Robert Hartono

Robert Budi Hartono
Hartono in March 2013
Robert Budi Hartono
Born	Oei Hwie Tjhong 28 4, 1941
Birthplace	Semarang, Central Java, Dutch East Indies
Nationality	Indonesian
Occupation	Businessman, industrialist
Known for	Owner of Djarum, Bank Central Asia (BCA), and Como 1907; Founder of Polytron
Spouse(s)	Giok Hartono
Children	3

Robert Budi Hartono (born Oei Hwie Tjhong; 28 April 1941) is an Indonesian billionaire businessman who, together with his elder brother Michael Bambang Hartono, controls a vast business empire encompassing tobacco, banking, technology, retail, and real estate. He is best known as the owner and operator of Djarum, one of the world's largest manufacturers of kretek (clove) cigarettes, and as a major stakeholder in Bank Central Asia (BCA), one of Indonesia's largest private banks. Born in Semarang during the final years of the Dutch colonial era, Hartono inherited a modest clove cigarette business from his father and, over several decades, transformed it into a diversified conglomerate with interests spanning multiple sectors and continents. According to Forbes, Hartono held a net worth of approximately US$25.3 billion as of September 2023, making him one of the wealthiest individuals in Indonesia and among the richest people in the world. Together with his brother Michael, the Hartono family has built what has been described as a US$47 billion global empire, expanding from their family's tobacco roots into banking, online retail, and other industries.

Early Life

Robert Budi Hartono was born Oei Hwie Tjhong on 28 April 1941 in Semarang, the capital city of Central Java, in what was then the Dutch East Indies (present-day Indonesia). He was born into a Chinese Indonesian family; his father, Oei Wie Gwan, was a businessman who would go on to play a central role in shaping the family's commercial fortunes. His mother was Goei Tjoe Nio. Robert's elder brother, Michael Bambang Hartono (born Oei Hwie Siang), would become his lifelong business partner.

The Hartono family's business origins trace to Oei Wie Gwan's purchase of a small clove cigarette company called Djarum in 1951. At the time, kretek cigarettes — a distinctly Indonesian product blending tobacco with cloves — were produced by numerous small enterprises across Java. Oei Wie Gwan acquired the struggling Djarum brand and worked to build it into a viable business during the early years of Indonesian independence.

Tragedy struck the family in 1963 when a fire destroyed the Djarum factory, and Oei Wie Gwan died shortly thereafter. The loss of both the patriarch and the factory left the young Hartono brothers — Robert was then in his early twenties — with the daunting task of rebuilding the business from the ground up. Rather than abandon the enterprise, Robert and Michael took over management of Djarum and set about reconstructing the factory and reviving the brand. This formative experience of rebuilding from near-total loss would shape Robert Hartono's business philosophy and drive the brothers' subsequent expansion into new sectors.

As members of Indonesia's ethnic Chinese minority, the Hartono brothers operated within a complex social and political environment. Like many Chinese Indonesian businesspeople of their generation, they adopted Indonesian names — Robert Budi Hartono and Michael Bambang Hartono — in addition to their birth names, reflecting the pressures and practicalities of assimilation during Indonesia's New Order period.

Education

Robert Budi Hartono attended Diponegoro University in Semarang, one of the major public universities in Central Java. Details regarding his specific field of study and the year of his graduation are not extensively documented in publicly available sources. Nevertheless, his educational background at Diponegoro University provided a foundation for his subsequent career in business management and industrial development. His brother Michael also received higher education, though the two brothers are primarily known for their practical business acumen developed through decades of hands-on management of the family enterprise rather than through formal academic credentials.

Career

Djarum: Rebuilding and Growth

After the death of their father and the destruction of the original Djarum factory in 1963, Robert and Michael Hartono undertook the reconstruction of the business. Under their joint leadership, Djarum grew from a small, fire-damaged operation into one of Indonesia's largest tobacco companies and one of the world's foremost producers of kretek cigarettes.

