Djarum has come a long way over the last half century. Djarum's first kretek workshop was established in 1951 by Oei We Gwan, the company's founder. The workshop was located in the kretek capital of the world - the town of Kudus in Central Java. The company started out as a small hand-rolling operation, using tobacco grown by local farmers.

As demand grew, more employees were hired, output increased and more advanced manufacturing equipment was purchased. However, the path to success was not without obstacles. In 1963, the Djarum factory burned to the ground of fire.

Yet even catastrophe could not put a stop to growth of the company. A new factory was built and equipped with advance machinery imported from Europw. Experienced overseas personnel were hired to train the company's staff. New tobacco-processing methods, management philosophies and production techniques were introduced. The company was reborn.

Today, Djarum is the third-largest kretek manufacturer behind Gudang Garam and Sampoerna in Indonesia. Djarum has also been successful in some countries outside Indonesia. In particular, the company has opened a factory in Brazil, where there is significant demand for kreteks. It also has 70% of the US kretek market.