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Bentoel Group

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Indonesian tobacco company
PT Bentoel Internasional Investama
Current logo since 2020
Formerly
  • Rimba Niaga Idola (1987–1996)
  • Transindo Multi Prima (1996–2000)
Company typeSubsidiary
IndustryTobacco
Predecessors
  • Perusahaan Rokok Tjap Bentoel
  • PT BAT Indonesia Tbk
Founded10 September 1930; 94 years ago (1930-09-10) (Bentoel)
1917; 108 years ago (1917) (British American Tobacco Indonesia)
FounderOng Hok Liong
Headquarters
Key people
Faisal Raif (president director)
ProductsCigarettes
Kretek
RevenueDecreaseRp 20.835 trillion (2019)
IncreaseRp 51 billion (2019)
Total assetsIncrease Rp 17 trillion (2019)
Total equityDecrease Rp 8.402 trillion (2019)
Number of employees
Decrease 4,346(2019)
ParentBritish American Tobacco
Websitewww.bentoelgroup.com

PT Bentoel Internasional Investama, commonly known asBentoel Group, is an Indonesiantobacco company. It is the second-oldest tobacco company in Indonesia and the fourth-largest in terms of market share, followingSampoerna,Gudang Garam, andDjarum.[1] In 2009, London-basedBritish American Tobacco (BAT), the world's second-largest tobacco company, acquired a 99.74% stake in Bentoel.[2] In early 2010, the company merged with PT BAT Indonesia Tbk, with Bentoel continuing to operate as the surviving entity. However, Bentoel has since revived the BAT Indonesia name.

Headquartered inJakarta, with its manufacturing plant located inMalang, the company produces local brands such as Bentoel Biru, Bentoel SJT, Ardath, Tali Jagat, and Star Mild. It also manufactures international brands like555,Lucky Strike, andDunhill.

History

[edit]
Logo of Bentoel Group from 2011 to 2020

Ong Hok Liong (born 12 August 1893)[3] initially worked in his father's tobacco trading company inBojonegoro,East Java. However, his gambling habits prompted his wife to move the family, first to Sumberwaras and later toMalang. In 1920, Ong started akretek company with his brothers, funding his share by pawning his wife's jewelry. Although he introduced numerous brands, most of them failed.

In 1935, while developing a new brand calledDjeruk Manis (Sweet Orange), Ong visited the sacredGunung Kawi mountain and had a dream about abentoel (cassava root) vendor. Inspired by the dream, he renamed the brand Bentoel, which became a success. By 1950, Ong employed around 3,000 workers and acquired a cigarette factory inBlitar.[4]

Due to heavy smoking and drinkingarak (rice alcohol) to ease the throat pain, Ong died in 1967 from chronic liver disease.[5] In 1968, labor problems led Bentoel to pioneer the use of fully automated rolling machines, a first in the kretek industry.[4]

By the late 1970s, Bentoel was ranked third in Indonesian cigarette production and dominated the machine-madekretek sector. However, in 1979, a government decree restricted the production of machine-made kretek, which negatively impacted the company's performance.

Although Bentoel received significant foreign investment, its financial situation worsened. By the late 1990s, the company faced debts amounting to several hundred million dollars, leading to the resignation of its chief executive, one of Ong's sons.

In 1987,Rajawali Corpora acquired a majority stake in the company and replaced its management and directors.[4] In June 2009, British American Tobacco (BAT) purchased an 85% stake in PT Bentoel Internasional Investama for $494 million and acquired the remaining public shares by the end of August 2009.[6]

1987 lawsuit

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In 1987, lawyerRobert Odjahan Tambunan filed a class-action lawsuit on behalf of Indonesian youth against Bentoel, alleging that the company had violated the law by using the wordsRemaja Jaya (Successful Youth) as a brand name. The Central Jakarta District Court dismissed the Rp 1 trillion lawsuit, ruling that Tambunan had no legal standing to represent Indonesian youth.

Tambunan argued that the nicotine product could harm Indonesian children and ultimately lead to the nation's decline. The lawsuit also targeted the Jakarta city administration, the Justice Ministry's patent and copyright directorate, and Prambors radio station.[7]

Business

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In 2016, Bentoel Internasional was the fourth-largest cigarette producer in Indonesia, with a market share of approximately 7%. The company produced machine-made kretek, hand-rolled kretek, and white cigarettes.[8]

References

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  1. ^"Tobacco - Mirae Asset Sekuritas"(PDF).Mirae Asset Sekuritas. M irae Asset Daewoo Co., Ltd. Retrieved12 April 2018.
  2. ^Tjahjono, Venisa (20 October 2009)."BAT Indonesia To Merge with Bentoel". Jakarta Globe. Retrieved12 April 2018.
  3. ^"Menengok Masa Lalu Pabrik Rokok Bentoel". SPORTOURISM. 9 March 2016. Retrieved12 April 2018.
  4. ^abcMark Hanusz (2000).Kretek: The Culture and Heritage of Indonesia's Clove Cigarettes. Equinox Pub. pp. 126–127.ISBN 978-979-95898-0-4.
  5. ^Graham, Duncan (3 November 2006)."WHERE THERE'S SMOKE THERE'S A STORY". The Jakarta Post. Retrieved12 April 2018.
  6. ^Silka, Tyagita (17 June 2009)."BAT eyes Asia boost from Bentoel deal". Reuters. Retrieved12 April 2018.
  7. ^Muninggar, Sri Saraswati (24 July 2002)."Media outlets being sued for cigarette ads". The Jakarta Post. Retrieved12 April 2018.
  8. ^Timmerman, Antonia (18 April 2016)."Indonesia: Bentoel Internasional to raise $1.06b via rights issue to repay debt". DealStreetAsia. Retrieved29 April 2018.

External links

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Integrated1
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  • 1 Integrated into other British American Tobacco subsidiaries or business entities.
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