Robert Hartono has served as the primary operator of Djarum's day-to-day business. The company expanded its product lines and distribution networks, eventually becoming the third-largest maker of clove cigarettes globally. Djarum's brands, including the flagship Djarum Super and Djarum Black, became well known both domestically and in international markets. The company maintained its headquarters in Kudus, Central Java, a city historically associated with Indonesia's kretek industry.

Reports have indicated that Djarum has in recent years increased its market share, gaining ground on competitors including Sampoerna, the number two cigarette firm in Indonesia. The growth of Djarum under the Hartono brothers' management transformed the company from a regional producer into a major force in Indonesia's tobacco industry, which remains one of the largest in the world by volume.

Bank Central Asia

One of the most significant strategic moves made by the Hartono brothers was their acquisition of a controlling stake in Bank Central Asia (BCA), one of Indonesia's largest and most profitable private banks. BCA was formerly controlled by the Salim Group under the late billionaire Sudono Salim (Liem Sioe Liong), who had been one of Indonesia's most powerful tycoons during the Suharto era. Following the Asian financial crisis of 1997–1998 and the fall of the Suharto government, BCA was taken over by the Indonesian Bank Restructuring Agency (IBRA) and subsequently privatized.

The Hartono brothers acquired their stake in BCA through their investment vehicle, and the bank became a cornerstone of their diversified business portfolio. BCA grew to become one of the most valuable publicly listed companies in Indonesia, with a market capitalization among the highest on the Indonesia Stock Exchange. The bank's consistent profitability and large customer base made it a substantial contributor to the Hartono family's overall wealth.

The bank has, however, faced scrutiny. In January 2021, reports emerged that BCA had been implicated in sanctions violations related to North Korea. According to reporting by Asia Times, the Hartono family's financial reputation sustained damage when BCA was found to have been involved in bank fraud related to dealings with North Korea, in violation of international sanctions. While the financial impact on the family's US$38 billion net worth (at the time) was described as relatively small, the reputational consequences were noted as significant.

Diversification: Technology, Retail, and Real Estate

Beyond tobacco and banking, the Hartono brothers diversified their business interests into several other sectors. Robert Hartono is credited as the founder of Polytron, an Indonesian electronics manufacturer that produces televisions, audio equipment, refrigerators, and other consumer electronics. Polytron became one of Indonesia's recognizable domestic electronics brands, competing with international manufacturers in the Southeast Asian market.

The Hartono business empire also expanded into online retail and e-commerce. The brothers' investment portfolio has included stakes in technology-driven companies as the Indonesian digital economy grew rapidly in the 2010s and 2020s. Their diversification strategy, moving from traditional industries like tobacco into banking, technology, and digital commerce, has been cited as a key factor in their ability to build and sustain a fortune estimated at US$47 billion combined.

The family also holds interests in real estate and hospitality. The Hartonos are associated with Como 1907, a luxury hospitality and lifestyle brand. This investment reflected the brothers' expansion beyond Indonesia's domestic market into international luxury and lifestyle sectors.

Business Structure and Management

The Hartono brothers' businesses are primarily held through privately controlled entities, with Djarum serving as the main holding and operating company. The private nature of Djarum and many of the family's other holdings means that detailed financial information about their operations is not publicly disclosed in the manner of publicly listed corporations, apart from BCA. Robert Hartono has been described as the more operationally focused of the two brothers, managing the day-to-day affairs of the business, while Michael has been associated with strategic and investment decisions.

Environmental Controversies

The Hartono family's business operations have drawn criticism from environmental organizations. In August 2020, Mongabay reported that activists had criticized the Forest Stewardship Council (FSC) for what they described as a slow and inadequate investigation into deforestation allegedly linked to companies associated with Robert Hartono. The criticism centered on firms connected to the Hartono business empire that were reportedly involved in pulp and paper operations accused of contributing to deforestation. Environmental groups argued that the FSC had failed to properly investigate the allegations, raising concerns about the certification body's oversight of companies linked to major Indonesian conglomerates.

The controversy highlighted the broader environmental challenges associated with Indonesia's pulp and paper industry, one of the world's largest, and the role of major conglomerates in the country's forestry sector. The Djarum group's involvement in sectors beyond tobacco, including forestry-linked industries, placed the Hartono name at the center of ongoing debates about sustainable development and corporate responsibility in Indonesia.

