Oei Tiong Ham
Encyclopedia
Oei Tiong Ham (1866–1924) was a Chinese businessman. He was the son of Oei Tjie Sien , the founder of the Kian Gwan Kong Si , a multinational trading company. He was born in Semarang
, Central Java
, Dutch East Indies
(now Indonesia
). He became one of the wealthiest and most powerful men in Semarang and, in his time period, in the region. Part of his wealth originates from his involvement in the sugar industry. In Singapore
, a road was named after Oei Tiong Ham. There is also an Oei Tiong Ham Park, which is located near Holland Road
. His nickname, "Man of 200 Million", originates from the passing of his 200 million guilder estate at the time of his death in 1924 in Singapore.
during the late colonial era and early Indonesia
n independence period.
The OTHC originally started with the trading firm of Kian Gwan, established in 1863 by Oei Tje Sein, Oei Tiong Ham's father. In 1890, Oei Tiong Ham took over the firm Kian Gwan which diversified and grew into one of the largest firms in Southeast Asia
. At the time Tiong Ham took over the firm, Kian Gwan’s main activity was trade, especially trade in rubber, kapok
, gambir
, tapioca and coffee. In addition, it was involved with pawnshops, postal services, logging and the highly lucrative opium
trade. It has been estimated that between 1890 and 1904, Kian Gwan made a profit of some 18 million guilders in the opium trade alone, which provided the basis for his empire.
Unlike many of his Chinese
contemporaries, Oei Tiong Ham relied heavily on written contracts in conducting his business. This did not make him popular in Chinese circles but it provided him with a legal basis to acquire the collateral for the loans he extended. Among his main debtors were often owners of sugar factories in East Java
and when these factories were unable to repay the loans, due to the long-lasting effects of the sugar crisis of the 1880s he used his rights as a creditor. In this way he acquired five sugar factories. Sugar
now became the backbone of the company and would remain so for the next several decades.
In the period between the 1890s and the 1920s, OHTC grew and diversified rapidly. It started branches in London
and Singapore
, created a bank, a steamship business and had a large wholesale business. Of all the ethnic Chinese business conglomerates in pre-war Asia, the Oei Tiong Ham concern was by far the largest. The company was even larger than the well-known "Big Five" Dutch
trading companies that supposedly dominated the foreign trade of the Indies. The OTHC was strong in foreign trade, particularly in China. The basic strategy of the company was to take advantage of the opportunities on the world market for commodities produced in Indonesia
. In 1912, Kian Gwan, the trading branch of the conglomerate was capitalized at fifteen million guilders, double the amount of the largest Dutch firm Internatio.
During the post-war boom of 1918-1920, the worldwide demand for Java
sugar was high, creating many opportunities for sugar-mill owners and sugar brokers. But fortunes gained were easily lost in a couple of days. Oei Tiong Ham followed a cautious policy during these boom years. He did not speculate too heavily and took steps to improve its financial administration. Oei Tong Ham recruited talented accountants to set up a modern accounting system for the sugar factories. Due to the cautious and independent strategy, the company survived the subsequent sugar crisis while many other Chinese firms perished.
Besides making use of written agreements and a modern accounting system, Oei Tiong Ham also diverted from yet another Chinese business practice of the time. Instead of relying solely on family members in running his wide ranging business enterprises, he deliberately chose capable outsiders, such as Dutch
directors, managers, and engineers to manage his companies. In 1920, Oei Tiong Ham left Semarang
and settled in Singapore to escape Dutch colonial succession law and tax regime. Having eight wives and twenty-six official children, inheritance became important issues. He decided to hand his daughters and some of his sons cash, and make eight of his sons his rightful heirs, dividing among them an inheritance worth two hundred million guilders. Since only two of them, Oei Tjong Swan and Oei Tjong Hauw, had reached maturity
, immediate succession did not seem to give too many problems.
One of Goei Bing-nio's sisters was unable to have children and hence adopted 2 girls from her husband's brother. These 2 girls both became Oei Tiong Ham's concubines. The younger of the 2 sisters, Lucy Ho (or Hoo Kiem Hoa), moved to Singapore with Oei and lived with him until his death. One of Oei Tiong Ham's sons with Lucy Ho later married his own granddaughter - the daughter of his son, Oei Tjong-Swan.
, his second daughter from his first wife, believed that he was poisoned to death by Lucy Ho, his mistress at the time of death. His body was shipped to Semarang for burial in his father's tomb.
Semarang
- Economy :The western part of the city is home to many industrial parks and factories. The port of Semarang is located on the north coast and it is the main shipping port for the province of Central Java. Many small manufacturers are located in Semarang, producing goods such as textiles,...
, Central Java
Central Java
Central Java is a province of Indonesia. The administrative capital is Semarang. It is one of six provinces on the island of Java.This province is the province of high Human Development in Indonesia and its Points Development Index countries is equivalent to Lebanon. The province of Central Java...
, Dutch East Indies
Dutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
(now Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
). He became one of the wealthiest and most powerful men in Semarang and, in his time period, in the region. Part of his wealth originates from his involvement in the sugar industry. In Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, a road was named after Oei Tiong Ham. There is also an Oei Tiong Ham Park, which is located near Holland Road
Holland Road, Singapore
Holland Road is a long road in Singapore, running roughly east-west linking Clementi in the west to the Singapore Botanic Gardens where it joins Napier Road and then Orchard Road....
. His nickname, "Man of 200 Million", originates from the passing of his 200 million guilder estate at the time of his death in 1924 in Singapore.
Life
The significance of Oei Tiong Ham is related to his role with the Oei Tiong Ham Concern (OTHC), which was the largest conglomerate in the Dutch East IndiesDutch East Indies
The Dutch East Indies was a Dutch colony that became modern Indonesia following World War II. It was formed from the nationalised colonies of the Dutch East India Company, which came under the administration of the Netherlands government in 1800....
during the late colonial era and early Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
n independence period.
