chapter  9
12 Pages

Case study 4: The Gajah Tunggal Group’s financial activities in the 1990s

The Gajah Tunggal Group, which was controlled by the Nursalim family, was one of the rapidly growing Indonesian business conglomerates in the 1990s, holding powerful positions in a few industrial concerns, and which attempted to aggressively diversify its business lines.1 The Gajah Tunggal Group is divided into the following six business segments: (i) financial services (commercial banking, non-bank finance, insurance, securities and so forth); (ii) manufacturing (tyre and related materials production, cable production and so forth); (iii) natural resources (shrimp farming and so forth); (iv) property; (v) retail and trading and (vi) international trading and investments. Among these, tyre production and commercial banking were the flagship businesses for the group.2