Eka Tjipta Widjaja - Photo by Sinar Mas

JAKARTA (TheInsiderStories) – Freddy Widjaya, son of Sinar Mas Group founder Eka Tjipta Widjaja, filed a lawsuit against his five stepbrothers related to the inheritance rights of his father in the Central Jakarta District Court. The lawsuit was filed on June 16, 2020, through its attorney Yasrizal.

Referring to the Court official statement, Freddy is suing his half-brother, Indra Widjaja or Oei Pheng Lian, Teguh Ganda Widjaja or Oei Tjie Goan, Muktar Widjaja or Oei Siong Lian, Djafar Widjaja or Oei Piak Lian and Franky Oesman Widja or Oei Jong Jjie Nian.

The inheritance includes ownership in PT Sinar Mas Agro Resources and Technology Tbk (IDX: SMAR) with a total asset value of Rp29.31 trillion (US$20.64 billion). Then, PT Sinar Mas Multi Artha Tbk (IDX: SMMA) with Rp100.66 trillion, Sinar Mas Land of $ 7.76 billion, and PT Bank Sinar Mas Tbk (IDX: BSIM) of Rp37.39 trillion.

Furthermore, PT Indah Kiat Pulp & Paper Tbk (IDX: INKP) with $8.75 billion, PT Tjiwi Kimia Tbk Paper Factory (IDX: TKIM) of $2.96 billion, PT Lontar Papyrus Pulp & Paper Industry of $1.99 billion, and PT Bank China Construction Bank Indonesia Tbk (IDX; MCOR) with Rp16.20 trillion.

Then, Asia Food and Properties Limited with Rp80 trillion, China Renewable Energy Investment Limited of Rp5.31 trillion, PT Golden Energy Mines Tbk (IDX: GEMS) with $780.64 million, and Paper Excellence BV Netherlands of Rp70 trillion.

Commenting the lawsuit, Sinar Mas Managing Director Gandi Sulistiyanto, explained the lawsuit had nothing to do with the late Eka Tjipta Widjaja and Sinar Mas Group.
“Freddy Widjaja is an outside married child of Mrs. Lidia Herawaty Rusli. He has obtained the right in accordance with the will of the late Mr. Eka Tjipta Widjaja,” Gandhi said in a statement.

“He [Freddy] does not have shares in the companies, so the lawsuit has no legal basis. So basically Sinar Mas has nothing to do in this case,” he added.

Eka Tjipta Widjaja passed away in January at 98, leaving behind a solid family business that has survived economic turmoil to thrive. Widjaja, born in Quanzhou, China as Oei Ek Tjhong, was transformed into one of the great tycoons in Asia. Forbes noted his wealth in 2018 reached $8.6 billion. Widjaja, who became a trader of coconut and palm oil at the age of 15 before building a multi-billion dollar empire with a business that included paper and pulp for financial services.

Indonesia’ Sinar Mas founder is the fourth richest in the country with a net worth of $9.3 billion, according to the Bloomberg Billionaires Index. Having defaulted $14 billion in the 1998 crisis, the tycoon managed to restructure debt and rebuild his business, which employs around 380,000 people in Indonesia.

Asian financial crisis forced the group to give up control of its flagship bank, PT Bank Internasional Indonesia, after choosing a bailout from the central bank. Widjaja moved back to banking by acquiring PT Bank Shinta Indonesia in 2005 and renamed it PT Bank Sinarmas.

Widjaja’ business empire is now run by her children and grandchildren. Companies under the Sinar Mas group include Golden Agri Resources Ltd. listed in Singapore, one of the largest palm oil producers in the world, and Bumi Serpong Damai, the largest listed property company in Indonesia.


Written by Staff Editor, Email: theinsiderstories@gmail.com