Indonesian Tycoon Prospering in Coal Industry Expansion

Decade ago, Low Tuck Kwong, the Indonesian mining billionaire, was more popular for his private zoo – a lavish assortment of peacocks, orangutans, Sumatran tigers, zebra-hybrids (zonkeys), and his own "zorse." To journalists visiting him, he seemed like a modern-day Doctor Dolittle. In 2013, as per Forbes Asia, he even engaged in a conversation with a white cockatoo. Fast forward to 2013, the skies for Low's business outlook seemed murky, as reported by The Wall Street Journal (WSJ). Despite making a nice fortune from his first coal mine purchase in Borneo back in 1997, the future of King Coal seemed bleak. Supposedly, 2013, the year of the dirtiest fossil fuel's peak, was upon us, with advanced economies shutting down their coal-fired power stations. But hey, what do experts know? A swathe of developing Asian economies picked up the slack, and yes, you guessed it right – Coal is back, and it's booming once more.

Those three consecutive years of exceeding the eight-billion-ton consumption, with Indonesia, the world's biggest coal exporter, shipping a record-breaking amount, brought Low's Bayan Resources mining empire right to the heart of the boom. Bayan Resources’ Jakarta-listed shares leapt a whopping 1,245% in just five years, skyrocketing Low's net worth from an okay-ish spot on local rich lists to Indonesia’s fourth-richest person, worth a cool $27 billion in 2024. Evidently, our boy Low is still striving to keep up with the coal rush by boosting production – nothing sacrosanct seems to be able to stand in his way, even his “private zoo” has to make way for the burgeoning mining industry beneath it.

The WSJ highlights Low as a canny player in a volatile sector, noting that he travels to his mining concessions in Kalimantan via helicopter but carries his own bag, preferring to keep a low profile and wear the same pair of trainers for a few days at a stretch. An immigrant who understandably values anonymity, Low rarely gives interviews and isn’t much of a talker about his past – born in Singapore in 1948, he started working at his father’s construction firm before migrating to Indonesia in 1972. After initially foraying into timber, he established Bayan. His operations got off to a rocky start; the ending of Suharto’s three-decade reign in 1998 coincided with his first coal shipment, leading a Japanese buyer to back out due to fear of unrest. Still, Low managed to navigate the industry's ups and downs, focusing on expansion instead of crumbling in the struggles. Even during the stickiest years, when adv congratulated him for his死常象 Lost But Lo and Behold, the boom returned! Low’s determination and a resurgent China's ravenous demand saved the day, and by 2018, Bayan was back in the game. But transporting coal remains a challenge; Bayan relies on rivers for shipping, and a lengthy dry period once necessitated a consultation with a local shaman and offerings to a river god. To bypass such troubles, Bayan is building an overland conveyor belt now.

Asia’s coal thirst continues to flourish, providing ample reasons to bet on the industry’s growth in the short-to-medium term. But Low, who transferred 22% of Bayan to his daughter Elaine last year, has learned not to put all his eggs in one basket, according to Indonesia Business Post. Besides expanding his coal operations, he's expanding his portfolio too, with newly established ventures in the palm oil and livestock sectors. His Singapore interests also include the renewable-energy company Metis and The Farrer Park Company, a healthcare and hospitality complex. All in all, it looks like Low will be meeting plenty of exotic feathered friends in his expanded ventures.

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Low Tuck Kwong, the "King of Coal," has seen impressive growth in his mining empire, Bayan Resources, with Jakarta-listed shares leaping 1,245% in five years.
Besides expanding his coal operations, Low is diversifying his portfolio, with new ventures in palm oil, livestock, renewable energy, and healthcare and hospitality sectors.
Initial challenges such as the ending of Suharto's reign and fear of unrest were hurdles that Low managed to navigate, focusing on expansion rather than giving in to struggles.
Subscribing to Money Morning will keep readers updated on Low Tuck Kwong, the enigmatic coal tycoon, and his evolving business ventures in the finance, energy, and other industries.