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The crisis has struck all the Mulia Group's core businesses in the property sector, particularly the construction of office buildings, the sheet and flat glass industry and the ceramic the industry. Most of the office buildings owned by this group have been abandoned by the leasees because their business activities have ground to a halt.

The Mulia Group was originally known as the Property King in Jakarta's Golden Triangle Business area, as it controlled several office buildings in this area. However it is quite possible that ownership of these office buildings may have to be transferred to other owners, including foreign investors, as the Mulia Group depended greatly on overseas creditors for the financing of these buildings. When the crash in the property sector came, the Mulia Group was no longer able to pay its mountainous debts. Thus the creditors will most probably take over the assets of the Mulia Group as compensation for non-performing loans.

The collapse of Mulia Group's property business has had a chain effect on the other core businesses which have very close links with the property sector - the sheet and fiat glass industry and the ceramic the industry which were developed to meet demand from the property sector. Thus the collapse of the property sector has had a direct impact on support industries. It will be tremendously difficult for the Mulia Group to survive in these circumstances.

Problems of the financial sector obvious in the IBRA report

Indicators of the poor financial performance of the Mulia Group are obvious in the IBRA report which was published in June and announced the 1,689 companies with non-performing loans. This report put the Mulia Group in the category of above 5 which indicates the inability of a company to pay its debts to the creditor which may be a liquidated bank, a nationalised bank (BTO) or a bank whose operations have been frozen. The criteria of 1 to 4 indicates that the bank still considers the company with the debt to be in a reasonable position because its company is still operative. From the hundreds of companies in this list there are 6 companies in which the Mulia Group owns shares. When totalled, this group's financial responsibilities to IBRA total around Rp. 1 trillion.
Table - 1
Non-performing loans of various subsidiaries of the Mulia Group,
as of June 1999

No. in IBRA Name of company Debt value
list (Rp' billion)

 42. Mulia Intan Lestari Swakarsa, PT 631.10
 137. The First National Glassware, PT 226.22
 339. Jaya Sumpiles Indonesia, PT 90.60
 578. Pertama Metal Perkasa, PT 44.27
 1213. Mulia Keramik Indah Raya, PT 11.00
 1215. Mulia Glass, PT 11.00

 TOTAL 1,014.19

Source: IBRA/Data Consult

In the category of those under critical scrutiny for CCN

Another problem being faced by this group is the accusation of CCN (Corruption, Collusion, Nepotism) as this conglomerate is known to be quite close to the Maharani/Datam group owned by Siti Hediati Prabowo and other conglomerates which are close to the Cendana family. The facilities which have been given this group include the completion of the Taman Anggrek Mall and apartment project in which Siti Hediati Prabowo undisputedly played a role along with Peter E Gontha who more recently became an investor in this project.

Then, along with Sudwikatmono (the Subentra Group) this group, through P.T. Bumi Mulia Perkasa Development, built the Lippo Life building in Rasuna Said Rd. with an area of 19.035 m2 of office space for rent. With Anthony Salim (Salim Group), Andree Halim (the Salim Group) and Mochtar Riady (the Lippo Group) Mulia was involved, through the company P.T. Bahana Dharma Utama, in the construction and management of approximately 20 Bank Central Asia buildings.

Along with Sudwikatmono, the Mulia Group, through P.T. Jaya Sumpiles Indonesia, invited foreign investors from Singapore to participate in the establishment of a foundation piling works, civil engineering and mining contracting ventures.
Table - 2
Profile of the Mulia Group


Holding company : BERSAMA MULIA, PT
Address : Kuningan Plaza North Tower 10th Floor
 Jl. HR. Rasuna Said Kay. C 11-14
 Jakarta 12940
Phone(s) : (021) 5207729, 5200959, 2526688
Fax : (021) 5200795, 5253251, 5203398, 5200763
Telex : 62852 KPBLD IA, 62348 BMULIA IA
Number of company : 41 companies
Core business : -Industry:
 Ceramic industry, flat glass, foundation
 works, glass tableware, sheet glass,
 piling, others.
 Apartment, hotelry, office building,
 mall, superblock & shopping centre
 Apartment management and rent services,
 Office building, shopping centre/mall.

