Soebronto born for automotive industry<\/p>\n
By Rikza Abdullah<\/p>\n
JAKARTA (JP): Soebronto Laras was born to an automotive
\ntycoon's family in 1943 and he says he had no choice other than
\nto spend the rest of his life in the country's vehicle industry.<\/p>\n
"At my current age, I sometimes think it's about time to
\nretire, but business conditions and emotional considerations
\nforce me to stay. Until when? I don't know," said Soebronto, who
\nwill turn 57 early next month.<\/p>\n
Coughing several times due to a three-week old cold, Soebronto
\nspared the time for an interview with The Jakarta Post on
\nThursday at his office on the sixth floor of Wisma Indomobil on
\nJl. M.T. Haryono, South Jakarta.<\/p>\n
He said he was psychologically "forced" to love vehicles
\nbecause he had been in an automotive environment since he was
\nchild.<\/p>\n
In 1946, his father, R. Moerdono, imported cars with Dutch
\ncompany NV Vellodrom. He learned from the company and established
\nhis own car import firm, Janaka Motor, the following year.
\nMoerdono also operated a garage across from the State Palace.<\/p>\n
At weekends, Soebronto spent his holidays with his
\ngrandmother, who also managed a garage from her house on Jl.
\nWahid Hasyim, Central Jakarta. Seeing that he liked to repair
\ncars at a young age, his father gave him a car so that he could
\nuse it to experiment with.<\/p>\n
"I also often followed my father on motor rallies with his
\nDutch friends in Lembang, West Java," Soebronto said. "It's
\nlogical then that I liked to drive cars or motorcycles at
\nexcessive speed and later on to take part in car races and
\nrallies."<\/p>\n
But his father realized that, for Soebronto, wasting his youth
\nracing, playing music, and quarreling might ruin his future. He
\nwithdrew Soebronto him from Cikini Education Foundation's senior
\nhigh school and sent him to Harapan Kita senior high school,
\nwhich taught diplomats' children and others.<\/p>\n
"Because I passed my senior high school examinations (in 1964)
\nwith good grades, I got a scholarship from the government to
\nstudy mechanical engineering at Paisley College in Scotland," he
\nsaid.<\/p>\n
A year later, an economic crisis forced the government to
\nterminate his scholarship. His father's business went bankrupt at
\nthe same time. Soebronto earned money cooking and washing dishes
\nin restaurants and playing music in pubs to support his studies.<\/p>\n
His father lost almost everything -- all his assets, except
\nhis house, were confiscated by the government. The family was
\ntotally dependent on his mother, Syamsidar Asyik, who became a
\nmember of the House of Representatives.<\/p>\n
During these difficult times, in 1967 Soebronto married Herlia
\nEmmy Yani, Ahmad Yani's daughter, an army general killed during
\nthe attempted coup in 1965.<\/p>\n
"At that time my wife was studying political sciences in
\nGermany, but I asked her to move to England to study food-related
\nbusiness management and accompany me," said Soebronto, who has
\ntwo children, Harry Rubiyanto, 28, and Nadia Fitriasari, 24, from
\nhis marriage with Emmy 53.<\/p>\n
After graduating from Paisley College in 1969, Soebronto
\nstudied business administration at Hendon College in London until
\n1972.<\/p>\n
Returning to Jakarta as the son-in-law of a national hero, he
\nwas offered help by several businessmen and government officials,
\nincluding Cokropranolo, L. Benny Murdani and the then president
\nSoeharto's half brother Probosutedjo.<\/p>\n
"I refused all their offers. Instead, together with friends
\nlike Setiawan Djodi, I tried to start some businesses but they
\nfailed," he said.<\/p>\n
He then joined Suwoto Sukendar, the then chairman of the
\nIndonesian Chamber of Commerce and Industry (Kadin), in
\nestablishing a company that assembled British Leyland vehicles.
