200 juta

130. Widarto
Sungai Budi Group
US$ 200 juta

129. G Lukman Pudjiadi
Jayakarta Group
US$ 205 juta

128. GS Margono

Gapura Prima Group
US$ 210 juta

127. Stanley S Atmadja
Asco Automotive
US$ 220 juta

126. Samin Tan
Borneo Lumbung
US$ 230 juta

125. Rachmat Gobel

Gobel International
US$ 240 juta

124. Bambang Trihatmodjo
Asriland
US$ 240 juta

123. Karmaka Surjaudaja
OCBC NISP Group
US$ 245 juta

122. Ilham Habibie dan Thareq Habibie
Ilthabi Rekatama
US$ 250 juta

121. Elizabeth Sindoro
Dan Liris, Paramount Group
US$ 255 juta

 

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120. Budi Purnomo Hadisurjo

Optik Melawai
US$ 265 juta

119. Sri Sultan Hamengkubuwono X
Sultan Yogyakarta
US$ 260 juta

118. Sendi Bingei
Sumatra Tobacco Trading: Tobacco, food
US$ 265 juta

117. Johanes B. Kotjo
Apac Group: Textiles
US$ 267 juta

116. Anton Setiawan
Tunas Group
US$ 260 juta

115. Pontjo Sutowo
Nugra Sentana Group
US$ 270 juta

114. Kaharudin Ongko
Ongko Group
US$ 270 juta

113. Tan Tjai Kie
Gunung Garuda Steel
US$ 275 juta

112. Winarko Sulistyo
Fajar Surya Wisesa
US$ 275 juta

111. Siswono Yudohusodo
Bangun Cipta Sarana: Construction, livestock breeding
US$ 285 juta

110. Soetjipto Nagaria
Summarecon Group
US$ 290 juta

109. Paulus Tumewu
Ramayana Group
US$ 300 juta

108. Johnny Widjaja
Sintesa Group
US$ 315 juta

107. Henry Onggo

Ratu Sayang Group
US$ 320 juta

106. Benny Suherman
Studio 21 Group
US$ 325 juta

105. Chandra Lie dan Hendry Lie
Sriwijaya Air
US$ 325 juta

104. Boyke Gozali
Mitra Adi Perkasa
US$ 330 juta

103. Oesman Sapta Odang
OSO Group
US$ 350 juta

102. Muljadi Budiman

Honda Prospect Motor
US$ 350 juta

101. Didi Dawis
Ling Brothers
US$ 355 juta

100. Djoenaedi Joesoef
Konimex
US$ 360 juta

99. Iwan Lukminto
Sritex Group
US$ 350 juta

98. Tatang Hermawan
Fuju PalapaTextiles, Bank Parahyangan
US$ 380 juta

97. Sabana Prawirawidjaja
Ultrajaya Group
US$ 385 juta

96. Jahja Santoso
Sanbe Farma
US$ 390 juta

95. Rudolph Merukh dan Lucky Merukh
Merukh Enterprises
US$ 400 juta

94. Sukamdani Sahid Gitosardjono

Sahid Group
US$ 425 juta

93. Yos Sutomo
Sumber Mas
US$ 430 juta

92. K. Gowindasamy
Mitra Jaya Group
US$ 430 juta

91.Surya Dharma Paloh
Media Indonesia
US$ 440 juta

90. Dahlan Iskan
Jawa Pos Group
US$ 445 juta

89. Kris Taenar Wiluan
Citra Mas Group
US$ 450 juta

88. Keluarga Hendro Setiawan
Pikko Group
US$ 450 juta

87. Rosan Roeslani
Recapital
US$ 450 juta

86. Trihatma K Haliman
Agung Podomoro Group
