Indonesian billionaire among world’s biggest losers in wealth
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Mr Prajogo Pangestu has now lost his title as the wealthiest person in Indonesia to Mr Low Tuck Kwong of coal miner Bayan Resources.
PHOTO: BLOOMBERG
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Singapore - Mr Prajogo Pangestu is having a bumpy start to the year.
The founder of power and industrial giant Barito Pacific Group lost US$4 billion (S$5.3 billion) on Jan 9 alone, taking his fall in wealth since a peak in December to US$6.7 billion, according to the Bloomberg Billionaires Index.
Mr Prajogo, who got richer than everybody else in Asia in 2023 and was worth US$25.3 billion as of the last market close, has now lost his title as the wealthiest person in Indonesia to Mr Low Tuck Kwong of coal miner Bayan Resources, who has a US$27.9 billion fortune.
The sudden slump in Mr Prajogo’s Barito Renewables Energy, which reached a record 20 per cent on Jan 9, came after a more than 850 per cent surge from its October listing through the end of December. An analyst said the stock had become overvalued and traders were taking profit. Parent company Barito Pacific fell 18 per cent on Jan 9, while another unit, Chandra Asri Pacific, tumbled 20 per cent.
Barito Pacific and Barito Renewables reversed some of the drops on Jan 10.
It is a startling reversal for Mr Prajogo, who added US$26.5 billion to his fortune in 2023 as Barito Renewables, a producer of geothermal power that makes up almost half of his fortune, went public. Mr Prajogo, who started petrochemicals company Barito Pacific in 1979, has been trying to diversify its renewable energy portfolio amid a push by Indonesia, one of the world’s biggest CO2 emitters, to hit net-zero targets.
The 2023 surge in shares raised eyebrows, and JPMorgan Chase & Co downgraded Barito Pacific stocks in December, citing rich valuations following gains.
Indonesia’s bourse is also checking whether there was any stock manipulation in a unit owned by Mr Prajogo. Petrindo Jaya Kreasi, a coal and gold miner, has been suspended for more than three weeks after skyrocketing more than 6,000 per cent from its listing in March. The Financial Services Authority said proven stock manipulation at any company will be sanctioned.
Mr Prajogo, who had the biggest slump in wealth on Jan 9, is now among the world’s biggest losers of 2024, following LVMH’s Bernard Arnault and Tesla’s Elon Musk. BLOOMBERG
