There is no single formula for ensuring the continuity of a family business across generations. Each family faces its own challenges, history, and solutions. This is the principle held by Victor Hartono, one of the third-generation heirs of the Djarum Group, a business that has traversed various eras and industries.

“What I’m sharing is not a solution for everyone. This is just our family’s story. Because every situation requires a different approach,” Victor began.

Before Djarum Group evolved into one of Indonesia’s industrial giants, few knew that this family business began in the peanut oil industry in Rembang, Tuban, and Pati—areas known as peanut farming centers. This business was managed by Victor’s grandparents and ancestors. He himself counts as the ninth generation involved in the peanut oil trade.

However, the business did not last long. Peanut oil was replaced by palm oil, which was introduced from Africa in the early 20th century.

“We once thought peanut oil would last forever. But it didn’t,” he said.

For Victor, that history serves as a constant reminder: a business may sustain life today but does not guarantee the future. His family, he noted, learned to remain adaptive against the tides of technology and changing times.

“Every family needs to know its values, so it knows where to go. We must absorb both the good and the bad from the industries we are in,” he said.

Victor acknowledged that business runs in his DNA. As immigrants from China, his family slowly built its foundation in Indonesia. One turning point came in 1927 when his grandfather opened the Cap Leo firecracker factory. But again, the venture did not last.

“When the Japanese came in 1942, the Dutch ordered the factory closed so the Japanese wouldn’t use it. All our gunpowder was taken by the Dutch. Since then, there has never been a legal firecracker factory again. That was a deep trauma for our family,” Victor recalled.

After the hardship, the family carried on. They even helped construct the Semarang airport runway during the Japanese occupation. For them, anything was done to survive the turbulent transition of power from the Dutch.

Victor is aware of the so-called “third-generation curse” in family businesses—the belief that the third generation often fails to preserve the founders’ success. “That’s a myth. Don’t blame the third generation. The reality is, business eras mostly develop in the early generations. Many failures also came from there,” he argued.

He described how family business structures naturally expand: starting with a single founder in the first generation, two in the second, seven in the third, and eventually 18 in the fourth.

“The challenge of sustaining a business is never easy. It involves dividend distribution, ego, and leadership. But since childhood, I’ve known I’m a relay runner of the third generation. So, I prepared myself,” Victor said.

Now, the burden of maintaining business continuity rests on him and his brother Martin Hartono, while also ensuring a smooth transition to the fourth generation.

Victor never worried too much about the responsibility, because joining the family business was his conscious choice from the start. His preparation began with education. He attended BPK Penabur Jakarta High School, then studied at Northwestern University in the U.S.

“I knew I could only accompany the transition between the second, third, and fourth generations. So I had to prepare myself early.”

From classroom learning and studying other large family businesses worldwide, Victor concluded that leadership must be based on meritocracy, not simply bloodlines.

“If my child is not capable, then so be it—he’ll just receive dividends. But if Martin’s child is more suitable, then let him lead. That’s meritocracy,” he explained.

He cited Roberto Hartono, now the No. 2 executive at Polytron, as an example of merit-based selection. “I recommended Roberto at the time. My father saw him grow more mature, and eventually approved him as a director. This is a process we keep repeating.”

The same applied to Natalia’s appointment as Djarum’s marketing director. “Because she was suitable and had the capacity. That’s what we pushed forward,” Victor said.

Victor acknowledged that not all families keep their businesses forever. Sometimes, selling is the best decision. He pointed to Bakmi GM, whose founders decided to sell after the next generation lost interest.

“Last year, they had no plans. Suddenly, buyers came with a bidding offer. The founders were in their 70s and 80s, having made noodles since they were 12. The next generation wasn’t interested. So they sold. That was a harmonious solution,” he said.

Similarly, Soto Pak Denuh in Solo managed its business transition by having each family member open their own branch.

For Djarum, however, family harmony is the cornerstone of business sustainability. All expansion decisions must go through open dialogue—similar to a “church council” model of decision-making. Within the family, a bureaucracy exists to handle not just business, but also reunions and even funerals.

“Since I was 12, I already knew our family notary. That way, inheritance portions are clear. No sudden claims can appear,” Victor noted.

He even mentioned the cautionary tale of sugar tycoon Oei Tiong Ham, rumored to have had 20 wives. One of Djarum’s offices was acquired from Oei’s assets. “We learned from that. No second, third, or fourth wives. Better to have more savings than more wives,” he said.

Although the family empire has expanded into many sectors, Victor stressed that money is not the goal.

“We live here too. We want a healthy environment, strong culture, and a winning nation. Money is just a tool. The goal is a better future.”

Through the Djarum Foundation, the family has funded scholarships, built infrastructure, and supported sports. “Our concept is to enslave money, not be enslaved by it.”

Djarum’s diversification beyond cigarettes is often seen as ambitious. But Victor said it stems from fear. “We’re afraid because we saw our peanut oil and firecracker businesses die. If it dies, it all dies together. That’s why we diversify.”

Thus, Djarum has spread into e-commerce, banking, and sports.

Within the business, roles are divided clearly: who is family and owner-professional, who is only family, and who is an external professional. “I’m family, owner, and employee. But some cousins are family but not professionals. Everyone has their role,” Victor explained.

The family is also preparing a family board to manage social and humanitarian affairs—scholarships, reunions, even the family cemetery. “We need this to keep family connections strong,” he said.

For Victor, it is not just about sustaining a business. The Djarum family is building a system of values to pass on through generations. They believe inheritance is not just assets but life principles: meritocracy, transparency, social responsibility, and resilience in learning and adapting.

“We don’t want to be slaves to money. We want our family to remain intact, our business strong, and our nation better. That’s all,” he concluded.