The Origins of the Djarum Group's Management of the Elite Hotel Indonesia Area
The Djarum Group is a conglomerate with highly diverse businesses. Starting from kretek cigarette products, this business group has since expanded into various sectors, from banking and media to food and beverages, and property.
The origins of the Djarum Group trace back to Oei Wie Gwan, a man born in Rembang, Central Java. He began his venture by producing firecrackers or petasan, which were marketed to various regions on Java island.
However, that business did not last long after its factory experienced an explosion in 1939 and another in 1942. Those events prompted Oei to switch to the cigarette industry.
He then acquired a small company called Djarum Gramophon and renamed it Pabrik Rokok Djarum (PR Djarum) on 21 April 1951 in Kudus, Central Java.
The Djarum business was then passed on to the second generation, Michael Bambang Hartono and Robert Budi Hartono.
The Djarum Group’s businesses grew even larger after acquiring Bank BCA from the Salim Group. The group also ventured into property with PT Cipta Karya Bumi Indah, which subsequently manages several blocks in the elite Bundaran HI area.
The Djarum Group’s involvement in managing the Hotel Indonesia area began after PT Cipta Karya Bumi Indah won the rights to manage the Grand Indonesia area in 2004.
Referring to KOMPAS.com archives, Grand Indonesia was officially opened to the public in April 2007. The shopping centre stands on the former site of the Hotel Indonesia Intercontinental, which was previously one of Jakarta’s icons.
The hotel holds high historical value as it was inaugurated on 5 August 1962 by Soekarno in preparation for the IV Asian Games event.
The development of Grand Indonesia itself is part of the Hotel Indonesia area revitalisation project, which was later conceptualised as the Grand Indonesia Superblock.
The management of the HI area began during the Megawati Soekarnoputri administration alongside the Minister of State-Owned Enterprises, Laksamana Sukardi. At that time, the state-owned enterprise PT Hotel Indonesia Natour explored cooperation with PT Cipta Karya Bumi Indah.
In the process, that company emerged as the winner of the Hotel Indonesia management tender and subsequently signed a cooperation agreement with PT Hotel Indonesia Natour (Persero).
This cooperation uses the Build, Operate, and Transfer (BOT) scheme, a form of partnership between the government and the private sector in infrastructure development.