adminJAKARTA: Indonesia’s richest man, Prajogo Pangestu, reportedly lost nearly US$9 billion in two days following the country’s stock market crash, which was described as the worst since the 1998 Asian Financial Crisis.
Citing a Bloomberg report, the sudden drop was triggered by an MSCI Inc. report questioning shareholder reporting regulations in Indonesia, thus triggering a massive wave of selling by domestic and foreign investors.
In its report, MSCI expressed concerns that existing regulations allow for opaque ownership structures, particularly in listed companies controlled by a single individual or a small group of major shareholders.
This situation, according to MSCI, has the potential to open up space for improper trading and stock price manipulation.
MSCI also announced that several planned index changes for the Indonesian market were postponed, and warned of possible further actions including a reduction in the weighting of Indonesian stocks in emerging market indices, if the issue is not addressed by May.
Prajogo Pangestu, 81, controls large stakes in several major companies, including a 71 percent stake in PT Barito Pacific Tbk as well as 84 percent in PT Petrindo Jaya Kreasi Tbk, a coal and gold mining company.
Following the MSCI report, shares in both companies plunged more than 12 percent in one trading session, causing Prajogo’s net worth to drop to around US$31 billion, according to the Bloomberg Billionaires Index.
Overall, his wealth has reportedly declined by almost US$15 billion since the beginning of 2026, making him the individual most affected by this market crisis.
This turmoil also affected the entire Indonesian stock market.
The Jakarta Composite Index closed down more than seven percent on Wednesday and reached a 10 percent drop on Thursday, forcing market authorities to activate a temporary trading suspension to curb investor panic.
This crisis has not only affected Prajogo, but several other millionaires in Indonesia have also recorded huge losses, bringing the total depreciation in the wealth of the country’s richest people to almost US$22 billion.
Among them, businessman Haryanto Tjiptodihardjo reportedly lost almost US$3 billion in two days when shares of his plastics company fell significantly.
Commenting on this situation, several market analysts described MSCI’s action as a ‘stern warning’ to regulators in Indonesia.
Meanwhile, Prajogo Pangestu’s family office informed that they are reviewing MSCI’s statement and will continue to interact with relevant stakeholders to address the concerns raised.
-Agency
