"I started the business with simple things: clothing, housing and roads"

What opportunities for the growth of his Lippo Group business empire now sees the 86-year-old Indonesian billionaire Mokhtar Riady. 
Within an hour's drive west of Jakarta, capital of Indonesia, the landscape is changing - the crowded bustling metropolis behind and eye pleasing green line orderly streets. This town of Lippo Karawaci - a flagship project of one of the most powerful diversified conglomerates in Indonesia, Lippo Group (see incision.). According to Forbes magazine, the founder of the state of the Lippo Group Mokhtar Riad in 2015 - $ 2.2 billion (9 th place in the ranking of "50 richest businessmen in Indonesia" and the 714-th place in the ranking of "The richest businessmen of the world").

"I started the business with simple things - clothes, food, housing and roads," - says the riad. Step by step he built a business empire that covers virtually all aspects of Indonesian life. Indonesian middle class can be born in a hospital in Lippo Group - Siloam Hospitals, calculated on 4800 places to live in one of the groups of apartments, attend based Riady University of Pelita Harapan, and even to be buried at the memorial cemetery of San Diego Hills Memorial Park (on the project spent $ 1.1 billion).

Lippo Group consists of a large number of public and private companies in the Indusnezii and beyond, so to estimate the real cost of the empire Riady difficult. Local media estimated assets Lippo Group to $ 11 billion. This estimate is too low, says riad, without naming, however, the real value of Lippo.
"The first 20 years were very hard"

With neatly combed hair parted on the side, wearing a brand-new 86-year-old Riady - a typical representative of the generation of powerful Chinese-Indonesian businessmen doing business for decades. Among them, the founders of other Indonesian diversified conglomerates - Salim Group and Sinar Mas. The emergence of ethnic Chinese in Indonesia dates back to the Dutch colonial power and raw material monopolies, which were required for the loan syndication service activities dictator Mohamed Suharto. (Suharto acting president of Indonesia from 1967 to 1968, was re-elected to the presidency seven times and led the country from 1968 to 1998. During his reign in Indonesia started to develop private business and there were powerful empires. The East Asian version of capitalism was unflattering epithet "capitalism for their". In 1997, Forbes estimated the state of the Suharto family to $ 16 billion. Transparency International called him the most corrupt leader in history who stole $ 35 billion. Created by the military and members of the Suharto family foundations owned large stakes in virtually all financial-industrial groups. Gains companies pumped into funds controlled by Suharto family and approximate, but he considered this the right system, as by funds financed scholarships, thousands of children's shelters have been built, schools and hospitals, mosques and hundreds of others -. "Vedomosti").

The discontent of the population activities of Suharto eventually grew by a wave of riots and pogroms that led to the fact that many ethnic Chinese entrepreneurs, such as the riad, began to hide the origin of a Indonesian names.

Riady was born in Malang in eastern Java (one of the provinces in Indonesia). He graduated from the Chinese University of Chung Yang in "philosophy". He returned to his homeland, but in 1947 was sent to the Dutch government in China for anti-colonial wateredmatic activity (Indonesia obey the Dutch before 1962).

He says that thinking about his life categories of 20-year cycles. "The first 20 years have been very, very difficult time for me, because I've been through four wars," - he says, sitting in his office, which is lined with shelves of books about the late Singaporean leader Lee Kuan Yew, the power of China and China's relations with Indonesia.

In the days of the first 20-year cycle Riad in China there was a civil war between the Communists of Mao Zedong and the nationalists, China itself fought against the Japanese occupation in Indonesia was gaining ground movement for independence of the country. In 1954 he moved to Jakarta. In the second 20-year cycle of life Riady became immersed in the Indonesian business community.
Omnivorous Riady

He began to work in a bicycle shop on East Java. Philosopher of Education has found a strong entrepreneurial streak, and with time his business has grown strongly. His name became known in the banking sector in Indonesia after the founder of the conglomerate Salim Group Sudono Salim hired him to withdraw from a major crisiseyshy private banks - Bank Central Asia. In this bank Riady worked from 1975 to 1990. In 1990, he founded his first own company Lippo Karawaci.

In 1996 Riady spent IPO Lippo Karawaci. Now it is the parent structure of the public group. According to the most Lippo Karawaci, currently it is the largest public company in the field of real estate management in Indonesia in terms of market capitalization, size of assets and income. Besides Indonesia has a representative office in China, the Philippines, Singapore, the US and South Korea.

