Djarum

PT Djarum[1][2][3]
Private[4]
Industry Tobacco industry
Founded April 21, 1951
Headquarters Kudus, Indonesia
Jakarta, Indonesia
Key people
 Robert Budi Hartono,
Michael Bambang Hartono
Number of employees
 75,000
Website www.djarum.com

Djarum is an Indonesian kretek (clove cigarette) brand/manufacturer founded in April 21, 1951 by Oei Wie Gwan in Kudus, Central Java.

History

In 1951, Oei Wie Gwan, an ethnic Chinese businessman, bought a nearly defunct cigarette company in Kudus, Central Java known as NV Murup. The brand was called Djarum Gramofon which means 'gramophone needle' he shortened it into Djarum which only means needle. The company's first brand was 'Djarum'. The company was nearly extinct when in 1963 a huge fire destroyed the company's factory which was followed by the death of Oei Wie Gwan. Nevertheless, the new owners - Oei Wie Gwan's children, Budi and Bambang Hartono, took the opportunity to rebuild the company.

Their products are hand-rolled or machine-rolled kretek, both are popular and produced in large quantities. The classic hand-rolled kretek continues to be made by Djarum using age-old methods of manual rolling by their skilled laborers. While their machine-rolled kretek, introduced in early 1970, manufactured in a fully automated process using high-tech machinery.[5]

Come to the mid-1970s The R&D department invented Djarum Special, which first hit the market in 1976, followed in 1981 by Djarum Super.[6]

While the domestic market for their kretek was large, in 1972 they began exporting handrolled kretek to tobacco retailers around the world, from Japan to the Netherlands and the United States.[7] Budi and Bambang Hartono diversified the company's activities outside of cigarette manufacturing.

After the 1997 Asian financial crisis, the company became a part of a consortium which bought Bank Central Asia (BCA) from BPPN, BCA is the largest private bank in Indonesia and was formerly a part of the Salim Group. Presently the majority stake of the bank (51%) is controlled by Djarum.[8] In 2004 the Djarum Group acquired a 30 year BOT contract from the government to develop and renovate Hotel Indonesia in Jakarta under the Grand Indonesia superblock project.

The Djarum badminton club (PB Djarum) was founded in 1974 by company CEO Budi Hartono. Its players such as Liem Swie King and Alan Budikusuma have won numerous championships for Indonesia.

Since the ban in 2009 on flavored cigarettes in the United States, Djarum's clove products are now marketed as "filtered cigars" and are wrapped in tobacco leaf instead of black paper, the tobacco is air-cured, and they are packaged in boxes of 12 instead of 20.[9]

Products

Djarum Black cigarettes

Domestic

International

A pack of twelve Djarum Black Cherry clove filtered cigars from the United States.

Discontinued Lines

Product Slogans

References

  1. ↑ http://www.djarum.com
  2. ↑ http://www.bloomberg.com/quote/7358287Z:IJ/profile
  3. ↑ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=31131977
  4. ↑ http://www.bloomberg.com/quote/7358287Z:IJ/profile
  5. ↑ http://www.djarum.co.id/index.php/en/world_of_djarum/page/6
  6. ↑ Kretek, Hanusz, Mark. 2003. Equinox Publishing, Singapore. Page 136
  7. ↑ Kretek, Hanusz, Mark. 2003. Equinox Publishing, Singapore. Page 136
  8. ↑ http://www.reuters.com/article/2010/12/20/indonesia-djarum-bca-idUSL3E6NK18K20101220 "Indonesia's Djarum Group buys BCA shares worth $382 mln-sources", Reuters, 20 December 2010
  9. ↑ http://www.wsj.com/articles/SB125660066262509223

External links