Sampoerna's success started from modest beginnings<\/p>\n
Indra Harsaputra, The Jakarta Post, Surabaya<\/p>\n
A worker carefully dusted Raphael, a novel published by Libraine
\nHachette in 1920 in Paris, at the House of Sampoerna, a two-story
\nmuseum showcasing the success of the family's cigarette-making
\nhistory.<\/p>\n
\"After news of the Philip Morris offer, many visitors came
\nhere. They're interested in Liem Seeng Tee's book collection,\"
\nWilly told The Jakarta Post on Friday.<\/p>\n
He was referring to Sampoerna's founder Liem Seeng Tee, an
\nimmigrant from Fukkien province in China, who set up shop for his
\nunfiltered, hand-rolled kretek -- a special mix of tobacco and
\ndried cloves -- in his modest home in Surabaya in 1913.<\/p>\n
Liem's descendants continue the tradition and, with shrewd
\nmanagement and business acumen, have made the company
\nacknowledged internationally as a leader in its field.<\/p>\n
Things changed on March 14 with Philip Morris International
\nInc.'s US$5.1 billion offer to the company, the country's second
\nbiggest cigarette maker after PT Gudang Garam.<\/p>\n
These days, the museum does not only see local visitors but
\nalso foreigners wanting to see Liem's heirlooms, such as family
\nphotos, two old bicycles that Liem used to sell his cigarettes,
\nand Flying Pugeon, the first cigarette brand produced in 1913.<\/p>\n
A replica of rombong, a small, simple bamboo hut, along with
\nsacks of various crops and traditional snacks in small
\ncontainers, are also there for visitors to admire at no charge.<\/p>\n
Some visitors were curious about Raphael, wondering whether it
\nwas one of the Sampoerna's inspirations in developing the
\ncompany.<\/p>\n
Willy said he did not know much about the book's history since
\nit was in German.<\/p>\n
But one thing is for sure, Raphael is part of Sampoerna's 92-
\nyear history. At that time, the company was named Handel
\nMaastchapij Liem Seeng Tee, and later changed its name to NV
\nHandel Maastchapij Sampoerna (HM Sampoerna). After World War II,
\nthe company was named PT Hanjaya Mandala Sampoerna.<\/p>\n
Liem himself started as a traditional vendor selling daily
\ncommodities before entering the cigarette business in 1913.<\/p>\n
His big break came in early 1916 when he bought various kinds
\nof tobacco from a bankrupt tobacco businessman in East Java.<\/p>\n
Economic hardship at that time made Liem Seeng Tee determined
\nto make his company a tobacco kingdom producing the best
\ncigarettes.<\/p>\n
He bought a building on 1.5 hectares of land in 1932, where he
\nstarted out his dream to build the country's biggest kretek
\ncompany. The building, which first housed Sampoerna company, was
\nnamed Taman Sampoerna.<\/p>\n
Apart from using the place to produce cigarettes, Liem's wife,
\nLiem Tjiang Nio, used parts of the space for a movie theater.<\/p>\n
Sampoerna's business grew fast in the early 1940s, producing
\naround three million cigarettes a week, both hand-rolled and
\nmachine rolled, with the Dji Sam Soe brand as its top selling
\nproduct and some 1,300 workers as its backbone.<\/p>\n
After Liem Seeng Tee died in 1956, the company was run by his
\ntwo daughters, Liem Sien Nio and Liem Hwee Nio. Later on, the
\nleadership was given to Liem Swee Ling, or Aga Sampoerna, Liem
\nSeeng Tee's second son.<\/p>\n
Aga was replaced by Liem Thian Pao in the 1970s, who is better
\nknown as Putera Sampoerna. He built factories and made Sampoerna
\na publicly listed company in August 1990.<\/p>\n
Michael Joseph Sampoerna, now 27, the eldest son of Putera
\nSampoerna, was named the company's president director on June 27,
\n2001, while Putera himself remains on the board of commissioners.<\/p>\n
Sampoerna also expanded overseas to neighboring countries,
\nsuch as the Philippines, Vietnam, Myanmar and Malaysia, buying
\ncigarette firms in the respective countries, making it the first
\nlocal cigarette company to go international.<\/p>\n
