In the lush hills outside Jakarta, a quiet but intense power struggle is unfolding between Indonesia’s political leadership and its ultra-wealthy business elite. President Prabowo Subianto recently summoned several of the country’s most powerful tycoons, urging them to deploy their wealth to close the nation’s glaring inequality gap.
At the center of this political crosshair is a group colloquially known as the “Nine Dragons” (Sembilan Naga). Originating from the Suharto era, this term loosely describes a revolving cohort of immensely powerful, predominantly Sino-Indonesian tycoons whose conglomerates dominate Southeast Asia’s largest economy.
Who exactly are these Dragons, how do their empires operate, and are they acting as engines of Indonesian growth—or monopolistic parasites?
Introducing the Dragons and Their Empires
While the exact list of the “Nine Dragons” is fluid and often shrouded in political myth, the top echelons of Indonesia’s wealth are undeniably concentrated among a few key families and individuals. Based on the market capitalisation data and wealth rankings, here are the defining conglomerates that represent this elite circle:
1. The Hartono Family (Djarum Group & Bank Central Asia)
The Business: Robert Budi Hartono and his family are the undisputed kings of Indonesian wealth. While they built their fortune on clove cigarettes (Djarum), their crown jewel is Bank Central Asia (BCA) (IDX: BBCA), Indonesia’s largest and most fiercely defended private bank.
The Model: High-margin corporate and retail banking, driven by Indonesia’s massive unbanked population transitioning into the formal financial system.
Valuation & Sector Comparison: BCA (BBCA) trades at a premium Price-to-Earnings (P/E) ratio of ~14x and a Price-to-Book (P/B) ratio of ~2.7x. While the broader Indonesian banking sector typically trades at a P/E of 9x–11x, BCA commands this massive “quality premium” due to its unparalleled low cost of funds (CASA ratio) and exceptionally clean asset quality. It is priced as a fortress.
2. Prajogo Pangestu (Barito Pacific Group)
The Business: A timber tycoon turned petrochemical and energy titan. His empire controls Barito Pacific Group Tbk PT (IDX: BRPT), Chandra Asri Pacific PT Tbk (IDX: TPIA), and the aggressively valued Barito Renewables Energy PT Tbk (IDX; BREN).
The Model: Capital-intensive industrial monopolies. Pangestu controls the foundational materials (plastics, chemicals, and now geothermal energy) required for Indonesia’s infrastructure and manufacturing boom.
Valuation & Sector Comparison: The Barito group trades around 14x P/E. The Renewable Energy listed entity BREN however, trades a at astronomical bubble of 168x P/E. Compared to global energy and chemical peers (which typically trade at P/E ratios of 10x–15x), BREN is priced at massive premiums, driven by tight free floats and intense speculative retail/institutional momentum rather than immediate underlying cash flow.
3. Anthoni Salim (Salim Group/Indofood)
The Business: The Salim Group touches the daily lives of nearly all 280 million Indonesians through Indofood Sukses Makmur Tbk PT (IDX: INDF) and its subsidiary Indofood CBP Sukses Makmur Tbk PT (IDX: ICBP), the maker of Indomie. They also hold massive stakes in retail (Indomaret) and infrastructure.
The Model: Pure consumer staples and retail distribution. The business scales in direct lockstep with Indonesian population growth and middle-class consumption.
Valuation & Sector Comparison: Deep value. INDF operates as a holding company and routinely trades at a depressed P/E of just 6x–8x. Even its premium subsidiary, ICBP, trades around 14x–15x. Compared to global FMCG peers (like Nestle or Unilever) that trade above 20x, the Salim empire offers extreme value, reflecting a persistent “conglomerate discount” on the Jakarta exchange.
4. The Widjaja Family (Sinar Mas Group)
The Business: Founded by the late Eka Tjipta Widjaja, Sinar Mas is a sprawling conglomerate dominating pulp and paper (Asia Pulp & Paper), palm oil under Golden Agri-Resources Ltd (SGX: E5H), property under Bumi Serpong Damai PT Tbk (IDX: BSDE), and financial services.
The Model: Resource extraction and land banking, capitalising on Indonesia’s vast natural resources and urbanisation.
Valuation & Sector Comparison: Sinar Mas public entities generally trade at steep discounts. BSDE, its flagship property arm, typically trades at a P/B ratio of just 0.5x–0.6x. The Indonesian property sector is notoriously undervalued relative to its Net Asset Value (NAV), as the market heavily discounts developers for regulatory risks and slow cash realisation. GAR trades at a P/E of around 7x as well.
5. Low Tuck Kwong (Bayan Resources)
The Business: The driving force behind Bayan Resources Tbk PT (IDX: BYAN), one of Indonesia’s most lucrative coal mining operators.
The Model: Commodity extraction and export, fueling energy demands in China, India, and Southeast Asia.
Valuation & Sector Comparison: BYAN trades at a P/E of roughly 28x. This is a noticeable premium compared to the broader Indonesian coal sector (which usually trades at deeply depressed 4x–6x multiples). This premium is justified by Bayan’s exceptionally low cost of production and extremely tight share float, which amplifies price movements.
6. Otto Toto Sugiri & Marina Budiman (DCI Indonesia)
The Business: The pioneers of Indonesia’s data centre industry through DCI Indonesia Tbk PT (IDX: DCII).
The Model: Digital infrastructure. As Indonesia rapidly digitises, their tier-4 data centers provide the physical “picks and shovels” for the cloud and AI boom in the archipelago.
