History of Gudang Garam Cigarettes
PT Gudang Garam Tbk is an Indonesia-based tobacco company. It is engaged in the provision of kretek cigarettes, including low-tar, low-nicotine variants and traditional hand-rolled kretek. The Company’s products include Klobot, Sriwedari, Djaja, Gudang Garam International, Gudang Garam Surya, Gudang Garam Surya 16 Exclusive, Gudang Garam Surya Professional, Gudang Garam Surya Pro Mild, Gudang Garam Surya Slims, Gudang Garam Signature and Gudang Garam Pro Mild.
The vision for today’s Gudang Garam success began back in 1958.
On 26th June 1958, Mr. Surya Wonowidjojo began the business as a ‘home industry’ selling the kretek cigarette product under the brand Gudang Garam. Using traditional tools, the company initially hired about 50 people only to make the initial production of Kretek Klobot Cigarettes (SKL), kretek cigarettes using dried corn husks as the
cigarette wrapper and Hand Made Cigarette (SKT) in the first factory located on the leased land of 1000m2 at Jalan Semampir II/I at Kediri, East Java. Gudang Garam initially produced about 50 millions cigarettes in 1959. In the beginning, the products were sold locally in the immediate Kediri area, but the Gudang Garam fame was soon to spread.
Within 10 years the popularity of the Gudang Garam brand led the founder to consider expansion. In 1969, the company changed its status from a sole proprietorship to a formal partnership. Bank Negara Indonesia (BNI) became Gudang Garam’s strong financial partner providing capital support, first in millions of rupiah and later in the billions as the company grew.
In 1971, the status of the company became a Limited Liability Company (PT) and obtained Domestic Capital Investment facilities. The new status allowed PT Gudang Garam to become more progressive in terms of production quality, management and technology. Then, in 1979, PT Gudang Garam began to produce Machine Made Cigarette. The production of Machine Made Cigarette did not affect its labor intensive principle, even It provided more job opportunities.
Mr. Surya Wonowidjojo, passed away in 1985. He left wonderful memories to the whole employees of PT Gudang Garam. In this time, the cigarette industry was becoming more competitive that caused the company to work hard in order to maintain its growth and its employees’ welfare the objectives of Mr. Surya Wonowidjojo.
In order to strengthen its capital structure and its financial position, PT Gudang Garam offered and sold a part of its shares to the public through the stock exchanges in Indonesia in 1990.
In 1991, PT Gudang Garam took a long-term strategic decision to diversify. In that year PT Gudang Garam developed an industrial paper business, by establishing PT Surya Pamenang that is also based in Kediri. Currently, 99% of PT Surya Pamenang’s shares are owned by PT Gudang Garam.
Prior to this move, the company was reliant on imported materials for packaging, but the entry into this new business assured the constant provision of high quality domestic-sourced packaging material. Today, PT Surya Pamenang has grown beyond the service needs of its parent, PT Gudang Garam, supplying both the wider domestic and overseas export markets..