Total asset : 1998 - Rp 11,500 billion (estimate)
Sales turnover : 1998 - Rp 395 billion (estimate)

Chairman : -Mr. Joko Sugiarto Tjandra
Other key persons : -Mr. Eka Tjandranegara
 -Mr. Gunawan Tjandra
 -Mr. Tjandra Kusuma

Source:Data Consult

First involved in trading

Eka Tjandranegara, the founder of the Mulia Group, entered the business world in 1984 through P.T. Mulia Persada Gemilang. This company, founded by Eka and his brother, Joko Soegiarto Tjandra, started off in the trading sector. Under their leadership P.T. Mulia Persada Gemilang, progressed steadily and was able to expand to various sectors such as the glassware industry, property, development and office management.

The Mulia Group also reached out to other countries, such as Singapore and Holland. In Singapore, this conglomerate has 2 affiliates, Sum Cheong Pte. Ltd. and Sumpiles Investment of Singapore. Then in Holland, the Mulia Group established Mulia Industrindo Finance BV.

Developing rapidly in the 1990's

In the 1980's Eka Tjandranegara became well-known because at that time he was actively developing his business kingdom. Not only was he the conceptor, but also the executor in the development of his businesses.

Entering the decade of the 1990's, when his business was beginning to expand, Eka gradully began to reduce his role as an active player in the business world and began to concentrate on the role of conceptor, playing a role behind the scenes. Thus his younger brother, Joko Soegiarto Tjandra, took over his role of active involvement on the field.

Under the leadership of Joko, the Mulia Group's business expanded rapidly, particularly in the property business, becoming the leader in the field of office buildings in Jakarta. However, it was under the leadership of Joko that the Mulia group also experienced the gloomy period when the property sector was struck hard by the economic crisis which has not yet come to an end.
Table 3
Companies in which Mulia Group has shares

Name of company Line of business

Industry :
-First National Glassware Ltd.,
 PT Glass tableware fabrication
-Jays Sumpiles Indonesia, PT Piling and foundation works
-Muliaglass, PT Sheet and flat glass industry
-Mulia Industrindo Tbk, PT Glass and ceramic industry
-Mulia Keramik Indahraya, PT Ceramic industry

-Arthaguna Adhistama Mulia, PT Superblock Development
-Bersama Mulia, PT Property, holding company
-Bumi Mulia Perkasa Development,
 PT Office building development
-Cipta Pusaka Indah, PT Property
-Five Pillars Office Park, PT Office building development
-Mulialand Tbk, PT Property, investment
-Mulia Cemerlang Dianpersada, PT Office building development
-Mulia Graha Tatalestari, PT Office building development
-Mulia Graha Tata Indah, PT Office building development
-Mulia Indoland, PT Office building development
-Mulia Intan Lestari Swakarsa, PT Apartment development
-Mulia Inti Pelangi, PT Shopping centre/Mall
-Mulia Karyagemilang, PT Office building development
-Mulia Permadi Pacific, PT Office building development
-Mulia Persada Gemilang, PT Office building development
-Mulia Persada Pacific, PT Office building development
-Mulia Persada Tats Lestari, PT Office building development
-Mulia Sentra Gunaswakarsa, PT Office building development
-Sanggar Mulia Tata Lestari, PT Office building development
-Sanggar Mustika Indah, PT Office building development
-Tri Dharma Sakti Indah, PT Office building development

Services :
-Anpa International, PT General contractor
-Bahana Dharma Utama, PT Office building rent services
-Muliabatara Semesta, PT Shopping centre/mall management
-Sanggarcipta Kreasitama, PT Office building management
-Widya Dharma Bina Usaha, PT Management consulting

Company abroad :
-Sum Cheong Pte. Ltd.,
 (Singapore) Pilling and foundation work
-Sumpiles Investment of Singapore Investment for trading
-Mulia Industrindo Finance BV.
 (Belanda) Finance

Source:Data Consult
COPYRIGHT 1999 P.T. Data Consult, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Jul 27, 1999

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