Djarum: Hartono Overseas Investment Supports Tobacco Supply Chain

Swan.my.id - Jakarta, Djarum has confirmed a Bloomberg report about the Hartono family's transfer of USD1.4 billion, or around IDR24.6 trillion, overseas. The company said the investment represents business diversification aimed at strengthening the supply chain, particularly for the tobacco industry.

Djarum Manager of Corporate Communications Budi Darmawan said the overseas purchases involved paper factories used for cigarette production. He made the statement in a telephone interview with Sindonews on Saturday, September 12, 2026.

“Djarum acquired paper factories for cigarettes as part of business diversification,” Budi said. He also rejected the impression that the transactions reflected a move away from Indonesia because of domestic economic conditions.

Hartono Overseas Investment Described as Diversification

Budi explained that the acquisition timeline was important when assessing the transactions. According to him, the purchases began in 2023, during the administration of President Joko Widodo. He added that the acquisitions were conducted with foreign financing.

“If the timeline is examined closely, the acquisition began in 2023. That was during President Joko Widodo’s era,” Budi said. “It was also carried out with foreign financing.”

The explanation followed a Bloomberg report describing the Hartono family, regarded as Indonesia’s wealthiest family, as having made an uncommon move by investing abroad. The report said the family’s overseas investment reached at least USD1.4 billion.

Two Major Paper Industry Acquisitions

Bloomberg reported that the investment activity began in late 2023 through Evergreen Hill Enterprise Pte Ltd, a business group connected to the family. The company reportedly spent USD669 million to acquire a United States business focused on paper products.

About a year later, Evergreen carried out another acquisition. The company paid EUR360 million, or approximately USD418 million, to purchase an Austrian cigarette-paper producer.

These transactions were not the entire amount identified in the report. Company documents and people familiar with the group’s activities indicated that around nine entities linked to the Hartono family in Singapore and London had invested at least USD1.4 billion overseas.

Djarum Highlights Indonesia Commitment

Djarum emphasized that the Hartono family remains committed to contributing to Indonesia’s economic development. Budi said the owners’ goal was to help build the country’s prosperity and welfare.

He also stated that more than 90% of the family’s assets and businesses remain in Indonesia. The figure was presented as an indication that overseas acquisitions form part of a broader business strategy rather than a complete relocation of the group’s operations.

The acquisitions in the paper industry are linked to the tobacco business’s supply chain. By purchasing companies involved in cigarette-paper production, the group can diversify its business activities while supporting an industry-related supply requirement.

The report and Djarum’s clarification provide two perspectives on the transactions. Bloomberg highlighted the scale and international reach of the investment, while Djarum characterized the move as a strategic effort to diversify and strengthen its supply chain.

Investment Strategy and Domestic Operations

For Djarum, the central point is that overseas investment does not change the company’s stated commitment to Indonesia. The company continues to describe the country as the main base for the majority of its assets and business activities.

At the same time, the acquisitions show how Indonesian business groups can expand into related industries abroad. In this case, the focus remains connected to paper products and cigarette production, rather than an unrelated investment category.

The Hartono family’s overseas activity is therefore being presented by Djarum as a diversification strategy. The company’s statement also places emphasis on the timing, financing structure, and continued concentration of its business in Indonesia.