Tag: Gudang Garam

  • Gudang Garam to Build Toll Road

    Gudang Garam to Build Toll Road

    Photo: Bunda

    Gudang Garam plans to construct a toll road in East Java, reports The Jakarta Globe

    In a public filing on Tuesday, 13 Feb 2024, the company said it had recently established a subsidiary, Surya Sapta Agung Tol, to construct a toll road connecting Kediri and Tulungagung, with an initial capital of IDR3.5 trillion ($223.6 million).

    Gudang Garam owns 99.9 of Surya Sapta, with Suryaduta Investama owning the remaining 0.1 percent. Suryaduta is a majority shareholder in Gudang Garam, controlling a 69.29 percent stake in the cigarette company.

    Both Gudang Garam and Surya Sapta are based in Kediri, approximately 150 kilometers west of Surabaya.

    The toll road is Gudang Garam’s second infrastructure project, following the recent completion of a small airport in Kediri. Although Dhoho Kediri Airport opened to the public earlier this month, it is not yet fully operational.

  • Gudang Garam Owner Accused of Fraud

    Gudang Garam Owner Accused of Fraud

    Photo: Dani

    The Indonesian affiliate of Oversea-Chinese Banking Corp. has accused a billionaire owner of Gudang Garam of fraud, according to Bloomberg.

    PT Bank OCBC NISP reportedly filed a police report against Susilo Wonowidjojo, an owner and president director of Gudang Garam, concerning some INR232 billion ($15.5 million) in troubled loans.

    The bank disbursed the loan in 2016 to a wig-making company owned by Wonowidjojo’s family, according to the lender’s lawyer. The case involves a total of INR1 trillion of funds when including loans from other lenders, he said.

    Gudang Garam shares fell 5.7 percent Jan. 3 in their biggest drop since Jan. 5.

  • Indonesia: Profits Plunge After Tax Hike

    Indonesia: Profits Plunge After Tax Hike

    Photo: Taco Tuinstra

    The profits of Indonesia’s two biggest cigarette manufacturers dropped significantly following a cigarette excise tax hike, reports The Jakarta Post.

    Gudang Garam and Sampoerna saw their net profits decline 28.62 percent year-on-year to IDR1.74 trillion ($120.6 million) and 22.13 percent to IDR2.58 trillion, respectively, in the first quarter of the year.

    The two companies’ net profits were hit by rising excise costs on top of weak cigarette demand. The finance ministry raised cigarette excises by around 12.5 percent starting in February after raising them 23 percent last year to deter smoking and raise state revenue.

    However, the hike applied to only machine-made cigarettes and not to hand-rolled cigarettes.

    Most of tobacco companies’ sales volume in Indonesia comes from machine-made clove cigarettes.