“tycoon-controlled oil palm groups in indonesia” · pdf filefigure 2 hectares...
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“Ty
Authors: R J The rapidsocial proprotectedpeatland subsisten To solve its ownerownershisector, wvery siza What thetycoon - literally mwho - ofvarious bservices. This stud
whigro
who whi
Tycoon For this soil sectoroil palm h
Table 1
Business g
Wilmar Grou
Sinar Mas G
IOI Group
Raja Garuda
ycoon-c
Rahmawati RJan Willem v
d expansionoblems: vasd species a
developmence and to w
these problrs and financp and finan
which accounble landban
ese 25 busior taipan in
means “Greaften togethebusiness se
dy explores iich part of th
oups; o the tycoonich banks ar
n-control
study the 25 r were selecholding com
Selection
group
up
Group
a Mas Group
controllE
Retno Winarnan Gelder
n of Indonesst amounts ore endangent; and man
which they ha
ems, the driciers - need cing of 25 cnt for a largks into new
ness groups Bahasa. Th
at Lord”. It iser with their ectors, such
n particular: he Indonesia
ns are who cre supporting
lled palm
largest tycocted. An ovepanies is pre
of tycoon-c
Oil palm h
Name
Wilmar Inte
Golden Agr
IOI Corpora
Asian Agri
led oil pExecutiv
ni
sian oil palmof valuable fered; significny communitave held leg
iving forces to take their
corporate buge part of thplantations.
s have in chis word ste
s now commfamily - co
h as plantat
an palm oil s
control theseg these tyco
oil group
oon-controlleerview of somesented in T
controlled p
olding comp
ernational
ri-Resources
ation
palm grve Summ
m plantationsforests are ccant greenhties lose accal or custom
behind the r responsibilusiness groue existing p
ommon is tems from theonly used to
ontrol grouptions, mining
sector is dom
e groups; andoons to build
ps
ed business me key dataTable 1.
palm oil gro
pany
Stock exc
Singapore
Singapore
Kuala Lum
Private
roups imary
s creates seconverted intouse gas ecess to land
mary rights fo
strong growlity. This stuups active inplantations a
that each ofe Japanese o refer to wes of compag, energy,
minated by ty
d their palm o
groups activa for these b
oups
change
Markecap (US$mln)
e 16,39
e 5,858
mpur 10,41
-
in Indon
erious enviroto plantation
emissions ard which is cror generation
wth of the pady thereforen the Indoneand which a
f them is coword taikun
ealthy busineanies which real estate,
ycoon-contro
oil groups.
ve in the Indbusiness gro
et
Revenu2013 (US$ m
94.0 44,085
8.4 6,585.0
15.0 4,277.0
4,200.0
nesia”
onmental anns; habitats re caused brucial for thens.
lm oil sectore analyses thesian palm ore developin
ontrolled by n (大君), whicess magnateare active finance an
olled busines
donesian paloups and the
ues
mln)
CPO producti(thd tonnes)
5.0 1,848
0 2,241
0 708
0 ?
nd of by eir
r - he oil ng
a ch es in
nd
ss
m eir
ion
Business g
BatuKawan
Salim Group
Jardine Mat
Musim Mas
Surya Duma
Genting Gro
Darmex Agr
Harita Grou
TigaPilar Group
DSN Group
Sungai Bud
KencanaAg
Triputra Gro
Sampoerna
Anglo-Easte
Bakrie Grou
Tanjung Lin
Austindo Gr
BW Plantati
Provident A
Of the 25listed on London. planning
The tyc Although this doesownershiof the owthese cocompanyThe tycoolargest shthe comphavens.
