The Legacy Of The Bakrie Group's Business Kingdom, Which Is Often In Debt

Bakrie Family (Instagram/ramadhaniabakrie)

JAKARTA - Ramadhania Ardiansyah Bakrie or Nia Ramadhani and Anindra Ardiansyah Bakrie or Ardi Bakrie were arrested by the police for narcotics abuse. The Bakrie family name was also in the spotlight. Because they are known as part of one of the most famous conglomerate families in Indonesia, the Bakrie Group. So how exactly did the business empire pioneered by Achmad Bakrie do?

Nia and Ardi, along with a driver with the initials ZN were arrested on Wednesday 7 July with evidence of 0.78 grams of crystal methamphetamine and a suction device, a bong, at their residence, Pondok Indah, South Jakarta. Nia admitted to the police that she had used methamphetamine for the last four to five months. Currently the police are still investigating the case to find the supplier of methamphetamine to the celebrity.

Nia became widely known for her role as Bawang Merah in the soap opera Bawang Merah Bawang Putih which first aired in 2004. At that time, Nia was 15 years old.

In 2010, Nia married Ardi. At that time he was 20 years old, while Ardi was 32 years old. For eleven years of marriage, this couple has been blessed with three children, namely a daughter and two sons. Then who is the figure of Ardi Bakrie who is the husband of Nia Ramadhani?

Nia and Ardi Bakrie (Instagram/ramadhaniabakrie)

Third generation

Ardi Bakrie is the son of a conglomerate couple Aburizal Bakrie and Tatty Murnitriati. He is known as an entrepreneur who continues the success of the family business. You could say he is the third generation who runs a number of businesses from the Bakrie Group.

The Bakrie Group is a conglomerate company founded by Achmad Bakrie, the father of Aburizal Bakrie in 1942. The company conglomerates in many fields such as mining, oil and gas, property, infrastructure, media and telecommunications.

At the age of four, Ardi Bakrie has occupied important positions in a number of companies. As stated on his Linkedin account, now Ardi is the CEO of the private television station tvOne.

He was the main director of tvOne from 2007 to 2017. Besides being the CEO of tvOne, Ardi also served as the main commissioner of ANTV and tvOne stations.

In addition, Ardi Bakrie currently also serves as Deputy President Director of PT Visi Media Asia or VIVA. Until March 2021, VIVA has total assets of Rp. 8.66 trillion. This is just one of the many Bakrie Group subsidiaries. So what is the total value of the company owned by the Bakrie family?

Bakrie Group

It all started when Achmad Bakrie founded CV Bakrie & Brothers in Teluk Betung, Lampung. Initially this business was engaged in agricultural products, then it was known as a pioneer in producing steel pipes.

Quoted from Tempo Magazine In 1988, Aburizal Bakrie led the Bakrie Group. Bakrie & Brothers entered the stock exchange and began to enter the telecommunications sector. From the sale of the 15 percent stake, Bakrie received Rp25 billion in funds. Three years later, the company's revenue reached Rp213 billion.

Then in 1992, Bakrie established three holding companies: PT Bakrie & Brothers, Bakrie Nusantara Corporation, and PT Bakrie Investindo. These three holdings oversee business units in the fields of industry, manufacturing, telecommunications, agribusiness, and trade. And a year later, the Bakrie Group launched ANTV.

Bakrie Tower (Source: Wikimedia Commonse)

The first storm came when the 1998 monetary crisis occurred. The fall in the rupiah exchange rate to Rp17 thousand per US dollar, made Bakrie & Brothers debt increase from Rp2.7 trillion to Rp9.7 trillion.

Its shares eroded from 58 percent to only 2.5 percent. The Bakrie family must return the recapitalization debt of Rp. 3 trillion to the state and hand over their assets to the National Banking Restructuring Agency.

Another big problem occurred in 2006. At that time, one of the Bakrie Group's subsidiaries, PT Lapindo Brantas in Sidoarjo, spewed hot mud. Aburizal claimed a loss of Rp9 trillion. Meanwhile, Bakrie Life failed to pay insurance premiums of up to Rp360 billion. Bakrie Telecom's shares are sold.

Two years later, the Indonesia Stock Exchange temporarily suspended trading of shares of Bakrie & Brothers, Bakrieland, Bumi Resources, Energi Mega Persada, Bakrie Sumatera Plantations, and Bakrie Telecom, because their share prices fell 30 percent. Rumors of pawning shares became the trigger.

Bakrie & Brothers then issued new shares of IDR 40.8 trillion. However, only IDR 30 trillion was collected. The funds will be used to buy 35 percent of Bumi Resources' shares, 40 percent of Energi Mega's shares, and 40 percent of Bakrieland Development's shares from the Bakrie family.

In 2014, the debt problem resurfaced. Bumi Resources owes US$3.73 billion or around Rp44.77 trillion. The largest was the China Investment Corporation, amounting to 1.9 billion US dollars. In 2013 and 2014 the company paid 600 million US dollars each and the following year 700 million US dollars.

After experiencing ups and downs, what is the total assets of PT Bakrie & Brothers Tbk. (BNBR) at this time?

In a press statement on 17 December 2020, the President Director of PT Bakrie & Brothers Tbk. Anindya Bakrie said that the total assets of BNBR in the first nine months of 2020 were Rp. 15.50 trillion. Meanwhile, total assets in 2019 amounted to Rp. 14.36 trillion.

*Read other information about Business or other interesting articles from Ramdan Febrian Arifin.

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