Octopus Salim Group Business, Ruler of Indonesian Cooking Oil Pages all

KOMPAS.com – Salim Groupone of the richest and oldest conglomerates in Indonesia founded by the late Sudono Salim, continues to develop its business octopus in the country.

The name of the Salim Group itself had emerged in the last few days, after one of the warehouses of his company, PT Salim Ivomas Pratama Tbk, was raided by officers from the Food Task Force of North Sumatra.

The task force found one producer located in Lubuk Pakam, Deli Serdang Regency, North Sumatra who was suspected of stockpiling 1.1 million liters of cooking oil.

The existence of this pile of cooking oil was found in the midst of the community’s difficulty in getting cooking oil because it was scarce in the market. Even if it is in the market, the price of cooking oil is still quite expensive.

Also read: Forests Are Cleared for Palm Oil, But Cooking Oil Is Rare and Expensive

The Salim Group’s business began to grow in the New Order era. Sudono shared a lot with Suharto’s relatives in running his business, one of which was with Sudwikatmono, Suharto’s cousin.

Salim Group’s cooking oil business

As is known, the Salim Group is one of the largest conglomerates that control cooking oil in Indonesia.

The Salim Group has ventured into the integrated palm oil business, from oil palm plantations, CPO oil processing, to cooking oil producers through PT Salim Ivomas Pratama Tbk (SIMP).

In addition to ownership in Ivomas, the Salim Group also controls another large palm oil company, namely PT PP London Sumatra Indonesia Tbk (LSIP). The two palm oil giants are affiliated with Indofood Agri Resources.

Also read: The irony of a country rich in oil palm, people push each other to fight for cooking oil

Famous cooking oil products from the Salim Group are Bimoli, Delima, and Happy. Palm oil and cooking oil contributed greatly to the wealth of Anthony Salim, the heir to the kingdom of the Salim Group after the death of Sudono Salim.

The second generation of the Salim family was also crowned several times Forbes as the richest person in Indonesia. In 2020, he is in fourth place with a wealth of 5.9 billion US dollars or around Rp. 83.35 trillion.

However, in 2021, Anthony Salim’s name disappeared from the Forbes Magazine’s list of Indonesia’s richest people. The leadership relay of several Salim Group companies has begun to shift to the third generation, one of which is Axton Salim.

In the past few years, the Salim Group has also acquired many palm oil companies, so the area of ​​palm oil plantations it manages is getting bigger.

Also read: A line of Bakrie Group’s Business Octopus

The Salim Group itself is known to have interrelated businesses from upstream to downstream. A number of companies under the Salim Group are palm oil users.

Having a palm oil company that is also a producer of cooking oil can certainly support the business of other subsidiaries.

In the restaurant chain, the Salim Group has a large stake in PT Fast Food Indonesia Tbk, which is the holder of the KFC fried chicken brand in the country.

PT Indofood Sukses Makmur Tbk and PT Indofood CBP Sukses Makmur, both of which are food producers, also of course require a large supply of cooking oil.

Also read: The Trade Minister Says After Inspection of Cooking Oil at the Market: The Goods Are Available

The Salim Group also owns the Indomaret minimarket network under the banner of PT Indomarco Pristama, enabling it to sell various products directly to consumers.

The Salim Group’s business is so engrossing. Not only became the ruler of the food business, but also penetrated the banking business. The Salim Group was once the controlling shareholder of Bank BCA, the largest private bank in Indonesia.

As a business conglomerate, the Salim Group’s business octopus is spread across almost all sectors, from retail, automotive, toll roads, property, telecommunications, plantations, and so on.

The business empire of the Salim Group began with a trade run by Sudono Salim, an immigrant from China who tried his luck in Indonesia during the Dutch East Indies era. His first business was buying and selling cloves.

Also read: Apart from Malaysia, Singapore also controls a lot of palm oil in Indonesia

The business run by Sudono Salim experienced ups and downs during the Japanese colonial period until the independence of Indonesia. His business began to skyrocket in the New Order era in power. Sudono Salim is known to be one of President Suharto’s close people.

Several other large companies under the Salim Group include PT Bogasari Flour Mill (wheat flour), PT Nippon Indosari Corpindo Tbk (Sari Roti bread producer), Indomobil (automotive), Superindo (supermarket), Bank Ina (banking), and Nusantara Infrastructure (toll roads).

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