Market is heartless but there may be a spike in GGRM's shr price today?  Anyone 
for a trade? 
Imperial Tobacco, BAT and Japan Tobacco are reportedly interested? 
Do not forget Sampoerna?  3 yrs agreement with P.Morris not to start or acquire 
any tobacco related businesses is up. Rachman Halim passed away,   

                        Rachman Halim, one of the heirs of Gudang Garam Group, 
passed away in Singapore this morning. What will happen to the group?
                        Rachman Halim is currently president commissioner of 
listed cigarette producer PT Gudang Garam (GGRM) Tbk. Rachman born in Kediri, 
East Java in 1947 as Tjoa To Hing. His father Surya Wonowidjojo AKA Tjoa Jien 
Hwie is the founder of the group. 
                        Halim survived his wife Feni Olivia (Oei Fen Lang), 
daughter of a restaurateur in Bima, West Nusa Tenggara and two children. 
                        "He passed away in Singapore, reportedly on heart 
failure," people close to the family said. 
                        GGRM has 1.924 billion issued shares at market value of 
Rp5200/share or a market cap of US$1.01 billion. The stock price significantly 
dropped from Rp8,500 early this year. The current market cap reflects valuation 
of 1.4x net book value as of March 2008. 
                        As of March 2008, GGRM had total asset of Rp23.816 
trillion or around US$2.6 billion. The company booked net profit of Rp336 
billion in the first quarter or an EPS of Rp175 and annualized PE multiple 7.4. 
                        Halim's siblings Juni Setiawati Wonowidjojo, Susilo 
Wonowidjojo, and Sumarto Wonowidjojo are also in the board of GGRM. 
                        Halim's direct ownership at GGRM is 0.94% while the 
family's investment vehicle is PT Suryaduta Investama controls 66.8% shares in 
                        Halim and Susilo are known for their past conflicts in 
managing the family business. Susilo established his own empire entirely 
separated from the family known as Makin Group which controls hundreds of 
thousand hectares oil palm estate concessions across the country. 
                        Susilo once established his own cigarette company PT 
Karyadibya Mahardhika but reportedly failed. Gudang Garam (GGRM) acquired the 
company in 2002 for US$75 million in 2002. 
                        In a bid to mediate the conflict, the family agreed to 
appoint independent CEO Mr Djajusman Surjowijono. 
                        How about other siblings? 
                        One of Halim's brother died in a car accident, two 
others rejected to actively involve in the group's operation afraid of bigger 
conflicts, two others also rejected to be active, leaving five (including 
Halim) actively managed the company. Unfortunately no information available 
about Halim's children. May be in our next article. 
                        People in the cigarette business said Halim's son has 
been joining PT Gudang Garam Tbk as marketing officer in Kediri, East Java, 
while his daughter is in Jakarta but not with the group. 


                              The Wonowidjojo Empire,   

                              Wonowidjojo is a big family with business 
interests way beyond cigarette producer PT Gudang Garam (GGRM) Tbk. Compared to 
other "kretek" empires, Wonowodjojo could be considered relatively young.
                              Nojorono, for example, established in 1930s by 
Kho Djie Siong, Tjoa Kang Hay, and Tan Djing Dhay. It survived generations 
                              Bentoel was established by Ong Hok Liong in 1931, 
but currently controlled by Peter Sondakh's Rajawali Group. Sampoerna, 
established in 1910, has "left" the business and let Marlboro manages it.
                              Gudang Garam is also about eight years younger 
than Djarum, another kretek empire that succeeded in venturing out into banking 
(BCA), electronic manufacturing (Polytron), and at some point the property 
business (Grand Indonesia etc).
                              There are various reports about Wonowidjojo 
family even though they're mainly came from people close to the family, rarely 
from the family itself. 
                              Let's start with the family: 
                              Founder: Surya Wonowidjojo or Tjoa Ing Hwie, 
passed away in 1985. 
                              1) Rachman Halim Wonowidjojo (Tjoa To Hing): 
Passed away July 27, 2008; Married, two children: Son is working for Gudang 
Garam as marketing officer, daughter works outside the group. Halim mainly 
lived in Singapore. While he is not in charge of Gudang Garam operations in the 
last few years, important financial decisions should pass his approval. 
                              2) Tjoa To Nang, passed away from car accident 
                              3) Susilo Wonowidjojo (Tjoa To Bing): Like Halim, 
he is only graduated from High School, but expert in kretek composition. His 
father trained Susilo as production director. He is considered the most 
aggressive business player in the family. He established his own cigarette 
company but failed; Gudang Garam "bailed out" for US$75 million in 2003, a move 
some analysts considered "too expensive". He controls Makin Group, a new giant 
in oil palm business. People in the business believe Susilo will have stronger 
grip on Gudang Garam's whole operations. 
                              4) Juni Setiawati Wonowidjojo (Tjoa Jiet Hwa): 
Commissioner of GGRM, no details available at the moment. 
                              5) Murniati Wonowidjojo (Tjoa Kiet Lian): Once 
served as commissioner of GGRM but then resigned, reportedly to avoid family 
                              6) Sumarto Wonowidjojo (Tjoa To Seng): He 
established a separate cigarette company called Grendel. 
                              7) Sigit Sumargo Wonowidjojo: He controls 
packaging company PT Trias Sentosa (TRST) Tbk, a company with market cap of 
around US$67 million and total asset of Rp2.137 trillion as of March 2008. 
                              8) Sujati Wonowidjojo: 
                              9) Tjoa Sun Tie 




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