(March 19): Michael Hartono, an Indonesian billionaire and major shareholder of the country’s largest lender by market value, PT Bank Central Asia, has died. He was 86.
Hartono passed away in Singapore on Thursday afternoon, according to Budi Darmawan, corporate secretary of Djarum Group, one of Hartono’s companies. Together with his younger brother, Budi Hartono, 85, the pair have a combined net worth of around US$31 billion ($39.8 billion), according to the Bloomberg Billionaires Index.
Born on Oct 2, 1939 in Central Java, Hartono, along with his brother, took over his father’s cigarette factory in 1963 after a devastating factory fire. The two helped rebuild it and turned the company into one of Indonesia’s largest conglomerates, with interests in banking, technology and consumer goods.
Their most consequential move came after the Asian financial crisis in the late 1990s, when Indonesia’s banking sector collapsed under the weight of bad debt. Through their conglomerate, Michael and Budi acquired a controlling stake in BCA from the Indonesian Bank Restructuring Agency.
Under their ownership, BCA emerged as Indonesia’s largest private bank and one of its most profitable financial institutions, deeply embedded in the country’s payments and lending system.
The Hartono family later diversified further into electronics, telecommunications infrastructure, property and digital businesses, although banking remained at the core of their wealth.
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Michael Hartono’s death comes as Indonesian President Prabowo Subianto steps up government scrutiny of the nation’s richest families. Last year, Hartono’s nephew, Victor Hartono, was temporarily barred from leaving the country in connection with a tax-related corruption probe.
Unlike many tycoons, Hartono kept a very low profile. He rarely spoke to the media or appeared in public, preferring to work quietly behind the scenes. Bridge was among his passions and he represented Indonesia at the 2018 Asian Games.
Uploaded by Magessan Varatharaja
