Chairul transforms business empire, eyes expansion

JAKARTA. Chairul Tanjung, one of Indonesia’s richest men, launched in Jakarta on Thursday a new business corporation to support his fast-growing business empire.

CT Corporation or CT Corp., the new conglomerate, will replace the widely diversified Para Group, which is engaged in various business sectors including media, entertainment, retail, mining, agriculture and finance.

“CT”, from Chairul Tanjung’s initials, bears a new logo displaying a blue-winged man ready to take flight.

Speaking to reporters after the launch of the new corporation, Chairul said that the establishment of CT Corp., officially called PT CT Corpora, marked Para Group’s transformation after about 30 years of existence.

Para Group initially focused on three business lines — finance, property and multimedia. In 1996, Para Group acquired Bank Mega and two years later in 1998, its television station Trans TV obtained a broadcasting license, going on air in 2000 and late in 2006 it acquired TV station TV7 (now Trans 7).

“Para Group was established when I was still a mid-level businessman. At that time of course, the group’s vision and mission reflected that level. Now, the group’s business size is expanding in close relation to the country. That’s why CT Corp. has the motto ‘For a Better Indonesia,” he said.

Chairul, who has close relations with President Susilo Bambang Yu-dhoyono — the President appointed him chairman of the National Economic Committee last year — said that CT Corp. would maintain Para Group’s business line-up.

CT Corp. will inherit Para Group’s three sub holdings: Mega Corp. leading the financial-services business, Trans Corp. leading the media, lifestyle, entertainment and retail businesses and CT Global Resources running the plantation business.

Chairul revealed that Mega Corp. and Trans Corp. would also soon unveil new logos as part of the rebranding of the business units.

“Mega Corp.’s new logo will be launched in the middle of next year and Trans Corp.’s new logo will be launched this Dec. 15 coinciding with Trans TV and Trans 7’s anniversary,” Chairul said.

Born on June 16, 1962, in Jakarta, Chairul began his business in 1987 when he and his three friends established PT Pariarti Shindutama, which produced children’s footwear. Chairul resigned soon after and established Para Group among the fastest-growing business conglomerates in the country.

“Our new brand identity is an expression of transforming ambition into excellence. Indonesia’s transformation is awakening the hopes, dreams and ambitions of the people,” he said, adding that he believed Indonesia was in a golden era of economic growth. “We are committed to helping the country and its citizens realize their ambitions,” he said.

At the press conference, Chairul said that expansion, either through the existing business units or through acquisitions, remained an important part of his business agenda.

Many people have linked Chairul’s business success to the involvement of Salim Group, a conglomerate established by former president Soeharto’s close friend Sudono Salim (Lim Sioe Liong).

Chairul denied the rumors, saying that Para Group was 100 percent his own but acknowledging that he learned a lot about running a business from Salim’s son Anthony Salim.

At present, Bank Mega is the only business unit that is listed on the stock market. Chairul said that an initial public offering (IPO) was not yet an important part of his agenda but some of the business units would in the future be prepared for going public.

“So far, there are still enough funds to expand the businesses and we don’t need to look for funds in the stock market. However, we will float all of our subsidiaries on the stock market because we also want to give the public a chance to hold ownership of the companies,” Chairul said.

“We expect to increase our presence in the stock market in 2015 with the initial public offering (IPO) of Trans Corp.,” Chairul said.

He estimated that by 2015, Trans Corp. would have earnings before tax of up to US$1 billion and could obtain up to $10 billion from the IPO.

“Then, the last IPO will be for CT Corp. but I don’t know when, perhaps in about 10 or 20 years. CT Corp. must already be listed on the Fortune 400 before performing an IPO,” Chairul said, laughing.

Chairul, who according to Forbes is the 11th richest man in the country with total assets of US$2.1 billion, has close links with several political parties. The Prosperous Justice Party (PKS) recently reported it would pick him as its candidate for the presidential election in 2014.

“However, I always say no because I have no intention at all of becoming president ” Chairul said. At the press conference, he emphasized that his main agenda was to further expand his business empire. “We certainly want to become the market leader in every industry we enter,” he added. (The Jakarta Post)