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Bakrie Group

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Bakrie Group
IDX: BNBR (PT Bakrie & Brothers Tbk)
IndustryVarious
Founded1942
FounderAchmad Bakrie
HeadquartersJakarta, Indonesia
Area served
Worldwide
Key people
Aburizal Bakrie (former chairman)
Nirwan Bakrie, co-chairman
Indra Bakrie, co-chairman Anindya Novyan Bakrie
Productscoal, oil, gas
Number of employees
70,000 (2011)
Websitewww.bakrie-brothers.com Edit this on Wikidata

The Bakrie Group is an Indonesian conglomerate founded by Achmad Bakrie in 1942. In the 1950s Bakrie Group business activities have expanded to include general trading, construction services, agribusiness, coal mining, oil & gas, and telecommunications; while continuing to develop manufacturing such as steel pipes, building materials, and automotive components.

With 10 companies listed publicly on the Indonesia Stock Exchange (IDX) Bakrie Group is one of Indonesia’s oldest and largest diversified groups, with interests in mining, oil and gas, plantations, telecommunications, media, infrastructure and property.[1]

It is headed by Nirwan Darmawan Bakrie and Indra Usmansyah Bakrie as co-chairmen.

Bakrie Sumatera Plantations Tbk (BSP) is a subsidiary of Bakrie Group. The company has under its management around 100,000 ha of oil palm and rubber plantations.[2] BSP has extensive landbanks. [3] One of its directors is Bungaran Saragih, a former minister of agriculture. [4] It operates or used to operate on peatlands.[5]


History

Founding and incorporation (1942-1990)

H. Achmad Bakrie founded Bakrie & Brothers ("N.V. Bakrie & Brothers") in 1942. The company traces its roots to a simple commercial business in Telukbetung, Lampung, South Sumatera. Bakrie & Brothers was established as a general trading and distribution company.[6]

In the 1950s Bakrie Group business activities have expanded to include general trading, construction services, agribusiness, coal mining, oil & gas, and telecommunications; while continuing to develop manufacturing such as steel pipes, building materials, and automotive components.[6]

In 1986, Bakrie Group through Bakrie & Brothers acquired 75% shares of a local rubber plantation company PT. Uniroyal Sumatera Plantations (UNSP) then later changed the company name to PT. Bakrie Sumatera Plantations as they maneuvered into crude palm oil (CPO) business.[7]

In 1989, Bakrie & Brothers (BNBR) one of the main companies of Bakrie Group was listed in Jakarta Stock Exchange (Now the Indonesia Stock Exchange).[6]

Expansion and Diversification (1990-2000)

With Aburizal Bakrie in the management, Bakrie Group diversified into media and telecommunications business in the 1990s. Bakrie Group founded a local TV station PT. Cakrawala Andalas Televisi (ANTV) in 1992, and started to broadcast nationally a year later in 1993.[8] In the same year Bakrie Group obtained the license to operate fixed wireless telecommunication services as the conglomerate entered the telecommunications sector with PT Bakrie Telecom.[9]

Rapid growth and Financial Crisis (2000-2010)

In the new century, Bakrie Group saw massive growth in their portfolio, several companies merged into the group through acquisition. In 2001 PT Energi Mega Persada (“ENRG”) was founded and marked the conglomerates efforts to enter the oil and gas sector, mainly focused on developing and exploring the upstream oil and gas.[6]

Bakrie Group portfolio grew larger in 2004 after acquiring 80% of the coal mining company PT Arutmin Indonesia (Arutmin) in November 2001 from BHP Minerals Exploration Inc. At the time of acquisition, Arutmin was the fourth largest coal producer in Indonesia. Two years later in 2003, BUMI became the mining champion of Indonesia after acquiring 100% shares of PT. Kaltim Prima Coal, largest coal producers in Indonesia.[10]

In 2007, Forbes Asia estimated Bakrie family’s wealth at $5.4 Billion putting it atop Indonesia's richest. However during the 2008 financial crisis, Bakrie Group companies shares were heavily affected and their fortune has been cut to only $850 million, dropping it to No. 9 Forbes Asia list of richest figures in Indonesia.[11]

Third generation - return to profitability (2010-present)

In 2019, Anindya Novyan Bakrie, better known as Anin, the third generation of the Bakrie family was appointed as chief executive and president director of Bakrie & Brothers in May 2019. Anindya replaced Bobby Gafur Umar, who served as top executive since 2002.[12][13]

Today, with 10 companies listed publicly on the Indonesian Stock Exchange (IDX) Bakrie Group is one of Indonesia’s oldest and largest diversified groups, with interests in mining, oil and gas, infrastructure, plantations, telecommunications, media, infrastructure and property.[6]

Businesses

Mining

Bakrie Group is one of the major actors in Indonesian mining landscape, as one of the subsidiary PT. Bumi Resource (BUMI) is by far Indonesia’s largest coal miner by production volume.[14] BUMI operates mines through four companies: Arutmin Indonesia, Kaltim Prima Coal (KPC), Pendopo Energy Batubara and Fajar Bumi Sakti. In May 2020, BUMI inked a definitive deal with Air Products (APD) to invest $2 billion for a world-scale coal-to-methanol manufacturing facility in East Kalimantan, Indonesia.[15]

Oil and gas

Bakrie Group owns and operates oil and gas assets across the Indonesian archipelago through PT. Energi Mega Persada. In 2011 Energi Persada expanded its business to Buzi block in Mozambique, Africa through their subsidiary EMP Mining Overseas Pte.[16] Today, EMP operates 8 oil and gas assets in Indonesia with an oil and gas reserves of 363 mmboe (Million barrels).[17]

