Key Takeaways
- • Danantara, Indonesia's sovereign wealth fund, has been buying shares in companies it considers attractive, according to chief investment officer Pandu Sjahrir, speaking at a press briefing on Thursday, October 22, 2026.
- • The purchases follow a sharp market selloff triggered by MSCI's warning on Friday that it could downgrade Indonesian equities to "standalone" market status.
- • Indonesia's main stock index (JKSE) plunged on Friday and Monday after the MSCI warning but had rebounded, gaining over 1% by 0300 GMT on Thursday.
- • Sjahrir said Danantara will keep buying "as long as the prices are good" and the shares have strong potential, describing the approach as profit-oriented and citing a favorable risk-reward profile.
- • Sjahrir did not disclose specific holdings or amounts, and said several companies, including some state-controlled ones, still have good fundamentals.
Summary
Indonesia's sovereign wealth fund Danantara has been buying shares in firms it regards as attractive, chief investment officer Pandu Sjahrir said on Thursday, October 22, 2026, according to Reuters. Speaking at a press briefing, Sjahrir said several companies still possess good fundamentals, including some that are state-controlled.
The comments came after a major stock market selloff triggered by a warning from MSCI on the previous Friday that it could demote Indonesian equities to "standalone" market status. The benchmark index (.JKSE) fell sharply on Friday and again on Monday in response to the MSCI warning, but had since recovered, gaining more than 1% by 0300 GMT on Thursday.
Sjahrir said Danantara would continue buying as long as prices remained attractive and the stocks showed strong potential. "We are always profit-oriented. We see that from the risk-reward perspective, it's looking good now," he said. He did not provide details on which shares the fund has purchased or the size of its positions.
The disclosure positions the sovereign fund as a potential source of support for Indonesian equities during a period of heightened index-level volatility tied to the MSCI classification review.
The comments came after a major stock market selloff triggered by a warning from MSCI on the previous Friday that it could demote Indonesian equities to "standalone" market status. The benchmark index (.JKSE) fell sharply on Friday and again on Monday in response to the MSCI warning, but had since recovered, gaining more than 1% by 0300 GMT on Thursday.
Sjahrir said Danantara would continue buying as long as prices remained attractive and the stocks showed strong potential. "We are always profit-oriented. We see that from the risk-reward perspective, it's looking good now," he said. He did not provide details on which shares the fund has purchased or the size of its positions.
The disclosure positions the sovereign fund as a potential source of support for Indonesian equities during a period of heightened index-level volatility tied to the MSCI classification review.
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