Gudang Garam

Last updated
PT Gudang Garam Tbk
Type Public
Industry Tobacco
Founded26 June 1958;63 years ago (1958-06-26) in Kediri
Founder Tjoa Ing Hwie a.k.a. Surya Wonowidjojo
Headquarters Kediri, East Java, Indonesia
Key people
Cai Daoheng a.k.a. Rachman Halim, CEO (1984–2008)
RevenueIncrease2.svg Rp 110.5 trillion (2019)
Increase2.svg Rp 10.9 trillion (2019)
Total assets Increase2.svg Rp 78.647 trillion (2019)
Total equity Increase2.svg Rp 50.93 trillion (2019)
Number of employees
32,491 (2019)

PT Gudang Garam Tbk (Indonesian for "salt warehouse") is an Indonesian cigarette company, best known for its kretek (clove cigarette) products. It is Indonesia's second-largest tobacco manufacturer, with a market share of about 20%. [1] The company was founded on 26 June 1958 by Tjoa Ing Hwie, who changed his name to Surya Wonowidjojo (蔡云辉:Cai Yun Hui). In 1984, control of the company was passed to Wonowidjojo's son, Cai Daoheng (Rachman Halim), who subsequently became the richest man in Indonesia. Halim headed the company until his death at the age of 60 in 2008. [2]



Wonowidjojo was in his 20s when his uncle offered him a job working with tobacco and sauce at his kretek factory Cap 93. Cap 93 was one of the most famous kretek brands in East Java. Hard work and diligence were rewarded by promotion to Head of Tobacco and Sauce and eventually led to Wonowidjojo becoming a company director.

Wonowidjojo left Cap 93 in 1956 taking 50 employees with him. He started buying land and raw materials in Kediri and soon began producing his own klobot kretek, which he marketed under the brand name Inghwie. Two years later he renamed and registered his company as Pabrik Rokok Tjap Gudang Garam.

He chose the name Gudang Garam after a dream about the old salt warehouse which stood opposite Cap 93. Sarman, one of the original 50 employees who had followed him when he quit Cap 93, suggested he put a picture of the warehouse on every packet of his kretek for good luck. Wonowidjojo considered this a good idea and asked Sarman to design the logo, commenting: "We should leave two doors open, two half-opened and one closed. If all the doors were closed, we would feel that everything had already been achieved." [3]

Gudang Garam grew rapidly and by the end of 1958 it had 500 employees producing over 50 million kretek annually. By 1966, after only eight years in production, Gudang Garam had grown to be the largest kretek factory in Indonesia with an annual production of 472 million sticks. Consumers have noted Gudang Garam's, particularly the Inghwies, similar smell to alcoholic beverages.

By 1969, Gudang Garam was producing 864 million sticks a year and was indisputably the largest kretek producer in Indonesia and Taiwan.

In 1979, Wonowidjojo completely renovated Gudang Garam's production system, ordered thirty rolling machines and developed a new formula for his machine-made kretek.

Rival companies tried to discredit the brand by claiming its contents included marijuana in addition to cloves and tobacco. The company has the distinction of being the largest single employer in Indonesia and Taiwan.

During the night in the city of São Paulo, Gudang Garam brand cigarettes were used as a means of exchange due to hyperinflation in Brazil. This currency crisis caused many Brazilians to look for alternatives to the government's bankrupt currency, according with Holding Times


Other interests

Gudang Garam owns one of the top five badminton clubs of Indonesia. Suryanaga Gudang Garam is based in the capital city of East Java, Surabaya.

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  1. Zulkifar, Muhammad (6 February 2018). "As the Rest of the World Quits, Indonesia's Smokers Increase". Asia Sentinel. Retrieved 11 April 2018.
  2. Ghosh, Arijit (29 July 2008). "Made billions from clove cigarettes". Montreal Gazette. Bloomberg. Retrieved 13 April 2018.
  3. Mark Hanusz (2000). Kretek: The Culture and Heritage of Indonesia's Clove Cigarettes. Equinox Pub. p. 150. ISBN   978-979-95898-0-4.