Djoko Susanto, An international family kiosk

27 April 2023

Djoko Susanto was born as Kwok Kwie Fo in 1950 in Jakarta.

Being 6th of 10 brothers and sisters, he had a very formal and demanding education. However, when he was in elementary school, he was forced to drop out. At that time, Indonesian government did not allow young people with Chinese names to study in Indonesia. So he adopted an Indonesian name, Djoko Susanto, and studied outside of school. At 17, he started to work in his parents’ business, he managed a modest food stall in a traditional market in Jakarta. In 1976, a fire broke out causing the family business to lose 80% of its capital.

Afterward, Djoko decided to add sale of cigarettes to his stand, which became a real success. 

This strategy attracts attention of clove cigarette magnate Putera Sampoerna, who asks Djoko to work with him. In 1989, after several years of collaboration and experience in the family business, he decided to start his own business. This is how Alfa Minimart (later called Alfamart) was born. Djoko, who was grateful to Putera Sampoerna, asked him to join him in this adventure and soon, the company became a success, opening a number of stores, both owned and franchised. In 1999, Alfamart expanded to grocery stores.
This fantastic growth cannot be separated from Putera Sampoerna role, after he decided to join Alfamart. PT HM Sampoerna became a 70% shareholder and Djoko Susanto kept the remaining 30%.
In creating his company, Djoko has specific targets: to satisfy customers needs and expectations by focusing on quality products, to have ethical business practices and to develop an entrepreneurial spirit as well as a reliable and healthy organization. According to him, company development is based on good governance. Team spirit, integrity, innovation and productivity are values that he tries to uphold in his company, strongly impacting growth and allowing him to have an excellent reputation with his customers.

In 2002, Alfamart counted over 141 stores.

In 2006, PT HM. Sampoerna Tbk sold shares to PT Sigmantara Alfaindo de Susanto, parent company of Alfamart. Djoko Susanto acquired 60% of company’s shares while remaining 40% of company’s shares to a new shareholder, PT Mulia Prima Horizons. After reaching 3 300 stores and expanding business in Bali market, Djoko listed Alfamart on the Indonesian Stock Exchange.
Since then, Djoko’s company has continued to grow. In 2012, Alfamart had more than 7 000 stores and over 2.5M customers per day. To expand internationalization, Alfmart acquired Lawson, a convenience store franchise located in Japan, and then entered Philippine market through a partnership with SM Investments Corporation, a Filipino conglomerate.
Now PT Sigmantara Alfindo, owns largest chain of convenience stores called Alfamidi, operated by PT Midi Utama Indonesia Tbk, and Alfa Express, which also serves coffee and fast food. 
Djoko also managed to appropriate technological innovations by launching, in 2019, Alfagift, an Alfamart application that allows user to keep up with the latest promotions and get a special offer available only on request. In addition, in 2022, Alfmart signs a collaboration with PT WIR Asia Tbk, a virtual reality-based technology company, with the goal of expanding into the metaverse.

Today, Alfamart Group has over 16 492 stores in Asia, including 1 200 in the Philippines. 

In 2014, Djoko Susanto started to delegate company managment to his children. Indeed, of his 5 children, 3 hold positions of responsibility at Alfamart. His daughter, Feny Djoko Susanto, became chairman of the holding in 2014 and his youngest son, Budiyanto Djoko Susanto, vice chairman. Meanwhile, Djoko Susanto’s eldest son, Hanto Djoko Susanto, leads Alfaland’s real estate arm as chairman and CEO
Djoko Susanto lives with his wife in Jakarta and still owns 52% of Alfamart.

« The convenience store is always accused of hindering traditional markets. What it does is encourage the traditional market to improve its services »

IN A FEW FIGURES

  • Headquarters in Tangerang, Indonesia 
  • Founded in 1989
  • 2022 revenue: $6.5M
  • Net income 2022: $189M
  • Market capitalization: $7.5bn
  • 81 430 employees
  • 16 490 stores
  • Food = 67% of sales
  • Non-food = 33% of sales

THE DISTRIBUTION SECTOR IN INDONESIA

  • Average annual growth rate to 2026: 4.6%
  • 337 hypermarkets
  • 1 450 supermarkets 
  • 36 140 convenience stores 
  • 4 474 316 traditional grocery stores

At 73 years old, Djoko Susanto is the founder of Alfamart, a chain of convenience store. His fortune is estimated at €4.2 billion. (source: Forbes, April 2023)

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