Prajogo Pangestu Bets on Australian Gold to Revive a Sagging Empire

JAKARTA, Investortrust.id — For Prajogo Pangestu, Indonesia’s petrochemical and energy titan, the luster of gold is proving irresistible as his domestic coal and mining services empire faces a paradoxical crisis. On Wednesday, his flagship engineering firm, PT Petrosea Tbk (PTRO), announced a binding offer to acquire convertible notes in Tolu Minerals Limited, an Australian-listed explorer.

The deal, worth AU$ 23.75 million (approx. $15.6 million), was executed alongside Petrosea’s parent entity, PT Petrindo Jaya Kreasi Tbk (CUAN). Upon conversion, the notes will grant the Indonesian consortium at least a 4.99% stake in Tolu, effectively giving Prajogo Pangestu a foothold in the rugged, mineral-rich terrain of Papua New Guinea.

This pivot toward the Pacific Ring of Fire—a region famed for high mineralization—matters because it signals a transition from a local service provider to a global resource owner. While Petrosea's operational machinery is humming at record efficiency, its market valuation has been battered by shifting investor sentiment and the inherent "headwinds" of a coal-heavy portfolio. By capturing assets in gold and copper, Prajogo is attempting to insulate his group from the volatility of fossil fuels and the skepticism of ESG-conscious global capital.

The Profits and the Plunge

The financial disconnect at Petrosea is startling. On March 6, the company reported that its 2025 net profit soared by more than 251%, reaching $35 million compared to $9.95 million the previous year. Revenue climbed 28% to $886.45 million, fueled by aggressive overburden removal contracts and infrastructure projects.

Yet, the "Street" has been less than kind. Petrosea’s share price has cratered more than 55% this year, trading at Rp 4,930. To shore up confidence, Prajogo has been "descending the mountain"—a local term for a controlling owner intervening in the market—buying millions of shares in both PTRO and CUAN to arrest the slide.

Mining the Ring of Fire

The target of this expansion, Tolu Minerals (ASX: TOK), holds a significant portfolio including the Tolukuma Gold Mine. Tolu’s strategy centers on near-term production from high-grade veins, a prospect that fits Petrosea’s ambitions to create "added value" beyond its traditional service-fee model.

“This agreement is expected to have a positive impact on the company,” Petrosea’s management stated in an official filing. “It is a fundamental step in the expansion of the Petrindo Group's business footprint outside of Indonesia.”

The Billionaire's Shopping Spree

Prajogo’s recent market activity borders on the voracious. On January 29 alone, he spent Rp 7.21 trillion (approx. $456 million) to scoop up 4 million shares of CUAN as prices hit a low. This followed a similar multi-billion rupiah purchase just 24 hours earlier. By the end of January, his ownership in Petrindo Jaya Kreasi had crept up to 84.091%.

As total assets for Petrosea nearly doubled to $1.58 billion in 2025, the group’s liabilities also swelled to $1.27 billion. With the Australian gold play now on the books, the market will be watching closely to see if Prajogo’s Midas touch can convert these overseas minerals into the valuation rebound his domestic empire so desperately seeks.