Prajogo Pangestu's Fortune Dips by US$2.7 Billion Amidst Indonesian Market Sell-Off

Indonesian Billionaire Prajogo Pangestu Experiences Significant Wealth Reduction

Indonesian billionaire Prajogo Pangestu saw his fortune decline by an estimated US$2.7 billion (approximately Rp 44.89 trillion) on Monday, October 27, 2025. This substantial reduction, representing a 6.26 percent drop, brought his total net worth to US$40.3 billion. The market event, one of the steepest sell-offs in recent months, impacted shares across his Barito Group companies, making Pangestu the day's biggest loser among local tycoons.

Barito Group Companies Face Share Plunge

The market downturn led to significant drops in the stock prices of several key Barito Group entities. The affected companies and their respective declines include:

• Barito Pacific (BRPT): dropped 9.34 percent
• Petrindo Jaya Kreasi (CUAN): slid 7.31 percent
• Chandra Daya Investasi (CDIA): fell 5.36 percent
• Petrosea (PTRO): plunged 9.44 percent
• Barito Renewables Energy (BREN): slipped 3 percent

Notably, Chandra Asri Pacific, the group's petrochemical arm, managed a modest gain of 1.72 percent amidst the broader market decline.

Underlying Causes of the Market Correction

Analysts pointed to several factors contributing to the widespread market sell-off. A primary driver was investor reaction to anticipated methodology changes in the MSCI Index's constituent review, particularly revised calculations for free float adjustments concerning Indonesian equities. This created uncertainty and prompted a re-evaluation of stock valuations.

Furthermore, many conglomerate stocks, including those within the Barito Group, had experienced months of steep gains, leading to investor sentiment shifting towards profit-taking. Muhammad Wafi, head of research at KISI Sekuritas, described this as a 'cooling-off phase' rather than the start of a long-term bear market, indicating a natural correction after extreme rallies. Concerns over continued capital outflows also played a role, with foreign investors reportedly withdrawing Rp 940 billion from the domestic financial market between October 20 and 23.

Broader Market Impact and Context

The benchmark Jakarta Composite Index (JCI) reflected the market's struggles, falling nearly 2 percent to close at 8,117 on Monday, October 27, 2025. Other reports indicated the JCI dropped as much as 2.94 percent to 8,028 and 3.6 percent to 7,978 . This contrasted with gains seen across most Asian markets, which rallied on optimism regarding potential US-China trade developments. Prajogo Pangestu's wealth had previously peaked at US$48.3 billion on October 11, making the recent decline particularly sharp. The market correction also affected other Indonesian billionaires, who experienced significant losses during the same period.