Jakarta, CNBC Indonesia \u2013 Selling pressure from foreign investors has\nonce again tested the resilience of Indonesia\u2019s stock market. However,\nIndonesia actually has a line-up of domestic institutional investors\nwhose combined investment funds, cash and assets under management total\naround Rp1,693 trillion.<\/p>\n
This strength is spread across BPJS Ketenagakerjaan, the Hajj\nFinancial Management Agency (BPKH), Taspen, Asabri, Danantara Investment\nManagement (DIM), the Indonesia Investment Authority (INA), and four\nstate-owned investment managers.<\/p>\n
Mukhamad Misbakhun, Chair of Commission XI of the House of\nRepresentatives (DPR), previously said the jumbo funds held by domestic\ninstitutions could be optimised to help replace departing foreign\nfunds.<\/p>\n
BPJS Ketenagakerjaan is said to manage funds approaching Rp1,000\ntrillion, while funds managed by BPKH are nearing Rp200 trillion.<\/p>\n
\u201cThere is strength at home to demonstrate how strong our fundamentals\nare. We have BPJS Ketenagakerjaan, we still have the Hajj Fund, and we\nstill have other pension funds. If foreigners leave, it is simply a\nmatter of orchestrating the moment of profit-taking \u2014 there is the\npotential to replace those foreign funds,\u201d Misbakhun said at the CNBC\nIndonesia Investment Forum on Wednesday (15\/7\/2026).<\/p>\n
The statement is supported by BPJS Ketenagakerjaan\u2019s latest financial\nreport. Based on its audited 2025 report, BPJS and the Social Security\nFund hold Rp897.85 trillion in investment funds out of total assets of\nRp921.30 trillion.<\/p>\n
Those investment funds comprise Rp884.06 trillion from the Social\nSecurity Fund and Rp13.79 trillion from BPJS Ketenagakerjaan\u2019s own\ninvestments. The Rp897.85 trillion figure is the more accurate measure\nof its investment portfolio capacity.<\/p>\n
The four state-owned investment managers comprise BRI Manajemen\nInvestasi with AUM of Rp50.91 trillion, Mandiri Manajemen Investasi with\nRp45.08 trillion, BNI Asset Management with Rp28.87 trillion and PNM\nInvestment Management with Rp7.86 trillion, bringing their combined\nmanaged funds to Rp132.72 trillion.<\/p>\n
Merging the four investment managers could increase the scale of fund\nmanagement, transaction capacity and investment efficiency. However,\nthat AUM consists of customers\u2019 mutual fund money and fund management\ncontracts. Its deployment must still follow prospectuses, investment\nmandates and customers\u2019 interests.<\/p>\n
Danantara to Place 50% of Its Portfolio in Public Markets<\/p>\n
Beyond social security and pension funds, DIM held cash and cash\nequivalents of around Rp123.03 trillion as of April 2026. This cash\nposition demonstrates Danantara\u2019s ability to finance new investments,\nalthough not all of it has been allocated.<\/p>\n
Danantara\u2019s Chief Investment Officer Pandu Patria Sjahrir previously\nsaid around 50% of Danantara\u2019s investment portfolio would be placed in\npublic-market investments as part of its strategic asset allocation.\nHowever, that allocation covers two instruments: bonds and listed\nequities.<\/p>\n
Danantara has also previously declared its readiness to act as a\nliquidity provider in the capital market. Funds for that role could\ncome, among other sources, from accumulated dividends of state-owned\ncompanies.<\/p>\n
Even so, these statements do not mean the entire 50% allocation will\nbe used as equity market liquidity provision. To date, Danantara has not\ndisclosed the split between bonds and equities, nor a specific amount\nset aside to supply liquidity to the exchange.<\/p>\n
The strength of institutional investors drew attention on 9 June\n2026, when Deputy Speaker of the DPR Sufmi Dasco Ahmad convened\nDanantara, BPJS Ketenagakerjaan, Taspen, INA and the leadership of the\nstate-owned banks (Himbara) to discuss market conditions and\nopportunities to buy back shares with strong fundamentals.<\/p>\n
On the same day, the Jakarta Composite Index (IHSG) closed up 7.57%\nat 5,746.65. That rally demonstrated the considerable influence of\nsignals of domestic institutional coordination on market confidence.\nHowever, there has been no disclosure of how much money actually entered\nthe market during that trading session.<\/p>\n
Equity Allocation Heading Towards 20%<\/p>\n
The government has also announced a policy direction to encourage\npension and insurance funds to increase their placement in the capital\nmarket from an average of around 8% to 20%. The initial stage is aimed\nat large-cap, liquid stocks in the LQ45 index.<\/p>\n
This policy does not mean all institutions are automatically required\nto place 20% of their assets in equities. The Financial Services\nAuthority (OJK) explained that existing rules already provide\nconsiderable room for investment. POJK Number 26 of 2025, for example,\nallows insurance companies to invest a maximum of 10% in the shares of a\nsingle issuer and 40% overall.<\/p>\n
The total of Rp1,693.28 trillion is also not cash that can be\ndeployed all at once. BPJS, BPKH, Taspen and Asabri must maintain\nbenefit payments. INA\u2019s AUM includes partner funds, while the AUM of the\nfour state-owned investment managers belongs to customers.<\/p>\n
Nevertheless, a phased increase in allocation could still strengthen\ndomestic demand when foreign investors withdraw. Indonesia has a\nsubstantial institutional funding cushion, as long as investments are\ntransparent, return-oriented and directed towards shares with strong\nfundamentals.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-has-ammunition-of-thousands-of-trillions-ready-to-counter-fleeing-foreign-funds-1784271050", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }