In a remarkable turnaround, 81-year-old billionaire Prajogo Pangestu has seen his net worth surge by over $20 billion since April, climbing to an impressive $36.2 billion, according to the Bloomberg Billionaires Index.
The dramatic increase can be attributed to Morgan Stanley Capital International’s recent decision to lift restrictions on three companies linked to Pangestu, including PT Barito Renewables Energy, a geothermal enterprise that accounts for more than a third of his overall wealth. This news has set off ripples of excitement in the market, with Barito Renewables’ shares skyrocketing by 20%, marking Pangestu’s largest single-day gain of $3.5 billion.
“Morgan Stanley’s reversal removed a major overhang,” observed Mohit Mirpuri, a senior partner at SGMC Capital. He highlighted that trading volumes for Pangestu-linked stocks have soared to new heights on Indonesia’s exchange, igniting interest among investors previously wary of these shares.
Yet, not all is smooth sailing for Barito Renewables. The stock recently found itself on the Indonesia Stock Exchange’s watchlist, suffering a sharp decline in September after FTSE Russell, a London-based market analyst, excluded it from various indexes due to the high concentration of shares held by controlling shareholders. This setback knocked nearly $12 billion off Pangestu’s peak net worth of $36.5 billion.
Looking ahead, several of Pangestu’s other ventures are poised for growth, especially in the chemical sector. His company, Chandra Asri, is set to receive $800 million from Indonesia’s two sovereign wealth funds for expanding its operations with a new plant outside Jakarta. Slated for completion in 2027, this facility will produce 400,000 tons of caustic soda and 500,000 tons of ethylene dichloride annually—definitely a recipe for success in the chemical industry.
From humble beginnings as the son of a rubber trader, Pangestu launched Barito Pacific in 1979, starting out as a timber business. Over the decades, it has expanded into diverse sectors including petrochemicals, power generation, real estate, plantations, and forestry, with power generation becoming its core focus.
What factors contributed to Prajogo Pangestu’s recent wealth increase?
The surge in Pangestu’s wealth is primarily due to Morgan Stanley Capital International lifting restrictions on companies linked to him, which led to a significant rise in Barito Renewables Energy’s stock price.
What challenges has Barito Renewables faced recently?
The company faced a significant challenge when it was placed on the Indonesia Stock Exchange’s watchlist and subsequently excluded from FTSE Russell’s indexes, resulting in a loss of nearly $12 billion from Pangestu’s peak net worth.
What future projects is Pangestu involved with?
Pangestu’s chemical company, Chandra Asri, is set to receive a substantial investment for a new plant aimed at increasing production capacity significantly, highlighting continued growth in his business portfolio.
