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Golden Year for Wealth Creation as Indonesian Rich Listers Thrive
Jakarta Globe | May 31, 2010

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With the stock market booming and commodity prices on the up it’s been a very good year for the wealthiest Indonesians. According to Globe Asia magazine’s just-released 2010 Rich List, the total net worth of the country’s 150 richest individuals has jumped by 22 percent to $61.5 billion from the year before.

A perfect storm of factors has produced conditions that were conducive to wealth creation. The fundamentals of the economy have never looked so good after the country managed to make it through the global financial crisis relatively unscathed.

Corporate players are expanding their businesses by either borrowing or taking their companies public to raise cash. The Indonesia Stock Exchange (IDX) has been one of the strongest performers in the region, boosted by rising commodity prices and a brisk inflows of foreign funds. The banking system is awash with cash and interest rates are no longer prohibitive.

The ability to access cheap funding has now become a major competitive advantage for business owners in Indonesia. The creation of complex financing structures is also becoming increasingly important as the country’s capital markets expand.

There were two fresh faces in the top 10 individuals in Globe Asia’s list of the 150 richest Indonesians. Rajawali group owner Peter Sondakh moved up two notches from last year to No. 9, while Singapore-born coal mining tycoon Dato Low Tuck Kwong debuted at No. 8 with an estimated fortune of $1.4 billion despite not making it onto the list last year. Djarum owner Budi Hartono retained the top spot, with his net worth rising by $700 million to $4.8 billion on the back of a booming stock market and growing economy. In fact, everyone in the top 20 saw their wealth rise as they took advantage of the economic good times.


Globe Asia is a sister publication of the Jakarta Globe. Its Rich List issue is available on newsstands now.