Source Cuan Bos Djarum Conglomerate Hartono Brothers Owner Of Wealth Of IDR 617 Trillion, From BCA To Tower Companies

Conglomerate Robert Budi Hartono. (Photo: Instagram @forbesindonesia)

JAKARTA - Conglomerates Robert Budi Hartono and Michael Bambang Hartono are still unwavering from the top positions of the richest people in Indonesia. The Hartono Brothers duo, who are the "big bosses" of the Djarum Group, do have a number of business lines that are their main source of money.

Quoting the Forbes Real Time Billionaire List, Monday, February 8, the name Robert B. Hartono occupies the top position as the richest person in Indonesia with a wealth of US$22 billion or around Rp314 trillion. In second place is the name of his brother, Michael B. Hartono with a total wealth of US$ 21.2 billion, around Rp. 303 trillion.

Looking at their wealth, it is mainly supported by the sources of money that are 'deposited' from companies under the Djarum Group banner. The performance of shares and the achievements of a number of issuers under the control of the Djarum Group recorded a smooth performance throughout 2021.

These companies look aggressive in carrying out corporate actions in 2021. The main contributor to the Hartono Brothers' funds is of course from the banking sector, namely PT Bank Central Asia Tbk (BBCA).

BBCA, which previously carried out a stock split, throughout 2021 its share price grew 8.20 percent (ytd). BBCA is noted to have conducted a stock split with a ratio of 1:5 or 1 share was split into 5 new shares.

The par value per BBCA share before the stock split was Rp62.5, while the par value per BBCA share after the stock split was Rp12.5.

BCA President Director Jahja Setiaatmadja said, with this price, the company hopes that BCA's stock price will be relatively affordable and will get a positive response from investors, especially novice investors who are currently actively investing in the capital market.

Meanwhile, BBCA and its subsidiaries posted a net profit of Rp. 31.4 trillion throughout 2021. This profit grew 15.8 percent on an annual basis. Meanwhile, BCA's total assets rose 14.2 percent yoy to reach Rp1,228.3 trillion.

In terms of lending, BCA's total credit rose 8.2 percent yoy to IDR 637 trillion rupiah in December 2021, higher than the 6 percent growth target. BCA's credit growth was followed by improvement in loan quality.

Meanwhile, in the modern retail sector, PT Supra Boga Lestari Tbk (RANC) is a newcomer to the Djarum Group portfolio. This happened after in early October 2021, the Djarum Group e-commerce company, namely PT Global Digital Niaga or better known as Blibli.com, became the new controller of RANC which is the parent of Ranch Market. Blibli is recorded to own 51 percent of RANC's shares.

Furthermore, the Djarum Group portfolio from the tower sector is named PT Sarana Menara Nusantara Tbk (TOWR). Meanwhile, in October 2021, Sarana Menara Nusantara also acquired PT Solusi Tunas Pratama Tbk (SUPR) through its subsidiary PT Professional Telekomunikasi Indonesia (Protelindo). The latest news, SUPR will be brought by the Djarum Group to go private.

Interestingly, when viewed from the performance of the shares of the listed companies in the Djarum Group portfolio, almost all of them experienced an increase in stock prices during the past year. As of the close of trading in 2021, of these issuers, RANC's shares jumped the most by 299.08 percent (ytd).

Then in the second position followed by SUPR who just joined the Djarum Group, with a share price increase of 277.44 percent (ytd). Even though its share price has skyrocketed, the issuer that owns the Ranch Market scored a less than stellar performance throughout the first semester of 2021.

Based on the financial report as of June 30, 2021, RANC recorded revenue of Rp. 1.48 trillion, down 7.54 percent from the position in the first half of last year of Rp. 1.6 trillion.

Cost of revenue also decreased slightly in line with the decline in revenue to Rp1.08 trillion from Rp1.17 trillion in the same period.

Meanwhile, selling expenses increased to Rp224.84 billion from Rp215.08 billion yoy. Meanwhile, general and administrative expenses increased to Rp160.27 billion from Rp154.21 billion yoy.

Thus, profit for the period attributable to owners of the parent entity or net profit fell to Rp. 17.3 billion, down 67.08 percent in the first half of 2021 compared to Rp. 52.55 billion in the first half of 2020.

As for the strengthening of the company's shares last year, one of which was supported by the acquisition by Blibli of RANC some time ago.

Meanwhile, in the tower segment, TOWR has seen a 19.27 percent (ytd) increase in share price over the past year. TOWR revenue as of September 2021 reached Rp6.07 trillion, up 9.21 percent yoy from the previous Rp5.55 trillion. Net profit rose higher, namely 35.17 percent yoy to Rp. 2.58 trillion from the previous Rp. 1.9 trillion.