Preparing For IPO, Conglomerate Chairul Tanjung Targets CT Corp To Penetrate The Global Market

JAKARTA - Senior entrepreneur Chairul Tanjung intends to release his company CT Corp to the stock exchange to become a public company through an initial public offering (IPO) mechanism. The information was revealed when Nikkei Asia reported about this.

In order to smooth this action, Chairul Tanjung is known to be cooperating with a Japanese trading company, Mitsui.

"IPOs encourage companies to be more transparent and also have better governance because there are many institutions (supervising)," he told Nikkei Asia quoted Monday, June 21.

It was stated that Matsui would receive a subscription to CT Corp's convertible bonds worth 100 billion yen, equivalent to 910 million US dollars in April as part of the CT bond deal that Matsui already had in his hands.

To note, a number of large corporations in Asia are noted to have complex ownership structures. This is useful to ensure that the company's supervisory system is layered in order to create a conducive business situation. In fact, several entities have been running this system since the early 20th century.

“We were born different from other generations. We are still the first generation, they (other entrepreneurs) are already in the second or third generation," he said.

For information, Chairul Tanjung is one of the national conglomerates with an estimated wealth of US$4.8 billion or equivalent to Rp69.6 trillion according to Forbes World's Billionaires List The Richest in 2021.

Under the banner of CT Corp, he expanded into various business lines, such as in the financial sector through Mega General Insurance, Mega Life Insurance, Multi Finance, Mega Bank, Mega Capital Indonesia, Mega Syariah Bank, and Mega Finance.

While in the property and investment sector, the company oversees Para Bandung Propertindo, Bali Propertindo, Batam Indah Investindo, and Mega Indah Propertindo. In broadcasting and multimedia, Para Group owns Trans TV, Trans7, Mahagaya Perdana, Trans Fashion, Trans Lifestyle, and Trans Studio.

Specifically in the property business, Para Group owns the Bandung Supermall. Then, in the investment sector, in early 2010 Para Group through its subsidiary, Trans Corp bought most of Carrefour Indonesia's shares, amounting to 40 percent.

It is undeniable that CT Corp is one of the most successful conglomerates in the country. In order to lead the company, Chairul Tanjung appointed his daughter, Putri Tanjung, as CEO of CT Corp.

However, in this second relay, he did not want the success of the business that had been built to stop. The reason is that many derivative business activities began to dim as soon as the baton of leadership fell in the third generation.

“Princess is smarter than me, she is creative and innovative. I want to make sure CT Corp is sustainable for 100, 200 and 1000 years," said Chairul Tanjung.

One of the business lines that stands out from CT Corp is the presence of Transmart. The success of this retail business model cannot be separated from the continued development of the middle class in Indonesia.

This is because the presence of a place for shopping as well as entertainment in one place is considered to be able to accommodate the wishes of millennials who tend to have better economic resilience in addition to their large numbers.

This strategy was later seen by Chairul Tanjung as quite in sync with conditions in other developing countries, such as Bangladesh and Pakistan.

“If we can enter the retail and entertainment business there, we can win the competition. I want the company to be successful not only in Indonesia but also globally,” concluded the tycoon nicknamed The Cassava Child.