Indonesian tycoon Michael Bambang Hartono, the country’s richest businessman and co-owner of the Djarum Group, has died, marking the end of an era for one of Southeast Asia’s most influential business empires.
By Veritas Indonesia reporter
Jakarta – Veritas Indonesia – Indonesian tycoon Michael Bambang Hartono, the nation’s richest businessman and a tobacco magnate, died in Singapore on March 19 at the age of 86.
An official of the tobacco empire, Djarum Group, one of its diversified conglomerates, confirmed the news without specifying the cause of death.
However, he had a history of chronic obstructive pulmonary disease and a heart attack.
“With deep sorrow, the extended family of PT Djarum announces the passing of one of our company’s leaders, Michael Bambang Hartono,” the statement said. “We extend our gratitude for his dedication and service.”
In March, Forbes mentioned Hartono, Indonesia’s richest person and the world’s 76th richest, with a net worth of US$43.8 billion.
Hartono, a Catholic, was known as the most influential businessman in the country, as he co-owned the Djarum Group, the country’s largest business empire, with his younger brother, Robert Budi Hartono.
The elder Hartono was born in Kudus, Central Java, on October 2, 1939, to Chinese-Indonesian entrepreneur parents.
Oei Wie Gwan, Hartono’s father, acquired a bankrupt cigarette firm in 1950 and renamed it Djarum, which was named after a gramophone needle.
After Gwan’s death in 1963, the Hartono brothers took the parent company, PT Dwimuria Investama Andalan, better known as the Djarum Group, to a new high, introducing new blends of cigarettes. They exported it in 1972 to many countries, including the U.S.
In due time, the family-owned tobacco business became one of Indonesia’s largest producers of clove cigarettes, known locally as kretek, with the effort of Hartono siblings. Subsequently, the company became the world’s largest kretek manufacturer with 60,000 employees. In 1951, the company had 10 workers.
In the aftermath of the Asian financial crisis in the late 1990s, the Hartono brothers diversified their investments to strengthen the group’s resilience in banking, finance, and the digital economy. One such phenomenal move was having a major stake in Bank Central Asia (BCA), now Indonesia’s largest private lender.
The Hartonos bought the bank with 5.3 trillion rupiah from the Salim family following the banking meltdown. Today, BCA has around 824 trillion rupiah, with total assets of about 1,600 trillion rupiah.
Additionally, the family ventured into electronics through Polytron, palm oil plantations, an e-commerce platform, telecommunications, and real estate.
They are the proprietors of Grand Indonesia, one of Jakarta’s largest malls. They also own the luxury Kempinski Hotel in Jakarta and Bali.
Today, Armand Hartono, Robert Hartono’s son, who is now vice-president-director of BCA, manages most of Djarum’s subsidiaries.
Though the family is so wealthy, it maintains a low profile with simple lifestyles, without any media glare.
Apart from his business interests, Michael Bambang Hartono had a greater sense of acumen for philanthropy, education, sports, and environmental initiatives through the Djarum Foundation.
He hardly flaunted his Catholic identity and lived a modest life, without any ostentatious lifestyle, but was committed to several outreach programs to improve the quality of life in Indonesia.
At a national level, he was a professional bridge player and the president of the Southeast Asia Bridge Federation. For decades, he advocated for the bridge to be incorporated in the Asian Games. At the 2018 Asian Games, his team secured a bronze medal.
Recognizing his achievements, then-President Joko Widodo honored him as a senior bridge athlete in 2020.
Djarum owns PB Djarum, one of the country’s most prominent badminton clubs. Its players won many world championship awards for Indonesia, and the Italian football club Como, the firm, was a key sponsor of Indonesia’s top soccer league from 2005 to 2011.
“We extend our sincere condolences to the Hartono family and to all at the Djarum Group,” the company said in a statement.
He is survived by his brother, wife, and son.
