Danantara says it has begun buying Indonesian shares amid market pressure
The investment body wants to increase its holdings in state-owned companies, citing valuations, growth prospects and potential returns.
BPI Danantara Indonesia has started purchasing Indonesian equities following recent market declines, chief investment officer Pandu Sjahrir said at a Jakarta event on 22 October 2026. He said buying would continue while prices remained attractive and companies offered good prospects.
Pandu said Danantara sought larger holdings in several state-owned companies, weighing potential gains against investment risks. He described their fundamentals, growth outlook and valuations as favourable, and said the purchases reflected Danantara’s assessment of those businesses.
Pahala Mansury, managing director for global relations and communications, said the planned investment was roughly comparable in size to funds deployed previously. Danantara does not select individual stocks itself, he said, but works with partners that make professional investment judgements, while Danantara conducts due diligence.
The purchases come after MSCI announced on 16 October 2026 that Indonesia’s stock market could move from Emerging Market to Standalone Market status. The announcement triggered heavy selling on the Indonesia Stock Exchange, with the Jakarta Composite Index falling about 11.6 per cent that day and facing further pressure on 19 October.
On 22 October, the index recovered from an opening decline of as much as 2 per cent. At 09.56 WIB, it stood at 5,381.43, a gain of 53.07 points, or 1 per cent.