US$ 450 juta

85. Mohammad Reza Chalid
Global Energy Resources
US$ 460 juta

84. Harry Sanusi
Kino Group
US$ 470 juta

83. Sugiono W Sugialam dan Kindarto Kohar
Trikomsel Group
US$ 480 juta

82. Jimmy Masrin
Lautan Luas Group
US$ 480 juta

81. Ginawan Tjondro
CNI Group
US$ 490 juta

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80. Rudy Suliawan

Karang Mas Sejahtera
US$ 490 juta

79. Arifin Panigoro dan Hilmi Panigoro
Medco Group
US$ 475 juta

78. Kiki Barki
Harum Energy Group
US$ 500 juta

77. Henry Pribadi
Napan Group
US$ 505 juta

76. Alim Markus
Maspion Group
US$ 507 juta

75. Iwan Budi Brasali dan Aldo Brasali

Brasali Group
US$ 510 juta

74. Hendro Gondokusumo
Intiland
US$ 510 juta

73. Amirsjah Risjad
Risjadson Group
US$ 515 juta

72. Heru Hidayat
Inti Agri Resources
US$ 530 juta

71. Wiwoho B Tjokronegoro
Indika Energy
US$ 540 juta

70. Sutanto Djuhar
First Pacific
US$ 545 juta

69. Agus Lasmono Sudwikatmono
Indika Energy
US$ 550 juta

68. Purnomo Prawiro
Blue Bird Group
US$ 560 juta

67. Tan Kian
Dua Mutiara
US$ 570 juta

66. AHK Hamami
ABM Investment Trakindo Group
US$ 570 juta

65. Sofjan Wanandi
Gemala Group, Santini Group
US$ 580 juta

64. Sudhamek
Garuda Food Group
US$ 590 juta

63. Soegiharto Sosrodjoyo
Rekso Group
US$ 610 juta

62. Bachtiar Karim

Musim Mas
US$ 630 juta

61. Desi Sulistio Hidayat dan keluarga
Sido Muncul
US$ 640 juta

60. Harjo Sutanto
Wings Group
US$ 640 juta

59. Subianto Tjandra

Ateja Group
US$ 650 juta

58. George Tahija dan Sjakon Tahija
Austindo Nusantara Jaya
US$ 650 juta

57. Kuncoro Wibowo
Ace Hardware
US$ 655 juta

56. Hutomo Mandala Putra
Humpuss
US$ 655 juta

55. Muki Tan
Rodamas Group
US$ 660 juta

54. Eka Tjandranegara
Mulia Group
US$ 690 juta

53. John Chuang
Ceres Indonesia, Petra Food
US$ 700 juta

52. Prajogo Pangestu
Barito Pacific Group
US$ 710 juta

51. Jan Darmadi
Jan Darmadi Group
US$ 720 juta

50. Osbert Lyman
Lyman Group: Property, plantations
US$ 740 juta

49. Jusuf Kalla dan keluarga
Kalla Group
US$ 750 juta

48. Boenjamin Setiawan dan keluarga
Kalbe Farma
US$ 800 juta

47. Sandiaga Uno
Saratoga, Recapital: Private equity, investment
US$ 830 juta

46. Alexander Tedja dan Melinda Tedja
Pakuwon Group
US$ 840 juta

45. Benny Subianto
Persada Capital Group
US$ 845 juta

44. Hashim Djojohadikusumo
Arsari Group
US$ 900 juta

43. Tomy Winata
Artha Graha Group
US$ 900 juta

42. Luntungan Honoris
Modern Group
US$ 800 juta

41. Johan Lensa
J Resources
US$ $900m

 

