Indonesia's Rich Get Richer With Commodities

Vanessa Doctor

2 June 2011

The Indonesian tycoon and so-called "plantation king" Eka Tjipta Widjaja has emerged as the country's richest man, according to the latest 150 Richest Indonesians List by Globe Asia.

Widjaja, owner of palm oil manufacturer Sinar Mas Group, is reportedly now worth $12 billion, compared to the $4 billion recorded for him in 2010. The former number one, Budi Hartono of the cigarette giant Djarum, has fallen to second with an $11.5 billion net worth.

Much of Widjaja's jump to first place may be attributed to the explosion in palm oil demand over the past year, Globe Asia notes, estimating that the firm presently has over one million hectares of palm oil estates which by themselves are worth $8 billion. When his property assets, banking, pulp and paper, and coal mining businesses are combined, his total net worth is placed at $8 billion.

According to the publication, record level global commodity prices have translated into very good earnings for businessmen with interests in the likes of coal mines and palm oil plantations. In fact, of the 21 billionaires listed in 2011, nine are linked with coal mine ownership. This is one of the reasons why the total net worth of Indonesia's 150 richest individuals had gone up by 75 per cent to a total of $107.9 billion.

Most of the new entrants to the list are involved in commodities. This includes Samin Tan, owner of Borneo Lumbung Energi and Metal, and Agus Lasmono, main shareholder of Indika Energy.