Google Advertisement
Jakarta, September 14, 2026 – Djarum Group, controlled by Indonesia’s Hartono family, has confirmed a Rp 24.6 trillion (US$ 1.4 billion) investment abroad, underscoring its ambition to diversify while maintaining a dominant domestic footprint.
The move, which involves acquiring cigarette paper producers in Austria and the United States, is framed not as capital flight but as a calculated expansion to secure supply chains for its tobacco empire.
The acquisitions, executed through Evergreen Hill Enterprise Pte, target SWM and Tantapier in Austria and a U.S. based specialty paper business.
These companies manufacture cigarette wrapping and filter paper, critical inputs for Djarum’s tobacco operations.
Google Advertisement
By owning upstream suppliers, Djarum aims to reduce reliance on external markets and shield itself from global price volatility.
Company officials emphasized that the funding comes from foreign credit facilities rather than internal capital transfers, countering speculation that the Hartonos are moving assets offshore.
“Ninety percent of our investments remain in Indonesia,” a representative noted, highlighting the group’s continued commitment to domestic growth.
That commitment is visible across sectors.
Djarum’s holdings include Bank Central Asia (BCA), Indonesia’s largest private lender, alongside property, food and beverage ventures, and a new dairy farming initiative designed to cut milk imports and bolster food security.
The dairy project reflects a broader diversification strategy, positioning the conglomerate beyond tobacco and finance.
The overseas expansion began in 2023 2024 under President Joko Widodo’s administration, a period marked by heightened scrutiny of capital flows.
Bloomberg reports initially raised concerns about potential capital outflows, but Djarum insists the acquisitions are strategic, not political.
Economists view the move as a signal of Indonesia’s corporate globalization.
By embedding itself in international supply chains, Djarum strengthens its competitiveness while reinforcing its domestic base.
Yet risks remain foreign exchange exposure from overseas loans, regulatory pressures on tobacco, and public perception of capital flight.
Still, the Hartono family’s stance is clear. With most assets anchored at home, the Rp 24 trillion overseas push is less an exit than an extension an effort to secure raw materials abroad while investing in food security and banking at home.
For Indonesia, the message is twofold: its largest conglomerates are globalizing, but their roots remain firmly planted in the domestic economy.
