Wednesday, February 6, 2008

BIMANTARA: SOEHARTO'S LINKAGE

This group is developed by Bambang Trihatmodjo (the President's second son) with Indra Rukmana and 3 other partners, Rosano Barack, Mohamad Tachril Sapi'ie and Peter Frans Gontha. The pioneer was PT Bimantara Citra, founded by Bambang Trihatmodjo, Rosano Barack and Mohamad Tachril Sapi'ie in 1981. The other two joined in a year later. The capital at that time was Rp. 100 millions and the office was on Jalan Toko Tiga, lent by Suharso Suhandinata. At first they operated only in general trading, then became Pertamina's logistic supplier. Later they entered transportation service by holding Pertamina's LNG shipping. Those 2 businesses are performed by PT Bimantara Artika Citra and PT Samudra Petrindo Asia.

This group's growth is very rapid. In the first 5 years (1982-1986), called the developing stage, they added 63 subsidiaries, consisting of 41 newly founded companies (some in cooperation with other parties) and 22 taken over companies. In the second Relitara (Bimantara's 5 year plan), called the consolidating stage (1987-1991), they added 79 more subsidiaries. All businesses founded in those 2 Relitaras include those personally set up by the group's founders. This group is now in the third Relitara (1992-1997) and keeps adding new subsidiaries. They already liquidated 12 subsidiaries in 1990 and 14 in 1992.

This group doesn't have a core business. Its strategy is expansive, to every profitable lines of business can be run and developed. Now they have 10 divisions, which are trading, finance, chemical, transportation, automotive, pharmaceutical, mining & energy, agribusiness, construction and communication. There are 12 subsidiaries in trading division. Some of them are PT Bimantara Cakra Nusa, PT Citra Karya Pranata, PT Indocitra Buana and PT Citra Auto Nusantara. They are dealers and shareholders of this group's automotive assemblers.

Finance division was started by PT Bimantara Graha Insurance Brokers, an insurance broker. Then they entered the reinsurance business (PT Tugu Jasatama Reasuransi Indonesia cooperating with PT Tugu Pratama Indonesia) and insurance underwriter (PT Citra International Underwriters). There are a total of 6 subsidiaries. The newest one is PT Arthacakra Multifinance, founded in 1995 as.an automotive financing. They also develop PT Bank Andromeda founded by Bambang Trihatmodjo, Prajogo Pangestu and Henry Pribadi.

The chemical division started in 1982, cooperating with George Hardjosoesilo (Geha group) to develop PT Polychem Lindo Inc., producing polystyrene. This product is generated from petrochemical product styrene monomer, widely used in producing 30 kinds of plastic goods, from ballpoint to insulator. Then they entered the industries of herbicide, fungicide and insecticide by founding PT Multisida Agrolindo in 1983 (now become PT Bima Kimia Nufarm after the joining of foreign partner Fernz Corporation Ltd. from New Zealand). They have a total of 15 subsidiaries here, including 6 in petrochemical, which are PT Chandra Asri (olefin center), PT Tri Polyta Indonesia (polypropylene), PT Multi Nitrotama Kimia (nitric acid), PT Styrene Mono Indonesia (styrene monomer), PT Indochlor Prakarsa Industries (caustic soda) and PT Sulfindo Adiusaha (vinyl chloride monomer and ethylene dichlorides). The first 2 companies are in cooperation with Prajogo Pangestu (Barito Pacific group) and Henry Pribadi (Napan group), while the last 2 companies are in cooperation with Salim group. Their latest investment is PT Prasadha Pamunah Limbah Industri to process waste. Incooperation with Salim group, they set up PT Satomo Indovyl Polymer to produce poly vynil monomer and PT Satomo Indovyl Monomer to produce vynil chloride monomer.

In transportation division, they founded PT Samudra Petrindo Asia to ship Pertamina's LNG, then took over PT Cardig Air in 1982 and also took over PT Handfast Forwarders and PT Fast Marine Service, each operating in forwarding and LNG transportation services. In 1983 they took over PT Trikora Lloyd, an ocean shipping, then also PT Indonesia Air Transport, offering air transport charter service.Total there are 20 subsidiaries in this sector.

