Indonesia’s Economic Resilience Fuels Billion-Dollar Fortunes: Forbes 2024 Rich List Highlights Growth Amidst Challenges
Indonesia, Southeast Asia’s largest economy, is navigating a complex economic landscape. Despite concerns surrounding the purchasing power of its middle class, the resource-rich nation has set an ambitious target of 8% economic growth for the coming year, a significant leap from the projected 5.1% for 2024. This optimistic outlook, championed by newly elected President Prabowo Subianto, is underpinned by the nation’s abundant natural resources and a resilient stock market. Since the last assessment of wealth, Indonesia’s benchmark stock index has seen a 3% rise, bolstering the collective wealth of the nation’s elite. This positive trajectory has propelled the minimum net worth for inclusion on Forbes’ Indonesia Rich List to a historic $1 billion, surpassing the previous year’s $940 million threshold.
The 2024 Forbes Indonesia Rich List showcases a dynamic interplay of established wealth and emerging fortunes. The top echelons remain dominated by familiar names, with the Hartono brothers, R. Budi and Michael, retaining their decade-long reign at the summit. Their combined wealth surged by $2.3 billion to reach a staggering $50.3 billion, fueled in part by the robust performance of Bank Central Asia, a key asset in their portfolio. The bank’s impressive loan growth over the first nine months of the year contributed significantly to their increased fortune.
Maintaining his position as the second-richest individual is Prajogo Pangestu, a prominent figure in the petrochemicals and energy sectors. However, his wealth experienced a considerable decline of 25%, settling at $32.5 billion. This downturn can be attributed primarily to a reevaluation of Barito Renewables Energy, his geothermal energy venture, which has been impacted by market volatility. Despite this setback, Pangestu’s substantial holdings continue to secure his prominent position on the list.
Coal magnate Low Tuck Kwong retains his position as the third-richest individual, with his net worth remaining relatively stable at $27 billion. This consistency comes despite a 10% drop in revenue for his company, Bayan Resources, the country’s fourth-largest coal producer. The decline in revenue reflects the broader trend of lower coal prices globally during the nine months leading up to September. However, Bayan Resources, with a pipeline of upcoming projects, remains a significant player in the Indonesian coal industry. Notably, the company also contributed a new entrant to the rich list: Lim Chai Hock, the chief operational officer and a Malaysian expatriate, whose expertise is crucial to Bayan’s future growth.
The Widjaja family emerged as the biggest gainers on the list, both in absolute dollar terms and percentage increase. Their fortune saw a remarkable 75% surge, reaching $18.9 billion. This significant increase is largely attributable to the impressive performance of Dian Swastatika Sentosa, the family’s energy and infrastructure flagship within the Sinar Mas group. The company’s shares experienced a more than sevenfold increase, driven by its strategic diversification into geothermal energy and data centers, sectors experiencing significant growth.
Returning to the list after a brief absence is media and real estate tycoon Hary Tanoesoedibjo, whose business ventures are experiencing renewed momentum. The surge in the shares of MNC Digital Entertainment and MNC Land significantly contributed to his re-entry. His listed property company is also preparing to launch the Trump International Golf Club Lido in West Java, a project expected to further bolster his business portfolio. Joining Tanoesoedibjo in returning to the list is Han Arming Hanafia, co-founder of DCI Indonesia, the country’s leading data center operator. DCI Indonesia’s stock has gained nearly 30%, reflecting the burgeoning demand for data center services amidst global technological expansion.
While several individuals experienced significant gains and returned to the ranks of the wealthiest, others faced setbacks. Benny Suherman, a theater tycoon, dropped off the list due to challenges faced by his company, Nusantara Sejahtera Raya, owner of Cinema XXI, the country’s largest cinema chain. Lower-than-expected revenue in the third quarter impacted the company’s performance, ultimately leading to Suherman’s exclusion from the 2024 list. This dynamic highlights the fluctuating nature of wealth, particularly in industries sensitive to consumer spending patterns. The Forbes Indonesia Rich List, compiled through rigorous research and analysis, provides a valuable snapshot of the country’s economic landscape, showcasing the successes, challenges, and overall trends shaping the fortunes of its wealthiest individuals and families.
