Lippo Group

Lippo Group is an Indonesian multinational conglomerate company. The company operates internationally providing property development and management services. It was founded by Mochtar Riady. Lippo has a collective presence across Asia and North America. Lippo Group is one of the largest real estate developers in Indonesia, and is known for various large-scale projects such as Lippo Village.

Lippo Group's members Lippo Limited, Lippo Karawaci are listed companies.

Company history

The Lippo Group began with Lippo Bank, after its founder Mochtar Riady bought shares of Bank Perniagaan Indonesia (BPI) owned by businessman Hasyim Ning in 1981 that was struggling at the time. Mochtar bought the shares when he was holding important position in Bank Central Asia (BCA) that was back then owned by Salim Group and took 49% of its shares which later he share with Salim Group founder Sudono Salim.[1][2]

Criticism and Controversies

Lately, Lippo Group are often being associated by its shady business practices due to scandals that has financially harmed its business partners and other business owners. Practices such as bribery, hostile takeovers, and frauds have been widely reported by its business partners or among politicians the group interacted in the past.[14][15][16]

Bill Clinton campaign scandal

In 1996, James Riady, was in involved in US President Bill Clinton reelection campaign scandal. James Riady and his associate John Huang were indicted and pleaded guilty to campaign finance violations by himself and his corporation. He was ordered to pay an US$ 8.6 million fine for contributing foreign funds to the Democratic Party, the largest fine ever levied in a campaign finance case.[17][18][19][20]

Lippo Bank double financial statement

In 2002, Lippo Bank was under fire for making a false financial statement that were released to public and Jakarta Stock Exchange. It was started when Lippo Bank Q3 report that was published on 30 September. Lippo Bank stated that there was a discrepancy between the information in the financial report presented to the public through advertisements in national newspapers on November 28, 2002 and the financial report submitted to the Jakarta Stock Exchange.

The report is presented in the form of a comparison between 30 September 2002 (audited) and 30 September 2001 (unaudited). It is stated that the Value of Foreclosed Collateral as of September 30, 2002 was 2.393 trillion rupiah (US$257 million at the time), total assets as of September 30 were 24.185 trillion rupiah (US$2.60 billion), Profit for the year as of September 30, 2002 was 98.77 billion rupiah (US$10.61 million), and the Minimum Available Capital Liability Ratio (CAR) was 24.77%. In the Financial Report of Lippo Bank as of September 30, the same date as that submitted to the Jakarta Stock Exchange on December 27, a different report was submitted. The report included a statement from Lippo Bank management that the Financial Report submitted was an "audited" Financial Report and was not accompanied by an independent auditor's report containing a Public Accountant's opinion.[21]

As a result, Lippo Bank was fined 2.5 billion rupiah (US$291,500 in 2003) for mismanagement. After the verdict, Indonesian Bank Restructuring Agency (BPPN) held a meeting to restructure the Lippo Bank board of directors.[22]

type	Private
industry	Conglomerate
foundation	1950
founder	Mochtar Riady
location city	Jakarta
location country	Indonesia
key people	Mochtar Riady (Founder & Chairman Emeritus) James Riady (Chairman & CEO) John Riady (Director)
products	Real estate, media, telecommunications, electronics, property, finance, health, education
services	Financial services, Commercial and residential property development
owner	Riady family
subsid	Lippo Village Lippo Cikarang Siloam Hospitals Matahari Department Store
homepage	https://lippogroup.com/

Company history

Company group

Former holdings

Criticism and Controversies

Bill Clinton campaign scandal

Lippo Bank double financial statement

See also

References