Although Lippo Group is now better known for investing in real estate than in the banking sector, at first it was the opposite - the financial sector has been the main focus Riady: he owned Lippo Bank, which was later sold to Bank Niaga. "I began to work with the real estate by accident, - says riad. - In 1990, due to the economic downturn in Indonesia, many of our clients are faced with financial problems, some have not been able to repay the loans <...> so we had to do and real estate. "

Following the real estate interests Riady spread on the setGia areas - hospitality and entertainment industry, retail and media; financial services is still an important component of the group's business.

In the past year, due to growing concerns about the rapid depreciation of the currency of Indonesia and the sharp economic downturn, many economists have remembered the Asian financial crisis of 1997-1998.

Many entrepreneurs see a slowdown in economic activity, but most of them are in better shape than in 1997-1998., Says riad.

"I believe that the majority of Indonesian corporations have a very strong financial base," - he says. And one of them - Lippo Group, each year increasing the profits and an exciting new space for business.
Business in globalization

More recently, the Indonesian newspaper headlines with the name of Lippo. The Group has significantly expanded the number of shopping centers. To date, the network of hypermarkets Riady ousted the French Carrefour chain with the most attractive shopping areas of the country.

Have Lippo Group and other large-scale project: Unit groupsCinemaxX plans to build 1,000 new cinemas in the next five years. A coffee group Maxx Coffee grown in recent months across Jakarta like mushrooms after the rain, with a round green logo and modern interiors, they have a striking resemblance to the American network of stores under the brand Mahh.

Lippo Group recently bought the building US Bank Tower in Los Angeles, and in partnership with Japan's Mitsubishi is planning to implement development projects in the area of ​​Jakarta, Orange County. Success Riady - a grand ambition plus years of experience working with international investors. He is well aware of particular investors from different countries and uses this skill. US investors think shorter horizons, he says, but the relationship in Japan are constructed differently: "Become friends very difficult, it takes time, but if friends, friendship is very strong."

The main attention is now focused on Riady new trend - business capacity Internet, to increase its penetration in Indonesia. Last year, the Lippo Group launched MatahariMall electronic platform for online sales. "On the Aveotyazhenii 200 years the whole economy has been associated with the motor-generator is now connected with all the numbers, "- said the riad.
Grand old man with a tough character

Riady claims that he is driven by the pious Christian values ​​- to provide services to the public. But Lippo reputation in the business community is not flawless. The newspaper Jakarta Globe, has released the latest edition printed in 2015, was famous for the increased interest and broad coverage Lippo Empire. Son Riady - James was fined by the US Department of Justice for $ 8.6 million in 2001, after he admitted that he violated election laws by providing financial assistance to a family friend Bill Clinton in his race for the presidency.

As in most Asian countries, where large enterprises are family businesses and the younger generation usually receive their education abroad, analysts are closely watching the succession plan in Lippo. Now business groups are actively involved Riady sons: James operates and manages businesses in Indonesia, Stephen - in Singapore. Involved in the affairs of the family, and the third generation Riady - grandson of John. J.eyms and Stephen are the owners and Lippo Group companies.

Jean-Pierre Felenbok, Managing Partner of Bain in Jakarta, says of the family business in the region: "How to improve the professionalism of the company in such a control system without losing the values ​​laid down by the founders? Typically, the complexity is increasing at the second or third generation owners. " Lippo Group, it seems, as long as it does not threaten. John riad, a graduate of The Wharton School of the University of Pennsylvania, - a promising young businessman willingly engaged in the family business.

Despite the help of sons and grandson, the Riad spends in the office 12 hours a day. Strolling around the modern buildings of the Institute of Nanotechnology, bearing his name, the Riad says with a smile: "Older people are always talking about the past, but I'm young, so I'm talking about the future." Nanotechnology Institute - one of the examples of what Riady continues to keep pace with the times.

"Riady - one of the great masters of the Chinese business community, - said ex-Lippo Group top manager, who asked not to be named. - Can not believe what I had to endure the Chinese emigrants in the countries of Southeast Asia to the 1920s. Those who managed to survive in those hard times are hard in nature. It is unlikely that his empire could something happen without his knowledge. When the patriarch appears, the whole atmosphere is changing - it is still the driving force of the business. "

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