In automotive division, this group joined PT Indonesian Republic Motor Company, the sole agent of Ford in Indonesia, in 1984. Then they took over some shares of Pendawa Sempurna group's PT Lima Satrya Nirwana, the shareholder of 3 Mercedes Benz related companies, PT Star Motor Indonesia (the sole agent), PT German Motor Manufacturing (assembler) and PT Star Engine Indonesia (engine factory). This group also cooperate with PT Daikin Clutch Indonesia to produce clutch disk assy and clutch cover assy. Total there are 6 subsidiaries here.The newest investment is PT Kawasaki Motor Indonesia (cooperating with Tabalujan group and Kawasaki Heavy Industries) to assemble Kawasaki motorcycles.They have released their sole agency for Mercedes Benz because they are concentrating to develop Hyundai whose agency is hold by PT Citramobil Nasional. To compete with PT Timor Putra Nasional who got facilities to assemble national car, this group in cooperation with Hyundai Motor Corporation builds a car machinery factory in Purwakarta with 200,000 units capacity.

Pharmaceutical division is developed in cooperation with Wim Kalona (the pharmaceutical king in 1960-1970, prior to Kalbe group's era). It started by PT Kapsulindo Nusantara, founded in 1992 to produce gelatin capsules. Totaling 5 subsidiaries, the others are PT Gelatindo Mukti Graha (also producing gelatin capsules), PT Graha Tama Wisesa (distributor for the 2 previous companies), PT Bimantara Mitra Farma and PT Bimacom Perdana Rubber Industry (generic medicine) and PT Bimacom Perdana (producing condoms).

Mining & energy division started in 1983, when they became a shareholder of PT Karimun Granite (Pendawa Sempurna group), which mines granites in Riau. Then they operate in oil & natural gas drilling service (PT Kurnia Buana Samudra and PT Bimantara Duta Samudera). Their largest investment here is PT Trans Javagas Pipeline, which will build gas pipes between Kangean and Gresik with an investment of US$ 400 million. There is PT Bimantara Bayu Nusa, which will build private electricating project (Paiton VII/VIII) cooperating with Intercontinental Electric Inc.

Their agribusiness division includes plantation, forestry and food. There are sugar plantation and refinery (PT Gula Putih Mataram), rubber (PT Bakrie Sumatra Plantation) and palm (PT Sawit Asahan Indah). In forestry they have 2 subsidiaries, one of which is PT International Timber Corporation Indonesia which has 601,750 ha forest concession in East Kalimantan.They joined PT Nestle Indonesia to produce milk products in 1984 and their shares at PT Japfa Comfeed Indonesia have been sold to Ometraco group.

Construction division consists of construction, property, real estate and hotel & tourist resort. Started from PT Bima Siti Wisesa operating in real estate (one of its projects is Pulo Permatasari in Bekasi) up to PT Batamindo Investment Corporation (cooperating with Salim Group and Jurong Environmental Engineering Pte. Ltd. and Singapore Technologies Industrial Co. Pte. Ltd.) to build the industrial estate of 500 ha in Batam.

In communication division, PT Elektrindo Nusantara produces electronic equipments used in telecommunication transmission system, its famous product is handphone. They also pioneered private TV station (PT Rajawali Citra Televisi Indonesia cooperating with Peter Sondakh from Rajawali group and PT Surya Citra Televisi), completed with an agent for foreign TV broadcasts (PT Matahari Lintas Cakrawala). There are also radio broadcast (PT Radio Trijaya Sakti and PT Radio Surya Cakra) and printed media publishers (PT Citra Media Nusa Purnama and PT Vista Yama). This division is the group's main business. Recently they founded 3 companies (PT Pasifik Satelit Nusantara, PT Mediacitra Indostar and PT Satelindo Nusantara) operating in satelite service.

Bambang Trihatmodjo is very agressive in developing his business imperium. He himself develops 45 businesses outside this group. That does not include businesses he develops along with Apac - Bhakti Karya group together with Johannes Budisutrisno Kotjo, Bambang Riyadi Soegomo and Wisnu Suhardono.Meanwhile his 4 partners are not too agressive.

In the last three year they had 15 new investments for the group and 22 for himself. Since 1993 the turnover of this group has surpassed Rp.2 trillion. In 1996 the turnover was Rp. 2.7 trillion. And in 1999 Bhakti Investama who own by Hary Tanoesodibyo acquired this group about 37,6% added constantly in four year up to know Bhakti Investama has increased they ownership until 45% and became majority in this group.

In mid of 2007, Bimantra Group changes it’s name became Global Mediacom and it’s the moment to blurs the record of linkage Bimantara to Soeharto Family even if Bambang Trihatmodjo and Siti Hardiyanti Rukmana still a share holder in Global Mediacom with minority interest by PT Asriland 14,3%.

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