Danantara Enters the Market

Indonesia's sovereign wealth fund Danantara has officially stepped in to calm the capital market. The fund announced it has begun buying shares on the Indonesia Stock Exchange over the past two days, with a primary focus on state-owned enterprise (SOE) stocks it deems to have strong fundamentals and attractive valuations.

The announcement was made by Danantara Chief Investment Officer Pandu Patria Sjahrir during a Coffee Morning Session at Wisma Danantara, Jakarta, Thursday (22/10/2026). According to Pandu, the decision to buy was taken after assessing a gap between issues developing in the market and the fundamental conditions of the listed issuer.

"Since yesterday and today, we have started buying stocks that we consider effective, and we will continue as long as the prices are attractive and the prospects are good," said Pandu.

Response to MSCI Pressure

Danantara's buying action came amid heavy selling pressure triggered by an MSCI warning on Friday (16/10/2026). The global index provider raised the possibility of downgrading Indonesia's stock market classification from Emerging Market to Standalone Market, which sparked concerns among foreign investors.

On October 16, the JCI plunged around 11.6 percent in a single trading day. Pressure continued into the start of the week, with the index briefly touching the 4,996 level on Monday (10/19/2026).

Pandu assesses that the issues developing in Kuala Lumpur, Malaysia, differ from the condition of companies listed on the Indonesian capital market. Therefore, Danantara evaluates each company based on its own fundamentals. "We are always profit-oriented. From a risk-reward perspective, we see attractive opportunities at present," he said.

Through Professional Investment Managers

Managing Director of Investment at PT Danantara Investment Management Stefanus Ade Hadiwidjaja explained that Danantara does not pick stocks directly. The institution partners with professional investment managers, both domestic and international, who have previously passed a thorough due diligence process.

The buy signal was actually conveyed earlier by Danantara Chief Operating Officer Dony Oskaria on Monday (19/10/2026). "If it's good, we buy, especially BUMN shares. We will increase our ownership," Dony said at the time.

In Thursday's trading session (22/10/2026), the IHSG showed a recovery. After opening lower by as much as 2 percent, the index reversed course to gain around 1 percent to the level of 5,381.43 at 09:56 WIB. Danantara emphasized that purchases will continue as long as opportunities with attractive risk-reward profiles remain available.