Djarum

WorldBrand briefing

AI supplement

Original synthesis to sit alongside the encyclopedia article below. Not part of Wikipedia; verify facts on Wikipedia when precision matters.

Djarum is a leading Indonesian tobacco manufacturer, famous for its kretek (clove) cigarettes. Founded in 1951, it has grown into one of the largest tobacco companies in Southeast Asia, with product lines covering various flavored tobacco products sold both domestically and globally.

Key moments

1951Founded by Oei Wie Gwan as PT Djarum after acquiring a small cigarette factory in Kudus, Java
1963Main factory destroyed by fire; founder died shortly after, with sons Bambang and Michael Budi Hartono taking over operations
1970sExpanded international sales, introducing its clove cigarette products to global markets
2000sEstablished a significant presence in overseas markets including the United States and Europe

Competitive analysis of Djarum

Market position: One of the top two tobacco companies in Indonesia, holding around 37% domestic market share
Core competitors: Local brands like Sampoerna, plus international tobacco giants such as Philip Morris International and British American Tobacco
Product differentiation: Specializes in flavored kretek cigarettes with unique clove-based formulations, with signature lines including Djarum Black, Bali Hai and flavored variants like cherry or vanilla
Global reach: Sells products in over 80 countries, with strong demand in Southeast Asia, the US and EU, though faced regulatory restrictions on flavored tobacco in some markets

Djarum is an iconic Indonesian tobacco brand with deep-rooted equity built on its signature kretek (clove) cigarettes, the product category it has become synonymous with globally. As one of the largest tobacco manufacturers in Southeast Asia, it holds a dominant position in its core domestic market, where it has embedded itself into local cultural life through decades of consistent product quality and community engagement. Its brand identity balances traditional heritage tied to Indonesian smoking culture with modern product innovation, allowing it to retain loyalty across multiple generations of consumers while navigating evolving regulatory frameworks for tobacco products.

Brand leadership

Score: 85/100

Djarum ranks among the top market share holders for kretek cigarettes in Indonesia, outperforming most local and regional tobacco competitors. It is the most widely recognized name in the global clove cigarette niche, setting product and trend standards for the kretek segment across Southeast Asia.

Consumer interaction

Score: 78/100

Djarum maintains strong engagement with its domestic consumer base through sponsorships of local popular sports (including badminton and football leagues) and cultural events, fostering deep emotional connection. Its global consumer interaction remains limited to niche specialty tobacco communities, with less broad outreach in international markets.

Brand momentum

Score: 62/100

Growth momentum is constrained by strict tobacco advertising regulations and smoking restrictions in both domestic and international markets, limiting large-scale expansion. However, Djarum has maintained moderate momentum by adapting its product line to meet new regulatory requirements for nicotine and tar levels, and seeing gradual growth in demand for its specialty products among international consumers.

Brand stability

Score: 88/100

Djarum has remained under the ownership of the founding Hartono family since its establishment, with consistent operational strategy and a stable market position that has endured multiple economic downturns and regulatory changes. Its core domestic consumer base is highly loyal, providing steady revenue and consistent brand performance year over year.

Brand heritage age

Score: 90/100

Founded in 1951, Djarum boasts over 70 years of history producing traditional kretek, drawing significant brand value from its deep heritage tied to Indonesian cultural identity. Its long history is a core differentiator against newer tobacco brands, and it leverages this legacy effectively in marketing to both long-time and new consumers.

Tobacco industry profile

Score: 80/100

As one of the largest tobacco manufacturers in Southeast Asia, Djarum holds a prominent profile within the global specialty tobacco industry. It is widely recognized among industry stakeholders, regulators, and consumers as a leading example of a successful Indonesian consumer brand with regional and global reach.

Global market penetration

Score: 45/100

While Djarum products are distributed in more than 50 countries worldwide, international sales account for only a small share of its total annual revenue, with the vast majority of its business concentrated in Indonesia. Strict tobacco import and sales regulations in major markets like the European Union and United States have limited large-scale globalization efforts for the brand.

AI can support preliminary reasoning and context-setting for Djarum's brand value, based on public market data and observed brand perception trends. All illustrative brand value figures from AI analysis are for preliminary reference only, and are not audited. For formal, audited brand value assessments and full valuation reports for Djarum, contact World Brand Lab.

