From a defunct cigarette company to Indonesia's largest conglomerate

Countries & Cities · Published 12 October 2026 Swipe more like this →

In short: In 1951, Oei Wie Gwan purchased a struggling cigarette firm in Kudus. Since then, the Djarum Group has grown into Indonesia's largest conglomerate. Its vast business empire now spans multiple sectors, including banking, technology, and food, while also maintaining a strong presence in professional sports like football and badminton.

The origins of Djarum trace back to 1951, when Oei Wie Gwan, an immigrant from China, purchased the nearly defunct NV Murup in Kudus, Central Java. He shortened the company's most popular brand name, Djarum Gramofon, to simply Djarum. The business faced a near-collapse in 1963 following a devastating factory fire and the death of Oei. However, his sons, Budi and Bambang Hartono, took control and successfully rebuilt the enterprise. The company's name was originally derived from the gramophone needle brand, Djarum Gramofon. This transformation occurred after the initial acquisition of the struggling NV Murup.

Djarum is primarily known as a major manufacturer of kretek, or clove cigarettes. Although machine-rolled kretek production started during the late 1970s, the firm still uses manual labourers for hand-rolled versions. This product saw significant popularity in the United States during a clove cigarette fad in the 1980s. Following the 2009 Family Smoking Prevention and Tobacco Control Act, which banned most flavored cigarettes in the US, Djarum circumvents these regulations by marketing its products as 'filtered cigars' in black paper packaging. In 2016, the company faced scrutiny from Human Rights Watch regarding child labour practices. Specifically, reports highlighted the absence of hand protection for workers.

The group's expansion has been vast. By the 1980s and 1990s, it had become one of Indonesia's top five largest conglomerates, eventually becoming the nation's largest conglomerate by 2010. Its diverse portfolio includes a 51% majority stake in Bank Central Asia (BCA), Indonesia's largest private bank, and the Italian football club Como 1907. The group also maintains a significant presence in sports through the PB Djarum professional badminton club, founded in 1974 by Budi Hartono. Beyond finance and sports, the conglomerate holds diverse interests in the technology and food sectors. Its investment reach extends to various non-cigarette business lines.

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