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Selanjutnya

40. Gunawan Jusuf
Sugar Group Companies
US$ 905 juta

39. Handojo Santoso
Japfa Comfeed Group
US$ 910 juta

38. Sugianto Kusuma (Aguan)
Agung Sedayu, Bank Artha Graha
US$ 910 juta

37. Martias dan Tjiliandra Fangiono
First Resources
US$ 950 juta

36. Mu’min Ali Gunawan
Panin Group
US$ 1,2 miliar

35. Husein Djojonegoro
ABC, Orang Tua Group
US$ 1,1 miliar

34. Teddy Thohir dan Garibaldi Thohir
TNT Group
US $1,1 miliar

33. Rusdi Kirana
Lion Air Group
US$ 1,2

32. Dato Low Tuck Kwong
Bayan Resources
US$ 1,25 miliar

31. Hartadi Angkosubroto dan Husodo Angkosubroto
Gunung Sewu Group
US$ 1,3 miliar

30. Murdaya Poo dan Siti Hartati Murdaya
Central Cipta Murdaya
US$ 1,4 miliar

29. Kartini Muljadi dan Handojo S Muljadi
Tempo Scan Group
US$ 1,4 miliar

28. Suryadi Darmadi
Duta Palma Nusantara Group
US$ 1,45 miliar

27. Benjamin Jiaravanon dan Jialipto Jiaravanon
Charoen Pokphand Indonesia
US$ 1,5 miliar

26. Lim Hariyanto Wijaya Sarwono
Harita Group
US$ 1,5 miliar

25. The Nin King
Argo Manunggal Group
US$ 1,5 miliar

24. Djoko Susanto
Sumber Alfaria Trijaya
US$ 1,5 miliar

23. Aksa Mahmud
Bosowa Corporation
US$ 1,55 miliar

22. Ciputra
Ciputra Group
US$ 1,6 miliar

21. Jakob Oetama dan Lilik Oetama
Kompas Gramedia Group
US$ 1,6 miliar

20. Haryanto Adikoesoemo
AKR Corporindo
US$ 1,7 miliar

19. Hary Tanoesoedibjo
MNC Group
US$ 1,75 miliar

18. Eddy Sariaatmadja dan Fofo Sariaatmadja
Elang Mahkota Teknologi
US$ 1,8 miliar

17. Edwin Soeryadjaya
Saratoga, Recapital
US$ 1,8 miliar

16. Martua Sitorus
Wilmar International
US$ 1,9 miliar

15. Tahir
Mayapada Group
US$ 1,95 miliar

14. Peter Sondakh
Rajawali Group
US$ 2 miliar

13. Sjamsul Nursalim
Gajah Tunggal Group
US$ 2,05 miliar

12. Theodore P Rachmat
Triputra Group, Adaro
US$ 2,1 miliar

11. Mochtar Riady
Lippo Group
US$ 2,2 miliar

10. Sukanto Tanoto
Royal Golden Eagle
US$ 2,2 miliar

9. Eddy William Katuari
Wings Group
US$ 2,4 miliar

8. Aburizal Bakrie
Bakrie Group
US$ 2,5 miliar

7. Putera Sampoerna
Sampoerna Strategic
US$ 3.5 miliar

6. Sri Prakash Lohia
Indorama Group
US$ 4,1 miliar

5. Chairul Tanjung
CT Corp
US$ 4,8 miliar

4. Susilo Wonowidjojo
Gudang Garam
US$ 10 miliar

3. Eka Tjipta Widjaja
Sinar Mas Group
US$ 10,5 miliar

2. Anthoni Salim

Salim Group, First Pacific
US$ 11 miliar

1. Robert Hartono & Michael Hartono
Djarum Group
US$ 14,8 miliar

(Vna/Ndw)

 

Indonesian Conglomerates: their involvement in the startup scen

http://www.demystifyasia.com/indonesian-conglomerates-involvement-startup-scene/

 

TOPICS:Indonesian conglomerates

Posted By: Shona July 4, 2016 

In Indonesia, the startup growth over the past two years has been very promising. According to research, there were more than 1500 local startups in 2015 ranging from games, educational applications and e-commerces and information.

As the country with the highest population in South East Asia, as well has the largest number of internet users, the startup industry based in tech certainly has strong potential for tremendous expansion in the coming years. In an effort to remain on the forefront of of the startup lottery, huge investments have been made in the country, with the largest one for Tokopedia at USD$100 million. This investment was made by Sequoia Capital and Softbank, two top-tier investment groups that operate in the region. In addition to growth in investments, incubators and accelerator programs are also a driver of the growth of the technology startup ecosystem.

In Indonesia, a contributing factor to most of the startups are is the involvement of the Indonesian conglomerates; those who own large amount capital and whose businesses have been entrenched in Indonesia for decades. The next generation within the families of conglomerates are facing new challenges in doing business in today’s globalized-world. To remain relevant and retain their status, many next-generation-tycoons, are getting involved in the startup scene. Below are Indonesian conglomerates who are engaged in the startup industry.

Lippo Group
Lippo Group is an Indonesian company founded by notable tycoon, Mochtar Riady. At first, it ran Lippo Bank which was renamed and changed composition of its share into Bank CIMB Niaga. The company then also managed property and real estate, operating across Asian countries such as Indonesia, China, Hong Kong, Macao, Philippines, Singapore and South Korea with total assets worth 11 billion USD. It is also listed on various stock exchanges in Hong Kong, Indonesia and Singapore with at least 15 subsidiaries. In addition to the property business, the company is also involved in retail, telecommunications, news and media, and various other types of businesses. Based on Forbes report, the Riady family is the ninth richest tycoon in Indonesia. Total wealth of Lippo Group is valued at 2.2 billion USD (around Rp 29 trillion) which derived from those various business lines.

As the internet marketplace showed its lucrative growth, Lippo Group initiated an investment in e-commerce. With investments of 500 million USD, Lippo Group started operating e-commerce site Mataharimall.com in 2015 to compete with other big name such as Lazada and Tokopedia. This e-commerce platform actually is the online version of the existing store chains operating for decades, Matahari Mall, owned by Lippo Group that spread across the archipelago. The Lippo group recently partnered with Singapore based Grab, which was looking for support in Indonesia, to help with deliveries for Mataharimall.com.