group
Group
p
theson Group
Group
ai Group
oup
ro Group
p
Sejahtera
i Group
ri Group
oup
Agro Group
ern Group
up
gga Group
roup
on Group
gro Group
5 oil palm ha stock ex
Only four coa stock exch
coons be
most comps not mean thp is spread
wnership strmpanies are
y. on(s) not nehareholding pany. In man
Oil palm h
Kuala Lump
Indofood A
p Astra Agro
Musim Mas
First Resou
Genting Pla
Darmex Ag
BumitamaA
a TigaPilar S
Dharma Sa
Tunas Baru
KencanaAg
Triputra Ag
Sampoerna
Anglo-EastPlantations
Bakrie Plantations
SawitSumb
Austindo N
BW Plantat
Provident A
olding compxchange: 11ompanies ahange listing
ehind the
panies (21 ouhat these coover a large
ructures of te actually c
ecessarily hawhich gives
ny cases the
olding comp
pur Kepong
gri Resources
Lestari
s
urces
antations
gro
Agri
ejahtera Food
atya Nusantar
u Lampung
gri
gro Persada
a Agro
tern s
Sumates
bermasSarana
usantara Jay
tion
Agro
panies listed in Jakartare privately-g soon.
oil palm
ut of 25) incompanies are number ofthe oil palm
controlled by
as/have a ms them the aese sharehol
pany
Kuala Lum
s Singapore
Jakarta
Private
Singapore
Kuala Lum
Private
Singapore
d Jakarta
ra Jakarta
Jakarta
Singapore
Private
Jakarta
London
ra Jakarta
a Jakarta
ya Jakarta
Jakarta
Jakarta
d in Table 1, 6 in Singa
-owned, of w
groups
cluded in Tabe actually puf private and
m holding coy tycoons a
ajority shareability to conldings are m
mpur 8,041
e 1,146
3,704
-
e 3,094
mpur 2,754
-
e 1,655
557.0
358.0
257.9
e 225.2
-
364.5
481.7
57.2
1,002
417.5
479.5
293.3
, the vast mapore, 3 in which one (T
ble 1 are listublicly-owned institutionaompanies innd their fam
eholding, buntrol the manmanaged via
1.1 2,916.0
6.0 1,282.0
4.0 1,233.0
670.0
4.0 626.5
4.7 439.7
420.0
5.0 392.0
0 391.6
0 370.9
9 304.4
2 284.9
264.0
5 247.2
7 201.9
200.4
2.1 189.4
5 138.4
5 110.4
3 69.0
majority (21 cKuala Lum
Triputra Agr
ted on a stoed - in the seal investors. this study
milies - one
t they invarinagement anholding com
0 3,609
0 810
0 1,539
619
589
?
432
523
?
336
1,400
114
281
271
263
197
231
159
141
81
companies) mpur and 1 ro Persada)
ock exchangense that theThe analyserevealed thto a few p
iably have thnd strategy
mpanies in ta
is in is
e, eir es at er
he of ax
Table 2 holding gwell as hthe Indonbusiness
Table 2
Group
Anglo-EastGroup
Austindo Group
Bakrie Grou
BatuKawanGroup
BW PlantaGroup
Darmex AGroup
DSN Group
Genting Gr
Gozco Grou
Harita Grou
IOI Group
Jardine Matheson Group
KencanaAgGroup
Musim Group
Provident AGroup
Raja GarMas Group
Salim Grou
SampoernaGroup
Sinar Group
provides angroups reseais/her net wenesian newsactivities th
Tycoons c
Tycoon
ern Lim Sie
George
up Aburiza
n Lee OiH
ation Budiono
Agro Surya D
p Theodo
Benny S
oup Lim Kok
up Tjandra
up Lim Har
Lee Sh
Henry K
gri Henry M
Mas Bachtia
Agro Edwin S
Sandiag
ruda
Sukanto
up Anthoni
a PuteraS
Mas Eka Tjip
n overview oarched in thisealth as far aspaper Thee tycoons co
controlling
n
ew Kim
e SantosaTah
al Bakrie
Hian& Lee Ha
oWidodo
Darmadi
ore Rachmat
Subianto
k Thay
aMindhartaGo
riyantoWijaya
in Cheng
Keswick
Maknawi
ar Karim
Soeryadjaya
ga Uno
oTanoto
i Salim
Sampoerna
pta Widjaja
of the tycoos report. Theas estimated Jakarta Glontrol, not ju
the 25 oil p
ija
auHian
ozali
aSarwono
ns which we country of d recently bylobe. Theseust on their p
palm groups
ere found toorigin of ea
y the Americe wealth estpalm oil activ
s
Co
M
I
I
M
I
I
I
I
M
I
I
M
S
I
I
I
I
I
I
I
I
o control theach tycoon iscan magazintimates are vities alone.
