“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

s of the 25 oks helped th

13

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