The Gang of Four (some also call it Empat Serangkai/Sekawan (Four Friends) or Liem Investors)[1][2] is a trading and industrial partnership between 4 businessmen, namely: Sudono Salim (Liem Sioe Liong), Sutanto Djuhar (Liem Oen Kian), Ibrahim Risjad, and Sudwikatmono (Dwi) that were prominent during the New Order era. This group can be said to be a fairly successful partnership, and has produced large companies such as Bogasari and Indocement. The name Group of Four itself was not officially created by the 4 businessmen themselves, but from the mass media.[3]
Origins
The Gang of Four prominence was said to be started by the meeting between Sudono Salim, Sutanto Djuhar, Ibrahim Risjad, and Sudwikatmono in 1960s, few years before Suharto rise to presidency. Salim, who were close to Suharto before his presidency was advised to keep doing business with his partner Djuhar and would introduce his cousin, Sudwikatmono in 1963 as Salim himself stated his need for a native Indonesian as his business partner due to his citizenship status. Aside from Sudwikatmono, Acehnese businessman Ibrahim Risjad also joined the consortium who was previously a acquaintance of both Dwi and Djuhar.[4][5]
According to Salim on 1994 interview, each members play different roles on building the business empire and represented as pillars. According to former Salim Group employee, Salim and Djuhar are the main foundation of the group with Risjad who does the lobbying and harmonising the group while Dwi was the one who penetrated the bureaucracy as he was said to have a good relations with then minister Soemitro Djojohadikusumo. Initially Salim and Djuhar held 40% of the shares while Dwi and Risjad held 10% of the shares.[6][3]
New Order Era
In 1968, a year after Suharto named President of Indonesia, Djuhar, Dwi, Risjad, and Salim who were previously arranged into a meeting by Suharto before his presidency formed PT Waringin Kentjana after being acquired due to financial difficulties and upgraded from Kommanditgesellschaft to Naamloze vennootschap and continued its operation exporting coffee, pepper, rubber, tallow nut, and copra and also importing sugar and rice. PT Waringin once own a rubber plantations in Jambi and Palembang. As their business grow, they were given a quota, facilities, and credits from state-owned banks which would later cease to be delivered after negative receptions from public.[8]
In 1970s, the group formed PT Bogasari Flour Mills in 1971 and PT Distinct Indonesia Cement Enterprise (now Indocement) in 1975. Under the partnership with Malaysian businessman Robert Kuok, Bogasari opened 2 factories in Indonesia's 2 main cities, Jakarta and Surabaya. Until the end of Suharto presidency, Bogasari has monopolised the flour market and grain processing facilities in the country and Indocement would take the lead in the country's cement industry and formed 5 spin-off companies: PT Perkasa Indonesia Cement Enterprise (PICE), PT Perkasa Indah Indonesia Cement Putih Enterprise (PIICPE), PT Perkasa Agung Utama Indonesia Cement Enterprise (PAUICE), PT Perkasa Inti Abadi Indonesia Cement Enterprise (PIAICE), dan PT Perkasa Abadi Mulia Indonesia Cement Enterprise.
Fall of Suharto and decline
The decline of gang influence was prompted by the 1997 Asian financial crisis which affected the businesses of the group except for Djuhar who still have businesses in China and Singapore. The decline was prompted due to amount of debt owed by the group to local and international creditors and weakening of rupiah which mark the end of the partnership between the four. As a result, the companies was forced to restructure in order to survive. Salim handed the Salim Group leadership to his son Anthoni and fled to Singapore after his private residence was looted during the May 1998 riot. Djuhar handed his leadership to his son Teddy and never returned to Indonesia. Dwi handed his business to his children, Agus Lasmono and Martina.[27] The decline of the gang also saw Risjadson and Salim to shut down or hand over their companies to Indonesian Bank Restructuring Agency (IBRA). As a result, Salim lost Bank Central Asia to Djarum, Indocement to Heidelberg Materials, and Metropolitan Kentjana to Central Cipta Murdaya.[27][28] While
See also
- First Pacific
- Salim Group
- Bamboo network
- Nine Dragons (Indonesia), the successor to the Gang of Four
- Cronies of Ferdinand Marcos, Filipino equivalent