Personal Life

Robert Budi Hartono is married to Giok Hartono, and the couple has three children. The Hartono family is known for maintaining a relatively low public profile despite their immense wealth, which is common among Indonesia's wealthiest business families. Robert and his brother Michael have rarely given interviews to the media, and detailed information about their private lives remains limited.

Robert Hartono is based in Indonesia and has maintained strong ties to Central Java, where both Djarum's headquarters in Kudus and his birthplace of Semarang are located. His brother Michael Bambang Hartono has been noted for his interest in bridge, having represented Indonesia in international bridge competitions, but Robert has not been publicly associated with similar high-profile hobbies or pursuits.

The Hartono family's philanthropic activities are conducted through the Djarum Foundation, which supports initiatives in the arts, education, and environmental conservation. According to reports, Djarum has planted one million trees as part of its environmental programs. The foundation has also supported educational scholarships and cultural preservation programs in Indonesia. The extent to which these philanthropic efforts are driven by Robert personally, as opposed to the broader family or corporate entity, is not clearly delineated in public sources.

Recognition

Robert Budi Hartono has been consistently ranked among the wealthiest individuals in Indonesia and in the world by Forbes magazine. As of September 2023, his personal net worth was estimated at approximately US$25.3 billion, placing him as the second richest Indonesian and the 61st richest person globally on the Forbes Billionaires List. Together with his brother Michael, the combined Hartono family fortune has been reported at various times as ranging from US$15.4 billion in 2016 to approximately US$47 billion by late 2024, reflecting the growth of their holdings in BCA and other enterprises.

Robert Hartono has been profiled by numerous international business publications and was featured in The Jakarta Post's coverage of Indonesia's wealthiest individuals. He has also appeared in profiles published by Prestige magazine across multiple Asian editions, recognizing his position as one of the region's foremost business figures.

The Hartono brothers' management of BCA has been cited in financial analyses as one of the most successful banking investments in Southeast Asian history, with the bank's consistent performance contributing substantially to their wealth rankings. The Billionaire Index has also tracked Hartono's wealth and business activities, noting the breadth of his business empire spanning tobacco, banking, electronics, and other sectors.

Legacy

Robert Budi Hartono's career represents one of the most significant examples of family business expansion in Indonesian economic history. Starting from a small, fire-damaged clove cigarette factory inherited from his father, Hartono and his brother built a multi-sector conglomerate that spans tobacco, banking, electronics, e-commerce, hospitality, and real estate. The trajectory of the Hartono business empire mirrors broader developments in the Indonesian economy, from the country's post-independence industrialization through the upheavals of the Asian financial crisis and into the digital era of the 21st century.

Djarum's growth under the Hartono brothers' leadership contributed to the development of Indonesia's kretek industry, one of the country's most distinctive economic sectors and a major source of employment and tax revenue. The company's operations in Kudus and other parts of Java have had significant economic impacts on local communities, though the tobacco industry itself has faced increasing scrutiny over public health concerns globally.

The Hartonos' acquisition of BCA transformed them from tobacco magnates into major figures in Indonesian finance. BCA's position as one of the country's most profitable banks has given the Hartono family significant influence in Indonesia's financial sector, and the bank's performance has been a primary driver of their wealth accumulation over the past two decades.

At the same time, the Hartono business empire has faced controversies, including environmental concerns related to forestry operations and the BCA sanctions violation incident, which have complicated the family's public image. These issues reflect the challenges facing major Indonesian conglomerates as they navigate an increasingly interconnected and scrutinized global business environment.

Through the Djarum Foundation, the Hartono family has invested in education, environmental programs, and cultural preservation. The foundation's tree-planting initiatives and scholarship programs represent an effort to contribute to Indonesian social development, though the scale of these activities relative to the family's overall wealth has not been extensively analyzed in independent assessments.

Robert Budi Hartono remains active in business affairs as of the mid-2020s. The question of succession — how the next generation of the Hartono family will manage and grow the business empire — is a subject of interest among observers of Indonesian business, though the family has not made public statements about specific succession plans.