\nCasino operator Atang Latief provided the investment. But the
\nbusiness failed. Atang then appointed Soebronto a director of his
\ncompanies that were operating in various sectors.<\/p>\n
In 1976 Atang took over two ailing companies, Suzuki
\nmotorcycles assemblers PT Indohero Steel & Engineering and PT
\nIndomobil Utama, an automobile assembler, and assigned Soebronto
\nto lead them as president director.<\/p>\n
Desperate<\/p>\n
His return to the automotive business was very timely. In the
\nsame year, the government introduced a comprehensive policy on
\ndeveloping the country's automotive industry.<\/p>\n
"But I was desperate in 1981, when the government took away
\nAtang's license to run (his) casino, the single source of funds
\nfor the two automotive companies," he said.<\/p>\n
"Fortunately, a friend of mine from my studies in England,
\nAnthony Salim from the Salim Group, agreed to take over all the
\nshares in the companies on the condition that I retained my
\nposition there," he added.<\/p>\n
With the support of the large conglomerate, the companies grew
\nvery rapidly into a business group with about 40 companies,
\nproducing and assembling Suzuki motorcycles and automobiles under
\nthe license of Suzuki, Hino, Mazda and Nissan of Japan; Volvo of
\nSweden; Volkswagen and Audi of Germany; and SsangYong of South
\nKorea. The group's factory space has expanded from six hectares
\nin 1981 to 120 hectares at present, and its employees have
\nincreased from about 300 to 9,000.<\/p>\n
The group's growth has also brought Soebronto recognition. He
\nwas elected chairman of the Indonesian Automotive Industry
\nAssociation (Gaikindo) in 1985 through 1990.<\/p>\n
"But the inconsistent policies of the government have brought
\ndisaster to the country's automotive industry," Soebronto said.<\/p>\n
He said the government was right in 1976 when it introduced a
\nbasic policy for the development of the industry by encouraging
\nthe domestic production of components for commercial vehicles.<\/p>\n
Even though component production was very inefficient due to
\nlow economic scales and burdensome bureaucracy, he said, the
\nindustry could produce Indonesia-specific vehicles like Toyota
\nKijang, Suzuki Carry, Mitsubishi Colt and Isuzu Panther.<\/p>\n
Disaster<\/p>\n
"The disaster occurred in 1996 when the government issued a
\npresidential decree naming the Korean-made Timor (imported by
\nSoeharto's son Hutomo Mandhala Putra) the national car, imports
\nof which were exempted from 100 percent duties and 35 percent
\nluxury tax," he said, adding that other vehicles could enjoy
\nsimilar breaks if their locally produced components reached 60
\npercent.<\/p>\n
Just when companies were making huge investments in component
\nproduction (Indomobil spent some US$130 million on 12 component
\nfactories) the country was hit by the economic crisis, forcing
\nthem to suffer huge foreign exchange losses. Indomobil suffered a
\nforeign exchange loss of almost Rp 1 trillion in 1998 and Rp 1.2
\ntrillion in 1999. However, the group made an operating profit of
\nRp 100 billion in 1999.<\/p>\n
The downfall is now a challenge to Soebronto to show his
\nability to return the group's financial state to black. "I cannot
\nleave the business while my friend Anthony Salim is in
\ndifficulties," he said.<\/p>\n
Leading a business group with about 40 subsidiaries is a very
\nbusy job. Moreover, as president director, he also has to spend
\ntime managing PT Jurnalindo Aksara Grafika, the publisher of
\nBisnis Indonesia newspaper. But he said he could still sustain a
\nharmonious relationship his wife and children.<\/p>\n
"As a business leader and public figure, girls work around me
\nat business ceremonies. I was rumored to be having a special
\nrelationship with a certain girl, but the rumor was untrue and my
\nrelationship with my wife remains intact," he said.<\/p>\n
He admitted, however, that his children enjoyed a closer
\nrelationship with his wife, Emmy, than with him.<\/p>\n
Emmy has more time to spend with the children. She used to be
\nthe operator of the Texas Fried Chicken restaurant chain with
\nAtang, but has now sold her shares and established a chain of New
\nYork Fried Chicken restaurants on her own and a New York Cafe.<\/p>\n
Even though he is rich, Soebronto lives simple. As an
\nautomotive industry executive he has to compare different cars,
\nso he has many motor vehicles of various types. But he claims
\nthat out of all of them he prefers to drive his 1986 Mazda 323
\nsedan. He also taught his children the value of thrift.<\/p>\n
"When my children were studying in Boston, the United States,
\nfor example, I only gave them a Cherokee jeep," he said.<\/p>\n
Harry studied business management at New Hampshire College.
\nNadia, who is now working as a radio DJ, studied public relations
\nat the same college.<\/p>\n
"But unlike their father, none of them like driving cars super
\nfast," Soebronto said. "Perhaps they feel traumatic having seen
\nme several times lying in hospital after car accidents."<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soebronto-born-for-automotive-industry-1447893297",
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