Djarum
{{Short description|Indonesian tobacco company}}
{{mi|
{{More citations needed|date=September 2022}}
{{Notability|corp|date=April 2025}}
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{{Use dmy dates|date=September 2024}}
{{Infobox company
| name = PT Djarum
| logo = Djarum logo.svg
| type = Private{{Cite web|url=https://www.bloomberg.com/quote/7358287Z:IJ|title = Djarum Pt – Company Profile and News |work = Bloomberg News | publisher = Bloomberg L.P. | access-date=6 September 2024}}
| foundation = {{start date and age|1951|4|21|df=y}}
| founder = Oei Wie Gwan
| key_people = {{ubl|Michael Bambang Hartono|Robert Budi Hartono}}
| owner = {{ubl|Michael Bambang Hartono|Robert Budi Hartono}}
| subsid =
| location = Kudus, Central Java, Indonesia
| industry = {{ubl|Tobacco|Conglomerate}}
| parent = Djarum Group (PT Dwimuria Investama Andalan)
| num_employees = 60,000 (2024){{cite web | date=2024 | url=https://www.bloomberg.com/billionaires/profiles/r-b-hartono/ | title=Budi Hartono | work=Bloomberg Billionares Index | publisher=Bloomberg L.P. | archiveurl=https://web.archive.org/web/20240825225259/https://www.bloomberg.com/billionaires/profiles/r-b-hartono/ | archivedate=25 August 2024 | access-date=6 September 2024}}
| website = {{URL|https://www.djarum.com}}
}}
PT Djarum ({{etymology|jvd|ꦗꦫꦸꦩ꧀|djarum}}; {{IPA|jv|ˈdʒarʊm}}) is an Indonesian kretek (clove cigarette) manufacturer and conglomerate based in Kudus, Central Java. It produces dozens of domestic and international brands. Djarum Black, Super, and L.A. Lights are among the most popular products of Djarum. Under its direct parent, PT Dwimuria Investama Andalan (also known as Djarum Group), it has non-cigarette business lines in technology, banking, and food.{{cite web | last=Valenta | first=Elisa | date=February 9, 2024 | url=https://www.businesstimes.com.sg/international/asean/tobacco-banking-how-indonesias-hartono-brothers-amassed-us48-billion-fortune | title=From tobacco to banking, how Indonesia's Hartono brothers amassed a US$48 billion fortune | work=The Business Times | publisher=SPH Media | archiveurl=https://web.archive.org/web/20240211163748/https://www.businesstimes.com.sg/international/asean/tobacco-banking-how-indonesias-hartono-brothers-amassed-us48-billion-fortune | archivedate=February 11, 2024 | access-date=6 September 2024}}{{cite journal | last=Tanzer | first=Andrew | date=August 28, 1995 | url=https://www.proquest.com/docview/195015420/ | title=Smoking—and no apologies | journal=Forbes | volume=156 | issue=5 | page=52 | via=ProQuest}} The company owns the PB Djarum, a professional badminton club, the Italian football club Como, and was the main sponsor of Liga 1, Indonesia's top football league from 2005 to 2011.
History
In 1951, Oei Wie Gwan, an Indonesian businessman who immigrated from China in 1920, acquired NV Murup, a nearly defunct cigarette company in Kudus, Central Java. NV Murup's most popular brand of cigarretes was called Djarum Gramofon ({{langx|en|gramophone needle}}); Gwan shortened the name to Djarum (needle).{{cite journal | last=Hadiwinata | first=Thomas | author2=Bandelan Amirudin | date=12 April 2004 | url=https://www.proquest.com/docview/198840669/ | title=Djarum: Sweet Smell of Success | journal=Tempo | publisher=PT Tempo Inti Media | via=ProQuest}}{{sfn|Welker|2024|p=204}} The company nearly collapsed in 1963 when its factory was destroyed in a fire around the time of Oei's death.{{sfnm|1a1=Welker|1y=2024|1p=204|2a1=Suryadinata|2y=2015|2p=60}} Oei's sons Budi and Bambang Hartono took over the company and began the process of rebuilding it.
The company began producing machine-rolled kretek in the late 1970s,{{sfn|Welker|2024|p=12}} but it also continues to produce hand-rolled kretek made by manual labourers.{{cite journal | last=Thatcher | first=Jonathan | date=29 October 1989 | url=https://www.latimes.com/archives/la-xpm-1989-10-29-mn-207-story.html | title=Indonesians Cleave to Clove Cigarettes | journal=Los Angeles Times | page=12 | via=ProQuest | quote=A large proportion of Djarum's 27,000 workers still roll and pack the clove cigarettes, or kretek, by hand. | archiveurl=https://web.archive.org/web/20240906065914/https://www.latimes.com/archives/la-xpm-1989-10-29-mn-207-story.html | archivedate=September 6, 2024}} In 2016, Djarum and several other tobacco companies in Indonesia were implicated by Human Rights Watch for the use of child labor without hand protection.{{cite web | last=Wardoyo | first=Prasto | author2=Eveline Danubrata | date=May 25, 2016 | url=https://www.reuters.com/article/lifestyle/childhood-goes-up-in-smoke-for-indonesian-tobacco-farm-workers-idUSKCN0YG08D/ | title=Childhood goes up in smoke for Indonesian tobacco farm workers | work=Reuters.com | publisher=Reuters | access-date=6 September 2024}}
Through its expansion into various other non-cigarette sectors, including food, drink, banking, garments, and technology, in the 1980s and 1990s Djarum became one of the top five largest conglomerates within Indonesia.{{sfn|Jilberto|Hogenboom|2006|p=1985}} By 2010, Djarum Group was the largest conglomerate in Indonesia.
After the 1997 Asian financial crisis, the company became a part of a consortium that bought Bank Central Asia (BCA) from BPPN. BCA is the largest private bank in Indonesia and was formerly a part of the Salim Group. Presently, the majority stake of the bank (51%) is controlled by Djarum.{{cite web |url=https://www.reuters.com/article/indonesia-djarum-bca-idUSL3E6NK18K20101220 |title=Indonesia's Djarum Group buys BCA shares worth $382 mln-sources |website=Reuters.com |publisher=Reuters |date=20 December 2010 | access-date=6 September 2024}}{{sfn|Borsuk|Chng|2014|p=87}} In 2004, Djarum acquired a 30-year BOT contract from the government to develop and renovate Hotel Indonesia in Jakarta under the Grand Indonesia superblock project.{{cite journal | last=Hermansyah | first=Anton | author2=Arif Gunawan S. | date=16 February 2016 | url=https://www.thejakartapost.com/news/2016/02/18/demand-kempinski-apartments-drops-over-contract-case.html | title=Demand for Kempinski apartments drops over contract case | journal=The Jakarta Post | publisher=PT. Bina Media Tenggara | archiveurl=https://web.archive.org/web/20160219094053/https://www.thejakartapost.com/news/2016/02/18/demand-kempinski-apartments-drops-over-contract-case.html | archivedate=19 February 2016 | access-date=6 September 2024}}
The Djarum badminton club, PB Djarum, was founded in 1974 by Budi Hartono. Its players, such as Liem Swie King and Alan Budikusuma, have won numerous championships for Indonesia.{{cite journal | last=Kuswandini | first=Dian | date=11 July 2009 | url=https://www.thejakartapost.com/news/2009/07/11/liem-swie-king-the-return-a-king.html | title=Liem Swie King: The return of A KING | journal=The Jakarta Post | publisher=PT. Bina Media Tenggara | archiveurl=https://web.archive.org/web/20210609194925/https://www.thejakartapost.com/news/2009/07/11/liem-swie-king-the-return-a-king.html | archivedate=9 June 2021 | access-date=6 September 2024}}
Djarum's kreteks enjoyed a high level of popularity among smokers in the United States during the clove cigarette fad of the 1980s.{{cite magazine | last=Hadden | first=Briton | author2=Henry R. Luce | date=January 14, 1985 | url=https://time.com/archive/6707523/medicine-cloven-smokers/ | title=Cloven Smokers: Dangers in a Teen-Age Fad? | magazine=Time | publisher=Time Inc. | page=63 | archiveurl=https://web.archive.org/web/20240906075103/https://time.com/archive/6707523/medicine-cloven-smokers/ | archivedate=6 September 2024}} Since 2009, most flavoured cigarettes in the United States have been banned following the passing of the Family Smoking Prevention and Tobacco Control Act. To circumvent the ban, Djarum's clove products are now marketed as "filtered cigars" and are wrapped in tobacco leaf instead of black paper. The tobacco is air-cured, and they are packaged in boxes of 12 instead of 20.{{Cite news|url=https://www.wsj.com/articles/SB125660066262509223|title = To the FDA, This Indonesian Smoke is Close but No Cigar|newspaper=The Wall Street Journal|publisher=Dow Jones & Company|date=28 October 2009|last1=Newman|first1=Barry | access-date=6 September 2024}}
Non-cigarette business lines
{{Unreferenced section|date=September 2024}}
{{Columns-list|
- ALTO (interbank network)
- Bakmi GM (restaurant chain)
- Bank Central Asia (banking company)
- Blibli (e-commerce)
- GDP Venture (venture capital)
- Global Dairi Alami (dairy manufacturer, branded as MilkLife)
- Grand Indonesia (multipurpose complex)
- HPI AGRO (palm oil plantations company)
- Margo City (mall)
- Mola (over-the-top streaming service)
- Padma Hotels and Resorts (accommodations)
- Polytron (electronics & electric vehicle company)
- Sarana Menara Nusantara (telecommunications infrastructure company)
- Savoria (food and beverage manufacturer, branded as Yuzu, Fox's, 5 Days and Krizzi)
- SENT Entertainment (media company based in UK)
- Sumber Kopi Prima (instant coffee manufacturer, branded as Delizio Caffino and Kopi Tubruk Gadjah)
- Superlive.id (news platforms)
- Supra Boga Lestari (retail supermarkets)
- Tiket.com (travel booking platform)
}}
Involvement in sports
- PB Djarum (badminton club funded by Djarum Foundation)
- Sponsorship of Indonesian top league:
- 2005–2007 as Liga Djarum Indonesia{{Cite web|editor-last=Sufiyanto|editor-first=Tengku|date=23 August 2016|title=Cerita Produk Rokok yang Pernah 'Merajai' Sepakbola Indonesia|url=https://www.indosport.com/sepakbola/20160823/cerita-produk-rokok-yang-pernah-merajai-sepakbola-indonesia/liga-djarum-2005-2007|website=Indosport|publisher=PT. Media Sport Indonesia|language=id|page=4 | access-date=6 September 2024}}
- 2008–2011 as Djarum Indonesia Super League{{Cite web|editor-last=Sufiyanto|editor-first=Tengku|date=23 August 2016|title=Cerita Produk Rokok yang Pernah 'Merajai' Sepakbola Indonesia|url=https://www.indosport.com/sepakbola/20160823/cerita-produk-rokok-yang-pernah-merajai-sepakbola-indonesia/djarum-indonesia-super-league-isl-2008-2011|website=Indosport|publisher=PT. Media Sport Indonesia|language=id|page=5 | access-date=6 September 2024}}
- Como (football club) via SENT Entertainment{{Cite web|publisher=CNBC Indonesia|location=Jakarta|title=Djarum Caplok Como 1907, Ini Sederet Klub Milik Pengusaha RI|url=https://www.cnbcindonesia.com/market/20191018105807-17-108039/djarum-caplok-como-1907-ini-sederet-klub-milik-pengusaha-ri|date=18 October 2019|website=cnbcindonesia.com|language=id-ID | access-date=6 September 2024}}
- Garuda Select (football talent development acceleration program)
Products
References
{{Reflist}}
Works cited
- {{cite book | last=Borsuk | first=Richard | author2=Nancy Chng | date=2014 | url=https://books.google.com/books?id=GnKZBQAAQBAJ | title=Liem Sioe Liong's Salim Group: The Business Pillar of Suharto's Indonesia | publisher=Institute of Southeast Asian Studies | isbn=9789814459570 | via=Google Books | ref={{sfnRef|Borsuk|Chng|2014}} }}
- {{cite book | last=Jilberto | first=Alex E. Fernández | author2=Barbara Hogenboom | ref={{sfnRef|Jilberto|Hogenboom|2006}} | date=2006 | url=https://books.google.com/books?id=Yk58AgAAQBAJ | title=Big Business and Economic Development: Conglomerates and Economic Groups in Developing Countries and Transition Economies Under Globalisation | publisher=Taylor & Francis | isbn=9781134125753 | via=Google Books}}
- {{cite book | last=Suryadinata | first=Leo | date=2015 | url=https://books.google.com/books?id=ZO6gCgAAQBAJ | title=Prominent Indonesian Chinese: Biographical Sketches | publisher=ISEAS – Yusof Ishak Institute | isbn=9789814620505 | via=Google Books}}
- {{cite book | last=Welker | first=Marina | date=2024 | url=https://books.google.com/books?id=DDnsEAAAQBAJ | title=Kretek Capitalism: Making, Marketing, and Consuming Clove Cigarettes in Indonesia | publisher=University of California Press | isbn=9780520399679 | via=Google Books}}