“Online commerce is a US$100 billion opportunity. MatahariMall will be number one. There is nothing like it in Southeast Asia. Our vision is to build the most powerful ecosystem that brings together buyers and sellers to do business anytime and anywhere” said John Riady, the director of Lippo Group during the launching of mataharimall.com.

Recently, in March 2016, the grandson of Mochtar Riady, who is acting as Director of Lippo Group, John Riady, started to invest in venture firm Venturra Capital. The group’s capital is 150 million USD, or equivalent to 2 billion IDR. In the official statement, Venturra Capital will prioritize investments in startups from Indonesia and Southeast Asia. The startup targets range from e-Commerce, financial services, healthcare, and education. The firm, led by Stefan Jung, former founder and managing partner of Rocket Internet Southeast Asia; Rudy Ramawy, former country director at Google Indonesia; and John Riady, current director of Lippo Group.

“Our mission in Venturra is to provide capital, operational empowerment and market access to the founders of technology-based innovative business and internet has the potential to transform the industry,” wrote Venturra Capital.

Djarum Group
Djarum is cigarette producer based in Kudus, Central of Java, owned by Oei Wie Gwan. After Gwan passed away, the company is now run by his son, Robert Budi Hartono and Michael Bambang Hartono. Forbes named the Hartono family the richest in Indonesia. With total assets reachig $ 15.5 billion (around Rp200 trillion), Hartono family also owns majority shares in largest private bank in Indonesia, Bank Central Asia (BCA).

Hartono successfully steered the company to be largest cigarette producer in the country. As the growth of the cigarette industry is quite stagnant, Djarum then diversified its business line into several lines. Djarum’s subsidiary, PT Hartono Plantation Indonesia, has oil palm plantations covering an area of 30,000 hectares (ha) in the Porcupine District, West Kalimantan. The company is also developing timber plantations in East Kalimantan, covering land area of 20,000 hectares.

Beside for investments in those lines, Djarum also owns blibli.com, an electronic e-commerce site with investments from Djarum amounted to 1 million USD yearly through its subsidiary, GDP Venture. Djarum created GDP Venture to invest in startup and internet business. Another successful project funded by GDP Venture is Kaskus, the largest online community based in Indonesia. To gain a better angle on upcoming startups, GDP Venture formed an incubator called Merah Putih Inc., a startup incubator which aims to provide capital assistance for innovative startup. The incubator’s successful portofolio includs Dailysocial, KrazyMarket, Infokost, Bolalob, Lintas.me, infokost.net, kincir.com and Mindtalk.

Sinar Mas Group
Sinar Mas Group is another wealthy tycoon in Indonesia who owns hundreds of subsidiaries across the country. The company was founded in 1962 by Tjipta Eka Widjaja. At the beginning, the company’s business portfolio mostly focused on pulp, paper and palm oil producers. But as the company grew, it began managing wide ranges of business lines including agribusiness, property and real estate, mining, financial services ranging from bank, multifinance, and insurance.

As the internet based technology began growing rapidly in Indonesia, Sinar Mas Group set up a venture capital in 2015 named Sinar Mas Digital Ventures (SMDV). SMDV together with Lippo Digital Ventures and RMK Sovereign Capital Ventures, on January 15, 2015 invested Serie A investment amounted to 2 million USD for Giftcard.co.id. Secondly, SMDV also invested in Female Daily Network value for 1 million USD. Then, under one of its subsidiaries, PT Dian Swastika Sentosa Tb, runs ecommerce business by purchasing point. In 2015, SMDV also invested in Series A Investment totalling 2.6 million USD for Omise, a Thailand-based payment gateway.

To fully commit to startup investments, Sinar Mas Group, through its subsidiary, Sinar Mas Land, recently announced plans to build an integrated smart digital city in Indonesia for startup companies, technology leaders and digital communities. As reported in Jakarta Post, the company’s CEO, Michael Widjaja, said that the construction would start in 2017 on a 25.86-hectare plot of land in BSD City, South Tangerang. The company has allocated Rp 2 trillion (US$151 million) in cash to develop the digital hub.

“It’s our dream to build this place, an equivalent to Silicon Valley in the US. We are not only inviting the companies but we want to build a self-sustaining community,” he said in Jakarta on Tuesday. This ambitious project will be finished in 10-15 years and plan to targeting research centers, institutions and educational institutions that have schools of technology and sciences.

