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Prajogo Pangestu Valuation: A leading Indonesian businessman has suffered a severe shock. In fact, global index provider MSCI had expressed concerns about the valuation and shareholder structure of some Indonesian companies. After this report came out, heavy selling was seen in the Indonesian stock market. Due to this, there was a loss of about 22 billion dollars in the valuation of the properties of the rich of the country in a single day.

However, the biggest loss was suffered by Indonesia’s rich man Prajogo Pangestu. There was a huge decline in the shares and total capitalization of their companies active in the energy and mining sectors by about $ 9 billion, i.e. about Rs 8.27 lakh crore.

How much total wealth is left now?

According to the Bloomberg Billionaires Index, Prajogo Pangestu’s net worth has now dropped to $31 billion. This year alone his wealth has decreased by about 15 billion dollars. Prajogo holds 71 ​​percent stake in energy company Barito Pacific, while he has 84 percent stake in coal and gold trading company Petrindo Jaya Kreasi. The shares of these two companies fell by about 12 percent in a single day.

The wealthy businessman’s family office issued a statement saying they are reviewing MSCI’s report and comments and will maintain ongoing dialogue with all relevant parties.

Why was there selling in the stock market?

stock market This sharp reaction was seen after the MSCI report in which questions have been raised on Indonesia’s shareholder reporting rules. According to the report, investors believe that due to the current rules, the ownership structure of companies remains unclear, which may increase the risk of unfair trading.

Why was the market shaken by the MSCI report?

MSCI also pointed to long-standing concerns about companies where shares are controlled by a select few or a single person. Such highly centralized ownership has been the basis for the creation of some of the largest individual wealths in Indonesia and other parts of Asia.