Business · Markets · 1 day ago
Danantara may buy Indonesian shares during market downturns
Danantara Indonesia says it may buy shares in the domestic market if prices fall and its investment team sees good value.
The organisation’s public investment unit says purchases would be based on valuations, not an attempt to stabilise the market.
Danantara says it bought shares earlier this year because it saw investment value and hoped to sell later at higher prices.
Investors are concerned that MSCI may lower Indonesia’s status from an emerging market to a frontier market next month, which could lead to further selling.
Danantara says it could consider buying if that happens, but would first carry out due diligence.
Its public investment unit has invested about $3 billion and plans to add another $1 billion by the end of the year.
A final decision is still pending on whether Danantara can continue managing dividends intended for the government.
Danantara Indonesia may buy domestic shares during a market downturn if it sees attractive investment value.
The state investment body says such purchases would be based on valuation, not an effort to stabilize the market.
Public Investment Chief Rani Piputri said Danantara could consider buying if a possible market sell-off reflected temporary external sentiment.
The unit has invested about US$3 billion and plans to add US$1 billion by the end of the year.
Danantara has also said it has no explicit mandate to stabilize markets.
- Who
- Danantara Indonesia, through its public investment unit.
- What
- It may buy Indonesian shares during a downturn if valuations are attractive.
- When
- Rani Piputri made the comments on October 10, 2026.
- Where
- Indonesia’s domestic stock market.
- Why
- Danantara says it would seek investment value, not intervene to stabilize the market.
This story does not have two clearly opposing sides.
If there is a market crisis and we feel it is based only on external sentiment that is very temporary, then we may enter the market.
The purpose is not to stabilize the market.
We believe our role should be to ensure that whatever we do is not seen by foreign investors as some kind of market intervention, but rather as an effort to continue contributing to deeper financial markets and better governance.
Danantara bought shares because it saw investment value.
Rani Piputri said Danantara may enter the market during a downturn if it sees attractive valuations.
An MSCI downgrade of Indonesia from emerging-market to frontier-market status could prompt further selling.
Danantara plans to invest an additional US$1 billion.
- Invested so far
- About US$3 billion
- Planned additional investment
- US$1 billion by the end of 2026
- Portfolio allocation
- 65% shares, 30% fixed income and 5% hedge funds
- Indonesia allocation
- One-quarter of total funds
- Potential MSCI downgrade
- Emerging market to frontier market
Sources
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