Friday, August 23, 2019

The Origins of Lippo Group

Spectr News Theme Victoria Tunggono
14, March 2016

Lippo Grup is one of the giant companies in Indonesia. This company is even well-known internationally, especially in the Asia and the United States.

The company was established by a financier Mochtar Riady. He is called as The Magic Man of Bank Marketing because of his good reputation both as a banker and financier. He is also known as a figure whose always brings the bank under his management forward.

He started his career in the banking by working at Bank Kemakmuran. In 1964 he moved to Bank Buana and in 1971 moved again to Bank Panin, until in 1975 he joined Bank Central Asia (BCA) and became the trusted person of Sudono Salim (Liem Sioe Liong). In BCA, he gets share as big as 17.5%. In 1981, he bought most of the share of Bank Perniagaan Indonesia that belonged to Hasyim Ning.

When Mochtar Riady bought it, the Hasyim Ning’s family asset decreased to only Rp16.3 billion at the time. In 1987, Mochtar joined the Bank Perniagaan Indonesia. After that, the bank asset shoots up to 1500% or as much as Rp257.73 billion! Only 2 years later he joined the Bank Umum Asia and gave birth to Lippo Bank, which would then become Lippo Grup.

Currently Lippo Group has been vastly growing and has over 50.000 employees in many fields. They cover the financial, property and urban development, infrastructure construction, industry, and many others.

For the financial services, they have banks, insurance, investment, security, asset management, and mutual funds. For the property and urban development, they serve the development of satellite city, housing, business district, condominium, shopping centers, and entertainment centers.

Meanwhile for the infrastructure construction includes power plant, gas production, distribution, main road construction, construction of clean water supply, and communication infrastructure. Almost all of infrastructure is based in a foreign country, Hong Kong.

In the industry, they work in the industry of electronic component, automotive component, cement industry, porcelain, also charcoal and natural gas. Few of their products are the refrigerator and AC of Mitsubishi brand for the electronic component, and gear cable and automotive component.

Lastly, Lippo Group has developed the services field such as information technology, retail business, recreation, entertainment, hotel, hospital, and education. One of the satellite cities they have developed is Karawaci, where Pelita Harapan University and Siloam Gleneagles hospital are located here.

Just recently the company develops a new e-commerce site, Matahari Mall. The ad is shown in many digital platforms. Now Lippo Group is managed by James Riady, the son of Mochtar Riady. In time, the company is always growing and becomes one of the giant companies in Indonesia that counts.

Victoria Tunggono
Victoria Tunggono