Arab Nations Quietly Invade the Indonesian Stock Exchange, These 4 Companies are Proof

Jakarta, CNBC Indonesia - The Indonesian capital market has consistently been one of the destinations for foreign investment, including financial institutions and business entities from the Middle East.

Capital flows from this region generally focus on strategic sectors that have long-term operational prospects, such as banking, telecommunications, and renewable energy.

Based on data recorded on the Indonesia Stock Exchange (IDX), there are currently four listed companies that have a direct share ownership structure from entities originating from Qatar and the United Arab Emirates (UAE).

Here is a summary of the share ownership composition of Middle Eastern entities in the four issuers:

Focus on the Banking and Telecommunications Sectors

In the conventional banking sector, an institution from Qatar, namely Qatar National Bank (Q.P.S.C.), acts as a controlling shareholder in PT Bank QNB Indonesia Tbk (BKSW). This institution has a very large majority ownership portion, reaching 92.50%.

Meanwhile, in the telecommunications sector, Ooredoo Group, which is also affiliated with Qatar, places its capital through the joint entity Ooredoo Hutchison Asia Pte. Ltd. This entity consistently maintains a majority share ownership in PT Indosat Tbk (ISAT) at the level of 65.64%.

Expanding into Islamic Banking and Green Energy

In addition to conventional banking, capital expansion from the United Arab Emirates (UAE) targets the national Islamic banking segment. Dubai Islamic Bank PJSC is a strategic investor in PT Bank Panin Dubai Syariah Tbk (PNBS) with a share ownership of 25.35%.

In the energy transition sector, capital flows from Abu Dhabi, UAE, also enter the development of geothermal energy. Masdar Indonesia Solar Holdings RSC Limited is recorded as holding ownership in PT Pertamina Geothermal Energy Tbk (PGEO) of 14.85%. The existence of this Middle Eastern entity represents a diversification of foreign capital flows in the fundamentals of the domestic capital market.

Disclaimer: This article is a journalistic product in the form of a CNBC Indonesia Research perspective. This analysis does not aim to invite readers to buy, hold, or sell related investment products or sectors. The decision is entirely up to the reader, so we are not responsible for any losses or profits arising from that decision.

CNBC INDONESIA RESEARCH

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