De <em>kretek konning</em> from Kudus: H. M. Nitisemito's business mindset and strategy against foreign business hegemony in the Dutch East Indies

Nitisemito is a local entrepreneur who had revolutionized many things on cigarettes industry during the colonialism in Indonesia. His innovation on the production side ranging from implemented a abon system, changed production patterns from household to factory, to created his own tools. In human resource management, Nitisemito divided roles and employed Dutch people as an accountant. From a financial perspective, Nitisemito rejected loans from banks and chose a cash buying and selling system. On social side, Nitisemito becoming a movement donor, providing aid to victims of natural disasters, buying raw materials from farmers, and conducting training in cigarette making. From a promotional issue, Nitisemito were patenting his trade name, printing Bal Tiga logo on various goods as prizes from the lottery and coupon system, printing his kretek cigarette packs using an embossing technique, marketing the product to upper class, approaching religious experts by assisting in mosques, creating different marketing systems for each region, renting Fokker planes to distribute leaflets, making radio stations to disseminate product information, placing pamphlets in mobile ice sellers' carts so that they can be seen by the wider community, and becoming a sponsor for many activities. Unfortunately, Bal Tiga went bankrupt due to internal and external problems. Internally, it was because of the struggle for inheritance rights, falsification of bookkeeping and receipts, inability to pay taxes due to minimal cash, and the death of Nitisemito. Externally, it was due to stiff business competition with Chinese entrepreneurs, limited raw materials, confiscation of assets, disruption of distribution, demands for the construction of new modern factories, implementation of tobacco excise, payment of fines for the use of child labor, and too long working hours for female workers. The warehouse fire was also a factor that influenced Nitisemito's business to fall.