Who Is Sukanto Tanoto The 'King Of Palm' Who Purchased King Ludwig's Palace In Germany

Young Sukanto Tanoto (Photo: sukantotanoto.com)

JAKARTA - Entrepreneur Sukanto Tanoto is in the middle of a conversation because it was mentioned in the OpenLux report which was the investigative work of international journalists.

From the information released, Sukanto and his son Andre Tanoto allegedly bought a number of prestigious properties in Germany through companies that are not directly affiliated with the parent entity, aka shell companies, to avoid tax levies.

There are two main properties that the Tanoto clan controlled on Bavarian land. The first is a luxurious building by the renowned architect Frank O. Gehry in the economic center of Düsseldorf, and the second is the palace of King Ludwig in Munich. According to an OpenLux report, the Tanoto family is estimated to have spent no less than 350 million euros on this property.

Quoting the Wikipedia page, Sukanto Tanoto is one of the most successful entrepreneurs in the country who was born on December 25, 1949. He is widely known by the public as a true entrepreneur in the agro-industry, especially palm oil.

Initially, young Sukanto pioneered his business empire by becoming a simple supplier for Pertamina's needs. From the profits he got, he tried his luck in the forestry sector with the flag of the Royal Golden Eagle International (RGEI) which was once known as Raja Garuda Mas.

Today, RGEI is estimated to have total assets of 15 billion US dollars with 50 thousand workers involved in it. Business businesses are spread into four main areas, namely, pulp and paper (APRIL), agro-industry (Asian Agri), dissolving wood pulp and viscose staple fiber (Sateri Holdings Limited), as well as the development of energy resources (Pacific Oil & Gas).

Of the four business octopuses, Asian Agri is the most phenomenal. This palm oil production corporation is even claimed to be one of Asia's largest palm oil producers.

It is stated that the largest oil palm company in Indonesia was founded in 1979 and now has 160,000 hectares of certified plantation areas spread across North Sumatra, Riau, and Jambi with 25,000 employees.

On his personal page at www.sukantotanoto.com, he expressed his motivation in establishing Asian Agri after his trip to Malaysia.

“I see Sime Darby, Guthrie, and a British oil palm company that are successful. Then, I realized that land in Indonesia is cheaper, labor is also cheap, and has a market 10 times bigger than Malaysia. I thought, why not try palm oil”, he said.

Like finding momentum, the palm oil business that Sukanto started coincided with the government's transmigration program. This program is clearly needed by Asian Agri is looking for a workforce plus having a bad mentality.

From the results of his business, Forbes in an edition once estimated that Sukanto Tanoto's assets reached US $ 1.35 billion or around IDR 19.07 trillion. This wealth puts him in the order of the 22 richest people in Indonesia throughout 2020.