Country of origin
Nety(U
JaG
Malaysia
Indonesia 58
Indonesia 2,
Malaysia
Indonesia
Indonesia 1,
Indonesia 2,
Indonesia 99
Malaysia
Indonesia 93
Indonesia 99
Malaysia
Scotland
Indonesia
Indonesia 57
Indonesia 1,
Indonesia 90
Indonesia 2,
Indonesia 10
Indonesia 2,
Indonesia 13
e 25 oil pals indicated, ane Forbes an
based on a
et wealth of ycoon in 20US$ mln)
akarta lobe
Forb
85
450
1,000
400
000 1,900
95 790
6,500
3
90 940
4,500
4,000
75 2,000
700 1,200
00 460
100 2,300
0,100 6,300
400 2,215
3,000 7,000
m as nd all
the 013
es
0
0
0
0
0
0
0
0
0
5
0
Group
Sungai BGroup
Surya DuGroup
Tanjung Lingga Gro
TigaPilar Sejahtera Group
Triputra Gro
Wilmar Gro
When we25 oil paKim of Anin some c The total billion, wconservacomparisthat these
Tycoon In the pa7.4 millioper yearplantationFigure 1 Indonesia
Figure 1
Tycoon
Budi Widarto
umai Martias
up Abdul R
PriyoHa
oup Theodo
Benny S
oup
Robert
Khoon
MartuaS
e count relatlm groups. nglo-Easterncases female
wealth of thwhen takingative estimason to the Gre tycoons co
n control
st five yearsn ha in 2008
r. This means every yeashows how a and where
Oil palm
n
o&SantosoWi
&CiliandraFa
Rasyid
adiSutanto&S
ore Rachmat
Subianto
Kuok
Hong Kuok
Sitorus
tives as one Among themn Plantationse family mem
he 29 tycoon the avera
ate for the ross Domesontrol a very
over Ind
s, the area p8 to 10.0 milns that an
ar.1 the Indones
e the stronge
area increa
nata
angiono
StefanusJokoM
tycoon famim is only ons. The othermbers are in
n families inge of Forbtycoons no
stic Product oy considerab
donesian
planted withlion ha in 20area almos
sian oil palm est growth to
ase per prov
Mogoginta&B
ily, Table 2 lne tycoon far 28 tycoon fnvolved in m
ncluded in Tabes and Jaot mentioneof Indonesiale wealth.
oil palm
oil palms in013. This eqst as large
area is distrook place in
vince 2008-
Co
I
I
I
BudhiIstanto I
I
I
M
M
I
lists 29 tycooamily headedfamilies are
managing the
able 2 can bkarta Globe
ed in thesea - US$ 878
plantatio
n Indonesia iuals an incras Bali is
ributed overthe past five
-2013
Country of origin
Nety(U
Indonesia 20
Indonesia 1,
Indonesia
Indonesia
Indonesia 2,
Indonesia 99
Malaysia
Malaysia
Indonesia 3,
on families cd by a womheaded by m
e business g
be estimatede figures ane two sourc
billion in 20
ons
increased wease of 520converted
r the differene years.
et wealth of ycoon in 20US$ mln)
05
050 1,700
000 1,900
95 790
11,60
2,200
700 1,800
controlling thman, Lim Siemen, althougroup.
d at US$ 69nd making ces. Even 12 - it is cle
with 35%, fro,000 hectareinto oil pal
nt provinces
the 013
0
0
00
0
0
he ew gh
9.1 a in ar
om es m
of
Figure 2 hectares themselv(10.0 milplanted aand Sury
shows that planted with
ves. This equllion hectareareas - are Sya Dumai Gro
the 25 largh oil palm auals 31% ofes). The moSinar Mas Goup.
