.jpg)
9 hours ago
2
Article content
(Bloomberg) — Billionaire Prajogo Pangestu’s fortune is soaring once again, a sharp reversal from the precipitous falls that erased billions over the past year.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The 81-year-old, who is Indonesia’s richest person, has added more than $20 billion to his net worth since it hit a low in April, lifting it to $36.2 billion, according to the Bloomberg Billionaires Index.
Article content
Article content
Article content
The surge has mainly been driven by MSCI’s decision this month to remove restrictions on three companies linked to him — including PT Barito Renewables Energy, the geothermal firm that accounts for more than a third of his fortune. Starting in August, MSCI will include them in its index assessment again, after excluding them due to concerns about the high concentration of shares held by controlling shareholders.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
After MSCI’s announcement, Barito Renewables jumped 20% — sending Pangestu’s fortune up $3.5 billion, his biggest ever one-day gain.
Article content
“MSCI’s reversal removed a major overhang,” said Mohit Mirpuri, senior partner at SGMC Capital. He noted trading volumes across Pangestu-linked stocks are now among the highest on Indonesia’s exchange.
Article content
The rebound highlights how the nation’s tightly held corporate structures can sharply amplify market moves and the subsequent effect it can have on individual fortunes. Indeed, in February Pangestu saw $5.4 billion wiped away, and last September he suffered an even bigger one-day loss of $5.9 billion. Since 2023, he has been on a wild ride, swinging billions in either direction.
Article content
Article content
At the center of the frenzy is Barito Renewables, Indonesia’s top geothermal player, with more than 800 megawatts of capacity through its subsidiary Star Energy Geothermal. As Indonesia — one of the world’s top carbon emitters — pushes for net zero by 2060, the company’s role in the energy transition offers “long-term valuation support,” according to Herditya Wicaksana, technical analyst at MNC Sekuritas.
Article content
Still, the stock’s rapid rise has raised concerns. It briefly landed on the Indonesia Stock Exchange’s watchlist last year and crashed in September after index compiler FTSE Russell said it would exclude it from its indexes because of the high shareholder concentration, erasing nearly $12 billion from Pangestu’s all-time high net worth of $36.5 billion.
Article content
“We struggle to justify this quantum of increase in market value,” JPMorgan Chase & Co. analyst Arnanto Januri said in a July 24 note after the recent sector rally of Barito Renewables, PT Barito Pacific and petrochemical giant PT Chandra Asri Pacific. “We suspect the market is being optimistic in its assessment of growth opportunities.”
English (US)