The company does not only work in the cigarette business but
\nhas also expanded to other businesses, such as printing, finance,
\nretail and others.<\/p>\n
The long history of success casts questions on the real
\nreasons behind the decision to relinquish control over the
\ncompany to Philip Morris.<\/p>\n
PT HM Sampoerna Tbk. commissioner Ekadharmajanto Kasih earlier
\nsaid the company would still invest in infrastructure and local
\nmedia in Surabaya.<\/p>\n
Local businessmen, however, speculated that Putera Sampoerna
\nwanted to switch to electricity, telecommunications and computer
\nbusinesses and others predicted he would be involved in
\ninfrastructure.<\/p>\n
A businessman from Surabaya, who declined to be named, even
\nspeculated Putera would invest in a gambling enterprise in
\nRussia.<\/p>\n
Head of Sampoerna's public relations, Yudy Rizard Hakim,
\ndeclined to speculate on the business deal.<\/p>\n
\"One thing is for sure, the employees are very shocked,\" he
\ntold the Post by phone on Thursday.<\/p>\n
He is currently preparing a book on Sampoerna's history with
\nmarketing expert Hermawan Kertajaya. The book is slated to be
\npublished soon, comprising Sampoerna's long history as well as an
\nexplanation why Putera Sampoerna sold his family's company to a
\nforeign one.<\/p>\n
\"Let's just wait for its release once the business deal is
\ncompleted,\" he said.<\/p>\n
Chairman of the East Java chapter of the Indonesian Chamber of
\nCommerce and Industry, Erlangga Satriagung, was impressed by the
\nbusiness deal.<\/p>\n
\"I really salute them. The (Sampoerna) family are really smart
\nin reading a business opportunity,\" he said.<\/p>\n
He said the decision was brilliant as it involved a massive
\nbuy-out deal worth a staggering Rp 48 trillion (about US$5.2
\nbillion).<\/p>\n
PT Hanjaya Mandala Sampoerna businesses:<\/p>\n
1. PT Sampoerna Printpack (printing), share 80,8 percent<\/p>\n
2. PT Perusahaan Dagang dan Industri Panamas (distribution),
\nshare 99 percent<\/p>\n
3. Sampoerna Investment Corporation Ltd (finance), share 100
\npercent<\/p>\n
4. PT Sampoerna Air Nusantara (transportation), share 99,9
\npercent<\/p>\n
5. Wahana Sampoerna, share 88 percent<\/p>\n
6. PT Sampoerna International Pte. Ltd, share 100 percent<\/p>\n
7. PT Sampoerna Food Product Nusantara (food), share 97,5
\npercent<\/p>\n
8. PT Integrated Business Solution Asia (IT), share 99 percent<\/p>\n
9. PT Sampoerna Transport Nusantara (transportation), share 88
\npercent<\/p>\n
10. PT Taman Dayu (property), share 99,6 percent<\/p>\n
11. PT Graha Sampoerna (property), share 99,9 percent.<\/p>\n
12. PT Sampoerna Packaging Asia Pte. Ltd, share 100 percent<\/p>\n
13. PT Asia Tembakau (cigarette), share 99,9 percent.<\/p>\n
14. PT Agasam, share 99,9 percent.<\/p>\n
15. PT Sterling Tobacco Corp (cigarette), share 92,9 percent.<\/p>\n
16. Vinasa Investment Corp (finance), share 100 percent.<\/p>\n
17. PT Sampoerna in Malaysia, share 71 percent.<\/p>\n
18. Sampoerna Asia Pte. Ltd., share 100 percent.<\/p>\n
19. Bursa Tobacco Corp. (cigarette) share 100 percent<\/p>\n
20. Myanmar Sampoerna Tobacco Co. Ltd., share 90 percent.<\/p>\n
21. Malacca Trading Corp. (cigarette), share 100 percent.<\/p>\n
22. Sterling Tobacco Corp. (cigarette), share 92,9percent<\/p>\n
23. Sampoerna Investment Corp. (investment), share 100 percent.<\/p>\n
24. Sampoerna Investment Corporation (Cyprus) Ltd. (investment),
\nshare 100 percent.<\/p>\n
25. Batavia Trading Corporation (general trade), share 100
\npercent.<\/p>\n
26. Sampoerna Latin Amerika Ltd., share 100 percent.<\/p>\n
27. Sampoerna Tobaccos Latina Ltd. (tobacco), share 100 percent.<\/p>\n
28. PT Sumber Alfaria Jaya Trijaya (retail), share 70 percent<\/p>\n
29. Golf Taman Dayu, share 99,4 percent.<\/p>\n
Source: Annual Report Sampoerna 2003<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sampoernas-success-started-from-modest-beginnings-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }