Indonesia’s richest man loosens grip on Petrindo, Barito amid tighter ownership rules
To address concerns about ownership transparency, Indonesia requires firms to release 15 per cent of their shares for public trading
Billionaire Prajogo Pangestu sold a 0.56 per cent stake in coal and mining holding Petrindo Jaya Kreasi to boost the company’s free float, according to a stock exchange filing late Thursday. Prajogo-affiliated Green Era Energy this week also sold a fraction of its stake in his Barito Renewables Energy.
The Indonesia Stock Exchange last week issued a regulation that requires listed companies to increase shares available for public trading – or free float – to 15 per cent, giving firms up to three years to achieve the level.
Barito Renewables, along with the Widjaja family’s Dian Swastatika Sentosa, was among nine firms the regulator singled out for concentrated ownership of more than 95 per cent, spurring sell-offs.
“[Prajogo] might only want to follow the rules,” said Christopher Andre Benas, head of research at BCA Sekuritas. “We hope that other tycoons follow suit.”