Soebronto born for automotive industry
By Rikza Abdullah
JAKARTA (JP): Soebronto Laras was born to an automotive tycoon's family in 1943 and he says he had no choice other than to spend the rest of his life in the country's vehicle industry.
"At my current age, I sometimes think it's about time to retire, but business conditions and emotional considerations force me to stay. Until when? I don't know," said Soebronto, who will turn 57 early next month.
Coughing several times due to a three-week old cold, Soebronto spared the time for an interview with The Jakarta Post on Thursday at his office on the sixth floor of Wisma Indomobil on Jl. M.T. Haryono, South Jakarta.
He said he was psychologically "forced" to love vehicles because he had been in an automotive environment since he was child.
In 1946, his father, R. Moerdono, imported cars with Dutch company NV Vellodrom. He learned from the company and established his own car import firm, Janaka Motor, the following year. Moerdono also operated a garage across from the State Palace.
At weekends, Soebronto spent his holidays with his grandmother, who also managed a garage from her house on Jl. Wahid Hasyim, Central Jakarta. Seeing that he liked to repair cars at a young age, his father gave him a car so that he could use it to experiment with.
"I also often followed my father on motor rallies with his Dutch friends in Lembang, West Java," Soebronto said. "It's logical then that I liked to drive cars or motorcycles at excessive speed and later on to take part in car races and rallies."
But his father realized that, for Soebronto, wasting his youth racing, playing music, and quarreling might ruin his future. He withdrew Soebronto him from Cikini Education Foundation's senior high school and sent him to Harapan Kita senior high school, which taught diplomats' children and others.
"Because I passed my senior high school examinations (in 1964) with good grades, I got a scholarship from the government to study mechanical engineering at Paisley College in Scotland," he said.
A year later, an economic crisis forced the government to terminate his scholarship. His father's business went bankrupt at the same time. Soebronto earned money cooking and washing dishes in restaurants and playing music in pubs to support his studies.
His father lost almost everything -- all his assets, except his house, were confiscated by the government. The family was totally dependent on his mother, Syamsidar Asyik, who became a member of the House of Representatives.
During these difficult times, in 1967 Soebronto married Herlia Emmy Yani, Ahmad Yani's daughter, an army general killed during the attempted coup in 1965.
"At that time my wife was studying political sciences in Germany, but I asked her to move to England to study food-related business management and accompany me," said Soebronto, who has two children, Harry Rubiyanto, 28, and Nadia Fitriasari, 24, from his marriage with Emmy 53.
After graduating from Paisley College in 1969, Soebronto studied business administration at Hendon College in London until 1972.
Returning to Jakarta as the son-in-law of a national hero, he was offered help by several businessmen and government officials, including Cokropranolo, L. Benny Murdani and the then president Soeharto's half brother Probosutedjo.
"I refused all their offers. Instead, together with friends like Setiawan Djodi, I tried to start some businesses but they failed," he said.
He then joined Suwoto Sukendar, the then chairman of the Indonesian Chamber of Commerce and Industry (Kadin), in establishing a company that assembled British Leyland vehicles. Casino operator Atang Latief provided the investment. But the business failed. Atang then appointed Soebronto a director of his companies that were operating in various sectors.
In 1976 Atang took over two ailing companies, Suzuki motorcycles assemblers PT Indohero Steel & Engineering and PT Indomobil Utama, an automobile assembler, and assigned Soebronto to lead them as president director.
Desperate
His return to the automotive business was very timely. In the same year, the government introduced a comprehensive policy on developing the country's automotive industry.
"But I was desperate in 1981, when the government took away Atang's license to run (his) casino, the single source of funds for the two automotive companies," he said.
"Fortunately, a friend of mine from my studies in England, Anthony Salim from the Salim Group, agreed to take over all the shares in the companies on the condition that I retained my position there," he added.
With the support of the large conglomerate, the companies grew very rapidly into a business group with about 40 companies, producing and assembling Suzuki motorcycles and automobiles under the license of Suzuki, Hino, Mazda and Nissan of Japan; Volvo of Sweden; Volkswagen and Audi of Germany; and SsangYong of South Korea. The group's factory space has expanded from six hectares in 1981 to 120 hectares at present, and its employees have increased from about 300 to 9,000.
The group's growth has also brought Soebronto recognition. He was elected chairman of the Indonesian Automotive Industry Association (Gaikindo) in 1985 through 1990.
"But the inconsistent policies of the government have brought disaster to the country's automotive industry," Soebronto said.
He said the government was right in 1976 when it introduced a basic policy for the development of the industry by encouraging the domestic production of components for commercial vehicles.
Even though component production was very inefficient due to low economic scales and burdensome bureaucracy, he said, the industry could produce Indonesia-specific vehicles like Toyota Kijang, Suzuki Carry, Mitsubishi Colt and Isuzu Panther.
Disaster
"The disaster occurred in 1996 when the government issued a presidential decree naming the Korean-made Timor (imported by Soeharto's son Hutomo Mandhala Putra) the national car, imports of which were exempted from 100 percent duties and 35 percent luxury tax," he said, adding that other vehicles could enjoy similar breaks if their locally produced components reached 60 percent.
Just when companies were making huge investments in component production (Indomobil spent some US$130 million on 12 component factories) the country was hit by the economic crisis, forcing them to suffer huge foreign exchange losses. Indomobil suffered a foreign exchange loss of almost Rp 1 trillion in 1998 and Rp 1.2 trillion in 1999. However, the group made an operating profit of Rp 100 billion in 1999.
The downfall is now a challenge to Soebronto to show his ability to return the group's financial state to black. "I cannot leave the business while my friend Anthony Salim is in difficulties," he said.
Leading a business group with about 40 subsidiaries is a very busy job. Moreover, as president director, he also has to spend time managing PT Jurnalindo Aksara Grafika, the publisher of Bisnis Indonesia newspaper. But he said he could still sustain a harmonious relationship his wife and children.
"As a business leader and public figure, girls work around me at business ceremonies. I was rumored to be having a special relationship with a certain girl, but the rumor was untrue and my relationship with my wife remains intact," he said.
He admitted, however, that his children enjoyed a closer relationship with his wife, Emmy, than with him.
Emmy has more time to spend with the children. She used to be the operator of the Texas Fried Chicken restaurant chain with Atang, but has now sold her shares and established a chain of New York Fried Chicken restaurants on her own and a New York Cafe.
Even though he is rich, Soebronto lives simple. As an automotive industry executive he has to compare different cars, so he has many motor vehicles of various types. But he claims that out of all of them he prefers to drive his 1986 Mazda 323 sedan. He also taught his children the value of thrift.
"When my children were studying in Boston, the United States, for example, I only gave them a Cherokee jeep," he said.
Harry studied business management at New Hampshire College. Nadia, who is now working as a radio DJ, studied public relations at the same college.
"But unlike their father, none of them like driving cars super fast," Soebronto said. "Perhaps they feel traumatic having seen me several times lying in hospital after car accidents."