Jakarta, CNBC Indonesia – Who doesn’t know Matahari Department Store, a company that provides fast fashion products that can often be found in shopping centers in Indonesia.
Just so you know, originally Matahari was a clothing store called Mickey Mouse in Pasar Baru, Jakarta, which was founded by Hari Darmawan in 1960. The Mickey Mouse shop sells imported clothes and its own brand made by Hari Darmawan’s wife, known as MM Fashion.
Mickey Mouse’s business for the first five years was successful. They have their own market. However, Hari Darmawan harbored jealousy towards the shop next door called De Zion.
This is because the Dew Zion store is always busy and visited by rich people. Attempts to copy De Zion’s success have always been made, but to no avail.
Until finally, the desire to acquire the store reappeared in 1968. It was heard that the owner of De Zion wanted to sell his shop. Instantly, Hari Darmawan rushed to buy it.
Quoting Kristin Samah & Sigit Triyono in Matahari Business Philosophy (2017), with a US$ 200 million loan from Citibank Hari Darmawan successfully acquired two De Zion stores in Jakarta and Bogor. De Zion immediately changed its name to ‘The Sun’.
“De Zion in Dutch means the Sun,” said Hari Darmawan, as quoted by Muhammad Ma’ruf in 50 Great Business Ideas From Indonesia (2010).
To develop his new store, Hari copied a Japanese retail store, Sogo Department Store. He wants Matahari to be like Sogo, who sells clothes as complete as possible so consumers can choose the best and cheapest items.
As a result, thanks to imitating Sogo’s strategy, Matahari also received many visitors. The sun then grew rapidly throughout the years 1970-1980.
The outlets sell not only clothes, but also jewelry, bags, shoes, cosmetics, electronic equipment, toys, stationery, books and more. This rapid development allowed Hari to open other outlets outside the city in the 1990s.
Almost all cities in Indonesia have Matahari. No one does not know the Sun. In fact, because of the glory of Matahari they finally took the floor on the stock exchange.
In 1989, PT Matahari Department Store Tbk officially sold its shares to the public with the issuer code LPPF.
Even so, Matahari’s greatness did not make Hari Darmawan complacent. Even though he is already king, he wants to make Matahari an important retail business center in Indonesia. The ambition is big, to make 1,000 Matahari outlets.
At the same time, this wish was heard by James Riady, a young banker and son of the conglomerate founder of the Lippo Group, Mochtar Riady.
James Riady intends to give Hari Darmawan a loan of IDR 1.6 trillion. Hari Darmawan agreed and got a loan of that size with low interest. However, this is where the problem lies and Hari Darmawan never expected it.
Still citing 50 Great Business Ideas From Indonesia (2010), shortly after the loan was disbursed, James Riady intended to do retail business as well.
He actually brought a well-known retail brand from the US to Indonesia, namely WalMart. Interestingly, WalMart was founded right in front of the Sun. So, when there’s the Sun, there’s got to be a WalMart. The case is similar to that of Indomaret and Alfamart which are always close together.
The emergence of WalMart is clearly a red signal for business competition for Matahari. However, Hari Darmawan still doesn’t want to be outdone by his competitors and lenders. He remains focused on running the Sun. And in reality, WalMart lost its competitiveness and Matahari remains king.
However, in 1996 shocking news came. Hari Darmawan and Matahari who are in their heyday
Hari Darmawan suddenly accepted an offer to buy Matahari from James. This means that since then Matahari, which has an turnover of Rp. 2 trillion, has officially become the Lippo Group.
This sale gave rise to wild speculation. Because, many are surprised because Matahari at that time was very successful and victorious. Hari Darmawan can’t possibly go bankrupt because the sun will definitely run.
Since the acquisition, Matahari has officially become the property of the Lippo Group. Hari Darmawan’s name slowly began to fade.
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2023-06-04 07:30:00
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