Sued by Freddy Widjaja, This is Eka Tjipta's Business in the Sinar Mas Group

BSD Green Office Park di BSD City, Serpong, Tangerang, Banten. (Foto: Sinar Mas Land)

JAKARTA - The dispute over the inheritance rights of the Sinar Mas Group is not over. Freddy Widjaja, son of the late founder of the Sinar Mas Group, Eka Tjipta Widjaja, again registered the lawsuit at the Central Jakarta District Court on Tuesday, August 11, 2020.

This latest lawsuit was filed a day after the Central Jakarta District Court officially withdrew the inheritance dispute lawsuit that Freddy originally submitted on June 12, 2020.

In the first lawsuit with case number 301 / Pdt.G / 2020 / PN Jkt.Pst, one of Freddy's requests is for the panel of judges to legally declare the inheritance of PT Smart (Sinar Mas Agro Resources and Technology) Tbk (SMAR), PT Sinar Mas Multi Artha, Sinar Mas Land, and PT Bank Sinar Mas Tbk (BSIM).

Then, PT Indah Kiat Pulp & Paper Tbk (INKP), PT Tjiwi Kimia Tbk (TKIM) Paper Factory, PT Lontar Papyrus Pulp & Paper Industry, PT Bank China Construction Bank Indonesia Tbk (MCOR), Asia Food and Properties Limited, China Renewable  Energy Investment Limited, PT Golden Energy Mines Tbk (GEMS), and Paper Excellence BV Netherlands. As a result, the total assets of these 12 companies reached IDR 672.65 trillion.

The defendants were Indra Widjaja, Teguh Ganda Widjaja, Muktar Widjaja, Djafar Widjaja, and Franky Oesman. However, in its development, the mediation process between the plaintiff and the defendant - who were Freddy's half brothers - was unsuccessful. No agreement was reached.

At that time, the Sinar Mas Group said that the business entity that was fighting for this legacy had no relationship with the late Eka Tjipta. This is because he is said to have no shares in these companies.

One of the Richest People

During his lifetime, Eka Tjipta was a regular on the Forbes list of the richest Indonesians. Forbes Magazine, which released the ranks of the richest people in Indonesia in 2018, placed Eka Tjipta in 3rd place.

According to Forbes, his wealth is US $ 8.6 billion or the equivalent of IDR 124.7 trillion with reference to the exchange rate of IDR14,500 per US dollar at that time.

Eka's wealth is none other than the success of his business at the Sinar Mas Group. Sinar Mas has businesses in various sectors: pulp and paper, agribusiness, finance, property, telecommunications, and energy.

Some of its companies are listed on the stock exchange on the Indonesia Stock Exchange (IDX) and abroad. Such as on the Singapore Exchange (SGX). And there are also companies whose shares are not traded on the capital market.

The following are Sinarmas companies in various sectors, including those that are listed on the IDX:

1. Plantation and Forestry

The parent company of plantation and forestry and its derivatives is Golden Agri-Resources (GAR). The company has been listed on the Singapore Exchange (SGX) since 1999.

One of its subsidiaries is PT Smart Tbk.  As of March 31, 2020, this company had a nucleus and plasma planted area of ​​137,300 hectares (ha).

The company's total production of Crude Palm Oil (CPO) and palm kernel is 171,700 tons. Its processed products include cooking oil, margarine, shortening, stearin, oleochemicals, and biodiesel.

2. Property

The Widjaja Family property business is operated by Sinar Mas Land and covers all categories. Namely residential, commercial and retail, industrial estates, hotels, and hospitals.

In Indonesia, this business is run by, among others, BSDE, DUTI, and PT Puradelta Lestari Tbk (DMAS). Properties owned are BSD City, Karawang International Industrial City, Greenland International Industrial City, to a number of shopping centers such as ITC Mangga Dua, ITC Cempaka Mas, Mall Ambassador, and AEON Mall.

Sinar Mas also has various projects abroad, namely China and England. Their property in China is for residential use, namely Li Shui Jin Du in Chengdu and Li Shui Jin Yang in Shenyang.

Meanwhile, in the UK, the focus is on commercial properties. Namely the Warwick House, Alphabeta Building, and 33 Horseferry Road. All are located in London.

Apart from developing the projects, Sinar Mas Land also collaborates with other companies. Japanese companies often become partners, such as Sojitz Japan, Mitsubishi Corp., and AEON.

3. Financial

The Sinar Mas network in this sector is covered by PT Sinar Mas Multiartha Tbk. Both are companies whose shares are traded on the stock exchange and those with the status of a private company.

There is Bank Sinarmas and PT Asuransi Sinar Mas (Sinar Mas Insurance), also PT Asuransi Jiwa Sinarmas MSIG. There are also PT Sinar Mas Multifinance and PT AB Sinar Mas Multifinance.

Furthermore, those related to the capital market are PT Sinarmas Sekuritas, PT Sinarmas Aset Management, and PT Sinarmas Futures. Not to forget, Sinar Mas is also plunging into the financial technology (fintech) pool through PT Pasar Dana Pinjaman (Danamas), PT Dana Pinjaman Inclusive, PT Dana Saham Bersama, and PT Orientee Mas Sejahtera.

4. Telecommunication

Sinar Mas entered the telecommunications sector through PT Smartfren Telecom Tbk (FREN). As of 2019, the company operates 31,143 4G Base Transceiver Station (BTS) in more than 200 cities in Indonesia.

In line with the increasing demand for data, FREN is taking the opportunity to invest in a national network that focuses on data services for its customers.

5. Energy

In this sector, Sinar Mas has subsidiaries in coal, chemical, and electricity mining. PT Dian Swastika Sentosa Tbk (DSSA), GEMS, TKIM, and INKP are some of them.

Apart from the coal sector, DSSA is also working on power generation projects, trading in fertilizers and chemicals, and multimedia. The GEMS is now at a crossroads due to the threat of delisting from the IDX. This is because the company has not complied with the free float rule, or also known as the floating shares of 7.5 percent that is required by the Exchange. GEMS shares have been suspended since 2018 due to this problem.

Meanwhile, for the paper business, TKIM and INTP are under Asia Pulp & Paper (APP). APP also oversees a number of other companies whose shares are not traded on the stock exchange. Such as PT Lontar Papyrus Pulp & Paper Industry, PT Pindo Deli Pulp & Paper Mills, PT Ekamas Fortuna, PT Oki Pulp & Paper Mills, and PT The Univenus.

Some famous brands under the APP include Paseo and Nice tissue, Paperline and Sinarline papers, and SiDu writing and drawing books.