Mar 9, 2010

CT Among Other Businessmen

In Indonesia, only a few people are capable of starting the business from zero to a huge company with assets of billions of dollars. And people who can do that within a period of only ten or twenty years, so he or she have become billionaires in the age of relatively young, are even fewer. And people who can do that within a period of ten or twenty years without the assistance of a special relationship with certain very important people, perhaps only three or four. And Chairul Tanjung is one of them.

Chairul Tanjung's has started his billion dollar business from absolutely zero, not from the legacy of her parents, or from the provision of free capital from anyone. At the beginning of his pioneering business, he did not have significant relationships with any person, except ordinary fellow entrepreneurs just like himself. But, in the age of 48 years, or only 23 years since he built a shoe factory at first, he has founded the CT Corporation, a giant corporate group with hundreds of subsidiaries engaged in almost all fields. And, it was just the beginning!

For the average people in Indonesia, that is an almost impossible level of success. Sounds like daydream. It is too good to be true, even when compared with the level of success among other conglomerates in Indonesia. But that's the fact.

Let us consider some of other Indonesian businessmen who are also brilliant, all of whom started from scratch. They are Mochtar Riady, founder of the Lippo Group, Eka Tjipta Widjaja, founder of Sinar Mas Group, and Sudono Salim, founder of the Salim Group. These groups are not only dominate the business competition in Indonesia, they also have a number of assets in several Asian countries such as China, Singapore, and Hong Kong. Actually there are many more of great pioneer entrepreneurs besides of the three, but at least, they are enough to represent the profile of a wealthy businessmen who probably pioneered their business from scratch.

What they have in common other than successful pioneering their business from scratch? They are very senior and very experienced. Mochtar Riady is 80-year-old, Eka Tjipta 86 years, and even Sudono Salim is 92 years old. They mostly do not take care of business himself, because it was handed over to their children. While Chairul Tanjung? He's only 48 years old when he was able to placed himself in a same row with them.

Several other big businessmen, they not exactly starting their business from zero. For example Sukanto Tanoto, founder of the Raja Garuda Mas (RGM) Group and probably the most rich person in Indonesia. His father, Amin Tanoto, was a businessman, even only a car parts store owner. Or Aburizal Bakrie, the owner of Bakrie and Brothers, he was the oldest son of the Achmad Bakrie, a plantation entrepreneur from Lampung. James Riady? He is son of Mochtar Riady. And so on.

How about Chairul Tanjung? His father, A. G. Tanjung, was a successful newspaper businessman in the days of the Soekarno regime, so that young Chairul and his six siblings had well living. But the situation changed 180 degrees when Soekarno stepped down and was replaced by Soeharto. The news paper company owned by his father was closed by the authorities because of differences in political views. Chairul and his whole family immediately fell destitute. Young Chairul even nearly canceled his college because his parents do not have the money to met the college costs. When Chairul started his small photocopy business at college, he did not have capital at all. He got his place of business by free of charge, after he had consultation with the faculty. And he did not bought the copier, he borrowed it.

In addition to senior businessmen, Indonesia also has some brilliant young entrepreneurs who were even younger than Chairul Tanjung, although they're not as rich as Chairul. Most of them became successful because they was close or have direct relationships with some of very important people. Some of them such as Sandiaga Salahuddin Uno, a banking and investment expert and the owner of Saratoga Capital who is 40-year-old. Mr. Uno is close to the Soerjadjaja family. Saratoga Capital is a joint venture company between himself and Edwin Soerjadjaja, son of William Soerjadjaja, wealthy businessman and founder of Astra Group who is in a same generation with Sudono Salim. Then there is Erwin Aksa, 35-year-old, CEO of Bosowa Corporation. Mr. Aksa is close to the family of Jusuf Kalla, businessman and former vice president of Indonesia. And even more great, is Patrick Waluyo, CEO of Northstar Pacific's who is only 33-year-old! Mr. Waluyo is the owner of Bank BTPN, Blitz Megaplex cinema network, and several other companies. And who is his relation? He is son in law of Theodore Permadi Rachmat, the former CEO of PT Astra International and owner of Adira Group. Mr. Rachmat itself, is a nephew of William Soerjadjaja.

What about Chairul Tanjung? When he was stepping from the ordinary shoe entrepreneur to becomes the owner of the bank after the purchase of Bank Mega, he then does have a lot of important relationships. Chairul now close to Jusuf Kalla, Anthony Salim, and even President Susilo Bambang Yudhoyono. But before that? He did not have anyone! The only partner of him which was 'important person' when he first initiated his shoe business, is a Japanese who gives advice and input when he founded a shoe factory. Where Chairul get capital to build the factory? Not from the Japanese, but by business capital loan from the Indonesian Export Import Bank (Bank Exim) of Rp 150 million, which then used to purchase 20 units of Butterfly brand sewing machines.

The very high business achievement of Chairul Tanjung that sounds almost no sense, makes many people think if Chairul might only run some other wealth businessman assets, not his own. Some people speculated that the assets held by CT Corporation is owned by Anthony Salim, son of Sudono Salim, owner of the Salim Group. Speculation is based on the proximity between the Chairul's Bank Mega, with Anthony's Bank BCA (BCA now been owned by Djarum Group). There is also a mention that Chairul only run the Cendana family assets, or Gus Dur, due to his proximity to each regime.

Chairul firmly denied all of such speculations. He firmly ensure that in his company, there is no even a cent that is a giving. Everything is made by his own hands. He won't work for anyone but himself. His independent life principle, made him will not accept any giving from anyone, even if it was from his own parents. He has decided to be a giver, not a given. (Read the previous article, Chairul Tanjung at Young)

Then how could Chairul Tanjung who was derived from ordinary family, still relatively young, and did not have a significant relationship, be 'The rising star of conglomerates'? Thanks to his ingenuity in seeing any slightest business opportunities. His decision to acquire Bank Mega and made him a great entrepreneur, is a part of such cleverness. About this, will be discussed in a next article: When CT Started His Conglomeration.

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This is NOT official blog of Chairul Tanjung. All of the opinion expressed here represent author's own and not of other parties. For more details about the author, check his facebook page, www.facebook.com/tghhidayat