ge tycoon-coat present, bf the total arost importa
Group, Salim
ontrolled groased on figurea planted nt tycoon-co
m Group, Jard
oups studiedures providewith oil palmontrolled grdine Mathes
d in this reped by the oilm in Indonesroups - in tson Group, W
portcontrol 3l palm groupsia at preseerms of theWilmar Grou
3.1 ps
ent eir up
Figure 2
The 69%groups, icompanieSime Daan estimasmallholdFurther rcontrolled
Tycoon For the ftycoon-counder cothe total mentione
Oil pa
% of the Indois divided aes active inrby (Malaysated 15%.Apders and smresearch is d by the 25 t
n control
uture of theontrolled grontrol, additioIndonesian
ed in annual
alm areas pl
onesian planamong the o the Indoneia), PTT (Thpproximatelymall family-o
needed totycoon-contr
over the
Indonesianoups still haonal to the 3 oil palm lareports and
lanted by th
nted oil palmother compaesian palm ohailand) andy 100 other towned como determinerolled groups
e future o
oil palm seave at least3.1 million heandbanks coconcession
he 25 group
m area not canies activeoil sector -
d Felda Globtycoon-contrpanies2 acc
e exactly ws covered in
f Indones
ector even m2.0 million
ectares theyontrolled by
n maps.
ps, end of 20
controlled by in the sectPerkebunan
bal Venturesrolled groupcount for th
who controlsn this report.
sian oil p
more importahectares of
y have already the 25 tyc
013 (ha)
y the 25 tycotor. Four stn Nusantaras (Malaysia)s, as well ase remaining
s the plante
palm plan
ant is the faf undevelopdy planted.Fcoon-control
oon-controlletate-controllea (Indonesia - account fs independeg percentaged areas n
tations
act that the 2ed landbank
Figure 3showlled groupsa
ed ed a), for ent e. ot
25 ks ws as
Figure 3
The totalmillion he(planted present. Of this 5.40% of planted.Fbetween The mosIndonesiaand Jard
Total o
Indonesianectares. Theplus unplan
.1 million hethe landba
Figure 4 shoareas plantest importana - are Sinaine Matheso
oil palm lan
landbanks e total Indonnted) equal 5
ectares an aranks controows the Indoed with oil pat tycoon-co
ar Mas Grouon Group.
ndbanks of
controlled besian oil pa51% of the
rea of 2.0 molled by theonesian landalm and unp
ontrolled group, Triputra
the 25 grou
by the 25 tyclm landbanktotal area p
million hectarese 25 tycdbanks contplanted landoups - in tGroup, Mus
ups, end of
coon-controlks of the 25 planted with
res is still uncoon-controlltrolled by eabanks. terms of thsim Mas Gro
2013 (ha)
lled groups tycoon-cont oil palm in
nplanted. Thed groups ach group,
heir unplantoup, Surya
add up to 5trolled group Indonesia
is means thare not y
distinguishin
tedlandbankDumai Grou
5.1 ps at
at yet ng
kin up
Figure 4 (ha)
If the 2.0groups wwould inenvironmcontrolled
Tycoon While thein Indoneshows hodifferent controlledSulawesiKalimanta
Plante
0 million hecwould be dev
crease withmental probled groups wo
n control
e 25 tycoon-esia as a wow the oil paprovinces i
d groups is and 2% an are the p
ed and unp
ctares of unveloped in thh another 2ems. The sh
ould thereby
over pro
controlled gwhole, their alm landbankn Indonesia
s located onon Papua.
provinces wit
planted lan
planted landhe coming ye20% to 12.0hare of the increase fro
ovincial o
roups controcontroldoesks of the 25 a. It shows n Kalimanta
West Kalth the larges
ndbanks of
dbanks contears, the are0 million hetotal plante
om 31% to 4
oil palm la
ol a significas vary strong
tycoon-contthat 62% o
an, while 32imantan, C
st tycoon-con
the 25 tyc
trolled by thea planted wectares, cre
ed area cont3%.
andbanks
ant part of thgly on the ptrolled groupof the landb2% is locat
Central Kalimntrolled land
coon-contro
hese 25 tycowith oil palmseating furthetrolled by th
s
e total oil paprovincial leps are distribbanks of thted on Summantan, Riabanks.
