300 conglomerates lead domestic market share
300 conglomerates lead domestic market share
JAKARTA (JP): The 300 largest conglomerates in the country continue to dominate local market share, making up 47.8 percent of the country's gross national product.
In a report released yesterday, the Indonesian Business Data Center said that the combined turnovers of the 300 conglomerates increased by 15 percent last year to Rp 169.6 trillion (US$73.5 billion) from Rp 147.2 trillion in 1993.
Their combined sales were almost twice those booked by all state-owned companies, totaling Rp 85 trillion last year.
The share of the 10 largest, in terms of sales, increased by 2.2 percentage points to 17.2 percent, or Rp 60.9 trillion, of their combined turnovers last year from 15 percent, or Rp 51.2 trillion, in 1993.
The 10 largest conglomerates included Salim, which recorded total sales of Rp 18.9 trillion last year; Astra International with total sales of Rp 9.5 trillion; Sinar Mas with Rp 7.99 trillion; Gudang Garam with Rp 4.9 trillion; Barito Pacific with Rp 3.9 trillion; Lippo with Rp 3.56 trillion; Djarum with Rp 3.31 trillion; Argo Manunggal Rp 3.3 trillion; Kalimanis with Rp 2.96 trillion and Dharmala with Rp 2.87 trillion.
The 50 largest conglomerates were responsible for Rp 108 trillion, or 63.8 percent, of the combined turnovers last year, rising by 1.6 percentage points from 62.2 percent in 1993.
In terms of turnover classification, 31 conglomerates entered the group with sales of over Rp 1 trillion last year, 47 conglomerates had sales of between Rp 500 billion and Rp 1 trillion and 222 conglomerates generated sales of between Rp 50 billion and Rp 500 billion.
The combined market share of those with turnovers of over Rp 1 trillion increased significantly last year, from 48.9 percent in 1993 to 54.5 percent last year.
"The giant groups remained in domination of market shares," Christianto Wibisono, chairman of the data center, said when releasing the report.
Rent-seeking
One report figure revealed that 27 conglomerates, which controlled 22.5 percent of combined turnovers, continued to exhibit rent-seeking behavior.
Based on their sales growth, only 16 conglomerates suffered declines in their growth rates last year, and 11 business groups enjoyed growth of over 50 percent.
The 11 groups included Prasidha, Tirtamas, Ciputra, ALatief Corporation, Centris, Fajar Surya Wisesa, Kalbe, Anwar Sierad, Sampoerna, Surya Pertiwi and Mayora groups.
In terms of assets, 56 business groups controlled 74.5 percent of the 300 conglomerates' combined assets of Rp 271.89 trillion last year.
The first 10 largest conglomerates, in terms of assets, already controlled 39.3 percent of the combined assets.
They included Salim with Rp 32.14 trillion in assets last year, Sinar Mas with Rp 15.28 trillion, Bank Danamon with Rp 11.3 trillion, Astra International with Rp 10.18 trillion, Gadjah Tunggal with Rp 8.15 trillion, Lippo with 7.34 trillion, Dharmala with Rp 6.4 trillion, Barito Pacific with Rp 6.24 trillion, Bank Bali with 5.1 trillion and Bank Niaga with Rp 4.94 trillion. (rid)