Hartono family expands international investments with USD 1.4 billion

The Hartono family, owners of Djarum and BCA, has significantly increased its international investments, reportedly deploying at least USD 1.4 billion through various entities based in Singapore and London.

One notable entity, Evergreen Hill Enterprise Pte Ltd, acquired a specialty paper business in the United States for USD 669 million in late 2023. The company further expanded by paying approximately USD 418 million for an Austrian cigarette paper manufacturer. Beyond the paper industry, the family is also investing in financial services software in Singapore.

This shift is viewed as a strategy to diversify income streams into different currencies and markets. However, the move has drawn criticism from geopolitical observer Amir Hamzah, who suggests that while geographic diversification is a business right, large-scale capital outflows can impact national economic interests. Hamzah noted that Indonesia requires investment to build domestic industries and create jobs, cautioning that global expansion should be balanced with strengthening domestic production capacity.