Liem Sioe Liong, An Indonesian Mogul

Liem Sioe Liong (Repro buku Eddy Soetriyono)

VIVAnews – Sudono Salim alias Liem Sioe Liong was a business magnate in Indonesia. The founder of Salim Group had been a topliner for decades in the country following his ubiquitous businesses. 

Sudono's fame is said to have been a result of his close relationship with the ruler of the New Order era, Soeharto. Both figures first met when Oom Liem (literally Uncle Liem), that was how Sudono was called, was a supplier of logistics for the Indonesian Military (TNI) in the 1950s. At that time, Soeharto was still the Commander of Diponegoro Military Area Command in Central Java. 

Oom Liem’s business flourished when Soeharto was appointed President of Indonesia. 

The book entitled "Soeharto: The Life and Legacy of Indonesia's Second President," authored by Retnowati Abdulgani-Knapp, tells about the relationship between these two men. 

The book mentions in 1970 that Oom Liem established PT Bogasari in order to expand his flour business. He partnered with Soeharto’s cousin, Sudwikatmono.

It did not take long for Bogasari to receive a special license to market wheat flour in the western parts of Indonesia. The area demanded great supply of wheat flour, unlike the eastern parts of Indonesia. 

By controlling Java and Sumatra, Bogasari secured the flour trade and gained up to US$400 million per year. 

In return, Bogasari must set aside 26 percent of its profit for Harapan Kita Foundation chaired by Tien Soeharto, the Indonesia's First Lady.   

In addition to participating in the Harapan Kita Foundation, Oom Liem also participated in Damandiri Foundation.  Liem, who was at that time the richest person in the country, was the founder and a board member. Other businessmen were expected to join the foundation with Liem’s presence. 

Sure enough, after the first meeting in Jimbaran and Tapos, Damandiri Foundation succeeded in collecting Rp23 billion. Afterwards, Oom Liem’s business grew bigger. His companies multiplied in numbers and engaged in many sectors such as banking, food, and automotive industries. 

However, following the monetary crisis and the fall of Soeharto in 1998, Oom Liem’s businesses were declining. A number of his companies were taken by the government to pay for the Bank of Indonesia’s Liquidity Support (BLBI) of Rp52 trillion to Bank BCA.

Now, in his son’s hands, Anthony Salim, Salim Group is again on the rise. Meanwhile, Oom Liem chose to retire from any business and migrated to Singapore since May 1998 until he passed away on Sunday, 10 June 2012.

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