Valuation & Sector Comparison: Pure tech premium. DCII has historically traded at P/E multiples exceeding 400x. While regional telecom and infrastructure stocks trade at 12x–15x, DCII is priced as a hyper-growth technology monopoly. Its valuation reflects the massive scarcity of high-grade data centres in Indonesia.
7. Tahir Family (Mayapada Group)
The Business: Founded by Dato’ Sri Tahir, the group operates across banking – Bank Mayapada Internasional Tbk PT (IDX: MAYA), property MYP Ltd (SGX: F86), and healthcare, notably controlling hospital operator PT Sejahteraraya Anugrahjaya Tbk (IDX: SRAJ).
The Model: Premium services (healthcare and finance) targeting the growing Indonesian middle and upper-middle classes.
Valuation & Sector Comparison: SRAJ operates in the high-growth healthcare sector, which generally commands premium P/E multiples of 25x–35x (similar to peers like Mitra Keluarga). The market prices these hospital assets highly due to Indonesia’s chronically undersupplied healthcare infrastructure and rising domestic wealth.
8. Sugianto Kusuma ‘Aguan’ (Agung Sedayu Group)
The Business: A privately held but politically massive property developer responsible for sprawling mega-malls, townships, and land reclamation projects in Jakarta.
The Model: Real estate development leveraging deep political ties to secure prime land and infrastructure permits.
Valuation & Sector Comparison: While Agung Sedayu is private, Aguan’s public proxy, Pantai Indah Kapuk Dua Tbk PT (IDX: PANI), trades at a staggering premium. While traditional developers (like BSDE) trade at 0.5x P/B, PANI has traded at P/B multiples exceeding 5x following aggressive backdoor asset injections, showcasing the market’s intense appetite for Aguan’s specific land banks.
9. Garibaldi ‘Boy’ Thohir (Alamtri Resource/Adaro Energy)
The Business: While not ethnically Chinese, Thohir operates at the same elite level, controlling a giant in the coal and energy sector under Alamtri Resources Indonesia Tbk PT IDX: ADRO).
The Model: Energy extraction, currently attempting to pivot toward green metals and EV battery supply chains to match state mandates.
Valuation & Sector Comparison: The ultimate cash-cow valuation. ADRO trades at a deeply depressed P/E of roughly 7x and offers a trailing 11% dividend yield. Despite incredible profitability, it trades at a massive discount to the broader market index because institutional ESG mandates restrict global funds from buying pure-play thermal coal producers.
Derived From Growth or Monopolistic Extraction?
Are these business models derived from Indonesia’s growth? Absolutely.
You cannot separate the wealth of the Dragons from the fundamental trajectory of Indonesia. Their business models are intimately tethered to the country’s core pillars: natural resource extraction, a massive young consumer base, and aggressive infrastructure development. When a middle-class Indonesian buys a bowl of Indomie, takes a mortgage from BCA, or uses electricity powered by Adaro’s coal, the Dragons profit.
However, the question remains: Are they too rich for Indonesia’s good?
As noted in, President Prabowo’s administration is highly concerned that wealth remains concentrated in a “small circle.” The reality is that many of these conglomerates secured their foundational wealth through licenses, monopolies, and political patronage during the Suharto era.
Today, their sheer size acts as a barrier to entry for smaller domestic competitors.
When a handful of families control the banking system, the power grid, and the food supply, they wield enough political clout to stifle regulatory reform. The recent pressure from the government—asking tycoons to buy “patriot bonds” at below-market rates—signals a paradigm shift. The state is demanding that these conglomerates act less like rent-seekers and more like nation-builders. If these families continue to hoard capital offshore rather than reinvesting heavily in domestic job creation, they risk triggering populist regulatory backlashes that could severely damage shareholder value.
How to Trade the Dragons: Broker Options
Despite the political drama, Indonesia remains one of the most compelling emerging markets globally. For retail investors outside of Indonesia (such as in Malaysia or Singapore) looking to get exposure to IDX-listed titans like BCA, Indofood, or Barito Pacific, you need a broker with direct market access to the Jakarta Stock Exchange.
Here are a few broker options:
- CGS International (formerly CGS-CIMB): A powerhouse in Southeast Asia. They offer excellent institutional-grade research on Indonesian equities and provide direct routing to the IDX.
- Maybank Trade / Maybank Kim Eng: For Malaysian and Singaporean investors, Maybank offers a highly integrated platform with access to ASEAN markets. For Indonesia exchange, broker-assisted trading is needed to place any orders.
- POEMS (PhillipCapital): Offers access to 26+ global exchanges, including Indonesia’s IDX. Orders can be placed directly through the POEMS platform, though very low-priced counters (below IDR 50) do require manual Trading Representative placement.
The Verdict
Investing in the “9 Dragons” means investing in the structural heartbeat of Indonesia. While political volatility and populist shakedowns (like forced bond purchases) pose short-term risks, these conglomerates have proven their ability to bend with the political winds for over three decades. For long-term investors, buying into these entrenched monopolies during political sell-offs remains a highly lucrative strategy.
And rather than just investing into the shares, these dragons’ game plan might be different from retail shareholders.
For us, capital and dividend returns are the ultimate reason to participate. These dragons, similar to other listed company bosses, might just be relying on company shares to boost their wealth or to qualify a huge pay cheque.
Which dragon piqued your interest?
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