Danantara Indonesia invests 80% in the domestic stock market.

Danantara Indonesia Announcing a strategic move by allocating around 80% of its portfolio to domestic stock market instruments. This step not only signals confidence in the strength of the national economy, but also indicates a new direction for the country's sovereign wealth fund (SWF) investment policy in strengthening Indonesia's financial foundations.

As a superholding of state-owned enterprises that manages a range of strategic assets across sectors, Danantara positions itself as the main catalyst for the growth of the capital market. With this decision, the state's large funds will circulate more domestically — strengthening the liquidity of the stock market and giving a boost to the Jakarta Composite Index (IHSG).

New Investment Strategy: Focus on the Domestic Market

This Danantara policy comes amid the government's efforts to strengthen the economy's resilience from within. By targeting 80% of investments to the domestic market, the SWF aims to spur local capital formation and strengthen Indonesia's capital market as a pillar of long-term development financing.

Implications for Market Liquidity

Presence of funds from Danantara Indonesia can increase new liquidity flows on the stock exchange. With an influx of fresh funds, large-cap stocks (blue chips) as well as strategic sectors such as infrastructure, energy, and technology have the potential to experience a significant increase in demand.

As a result, market volatility could be reduced because stock price stability is better maintained. In addition, foreign investors may view this move as a signal of the government's confidence in the prospects of the domestic economy, which could spur foreign capital inflows back into the domestic economy.

Momentum for Issuers and Potential IPOs

Langkah Danantara also presents a strategic opportunity for issuers that are already listed on the stock exchange as well as companies planning to undertake an initial public offering (IPO). In this context, an increase in domestic liquidity could reduce funding costs and broaden the local investor base.

A company with a sustainable business model and good governance (good corporate governance) will be Danantara's main investment target, in line with the SWF mandate that emphasizes long-term profitability and national economic impact.

Government's Vision: Financial Independence and Global Competitiveness

The government through the Ministry of State-Owned Enterprises has emphasized that the existence of Danantara is not merely an investment institution, but also a strategic instrument to strengthen national financial independence.

National Asset Consolidation Center

As a state-owned superholding, Danantara Indonesia plays a role in consolidating various state assets, from the energy sector, telecommunications, agriculture, and transportation. With professional management based on global investment principles, this institution is expected to generate high returns that can then be returned to the state treasury in the form of dividends or reinvestment in development.

In addition, large domestic investment enables Danantara to become a major player in shaping the direction of the market. By allocating funds to Indonesia's blue-chip stocks, this institution also strengthens the index's fundamentals and extends the economy's long-term lifespan.

Encouragement of Capital Market Independence

This step can also strengthen the mission. Financial Services Authority (OJK) dan Indonesia Stock Exchange (BEI) in deepening the national financial market. With the increasing share of domestic institutional investors, dependence on foreign funds is expected to decline, making Indonesia's capital market more stable against external shocks.

In addition, with new capital inflows, the potential to develop ESG-based investment instruments is also growing, opening up opportunities for synergy between sustainable investment and the development of the national economy.

Economic Impact: Optimism and New Appeal for Investors

Confidence Signal and Macroeconomic Stability

Langkah Danantara Indonesia gives a strong signal that the government has confidence in the fundamentals of the Indonesian economy. When many countries face global pressures, the decision to strengthen domestic markets indicates a long-term orientation focused on stability.

Global investors tend to pay attention to the policy direction of a country's sovereign wealth fund. When SWFs invest more domestically, this signals confidence in the prospects of the national economy, which could increase the attractiveness of foreign investment.

Domino Effect on Other Sectors

The increase in stock market liquidity will have a positive impact on the banking sector, investment management, and even fintech. Financial institutions will receive additional demand for financial services, while the real sector will gain broader access to financing.

For businesses weighing expansion or a merger, this environment could be an ideal time to carry out equity restructuring or to explore new capital offerings through the stock exchange.

Market Perspective: The Right Time to Review Strategy

Analysts view Danantara Indonesia's move as an important momentum for domestic entrepreneurs. For companies that have already gone public or will go public, an increase in market activity could open up opportunities for higher valuations and accelerate growth.

Individual investors are also advised to review their portfolios. When large sovereign wealth funds begin to enter the stock market, the potential for stock price appreciation in priority sectors could be a new opportunity.

Additionally, companies looking to attract foreign direct investment (FDI) can leverage these confidence signals as strong evidence of Indonesia's economic stability. In the long term, this strengthens Indonesia's position as an investment hub in the Southeast Asia region.

Towards a new phase of the Indonesian capital market.

With Danantara Indonesia's bold steps, the domestic capital market has the potential to enter a new era that is more solid and independent. The decision to allocate the majority of the portfolio domestically is not only a financial strategy, but also a symbol of national commitment to sustainable development.

This policy is expected to be an example of the synergy between the state and the market, creating a healthy, transparent, and inclusive investment ecosystem.

Amid global turmoil, such optimism becomes an important fuel for the Indonesian economy to continue to grow. For investors and entrepreneurs, this is the best time to reassess their strategies in the capital market.

For a deeper analysis of the direction of BUMN policy and national investment, readers can follow the subsequent article on Insimen.