olled group
oon-controlles in Indoneser social anhe 25 tycoo
alm landbankevel. Figure buted over the 25 tycoo
matra, 4% oau and Ea
ps
ed sia nd n-
ks 5
he n-on ast
Figure 5
Figure 6controlledcontrolledwith the pWhile thetotal areaSumatranSumatra These redevelopelandbankgroups a
Tycoo
shows whdby the 25 d landbankspresent plane total Indona planted wn provinces(40%) and Blatively low p
ed on Sumakon Sumatrand independ
on-controlle
ich part of tycoon-cont
s (planted ated oil palm nesian landb
with oil palm. The higheBangka-Belipercentagesatra, which a is in the hadent smallho
ed oil palm
the oil paltrolled grou
and unplantearea in eac
banks of them in Indonesest percentatung (39%).s might be eprobably m
ands of stateolders.
landbanks
lm landbankps. The figed) in hectach province (e 25 tycoonsia as a whages can b
xplained by eans that a
e-controlled
by province
ks inthe proure shows
ares and co(as a percen-controlled g
hole, this pebe found in
the fact thata relative lagroups and
e
ovinces on the sizes ompares thetage). groups equaercentage is
Lampung
t the palm oarge part of
smaller tyco
Sumatra aof the tycoose landbank
al 51% of ths lower for a(44%), Sou
il industry firf the oil paloon-controlle
re n-ks
he all th
rst m
ed
Figure 6
On KalimFigure 7.of the tot(planted oil palm include uin West Kalimantaplanted w The tycoKalimantahigher on(3.1 millioOne can groups whectares environm
Tycoo
mantan the d In all four ptal oil palm laand unplantarea in thenplanted coKalimantan
an controllewith oil palms
oon-controllean. Of their n Kalimantanon hectares
therefore ewill increase
at present) mental conse
on-controlle
dominance provinces3, thandbank. Thted) in hecta province (a
oncession arn and Cented by the 25s on Kaliman
ed landbanktotal Indone
n, an estimain total, see
expect that -e the entire
with at leasequences of
ed oil palm
of the 25-cohe 25 tycoohe figure shoares and comas a percenreas, these ptral Kaliman5 tycoon-conntan.
ks thus equesian landbaated 50% ofFigure 5) ar
- by plantinge area planst 50% (1.6 this further e
landbanks
ontrolled gron-controlled ows the sizempares thesntage). As tpercentagesntan. On antrolled grou
al the area anks, 40% isf the tycoonre not planteg their full lted with oimillion ha)
expansion c
on Sumatra
oups is mucgroups con
es of the tyce landbankshe tycoon-c can rise ab
average, theups equals
presently ps not plante-controlled l
ed yet. andbanks -l palms on in the comian be enorm
a
ch stronger,trol a very s
coon-controlls with the prcontrolled labove 100%, ae oil palm 98% of the
planted withed yet. This landbanks o
the 25 tycoKalimantan
ng years. Tmous.
as shown significant paled landbankresent plantendbanks alsas is the caslandbank opresent are
h oil palm opercentage
on Kalimanta
oon-controllen (3.2 milliohe social an
in art ks ed so se on ea
on is
an
ed on nd
Figure 7
Financ Although don’t relypalm oil hattracted investorscompanieThe bankthey wougroups. Cthe tycoothe oil paccelerat To makefacilitate 21 listed equity pluhence whgives an although companie
Tycoo
cing of tyc
the 25 oil y solely on tholding com- and cont
s. Some coes can attracks and exteuld be ableConsequentons to invesalm sector, te their expa
e an assesstheir expanspalm oil hol
us liabilities hich part of tindication oit is limited
es over a lon
on-controlle
coon-con
palm groupsthe wealth o
mpanies, 21 tinue to attrmpanies alsct bank loan
ernal investoe otherwise, ly, this growt in further gthe funds
ansion.
ment of thesion processlding compacould be attheir total as
of the importd to one ponger period.
ed oil palm
ntrolled e
s analysed of the tycooare listed onract - capitaso issue bos.
