Indonesia’s Richest Man Sells Stakes as Ownership Rules Tighten

6f[dbmte[hkzr(slgnffi]c}_media_dl_1.png BloombergArticle content(Bloomberg) — Indonesia’s richest man has begun selling small stakes in his listed companies as tighter ownership rules push firms to increase shares available to public investors.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBillionaire Prajogo Pangestu sold a 0.56% stake in coal and mining holding PT Petrindo Jaya Kreasi to boost the company’s free float, according to a stock exchange filing late Thursday. Pangestu-affiliated Green Era Energy Pte. Ltd. this week also sold a fraction of its stake in his PT Barito Renewables Energy.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentIndonesia is racing to avert a downgrade to frontier market status by MSCI Inc. that could trigger foreign outflows. To address concerns about ownership transparency, the stock exchange has proposed tighter rules to require 15% free float within three years. Barito Renewables, along with the Widjaja family’s PT Dian Swastatika Sentosa was among nine firms the regulator singled out for concentrated ownership of more than 95%, spurring selloffs.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Pangestu might only want to follow the rules,” said Christopher Andre Benas, head of research at PT BCA Sekuritas. “We hope that other tycoons to follow suit.”Article contentThe sale of Petrindo shares is more of a signal to the market, as the company was already compliant with a 15.9% free float as of December, according to Indonesia Stock Exchange data published in February. After the transaction, Pangestu held a 82.86% stake. The stock gained as much as 11% on Friday.Article contentA Barito spokesperson referred to the disclosure and declined to comment further.Article contentThe core of the problem is a stock market that has long been dominated by family-owned conglomerates that operate dozens of listed and private entities spanning industries from mining to petrochemicals. Article contentThe stricter requirements have also caused telecommunications infrastructure builder PT Solusi Tunas Pratama — controlled by Djarum Group heirs Martin Hartono and Victor Hartono — to announce plans to delist rather than trying to meet the new free float threshold.Article contentArticle contentTrending BYD to open 20 car dealerships in Canada this year Autos Why are Canadian bond yields surging? Finance Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News 'Time to shift that narrative' — RBC to launch $1-billion fund to help Canadian businesses grow Banking How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. BYD to open 20 car dealerships in Canada this year Autos Why are Canadian bond yields surging? Finance Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News 'Time to shift that narrative' — RBC to launch $1-billion fund to help Canadian businesses grow Banking How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas