How Prajogo Pangestu built his industrial empire
Indonesian Prajogo Pangestu is one of the country’s most respected entrepreneurs. He founded Barito Pacific Corporation, which operates in the energy and industrial sectors.
Prajogo was born in West Kalimantan in 1944. His parents belonged to the Hakka people, who historically lived in south-eastern China. The family honoured tradition, so he was educated in a Chinese school. At the time, such schools were common in Indonesia.
First steps in his career
In 1965, Pangestu went to Jakarta to look for work, but after a while, he returned to Kalimantan. Here, he took a job as a public transport driver. At work, Prajogo met Burhan Uray, a Malaysian businessman involved in the logging industry. In 1969, Pangestu joined Uray’s company, PT Djajanti, where he worked for seven years. Prajogo later took over as general manager of the East Java factory. However, he left this position after one year. Having gained considerable management experience, Pangestu decided to try his hand at developing his own business.
Development of the business
In 1977, the owners of CV Pacific Lumber Coy announced that the company was for sale. The company had been in financial difficulties for a long time, which was the reason for the decision. Pangestu bought the company with a loan from BRI Bank. The businessman quickly got the operations up and running and was able to repay the loan within a year. The company supplied timber for export and domestic markets.
The business expanded rapidly, thanks in part to Prajogo’s connections with the Suharto family. The latter was president of Indonesia in the 1960s.
Significant milestones in the company’s development:
– Prajogo acquired companies that later formed a single corporate structure;
– one of which became the largest on the Indonesian stock exchange in 1993;
– CV Pacific Lumber Coy was renamed PT Barito Pacific in 2007;
– the reason for the renaming was to refocus the business from logging to other areas;
– the rebranding allowed for diversification;
– Star Energy, an oil and gas company, is part of the corporate structure with a stake of over 67%;
– Pangestu controls an 80% stake in Transpacific Railway Infrastructure.
Prajogo has created one of Indonesia’s largest industrial conglomerates. The business operates in a variety of industries, including:
– geothermal energy;
– oil and gas industry;
– chemical industry;
– transport and others.
According to Forbes, Prajogo Pangestu was the second-richest person in Asia at the end of 2024. His net worth is estimated at USD 34.45 billion.