The OTHC originally started with the trading firm of Kian Gwan, established in 1863 by Oei Tje Sein, Oei Tiong Ham's father. In 1890, Oei Tiong Ham took over the firm Kian Gwan which diversified and grew into one of the largest firms in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
. At the time Tiong Ham took over the firm, Kian Gwan’s main activity was trade, especially trade in rubber, kapok
Kapok
Ceiba pentandra is a tropical tree of the order Malvales and the family Malvaceae , native to Mexico, Central America and the Caribbean, northern South America, and to tropical west Africa...
, gambir
Uncaria
Uncaria is a genus of flowering plants in the family Rubiaceae. It has about 40 species. Their distribution is pantropical, with most species native to tropical Asia, three from Africa and the Mediterranean and two from the neotropics. They are known colloquially as Gambier, Cat's Claw or Uña de...
, tapioca and coffee. In addition, it was involved with pawnshops, postal services, logging and the highly lucrative opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
trade. It has been estimated that between 1890 and 1904, Kian Gwan made a profit of some 18 million guilders in the opium trade alone, which provided the basis for his empire.
Unlike many of his Chinese
Chinese people
The term Chinese people may refer to any of the following:*People with Han Chinese ethnicity ....
contemporaries, Oei Tiong Ham relied heavily on written contracts in conducting his business. This did not make him popular in Chinese circles but it provided him with a legal basis to acquire the collateral for the loans he extended. Among his main debtors were often owners of sugar factories in East Java
East Java
East Java is a province of Indonesia. It is located on the eastern part of the island of Java and includes neighboring Madura and islands to its east and to its north East Java is a province of Indonesia. It is located on the eastern part of the island of Java and includes neighboring Madura and...
and when these factories were unable to repay the loans, due to the long-lasting effects of the sugar crisis of the 1880s he used his rights as a creditor. In this way he acquired five sugar factories. Sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
now became the backbone of the company and would remain so for the next several decades.
In the period between the 1890s and the 1920s, OHTC grew and diversified rapidly. It started branches in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, created a bank, a steamship business and had a large wholesale business. Of all the ethnic Chinese business conglomerates in pre-war Asia, the Oei Tiong Ham concern was by far the largest. The company was even larger than the well-known "Big Five" Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
trading companies that supposedly dominated the foreign trade of the Indies. The OTHC was strong in foreign trade, particularly in China. The basic strategy of the company was to take advantage of the opportunities on the world market for commodities produced in Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
. In 1912, Kian Gwan, the trading branch of the conglomerate was capitalized at fifteen million guilders, double the amount of the largest Dutch firm Internatio.
During the post-war boom of 1918-1920, the worldwide demand for Java
Java
Java is an island of Indonesia. With a population of 135 million , it is the world's most populous island, and one of the most densely populated regions in the world. It is home to 60% of Indonesia's population. The Indonesian capital city, Jakarta, is in west Java...
sugar was high, creating many opportunities for sugar-mill owners and sugar brokers. But fortunes gained were easily lost in a couple of days. Oei Tiong Ham followed a cautious policy during these boom years. He did not speculate too heavily and took steps to improve its financial administration. Oei Tong Ham recruited talented accountants to set up a modern accounting system for the sugar factories. Due to the cautious and independent strategy, the company survived the subsequent sugar crisis while many other Chinese firms perished.
Besides making use of written agreements and a modern accounting system, Oei Tiong Ham also diverted from yet another Chinese business practice of the time. Instead of relying solely on family members in running his wide ranging business enterprises, he deliberately chose capable outsiders, such as Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
directors, managers, and engineers to manage his companies. In 1920, Oei Tiong Ham left Semarang
Semarang
- Economy :The western part of the city is home to many industrial parks and factories. The port of Semarang is located on the north coast and it is the main shipping port for the province of Central Java. Many small manufacturers are located in Semarang, producing goods such as textiles,...
and settled in Singapore to escape Dutch colonial succession law and tax regime. Having eight wives and twenty-six official children, inheritance became important issues. He decided to hand his daughters and some of his sons cash, and make eight of his sons his rightful heirs, dividing among them an inheritance worth two hundred million guilders. Since only two of them, Oei Tjong Swan and Oei Tjong Hauw, had reached maturity
Maturity (finance)
In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal is due to be paid....
, immediate succession did not seem to give too many problems.
Marriage
According to Madame Wellington Koo's (née Oei Hui-lan) autobiography, "No Feast Lasts Forever", Goei Bing Nio (魏明娘) was selected by Oei Tiong Ham's mother to be his wife and was married to him at age 15. She bore him 2 daughters, Tjong-lan and Hui-lan. He had 18 acknowledged concubines.One of Goei Bing-nio's sisters was unable to have children and hence adopted 2 girls from her husband's brother. These 2 girls both became Oei Tiong Ham's concubines. The younger of the 2 sisters, Lucy Ho (or Hoo Kiem Hoa), moved to Singapore with Oei and lived with him until his death. One of Oei Tiong Ham's sons with Lucy Ho later married his own granddaughter - the daughter of his son, Oei Tjong-Swan.
Death
Oei Tiong Ham died in Singapore. Madame Wellington KooWellington Koo
Koo Vi Kyuin or Ku Wei-chün , often known by the Western name V.K. Wellington Koo, was a prominent diplomat under the Republic of China, representative to the Paris Peace Conference of 1919, Ambassador to France, Great Britain, and the United States; participant in founding the League of Nations...
, his second daughter from his first wife, believed that he was poisoned to death by Lucy Ho, his mistress at the time of death. His body was shipped to Semarang for burial in his father's tomb.