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)