chapter  7
Case study 2: The Lippo Group’s financial activities in the 1990s
Pages 14

The Lippo Group, which was founded on Mochtar Riady’s financial expertise, is a relatively young business group based in Indonesia, and at the outset, the Riady and the Salim families held equal shares.1 However, in the early 1990s, the Riady family obtained full control of the Lippo Group by exchanging its BCA shares with the Salim Group for its shares in the Lippo Group. Mochtar Riady resigned from his management positions of BCA and concentrated the family’s capacity, that is, capital and reputations earned by virtue of Mochtar’s financial expertise, into the Lippo Group.2 Since then, it has grown rapidly into one of the leading Indonesian business groups. Furthermore, Mochtar gradually handed over management of the group to his two sons: James Riady and Stephen Riady. J. Riady has managed the Indonesia operation and S. Riady the overseas affairs. Mochtar has supervised both sons, and when problems emerged he took direct control of the management.