The big boom: What sparked the billion-dollar surge
It all started with Morgan Stanley Capital International (MSCI), the global index boss, reversing a previous decision in July that had sidelined three Pangestu-linked companies — including his prized geothermal gem, PT Barito Renewables Energy.
Timber trader turned titan
Pangestu’s empire-building journey started back in 1970, when he joined the Djajanti Group, a timber business owned by tycoon Burhan Uray.
Then in 1995, his company PT Barito Pacific Timber Tbk became the largest listed firm on the Jakarta Stock Exchange.
But Pangestu didn’t stop at trees.
He shifted into petrochemicals with Chandra Asri, then energy, plantations, mining — you name it.
But not always up and to the right…
Of course, even the Lone Wolf gets burned.
In February 2024, he lost US$5.4 billion in one swoop.
In September, he topped that with a stomach-churning US$5.9 billion drop. And when FTSE Russell announced it was booting Barito Renewables from its indexes, the stock tanked, erasing nearly US$12 billion from Pangestu’s peak net worth.
JPMorgan’s Arnanto Januri threw some cold water on the hype: “We struggle to justify this quantum of increase.”
NH Korindo analyst Leonardo Lijuwardi was even more blunt: “It’s really, really insane.”
The market is obsessed not with numbers, but with “The Prajogo Effect.”
Translation: Retail investors love tycoons — even if the fundamentals are, well, fuzzy.
So, who really owns the empire?
About 88% of Barito Renewables is owned by Pangestu-related firms —namely Barito Pacific and Green Era, the latter helmed by daughter Nancy Pangestu.
Practically a rounding error.
Even BlackRock, the world’s biggest asset manager, holds just 0.07%.
This super-concentrated ownership is not unusual in Indonesia.
Dozens of firms with minimal public float have soared in market valuation in recent years, fuelled by hype, loyalty, and some good old-fashioned tycoon-worship.
Timeline of Prajogo Pangestu
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May 13, 1944 – Prajogo Pangestu (born Phang Djoen Phen) was born in Bengkayang, West Kalimantan, Indonesia, to a Hakka family originally from Guangdong, China.
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1965 – Moved to Jakarta, Indonesia.
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1970 – Began his career in the timber industry by joining the Djajanti Group, a timber company owned by Burhan Uray.
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1976 – Became general manager of PT Nusantara within the Djajanti Group.
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1977 – Left Djajanti Group to start his own business.
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1993 – His company PT Barito Pacific Timber Tbk became the largest listed company on the Jakarta Stock Exchange.
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1990 to 1999 – Served as President Director of PT Chandra Asri, Indonesia’s major petrochemical producer, which he later acquired to diversify from timber.
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1999 to 2010 – Served as President Commissioner of PT Tri Polyta Indonesia Tbk.
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2007 – Rebranded PT Barito Pacific Timber Tbk to PT Barito Pacific Tbk to reflect diversification beyond timber, expanding into petrochemicals, energy, plantations, mining, and more.
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March 2022 – His Singapore-based company Green Era acquired a 33.33% stake of Star Energy from Thailand’s BCPG for $440 million, gaining full control of this leading Indonesian geothermal energy company.
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2023 – Took his coal mining company, Petrindo Jaya Kreasi, public, and later listed Barito Renewables Energy, marking his strategic expansion into renewable energy.
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Present (2025) – Continues as chair and major investor of Barito Pacific Group, overseeing a diversified industrial conglomerate valued in the multi-billions, with major businesses in petrochemicals, renewable energy, forestry, coal, and mining.
