-
Advertisement

For clove and money: the biggest names in the cigarette market

Reading Time:1 minute
Why you can trust SCMP

The international arm of US tobacco giant Philip Morris entered the Indonesian market in 2005 when it bought Sampoerna, the country's oldest producer of kretek - clove-flavoured cigarettes.

Sales have risen by some 35 per cent since the buyout and Sampoerna is now the market leader. The company was started in 1913 by Liem Seeng Tee, a Chinese immigrant, making hand-rolled cigarettes. In 1932, the family changed its name to Sampoerna, along with that of the firm. Forbes magazine listed the Sampoerna family as the sixth-richest in Indonesia in its 2007 list, with a net worth of US$2.2 billion.

Sampoerna's main rival is Gudang Garam, the world's biggest kretek maker, which has also enjoyed an increase in sales in recent years. Gudang Garam is controlled by Rachman Halim, who took over when his father, ethnic-Chinese tycoon Surya Wonowidjojo, died in 1985. Mr Rachman and his family came in at eighth on the Forbes list, with a net worth of US$1.6 billion.

Advertisement

The third- and fourth-biggest producers are Djarum and Bentoel, both of which make only kretek. Djarum is owned by Budi and Michael Hartono, who inherited it from their father, Oei Wie Gwan. Bentoel was started by Ong Hok Liong in 1950 but was sold to the Rajawali Group a decade ago. The Ong family is no longer involved.

Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x