Sudono Salim
Encyclopedia
Sudono Salim also known as Liem Sioe Liong, is a Chinese Indonesian
businessman of Hokchia origin. He was once considered the richest individual in Indonesia
. He was the head of the conglomerate Salim Group
before turning over its management to his youngest son Anthony in 1992.
, Fujian
, China, as the second son a farmer. He left Fujian in 1936 to join his brother Liem Sioe Hie and brother-in-law Zheng Xusheng in Medan
, North Sumatra
. Salim diversified their peanut oil
trading business into the clove
market, which was growing rapidly from demand for kretek
production. While in Medan, he supplied soldiers of the Indonesian National Revolution
with medical supplies and came into contact with Suharto, an officer of the army. Salim denied allegations that he also provided arms to Indonesian soldiers to resist Dutch forces. As soldiers seized Dutch businesses following independence, his business absorbed many of their assets and gained a monopoly in the clove market, but he denied working with Suharto in expanding his ventures.
in 1952, Salim expanded his trading business by establishing connections with other ethnic Chinese businessmen in Singapore
and Hong Kong
. His soap factory became one of the primary suppliers to the Indonesian National Armed Forces. He later expanded into textiles and banking, eventually establishing largest private bank in Indonesia—the Bank Central Asia
(BCA). After a merger in 1968, he gained the right to monopoly
on clove importation. A joint venture with another Hokchia businessman became the largest producer of flour
in Indonesia. These two companies were said to have provided him with the capital to establish the cement
giant Indocement in 1973. In 1990, he established the food manufacturer Indofood
.
Salim handed over management of the conglomerate Salim Group
in 1992 to his sons Anthony and Harlim Exstrada. By 1997, the Salim Group possessed US$
20 billion in assets and included more than 500 companies employing over 200,000 Indonesians. When the Asian Financial Crisis hit, the conglomerate incurred US$4.8 billion in debts. Salim fled to Singapore during the May 1998 riots, when a mob burned his Medan home; his son remained to rebuild the Salim Group. He eventually settled in Los Angeles
in the United States. Forbes
magazine listed him as the 25th wealthiest businessperson in Southeast Asia in 2004 with a net worth
of US$
655 million.
Chinese Indonesian
Chinese Indonesians, also called the Indonesian Chinese, are an overseas Chinese group whose ancestors emigrated from China to Indonesia, formerly a colony of the Netherlands known as the Dutch East Indies...
businessman of Hokchia origin. He was once considered the richest individual in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
. He was the head of the conglomerate Salim Group
Salim Group
The Salim Group is Indonesia's biggest conglomerate with assets including Indofood Sukses Makmur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation...
before turning over its management to his youngest son Anthony in 1992.
Early life
Salim was born in FuqingFuqing
Fuqing is a county-level city of Fuzhou in Fujian, China.It is located in the eastern part of the province, borders the East China Sea, just southeast of Fuzhou and 45 kilometers from Changle International Airport of Fuzhou. Fuqing city has geographical advantage, for its location between...
, Fujian
Fujian
' , formerly romanised as Fukien or Huguing or Foukien, is a province on the southeast coast of mainland China. Fujian is bordered by Zhejiang to the north, Jiangxi to the west, and Guangdong to the south. Taiwan lies to the east, across the Taiwan Strait...
, China, as the second son a farmer. He left Fujian in 1936 to join his brother Liem Sioe Hie and brother-in-law Zheng Xusheng in Medan
Medan
- Demography :The city is Indonesia's fourth most populous after Jakarta, Surabaya, and Bandung, and Indonesia's largest city outside of Java island. Much of the population lies outside its city limits, especially in Deli Serdang....
, North Sumatra
North Sumatra
North Sumatra is a province of Indonesia on the Sumatra island. Its capital is Medan. It is the most populous Indonesian province outside of Java. It is slightly larger than Sri Lanka in area.- Geography and population :...
. Salim diversified their peanut oil
Peanut oil
Peanut oil is an organic material oil derived from peanuts, noted to have the aroma and taste of its parent legume....
trading business into the clove
Clove
Cloves are the aromatic dried flower buds of a tree in the family Myrtaceae. Cloves are native to the Maluku islands in Indonesia and used as a spice in cuisines all over the world...
market, which was growing rapidly from demand for kretek
Kretek
Kretek are cigarettes made with a blend of tobacco, cloves and other flavors. The word "kretek" itself is an onomatopoetic term for the crackling sound of burning cloves. Haji Jamahri, a resident of Kudus, Java, created kreteks in the early 1880s as a means to deliver the eugenol of cloves to the...
production. While in Medan, he supplied soldiers of the Indonesian National Revolution
Indonesian National Revolution
The Indonesian National Revolution or Indonesian War of Independence was an armed conflict and diplomatic struggle between Indonesia and the Dutch Empire, and an internal social revolution...
with medical supplies and came into contact with Suharto, an officer of the army. Salim denied allegations that he also provided arms to Indonesian soldiers to resist Dutch forces. As soldiers seized Dutch businesses following independence, his business absorbed many of their assets and gained a monopoly in the clove market, but he denied working with Suharto in expanding his ventures.
Business career
After moving to MedanMedan
- Demography :The city is Indonesia's fourth most populous after Jakarta, Surabaya, and Bandung, and Indonesia's largest city outside of Java island. Much of the population lies outside its city limits, especially in Deli Serdang....
in 1952, Salim expanded his trading business by establishing connections with other ethnic Chinese businessmen in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
. His soap factory became one of the primary suppliers to the Indonesian National Armed Forces. He later expanded into textiles and banking, eventually establishing largest private bank in Indonesia—the Bank Central Asia
Bank Central Asia
Bank Central Asia is an Indonesian bank founded on August 10, 1955.The Asian monetary crisis in 1997 had a tremendous impact on Indonesia’s entire banking system. In particular, it affected BCA’s cash flow and even threatened its survival. Panic rush forced the bank to seek assistance from the...
(BCA). After a merger in 1968, he gained the right to monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
on clove importation. A joint venture with another Hokchia businessman became the largest producer of flour
Flour
Flour is a powder which is made by grinding cereal grains, other seeds or roots . It is the main ingredient of bread, which is a staple food for many cultures, making the availability of adequate supplies of flour a major economic and political issue at various times throughout history...
in Indonesia. These two companies were said to have provided him with the capital to establish the cement
Cement
In the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...
giant Indocement in 1973. In 1990, he established the food manufacturer Indofood
Indofood
PT. Indofood CBP Sukses Makmur Tbk., better known as Indofood, is a major Indonesian company involved in the food industry. The company's headquarters are in Jakarta....
.
Salim handed over management of the conglomerate Salim Group
Salim Group
The Salim Group is Indonesia's biggest conglomerate with assets including Indofood Sukses Makmur, the world's largest instant noodle producer, and Bogasari, a large flour-milling operation...
in 1992 to his sons Anthony and Harlim Exstrada. By 1997, the Salim Group possessed US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
20 billion in assets and included more than 500 companies employing over 200,000 Indonesians. When the Asian Financial Crisis hit, the conglomerate incurred US$4.8 billion in debts. Salim fled to Singapore during the May 1998 riots, when a mob burned his Medan home; his son remained to rebuild the Salim Group. He eventually settled in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
in the United States. Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
magazine listed him as the 25th wealthiest businessperson in Southeast Asia in 2004 with a net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
of US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
655 million.