Susilo Wonowidjojo's wealth has further declined this year as the stock of his family's cigarette manufacturer Gudang Garam continues its three-year slump amid the Indonesian government's anti-smoking campaign. His net worth dropped by 27% to $3.5 billion, placing him at 14th on Indonesia's richest 50 list, down seven spots from last year.
Despite a slight improvement in sales during the first nine months of 2022, net profit has decreased by 64% year-on-year to 15 trillion Indonesian rupiahs (96 million US dollars), primarily due to the government's increase in tobacco consumption tax in January (following a 27% drop in revenue in 2021). Taxes make up over 85% of the company's total sales costs, resulting in a profit margin of 1.6%, down from 4.4% last year. Additionally, in November, Finance Minister Sri Mulyani Indrawati announced additional tax increases in 2023 and 2024. The company has stated its plans to raise prices.
In recent years, Indonesia has strengthened its measures to combat smoking, especially among young people. Approximately one quarter of the country's 276 million population smoke cigarettes. Overseas sales for Gudang Garam have also declined, dropping nearly 15% year-on-year in 2021 to 1.8 billion cigarettes. The company diversified its operations in 2019 with the construction of toll roads and is currently building the Dhoho airport in Kediri, East Java at a cost of 600 million dollars, which is expected to open in October of next year.
Gudang Garam was founded in 1958 by Susilo's father, Surya Wonowidjojo. Since 2009, Susilo has served as the CEO of the Kediri-based company, with his sister Juni Setiawati serving as the executive commissioner. In June, Susilo's son Indra was appointed as the Vice President Director.
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