Oei Hwie Siong, better known as Michael Hartono, is a Chinese Indonesian millionaire heir and businessman who was born on October 2, 1939. Owners of the kretek (clove cigarette) producer Djarum are Michael and his brother Robert Budi. They acquired the business from their father Oei Wie Gwan after his passing in 1963.
They became the richest people in the nation after expanding their company into a big conglomerate that included Bank Central Asia, electronics, plantations, and numerous assets. Michael himself has a net worth of more than $17.8 billion as of 2023.
Michael Hartono Bio/Wiki
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In the Central Javan village of Kudus, Michael Hartono was born on October 2nd, 1939. In April 1951, his father, Oei Wie Gwan, bought a tiny Kretek cigarette business called Djarum Gramophon (lit. “gramophone needle”) and changed its name to just Djarum.
The factory was left to Michael and his younger brother Robert Budi Hartono when the business burnt down in 1963 and Oie Wie passed away shortly after. Beginning in 1959, after completing his high school education in Kudus, Michael enrolled at Diponegoro University’s college of economics and commerce, but he later returned to Kudus after his father passed away.
Personal life and Family
He is wed to Widowati Hartono and resides in Kudus, Indonesia. There are four kids through the couple. A bridge player is called Bridge Bambang. In an interview, he claimed that playing bridge helped him develop his decision-making and risk-taking skills. His uncle had first introduced him to the game when Indonesia was occupied by the Japanese.
He was recognised by the World Bridge Federation in 2017 for his contributions to the establishment of the bridge as an event at the Asian Games. He is a prominent advocate of the sport in the nation and the president of the South East Asia Bridge Federation.
The oldest Indonesian medal winner at the 2018 Asian Games, he competed for his country in bridge and helped his team get a bronze in the Super mixed team event. Although numerous other non-Indonesian bridge players were older, he was the oldest athlete within the Indonesian contingent.
He had previously taken part in other international contests, and in one instance, he admittedly drank too much wine before one of the final matches and slept off throughout it. At the 2008 World Bridge Games in Beijing, the 2009 World Team Championships in Sao Paulo, and the 2010 World Series Championships in Philadelphia, he was a member of the Indonesian teams who took home bronze medals. A little about his parents, Djarum, Indonesia, was founded by Oei Wie Gwan.
The firm was founded on April 21st, 1951, and had just 10 workers at the time. He was able to brand the business and buy the licence in the 1950s. The firm is called Djarum, which is Arabic for “Gramophone Needle.” His initial business venture was producing fireworks in Central Java, Indonesia.
The government outlawed fireworks across the nation after the Second World War. As a result, the production of pyrotechnics was halted, and cigarettes flavoured with cloves were produced under this brand name. Oei Wie Gwan married Tjurahaju, who provided him with conveniences that allowed him to expand his own business Oei Wie Gwan, unfortunately, passed away in 1963, leaving his inheritance to his two sons, Michael Hartono and Robert Budi Hartono.
Since both of the children were in their 20s and after a number of problems, they were able to build the business from the ground up. His brother Robert Hartono was born in Jakarta, Indonesia. He received his education at the Semarang University of Diponegoro. He is one of the key stakeholders in the Djarum cigarette business.
The factory caught fire accidentally, and by the time it did, it was completely destroyed. By 1963, he and his brother Michael Hartono had built the firm with new machinery. By 1972, as their business slowly grew, they began to sell blended cigarettes to other states and nations. Both of the brothers began making cigarettes with a filter around 1975.
It was a little business in the beginning, but it is today among the most well-known cigarette manufacturers worldwide. When it was completely gone, they were only able to rebuild the Djarum Factory through their tireless work and commitment.
Michael Hartono Education
After graduating from high school in Kudus, Michael went to Diponegoro University’s college of economics and business, but he later moved back to Kudus after his father passed away.
Under the leadership of the two brothers, the cigarette business expanded, exporting for the first time in 1972, and adding additional goods. With a 19% market share in 2012, the cigarette brand is currently one of the biggest in Indonesia. The company started branching out into other industries as the cigarette industry grew, establishing the electronics brand Polytron in 1975.
Additionally, the group expanded into industries including paper production, palm oil, and communication towers. The brothers, via the Mauritius-registered company FarIndo Investments, first entered the banking industry with Haga Bank and Hagakita Bank. In a partnership with Farallon Capital, they acquired 51.15 per cent of Bank Central Asia in 2002, outbidding other bids despite making a cheaper offer.
Although the Haga and Hagakita Banks were sold to Rabobank, Djarum owned a 92.18 per cent interest in the consortium by 2006, up from its initial ownership of less than 10%. The brothers held the bulk of the company’s shares after a Rp 3.45 trillion agreement with UBS in 2010.
In 2016, during a tax amnesty scheme, the shares were transferred to an Indonesian holding company called PT Dwimuria Investama Andalan. Michael and Robert jointly owned the business as of September 2017, and they held a 54.94 per cent share in BCA. In addition to the companies mentioned above, the Djarum group also owns Grand Indonesia, Hotel Indonesia, and BCA Tower, three retail centres and structures in Jakarta.
As of September 2019, Forbes estimated Hartono’s net worth to be $18.5 billion and ranked him as the 56th richest person in the world. He and his brother, who was placed just behind him at number 69, were recognised as the wealthiest Indonesians in 2017, making it the ninth consecutive year they have received this honour.
His business is also involved in online initiatives; it owns the popular Indonesian online community Kaskus as well as the e-commerce website Blibli.com.
Michael Hartono Net Worth
His current net worth is $17.8 Billion as of 2023. The sources of Hartono’s wealth are the enterprises he and his father’s closely held Indonesian holding corporations manage. He has 49 per cent ownership in PT Dwimuria Investama Andalan, which is his most valuable asset. The balance is owned by his brother.
According to the holding company’s 2020 annual report, he owns a 27 per cent stake in the publicly traded Bank Central Asia, the largest bank in Indonesia by market value. According to its 2021 first-quarter report, he controls 25% of telecom tower operator Sarana Menara Nusantara through tightly held PT Sapta Adhikari Investama.
The brothers also received Djarum, a closely-knit manufacturer of cigarettes with little open information disclosed. According to the siblings’ ownership percentages in the holding firms, the study gives each sibling a 50 per cent share. According to data from Euromonitor, Djarum manufactured roughly 18.1% of the cigarettes that were sold in Indonesia in 2019.
Based on the market share to revenue ratio of its nearest rival, Gudang Garam, revenue is expected to be close to $4.6 billion. It is evaluated using Gudang Garam’s typical enterprise value-to-Ebitda and price-to-earnings multiples. After subtracting for asset acquisitions, a liability is added to reflect the net worth of Hartono’s cash investments. Additionally included are dividends, taxes, market performance, and charity contributions.
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Michael Hartono Height, Weight & Age
Michael Hartono is 84 years old as of 2023. He is 5 feet and 8 inches tall and weighs about 60 kgs. He along with his brother has worked hard to build their business from scratch, and his efforts are certainly commendable.
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