Infrastructure

Bakrie Indo Infrastructure, a subsidiary under Bakrie and Brothers handles transportation, water, electricity, and industrial projects in Indonesia. The company oversaw the development of some mega projects over the years such as the Cimanggis-Cibitung freeway construction, Kalimantan and Java gas pipeline construction, and Tanjung Jati A power plant.[18][19]

Steel

Steel industry has always been one of the core businesses for Bakrie Group. The company has several companies in the sector. Bakrie Metal Industries, Bakrie Pipe Industries, and Bakrie Autoparts are all under Bakrie Group banners.[20]

Agribusiness

Through Bakrie Sumatra Plantations, Bakrie Group managed an estimated one thousand hectares of rubber and palm oil plantation in the Island of Sumatra. The company also maintains a downstream industry of palm kernel processing and oleochemical products mainly found in Cleaning agent, Detergent, jet engine lubricants, engineering plastics, cosmetics and pharmaceutical products.[21]

Media & Entertainment

Bakrie Group owned PT. Visi Media Asia (VIVA) a leading integrated media convergence company in Indonesia. The company activities covers Free to Air (FTA) TV stations with TVOne, ANTV and digital media portal VIVA News. The company is led by Anindya Novyan Bakrie, under this current management the company has had a consistent strong operational performance over the last few years.[22]

Property

Bakrie Group owns and manages a number of properties in Indonesia through PT. Bakrieland Development.

  • Hotels, Resorts, Residences
    • Aston Rasuna Hotel and Residential
    • Aston Bogor Hotel and Resort
    • Awana Yogyakarta
    • The Masterpiece
    • Krakatoa Nirwana Resort
    • Pullman Bali Legian Nirwana
    • Bogor Nirwana Residence
    • Sentra Timur Residence
    • The Grove Suites
    • Sand & Coral Tower
    • The Empyreal
    • OCEA Condotel
    • Hadiningrat Terrace
    • Grand Elty Singgasana
  • Office Buildings
    • Bakrie Tower
    • Wisma Bakrie 1
    • Wisma Bakrie 2
    • Rasuna Office Park
    • The Convergence
    • Epiwalk Office Suites
  • Malls, Theme Parks, Sport Center
    • The Jungle Land
    • Jungle Land Waterpark & Mall
    • Jungle Festival
    • Plaza Festival
    • Epiwalk
    • Gelanggang Mahasiswa Soemantri Brodjonegoro
    • Elite Club Epicentrum

Publicly listed companies

These companies under Bakrie Group banner are listed at the Indonesia Stock Exchange (IDX).

Company Code Business
Bakrie & Brothers BNBR Investment and disinvestment
Bumi Resources BUMI Coal mining and explorations
Bumi Resource Minerals BMRS Coal mining and explorations
Energi Mega Persada ENRG Oil and gas exploration
Bakrie Sumatera Plantation UNSP Crude palm oil and palm kernel production
Visi Media Asia (TVone, ANTV, VIVA) VIVA Broadcasting, Media
Bakrieland Development ELTY Property
Bakrie Telecom BTEL Telecommunications
Darma Henwa DEWA Mining


References

  1. ^ "Our History - Bakrie Global Ventura". www.bakrieglobal.com. Retrieved 2020-06-23.
  2. ^ "PT Bakrie Sumatera Plantations TBK | Member | RSPO - Roundtable on Sustainable Palm Oil". rspo.org. Retrieved 2016-05-30.
  3. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 77
  4. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 120
  5. ^ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 131
  6. ^ a b c d e "Bakrie & Brothers". www.bakrie-brothers.com. Retrieved 2020-06-25.
  7. ^ "Brief History". www.bakriesumatera.com. Retrieved 2020-06-25.
  8. ^ antvklik.com (2020-06-25). "Antvklik". ANTV (in Indonesian). Retrieved 2020-06-25.
  9. ^ Insider, Desk Editor. "Insight: Aburizal Bakrie and Bakrie Group". The Insiders Stories. Retrieved 2020-06-25. {{cite web}}: |first= has generic name (help)
  10. ^ "Bumi Resource - Milestone".{{cite web}}: CS1 maint: url-status (link)
  11. ^ "Bye-Bye Bakrie?". Forbes. Retrieved 2020-06-25.
  12. ^ "Regaining Focus and Reinventing the Future | GlobeAsia.com". Globe Asia. Retrieved 2020-06-25.
  13. ^ Silaen, Linda. "Business Potential of Indonesia's Bakrie Group in Third Generation Hands". The Insiders Stories. Retrieved 2020-06-25.
  14. ^ Post, The Jakarta. "Bumi Resources expects to sell 42 million tons of coal in first half". The Jakarta Post. Retrieved 2020-06-25.
  15. ^ "Air Products (APD) Inks Agreement to Invest $2B in Indonesia". finance.yahoo.com. Retrieved 2020-06-25.
  16. ^ Mediatama, Grahanusa (2013-10-21). "Bakrie oil arm acquires field in South Africa". kontan.co.id (in Indonesian). Retrieved 2020-06-25.
  17. ^ "Energy Mega Persada".{{cite web}}: CS1 maint: url-status (link)
  18. ^ "Bakrie & Brothers - Bakrie Group | Indonesia Investments". www.indonesia-investments.com. Retrieved 2020-06-25.
  19. ^ "Bakrie will continue its Kalimantan gas pipeline project | IDNFinancials". www.idnfinancials.com. Retrieved 2020-06-25.
  20. ^ "BNBR Annual report" (PDF).{{cite web}}: CS1 maint: url-status (link)
  21. ^ "Our Business". www.bakriesumatera.com. Retrieved 2020-06-25.
  22. ^ "Letter from President Director « PT. VISI MEDIA ASIA Tbk". www.vivagroup.co.id. Retrieved 2020-06-25.
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