Listen

5:05

An Indonesian miner’s initial public offering has minted at least six billionaires and added a sizable chunk to the fortune of an existing one.

PT Amman Mineral Internasional, the owner of Indonesia’s second-largest gold and copper mine, has risen 269% since its public debut in July, which was the country’s largest IPO this year and is one of the best performing in the world. The firm’s rise stands out against the fortunes of miners globally, who are grappling with accelerating inflation and interest rates.

One of the newly created billionaires is Amman Mineral’s chairman Agus Projosasmito, whose stake in the miner, held through AP Investment, is worth $2.7 billion. AP Investment, in which he directly has a 60% interest, now holds about 15% of Amman Mineral.

Projosasmito and the five other new billionaires have one main thing in common: links to Anthoni Salim, the tycoon at the helm of one of the country’s largest conglomerates, Salim Group. Salim himself has a slice of Amman Mineral, which boosted his fortune by more than $4 billion to $9.7 billion.

“Without connections, you can’t enter this industry,” said Siwage Dharma Negara, a senior fellow with Singapore-based think tank ISEAS-Yusof Ishak Institute.

Salim could not be reached for comment, while Amman Mineral declined to comment or make Salim and other shareholders available. A spokesperson also said the company couldn’t comment on the value of the shareholders’ stakes and how they acquired them.

The level of wealth creation at Amman Mineral is unusual even by standards in Indonesia, where it’s not uncommon to see massive fortunes made in the mining sector. The country’s richest person is Low Tuck Kwong, who founded coal producer PT Bayan Resources and is worth $25.6 billion, according to the Bloomberg Billionaires Index.

The case of a single company turning several shareholders into billionaires is “an extraordinary story,” said Bhima Yudhistira, executive director of the Center of Economic and Law Studies in Jakarta. In Indonesia, it’s more common for a family conglomerate, or one individual, to have the main stake in a company, Yudhistira said.

Close and Personal
Projosasmito’s relationship with Salim goes back to 1989, when he served as an underwriter for the listing of a cement maker that Salim controlled, he said in a phone interview with Bloomberg.

In 2016, when Projosasmito was leading the acquisition of Amman Mineral, he reached out to Salim to see if he wanted to take part in the deal. Projosasmito said Salim was initially skeptical. That resulted in the former investment banker joining forces with the energy-focused Medco Group for the purchase.

But a year after the purchase went through, Salim acquired a stake in the company.

He and his son hold the stake, valued at $2.3 billion, through PT Sumber Gemilang Persada. He owns more shares through PT Pesona Sukses Cemerlang, according to Projosasmito, who also serves as a director to both entities. The prospectus lists other names — Adhi Indrawan and Edie Herjadi — as the shareholders of the company. Projosasmito didn’t provide details on how it belongs to Salim.

More Connections
Another one of the new billionaires is Alexander Ramlie, who is Amman Mineral’s chief executive officer. He teamed up with Projosasmito on the 2016 deal that created the company.

The transaction was mainly backed by loans from state-owned lenders Bank Mandiri and Bank Negara Indonesia.

As part of the deal, Amman Mineral acquired 82% of PT Newmont Nusa Tenggara, which was previously majority owned by global mining giant Newmont Mining Corp. and Japan’s Sumitomo Corp. After the takeover, PT Newmont Nusa Tenggara changed its name to Amman Mineral Nusa Tenggara.

Medco, which still owns a 21% stake in Amman Mineral through PT Medco Energi Internasional Tbk, put in the bulk of the equity, according to a person familiar with the transactions who asked not to be identified as the deal was private.

Projosasmito and Ramlie were among those who contributed personal money to the deal, the person said. The arrangement also involved mezzanine financing from several institutions.

Ramlie’s stake in Amman Mineral, owned through PT Alpha Investasi Mandiri, is worth $2 billion. Ramlie declined to comment.

The other shareholders — Husein Susilo Tjioe, Denny Susanto Halim and Hindarto Budiono — hold shares along with Salim and his son in Sumber Gemilang Persada, which controls 32% of Amman Mineral. The stakes held by the little-known trio are worth a combined $7 billion. While they don’t hold roles at Amman Mineral, they’ve all worked for Salim. Tjioe has served as director at some of Salim Group’s companies, Halim as a director of another and Budiono held an administrative role at Salim Group.

The three shareholders could not be reached for comment.

A sixth person, Tan Hang Huat, who has a stake in the company worth about $1.5 billion, is the group managing director of KMP Private Ltd., Salim’s Singapore-based investment holding company.

Tan didn’t respond to a message seeking comment through LinkedIn.

ISEAS’s Negara said the mining industry is exclusive and only a few players know how to navigate it.

“They know when to invest and who they should talk to,” he said.

Get Alerts for:

More From Bloomberg
Koch-Backed GameChange Solar Files Confidentially for 2024 IPO

Saudi Arabian Water Treatment Firm Miahona Considers IPO

OQ Gas Networks Draws $10 Billion in Orders for Record Oman IPO

Birkenstock Billionaire Brothers Bank $3.5 Billion on Buyout Bet

Top Reads
Dalio’s Abu Dhabi Penthouse Shows Rise of New Hedge Fund Hubs

by Nicolas Parasie, Ben Bartenstein, Nishant Kumar and Julia Fioretti

Will Xi Jinping’s Gamble on Vladimir Putin Pay Off?

by Rebecca Choong Wilkins and Colum Murphy

See Inside a New Hotel in Chile Where You’ll Feel You're Sleeping on Mars

by Mark Johanson

Singapore’s $20 Million Shophouses Are Blazing-Hot Properties

by Selina Xu

Gold Mining Billionaires: Indonesia IPO Boosts Wealth of Six Shareholders

The initial public offering (IPO) of PT Amman Mineral Internasional, an Indonesian miner, has created at least six billionaires and significantly increased the wealth of an existing one. The company's stock has risen 269% since its debut in July, making it one of the best-performing IPOs globally. Key shareholders include Agus Projosasmito, Alexander Ramlie, and others with connections to the Salim Group. This event highlights the wealth creation potential in Indonesia's mining sector.