February 20, 2025 • Business • by Delilah

Salim Group: The Powerhouse Driving Indonesia’s Economy and Global Markets

Table of Contents

Salim Group: The Giant Powering Indonesia’s Economy

The Salim Group is a leading Indonesian multinational conglomerate with a diverse portfolio spanning food, retail, telecommunications, automotive, IT, and agriculture. As one of the most influential business entities in Southeast Asia, the group plays a pivotal role in the Indonesian economy.

At a Glance: The Salim Group

Founder: Sudono Salim (Liem Sioe Liong). Originally from Fuqing, China, he moved to Indonesia in 1938.
Establishment: 1972.
Headquarters: Jakarta, Indonesia.
Key Leader: Anthony Salim (CEO).

A Rich History: From Survival to Global Success

The history of the Salim Group is deeply intertwined with the development of modern Indonesia:

1916: Sudono Salim was born in Fuqing, Fujian Province, China.
1938: Sudono Salim migrated to Indonesia.
Late 1940s: During the Indonesian War of Independence, Salim supplied goods to the revolutionary forces, building a crucial relationship with Soeharto, who later became Indonesia’s second president.
1972: The Salim Group was formally established, rapidly diversifying its business.
1998: The Asian Financial Crisis hit hard. The group faced a major crisis and lost key assets, including Bank Central Asia (BCA).
2000s – Present: Anthony Salim, Sudono’s son, led a successful restructuring. He transformed the group into a global player focused on consumer goods and infrastructure.

Core Business Sectors

The Salim Group operates through several market-leading subsidiaries:

1. Food Industry (Indofood)

As the backbone of the group, Indofood is one of the world’s largest instant noodle manufacturers. Its flagship brand, Indomie, is a global household name. Indofood also produces dairy, snacks, seasonings, and nutrition products.

2. Retail (Indomaret)

Indomaret is Indonesia’s largest convenience store chain. As of 2023, it operates over 22,400 stores across the archipelago, providing essential goods and services to millions of Indonesians daily.

3. Automotive (Indomobil Group)

Through the Indomobil Group, the Salim Group manages the manufacturing and distribution of vehicles. It holds prestigious partnerships and joint ventures with Japanese giants like Nissan, Suzuki, and Hino.

4. Infrastructure & Resources

Indocement: One of Indonesia’s largest cement and ready-mix concrete producers.
Infrastructure: The group is heavily involved in telecommunications, water utilities, and toll roads, particularly in the Philippines through First Pacific.

Strategic Partnerships with Japanese Companies

The Salim Group is a preferred partner for Japanese firms entering the Indonesian market, leveraging its vast distribution network:

Nissin Foods: A long-standing collaboration in the instant noodle industry since the 1990s.
Duskin (Mr. Donut): A partnership established in 2015 to expand the famous donut franchise across Indonesia.
The Pokémon Company: A 2019 agreement to manage the official Pokémon Card Game distribution in the country.
Obayashi Corporation: A joint venture focused on high-tech farming and sustainable agriculture on Bintan Island.

Controversies and Corporate Responsibility

Despite its success, the Salim Group has faced scrutiny regarding its operational impact:

Environmental Concerns: Allegations related to deforestation and peatland development in palm oil plantations.
Labor Rights: Past reports concerning working conditions and labor standards in the agricultural sector.
Governance: Historical ties to political cronyism and debates regarding the transparency of large-scale corporate acquisitions.

Summary

The Salim Group remains an indispensable pillar of Indonesia’s business landscape. From the ubiquitous Indomie to the vast network of Indomaret stores, the group’s products touch the lives of nearly every Indonesian. While challenges in ESG (Environmental, Social, and Governance) remain, their ability to adapt and collaborate with international partners ensures their continued dominance in Southeast Asia.

FAQ

Q: Who currently leads the Salim Group?

A: The group is currently led by Anthony Salim, the son of the founder Sudono Salim.

Q: Is Indomie part of the Salim Group?

A: Yes, Indomie is produced by PT Indofood CBP Sukses Makmur Tbk, a core subsidiary of the Salim Group.

Q: Does the Salim Group still own BCA?

A: No, while the group founded Bank Central Asia (BCA), they lost majority control during the 1998 financial crisis. The Hartono family (Djarum Group) is now the majority owner.

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