ors involved thereby ac
wth generategrowth. Whiof banks a
e level to whs, we analysanies. For eattributed to sssets is finantance of extoint in time The results
landbanks
expansion
in this repoons to financn a stock exal by issuingonds, mainl
enable the ccelerating es a strong ile the tycoo
and external
hich the diffsed the balaach companshareholdersnced by thesternal financ
and does are shown i
on Kaliman
n
rt are all coce their furthxchange whig shares toly to institu
tycoons to the growth cash-flow w
ons control tl investors o
ferent tycooance sheets ny, we analys, bondholdese groups ocing for the tnot evaluatin Figure 8.
ntan
ontrolled by her expansioich means t
o private antional inves
invest moreof the tyco
which is at ththe expansiooffer them
ns use exteat the end osed which pers and banf financiers. tycoon-conte the financ
tycoons, theon. Of the 2hat they havd institution
stors. And a
e capital thaoon-controllehe disposalon process a flywheel
ernal funds of 2013 of thpart of its totnk loans - an
This analysrolled groupcing of thes
ey 25 ve
nal all
an ed of of to
to he tal nd sis ps, se
Figure 8
As shownholding cthat part part - dinvestorsBondholdFirst ResBank loaPlantationand Wilmto 58% o
Banks Most tycoexpansionew shabanks thshares an
Financ
n in Figure 8companies, fof this shareifferent for
s). ders play a sources, finaans are impns, BW Plan
mar Internatiof total assets
financing
oon-controlleon process. res and bonen guarantend bonds for
ciers of tyc
8, shareholdfinancing beeholder moneach comp
smaller rolencing 27% oportant for ntation, Dhaonal - they es.
g tycoon
ed oil palm Also, many nds to invesee (“underwr a given pric
coon-contro
ers are the etween 27%ney can be apany - to e
e for only 9 cof its assets.19 compan
arma Satya even form th
-controlle
groups attrof them re
stors to attrwrite”) that tce.
olled oil palm
most import% and 92% o
attributed to external sha
companies. . nies and foNusantara,
he most imp
ed group
ract bank loegularly hire ract new cathey will fin
m holding c
ant financierof total assethe tycoons
areholders
Most signifi
or 6 compaKencanaAg
portant finan
ps
ans to faciliinvestment
apital for exd investors
companies
rs of 15 of thets. It is imps themselves(private and
icant are bo
anies - Bakgri, Tunas Bcing source
itate and acbanks to h
pansion. Thfor a certa
he 21 oil palortant to nos and anothd institution
ondholders f
krie SumateBaru Lampun
, financing u
ccelerate thehelp them sehe investmeain volume
m ote er
nal
for
ra ng up
eir ell
ent of
As is shogroups toloans theFor the pprovided same pepalm grocompanie
Table 3
Figure 9
Figure 10controlledper bankwere HSB
own in Tableo attract conemselves anperiod 2009 u
by banks toriod, investm
oups for a tes to attract
Bank fina
Bank
0 gives an d oil palm gk. The most BC (United K
e 3 and Figsiderable amd by underwuntil 2013, tho the 25 tycment banks total value othis amount
ncing for th
Year
2009
2010
2011
2012
2013
Total
financing fo
overview ogroups in the
important bKingdom), O
ure 9, bankmounts of cawriting sharehis study idecoon-control
have underof US$ 2.3 t from invest
he 25 tycoo
Unde(US$
630
98
434
756
335
2,253
or the 25 ty
f the bankse past five ybanks providOCBC (Singa
ks have helpapitalduring es and bondsentified loansled oil palmrwritten shabillion. This
tors.
n-controlled
erwriting $ mln)
Lm
74
2
2
1
3
3 1
coon-contr
s which havyears, includding bank loapore) and C
ped the 25 tthe past fives sold to invs with a tota groups sture and bonds means th
d groups, 2
oans (US$ mln)
42
,789
,318
,613
,833
1,296
rolled group
ve provided ding the totaoans to the CIMB (Malay
tycoon-contre years, throvestors by thl value of USdied in this d issuancesat the bank
2009-2013
ps, 2009-201
loans to thal loan amotycoon-cont
ysia).
rolled oil palough providinhe companieS$ 11.3 billioreport. In th
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Figure 10
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