Prajogo Pangestu, the founder of power and industrial giant Barito Pacific Group

Asia’s biggest wealth earner of 2023 suffers staggering decline

Founder of Indonesian power and industrial conglomerate, Barito Pacific Group, experienced a staggering loss of US$4 billion, contributing to a total wealth decline of US$6.7 billion since reaching its peak last month. 

These figures, reported by the Bloomberg Billionaires Index, indicate a significant setback for Prajogo, who had surpassed all others in Asia in wealth accumulation last year, boasting a net worth of US$25.3 billion as of the latest market close.

With the latest development, highlighting Indonesia’s volatility, Prajogo has now relinquished his position as the wealthiest individual in Indonesia. The new frontrunner is now Low Tuck Kwong, the affluent figure behind coal miner Bayan Resources, who now commands a fortune of US$27.9 billion. 

Barito Renewable Energy’s abrupt decline, is followed by an extraordinary surge of over 850 per cent from its October listing through the end of December.

Analysts attribute the sudden slump to the stock being deemed overvalued, prompting traders to capitalize on profits. The adverse impact extended beyond Barito Renewables Energy, affecting its parent company, Barito Pacific, which experienced an 18 per cent decrease on Tuesday. Additionally, another subsidiary, Chandra Asri Pacific, saw a notable 20 per cent tumble in its stock value.

The following day, both Barito Pacific and Barito Renewables Energy managed to partially recover from the previous declines, indicating a potential stabilization in the aftermath of the notable fluctuations.