The story of Sudono Salim, also known as Liem Sioe Liong, is an important chapter in Indonesia's economic history. His relationship with Soeharto, which began with supplying military logistics during the War of Independence, grew into a strategic collaboration spanning three decades under the New Order regime. This special closeness enabled Salim to build a massive business empire spanning the banking sector through Bank Central Asia (BCA), cement manufacturing through Indocement, to dominance in the food industry through Bogasari and Indofood.
However, the symbiosis that brought such glory turned into a double-edged sword when the economic crisis hit in 1998. Heightened public sentiment against the Soeharto regime dragged Salim's name along as a symbol of cronyism. The racial riots that erupted in May 1998 made Salim family assets a primary target of the mob's fury, as they were viewed as the party benefiting the most from their proximity to the rulers.
The tense security situation forced the Salim family to take emergency measures. Anthony Salim, Sudono Salim's son, even had to witness his family home in Roxy vandalized and burned by the mob. The attacks occurred not only at their private residence but also spread to their business offices and distribution facilities across various regions, including the looting of a factory in Solo and massive damage to hundreds of BCA branches.
The culmination came with Soeharto's downfall on May 21, 1998, marking the nadir of the Salim business empire. BCA, which was experiencing massive bank runs by customers, eventually had to be taken over by the government through the Indonesian Bank Restructuring Agency (IBRA/BPPN). Losing BCA forced the Salim family to totally restructure their business strategy, relying solely on their remaining lines of business.
After enduring difficult post-reform times, the Salim family gradually rebuilt their business foundation. Now, more than two decades later, the Salim Group empire has risen again and diversified its business wings into various strategic sectors, ranging from energy and construction to re-entering the banking sector, proving their resilience in adapting to the new national economic climate.