Overview

PT Djarum

parent
type	Private‡R1R‡
foundation	April 21, 1951
founder	Oei Wie Gwan
key people	Michael Bambang Hartono Robert Budi Hartono
owner	Hartono family
location	Kudus, Central Java, Indonesia
industry	Tobacco Conglomerate

num employees	60,000 (2024)‡R2R‡

website	https://www.djarum.com

PT Djarum is an Indonesian cigarette manufacturer and conglomerate based in Kudus, Central Java. It produces dozens of domestic and international brands, mainly kretek (clove cigarette). Djarum Black, Super, and L.A. Lights are among the most popular products of Djarum. Under its direct parent, PT Dwimuria Investama Andalan (also known as Djarum Group), it has non-cigarette business lines in technology, banking, and food.[3][4]

The company owns the PB Djarum, a professional badminton club, the Italian football club Como, and was the main sponsor of Indonesia's top football league, including the Divisi Utama from 2005 to 2008 and Indonesia Super League (ISL), from 2008 to 2011.

History

In 1951, Oei Wie Gwan, an Indonesian businessman who immigrated from China in 1920, acquired NV Murup, a nearly defunct cigarette company in Kudus, Central Java. NV Murup's most popular brand of cigarettes was called Djarum Gramofon ; Gwan shortened the name to Djarum (needle).[5] The company nearly collapsed in 1963 when its factory was destroyed in a fire around the time of Oei's death. Oei's sons Budi and Bambang Hartono took over the company and began the process of rebuilding it.[5]

The company began producing machine-rolled kretek in the late 1970s, but it also continues to produce hand-rolled kretek made by manual labourers.[6] In 2016, Djarum and several other tobacco companies in Indonesia were implicated by Human Rights Watch for the use of child labor without hand protection.[7]

Through its expansion into various other non-cigarette sectors, including food, drink, banking, garments, and technology, in the 1980s and 1990s Djarum became one of the top five largest conglomerates within Indonesia. By 2010, Djarum Group was the largest conglomerate in Indonesia.

After the 1997 Asian financial crisis, the company became a part of a consortium that bought Bank Central Asia (BCA) from BPPN. BCA is the largest private bank in Indonesia and was formerly a part of the Salim Group. Presently, the majority stake of the bank (51%) is controlled by Djarum.[8] In 2004, Djarum acquired a 30-year BOT contract from the government to develop and renovate Hotel Indonesia in Jakarta under the Grand Indonesia superblock project.[9]

The Djarum badminton club, PB Djarum, was founded in 1974 by Budi Hartono. Its players, such as Liem Swie King and Alan Budikusuma, have won numerous championships for Indonesia.[10]

Djarum's kreteks enjoyed a high level of popularity among smokers in the United States during the clove cigarette fad of the 1980s.[11] Since 2009, most flavoured cigarettes in the United States have been banned following the passing of the Family Smoking Prevention and Tobacco Control Act. To circumvent the ban, Djarum's clove products are now marketed as "filtered cigars" and are wrapped in a black paper. They are packaged in boxes of 20.[12]

Non-cigarette business lines

• ALTO (interbank network)

• Bakmi GM (restaurant chain)

• Bank Central Asia (banking company)

• Blibli (e-commerce)

• GDP Venture (venture capital)

• Global Dairi Alami (dairy manufacturer, branded as MilkLife)

• Grand Indonesia (multipurpose complex)

• HPI AGRO (palm oil plantations company)

• Margo City (mall)

• Mola (over-the-top streaming service)

• Padma Hotels and Resorts (accommodations)

• Polytron (electronics & electric vehicle company)

• Sarana Menara Nusantara (telecommunications infrastructure company)

• Savoria (food and beverage manufacturer, branded as Yuzu, Fox's, 5 Days and Krizzi)

• SENT Entertainment (media company based in UK)

• Sumber Kopi Prima (instant coffee manufacturer, branded as Delizio Caffino and Kopi Tubruk Gadjah)

• Superlive.id (news platforms)

Involvement in sports

PB Djarum (badminton club funded by Djarum Foundation)
Sponsorship of Indonesian top league:
2005–2007 as Liga Djarum Indonesia[15]
2008–2011 as Djarum Indonesia Super League[16]
Como (football club) via SENT Entertainment[17]
Garuda Select (football talent development acceleration program)
Djarum Superchallenge Super Prix (local motorsport race in Indonesia)[18]

Products

Works cited

External links

References

Djarum Pt – Company Profile and News Bloomberg News, Bloomberg L.P., retrieved 6 September 2024^
Budi Hartono Bloomberg Billionares Index, Bloomberg L.P., 2024, retrieved 6 September 2024^
Elisa Valenta. From tobacco to banking, how Indonesia's Hartono brothers amassed a US$48 billion fortune