ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business

Indonesian tycoon back with $1bn rights issue

Barito Pacific's Pangestu to consolidate geothermal assets under holding company

Chandra Asri Petrochemical's petrochemical complex in Cilegon, Banten, Indonesia.(Photo by Shinya Sawai)

JAKARTA -- Indonesian billionaire Prajogo Pangestu, once known as "timber king" before shifting his focus to petrochemicals, is aiming to raise up to $1 billion through a rights issue to consolidate his geothermal energy business under a holding company.

While Pangestu himself will take up most of the new shares, the issuance will be seen as a gauge of investor confidence in Indonesia's economic and political stability. The country's petrochemicals and geothermal industries, which require large investments over a long period of time, remain underdeveloped, even years after the Asian financial crisis struck in the late 1990s.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more