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

However, Indonesia’s richest man Prajogo Pangestu had to suffer the most loss. There was a huge decline in the shares and total capitalization of their companies active in the energy and mining sector by about 9 billion dollars, i.e. about Rs 8.27 lakh crore.

Big blow to rich man

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

The family office of this wealthy businessman has issued a statement saying that they are reviewing MSCI’s report and comments and will maintain constant dialogue with all concerned parties.

Why was there a huge selloff

This sharp reaction in the market 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.

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

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