Gudang Garam Tbk.

Topics: Gudang Garam, Corporate governance, Kretek Pages: 8 (2556 words) Published: March 26, 2014
Overview
Gudang Garam cigarette company is one of the leading tobacco industry in the country which has been established since 1958 in the town of Kediri, East Java. The founder is Tjoa Ing Hwie, who changed his name to Surya Wonowidjojo. In 1984, control of the company was passed to Wonowidjojo's son, Rachman Halim, who subsequently became the richest man in Indonesia. Halim headed the company until his death in 2008. Until now, Gudang Garam already widely known both domestically and abroad as a producer of high quality cigarettes. Gudang Garam's products can be found in many variations, ranging rolled cigarettes klobot (SKL), hand-rolled clove cigarettes (SKT), up-machine-rolled clove cigarettes (SKM). For lovers of true clove, their commitment is to provide an irreplaceable experience in enjoying kretek made from high-quality choice. History

In his late twenties, Wonowidjojo got his big break 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 was soon rewarded by promotion to Head of Tobacco and Sauce and eventually led to him becoming a company director. Wonowidjojo left Cap 93 in 1956 taking fifty employees with him. He immediately started buying land and raw materials in Kediri and soon after 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 and a legend was born. The story behind the name "Gudang Garam" deserves a special mention. One night, Wonowidjojo had a dream in which the old salt warehouse, which stood across the way from Cap 93, featured prominently. Subsequently, Sarman, one of the original fifty employees who had followed him when he left Cap 93, advised him to put a picture of the warehouse on every packet of his kretek to secure good fortune. Wonowidjojo thought this was a good idea and asked Sarman to design the logo. Gudang Garam grew rapidly and by the end of 1958 it had 500 employees producing over 50,000,000 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. Other business enterprises competing with this brand tried to discredit the brand by attributing use of cannabis/Marijuana content in addition to cloves and tobacco. It has the distinction of being the largest single employer in Indonesia and Taiwan.

Corporate Governance
Board of Commissioners and Board of Directors Gudang Garam support the implementation of corporate governance practices and responsible in every aspect of the company to continue to strengthen the competitiveness of the Company. Audit Committee

The Audit Committee is an independent committee whose members are appointed by and responsible to the Board of Commissioners. The main duties of the Audit Committee are to assist the Board of Commissioners ensures the running and maintenance of good corporate governance practices and oversight are adequate. Internal Audit

Functions, duties and scope of internal audit work is governed by the Board of Directors. This includes the duty to examine the quality and reliability of financial statements, policies and procedures, ensuring an effective system of internal control in each unit, as well as asset security and routine checks over the company's operational efficiency levels. All Internal Audit reports submitted directly to the President Director. Company...
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