Indonesia's richest businessmen recorded a record decline in capital after MSCI Inc. questioned the transparency of the local stock market and the real value of shares of the largest corporations. The report by the New York index provider caused a collapse in quotes on the Jakarta exchange, forcing investors to massively sell off assets due to manipulation risks. This is reported by Bloomberg, writes UNN.
Details
The biggest losses were suffered by the country's richest resident, Prajogo Pangestu, whose net worth decreased by $9 billion in recent days alone. Shares of his energy and mining companies Barito Pacific and Petrindo Jaya Kreasi fell by more than 12% after MSCI suspended changes to its indices for Indonesia, demanding explanations regarding the concentration of share packages in the hands of a narrow circle of individuals.
MSCI's freeze is a warning shot. If Indonesian regulators can show progress, the situation will quickly de-escalate. If not, the risk premium remains
Pangestu's fortune is currently estimated at $31 billion, which is $15 billion less than at the beginning of 2026.
Systemic risks of the Indonesian market
The problem of a low free float of shares has long been an issue for the Southeast Asian market, where tycoons often control 85-92% of their companies. Such a structure allows stock prices to rise by hundreds of percent without objective reasons, which raises suspicions of manipulation. MSCI warned that it could significantly reduce the weight of all Indonesian companies in its global emerging markets index if the situation does not change by May.
In addition to Pangestu, billionaire losses were incurred by bank owner Michael Hartono and plastics manufacturer Haryanto Tjiptodihardjo. Against the backdrop of these events, the Jakarta Stock Exchange composite index fell by 10% on Thursday, demonstrating panic among foreign investors who expect stricter reporting rules.
Gold price reached $5591, and silver is trading near the $120 mark29.01.26, 06:34