Central Cipta Murdaya

(PT Hardaya Sawit Papua, PT Hardaya Sugar Papua)

An Indonesian conglomerate that is actively pursuing plans for sugar and oil palm development.

Last Updated 28/07/13

Company Description: Central Cipta Murdaya is a diverse conglomerate. A principle focus is the ICT sector through the Berca company, and the company is well-known for being the Indonesian manufacturer of Nike shoes. It also controls a forestry business in East Kalimantan under the name Intracawood.

Owned by: Husband and wife team Murdaya Widjawimarta Poo and Siti Hartati Murdaya run the various companies under the umbrella of Central Cipta Murdaya. Well known as cronies of Suharto, much of their initial fortune came from privileged access to state electricity company PT PLN contracts.1 They are practising Buddhists and leaders of the Buddhist organisation Walubi which during Suharto’s New Order period was the only Buddhist organisation allowed to operate in Indonesia. The couple were ranked at number 14 in Forbes list of the richest Indonesians in 2011.

Plans in Merauke: Three plantation proposals in Merauke can be linked to Murdaya Poo and Siti Hartati Murdaya’s empire: an application under the name PT Central Cipta Murdaya itself, and two more as PT Hardaya Sugar Papua and PT Hardaya Sawit Papua, which is hoping to plant oil palm. The general director for infrastructure at the agriculture ministry, Sumarjo Gatot Irianto, said in August 2011 that he believed that the Murdaya Group companies would commence operations in 2013.2 A Supreme Court decision in August 2011 gave PT Hardaya Sawit the green light to operate after a long running legal battle with PT Sawit Nusa Timur, who had mounted a legal challenge after their previous permit was cancelled in favour of PT Hardaya Sawit Papua.

Stories from the ground: In 2011 employees from PT Hardaya Sugar Papua had been approaching the people of Kampung Koa, but the people refused to sell their land.3 In April 2011 Merauke’s Bupati, Romanus Mbaraka, anticipating that Murdaya group plantations would be the next to start operations, announced that the local government would intervene in mapping the traditional land use rights, including the rights held by each clan, to avoid a repetition of conflicts such as that which happened between Medco and the villagers of Sanggase.4

(UPDATE) As of July 2013, all three companies belonging to the group were reported to be actively pursuing permits, including the environmental impact assessment. The PT Central Cipta Murdaya concession has reportedly paid some indigenous people for their land, but has not commenced land clearing. PT Hardaya Sugar Papua and PT Hardaya Sawit Papua are believed not to have bought any land.

Business is undoubtedly more complicated for this group after several leading figures, including Siti Hartati Murdaya, were convicted of graft for bribing the Bupati of Buol Regency in Central Sulawesi  with $3 billion rupiah to operate a plantation. Siti Hartati was sentenced to 32 months in prison, and company director Totok Lestiyo is still being investigated by the Corruption Eradication Commission.5

Address: CCM Building, 78 Jl. Cikini Raya, Jakarta, 10330, Indonesia

Tel. 213149088

1. http://www.angelfire.com/rock/hotburrito/tni/2aditjondro201100.html

2. http://www.bisnis-kti.com/index.php/2011/08/food-estate-di-merauke-masih-tunggu-rtrw/

3. http://blog.insist.or.id/sorak/archives/1546

4. http://www.bintangpapua.com/tanah-papua/9936-pemkab-jembatani-perusahaan-dengan-pemilik-ulayat

5. http://www.thejakartaglobe.com/news/kpk-names-new-suspect-in-hartati-palm-oil-corruption-probe/

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