Bakrie Group
Bakrie Group is a conglomerate founded by Achmad Bakrie in 1942. The company’s business lines spread in in many areas, including Oil and Gas, Real Estate, Infrastructure, Mining, Media, and Telecommunications. Bakrie Group is one of the largest business groups in Indonesia, with 10 subsidiary listed on the Indonesia Stock Exchange. Currently, Bakrie Group is chaired by Nirwan D. Bakrie (Chairman) and Indra U. Bakrie (CO-Chairman). In 2004, Aburizal Bakrie retired from the Bakrie Group to focus on his political career and now is the General Chairman of Golkar Party, the second largest party in Indonesia.

In 2011, with a vision to expand the company line to include technology startups, the company established a private investment firm named Nusantara Incubation Fund. Bakrie Group’s CEO, Anindhya Bakrie stated in the interview that the investment firm aims to support local startups. The establishment of the investment firm was part of Bakrie Group BtelVision2.0 program to widely reach internet markets.

“We expect another kind of Kaskus and startup to emerge, but it must be owned by us. Although there will be others to invest, no problem. ”

In January 2014, a closed social network, Path, recorded getting C round of funding amounting to 25 million USD from Bakrie Group. The investment was deemed a significant move by Bakrie as Path users in Indonesia are the largest, with 4 million users in 2014. Currently, Bakrie Group is also working together with Converge Ventures, though does not have total control over the operations of the company.

CT Corp
CT Corp. (formerly known as Para Group) is a group of companies owned by tycoon Chairul established in 1987. The holding company owns several business lines including bank, insurance, retail stores, plantation, news and media, mining, property and real estate, and restaurant chains.

One of notable CT Corp internet-based portfolio companies is detik.com, a highly popular online news platform in Indonesia. On August 3, 2011 CT Corp. acquired detik.com shares, value of 60 million usd or equivalent to 521-540 billion IDR. Before being acquired by CT Corp, detik.com shares were owned by Agranet Tiger Investment and Mitsui & Co. Agranet has a 59% share, and the rest is owned by Tiger 39%, and Mitsui 2%.

In February 2016, CEO of CT Corp. Chairul Tanjung announced that the company is preparing to launch an e-commerce company. “Currently we are preparing e-commerce so once it released, it becomes the champion. If we don’t become champion, it is better to not launch e-commerce because the line of our business is complete. There are hypermarket, department stores, airlines, hotels, food and beverages, and also entertainment. But we want everything is available in our e-commerce, “said Chairul.

Mitra Adiperkasa
Mitra Adiperkasa (MAP) is a retail company that was raised by Boyke Widodo and his uncle Sjamsul Nursalim. Data from Forbes states that Sjamsul has a fortune of $ 470 million (around Rp6.2 trillion) from Gadjah Tunggal tire factory and retail MAP they have.

MAP is arguably one of the largest retail companies in Indonesia. Some well-known brands commonly found in malls such as like SOGO, Planet Sport, BANDAI, Starbucks, and others-are managed by MAP. With these foundations, MAP has recently officially announced their e-commerce site called MAP EMALL. The products are sold mostly in the form of fashion and home furnishings as well as what is offered by retail MAP.

Salim Group
Salim Group is another notable conglomerate in Indonesia. It was founded in 1972 by Sudono Salim (Liem Sioe Liong) and has subsidiaries such as Indofood, the world’s largest instant noodle producer. It also owns oil palm plantations (approximately 1,000 square kilometers) and logging concessions. Besides, it also manages property, real estate and entertainment industry for about 30 years.

Now, the company is run Anthoni Salim. In an interview with Japanese media, Nikkei expressed his interest in investing in the e-commerce industry. “We are ready to participate in e-commerce in Indonesia, which has just begun. If you want to be successful [in e-commerce], logistics, transportation management and IT architecture must be very strong. ”

Though Salim Group doesn’t make direct investments to e-commerce company, its subsidiaries do. Philippine Long Distance Telephone (PLDT) Company, a Philippine based company with its largest shares owned by Salim Group, invested 455 million USD or equivalent to Rp 6.2 trillion) to Germany based tech company, Rocket Internet. Rocket Internet is the conceptor of giant marketplaces operating across Asia, including Lazada and Zalora. It is recorded that PLDT shares in Rocket Internet is equivalent to 10% of total shares.