Harita Group

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Harita Group
Private Company
Industry Natural Resources
Founded 1915 (1915)
Headquarters Jakarta, Indonesia
Key people
Lim Gunawan Hariyanto (CEO)
Gunardi Hariyanto Lim (Deputy CEO)
Number of employees
30,000

The Harita Group is an Indonesian business conglomerate owned and controlled by the Lim family. The Group's core businesses are in the natural resources sector, which operates throughout Indonesia. Today, the Harita Group has businesses in Nickel Mining, Bauxite Mining, Palm Oil Plantations (Singapore listed Bumitama Agri), Shipping, Timber and Coal.[1]

History[edit]

The Group was started in 1915 by Lim Tju King, an immigrant from the Fujian province of China. He started with humble beginnings by working hard labor and eventually saved enough money to open a small grocery shop in East Kalimantan, Indonesia. Eventually, his son Lim Hariyanto Wijaya Sarwono (currently the President Commissioner and Chairman of Harita Group) [2] took over and moved into the timber business, first by trading timber logs and later on by building a small factory and diversifying in manufacturing of plywood in 1983.

Starting in the early 1980s, Lim Hariyanto's sons Lim Gunawan Hariyanto (CEO of Harita Group) and Gunardi Hariyanto Lim (Deputy CEO of Harita Group) started rapidly expanding the business through organic growth paralleled with a series of joint venture partnerships. They expanded their timber and plywood division, entered into gold mining in 1985 through a joint venture project with Rio Tinto Group named Kelian Equatorial Mining (KEM)[3] (Harita Group owned 10% stake and Rio Tinto owned 90% stake) and later entered into coal mining (the Lanna Harita Project) in 1988. [4] From there, the group continued to diversify into palm oil plantations (1996), bauxite mining (2005), and nickel mining (2006).

In April 2012, the Harita Group listed its palm oil division, Bumitama Agri, on the Singapore Exchange. As of August 2014, the market capitalization of Bumitama Agri is about US$1.8 billion. Harita is also said to be planning an IPO of its Nickel business in 2013, intending to raise at least $250 million. The underwriters are Citigroup Inc. and DBS Bank.[5]

In July 2013, it was announced that the Harita Group will be investing US$1 billion to build an Alumina refinery in West Kalimantan, which will produce 2 million tons of alumina per year.[6] [7]

References[edit]

  1. ^ Thilan, Wickramasinghe (20 September 2011). "Asian Palm Oil". HSBC Global Research. 
  2. ^ "Reuters - Tirta Mahakam Resources Tbk". 
  3. ^ Nyompe, Pius Erick. "The Closure of the Kelian Gold Mine and the Role of the Business Partnership for Development/World Bank". 
  4. ^ "Lanna Harita Joint Venture". Lanna Resources. 
  5. ^ "Harita Said to Plan Singapore IPO of Nickel Mining Division". Bloomberg. 
  6. ^ "Harita to build smelter in Kalimantan". The Jakarta Post. Retrieved 5 July 2013. 
  7. ^ "$1 Billion Alumina Smelter in West Kalimantan Kicks Off". The Jakarta Globe. Retrieved 18 July 2013.