Indonesia’s IHSG rallies more than 3% as state-owned bank shares climb
Danantara said it was ready to increase stakes in state-owned companies with strong fundamentals, while the exchange announced ownership-transparency measures.
Large-cap stocks lifted Indonesia’s IHSG more than 3% in the first trading session, with the benchmark touching 5,157.47. At its peak, the index gained 157 points, or 3.15%, against the previous session, following company buyback announcements and plans to reform the capital market.
Bank Rakyat Indonesia supplied 22.42 points of the advance as its shares rose to Rp2,690. Telkom Indonesia accounted for 20.65 points at Rp1,990, followed by Bank Mandiri’s 19.43 points at Rp3,600. Bank Central Asia added 14.66 points as its shares reached Rp4,980.
Dony Oskaria, head of BP BUMN and Danantara’s chief operating officer, said the organisation stood ready to expand its stakes in fundamentally strong state-owned companies. Morning gains exceeded 5% for state-owned banking stocks BMRI, BBRI, BBNI, BBTN and BRIS.
Five companies owned by Prajogo Pangestu and Franky Oesman Widjaja prepared about Rp4.5 trillion for buybacks. Barito Pacific, Chandra Asri Pacific and Barito Renewables Energy each earmarked up to Rp1 trillion. Petrindo Jaya Kreasi prepared Rp500 billion, while Dian Swastatika Sentosa allocated Rp1 trillion.
To address MSCI’s concerns, the Indonesia Stock Exchange announced that disclosures for shareholdings above 1% would include affiliation information. It also announced the removal of stocks classified as High Shareholding Concentration from the IHSG calculation. Those stocks currently represent 18% of the benchmark’s weight.
President Prabowo Subianto asked the Financial Services Authority, OJK, to take firm action against capital-market offenders, particularly coordinated trading. OJK said reforms would continue across transparency, liquidity and enforcement. The market’s recovery followed a three-session slide of 946 points, or 15.93%.
