Indonesia’s market plunge sparks alarm as a local tycoon is reported to have lost 43.2 billion in wealth in just one day.
(Jakarta, 29th)After MSCI raised fundamental concerns over the investability and valuation of Indone...
(Jakarta, 29th)
After MSCI raised fundamental concerns over the investability and valuation of Indonesian listed companies, several of the country’s top billionaires saw sharp declines in their wealth on Wednesday (28th), with combined losses exceeding US$11 billion in a single day.
The biggest hit was reported for Indonesian tycoon Prajogo Pangestu, whose personal fortune was estimated to have fallen by nearly US$9 billion. A steep selloff in shares of his energy and mining-related companies also contributed to an estimated US$5 billion drop in his net worth in one session.
According to the Bloomberg Billionaires Index, Pangestu’s net worth now stands at around US$35 billion, with year-to-date losses approaching US$11 billion. The market selloff was widely seen as a reaction to MSCI’s latest assessment.
In its report, MSCI questioned Indonesia’s shareholder reporting and disclosure rules, warning that they could result in opaque ownership structures and increase the risk of improper trading. The index provider said it would pause certain planned index changes and cautioned that further consequences could follow if the issues are not addressed by May.
Tareck Horchani, head of prime brokerage dealing at Maybank Securities Singapore, described MSCI’s move as a warning signal, adding that clear regulatory progress could quickly calm markets, while a lack of progress may keep risk premiums elevated.
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