Danantara Adopts Long-Term Strategy in Investment
Jakarta - The Daya Anagata Nusantara Investment Management Agency (BPI Danantara) has stated it will adopt a long-term approach in managing the state’s investment portfolio to mitigate the impact of global economic shocks on the domestic capital market.
“I always see it, and I have also conveyed this within Danantara, we always look at it as a ‘long term approach’, both when we invest directly and indirectly,” said BPI Danantara Chief Executive Officer (CEO) Rosan Roeslani at the Cabinet Meeting Room in the Presidential Palace Complex, Jakarta, on Monday.
He said the affirmation of this commitment is intended to provide regulatory certainty for institutional investors who require legal stability when placing capital. The government is optimistic that this long-term investment pattern can maintain the resilience of domestic financial instruments against external dynamics.
According to Rosan, the current dynamics of rising and falling stock prices are considered merely part of the technical cycle of the financial market. These daily movements are assured not to alter the national medium-term economic growth projections.
Danantara’s move to implement this strategy is also aligned with the characteristics of international capital market players who apply investment based on fundamental economic data, Rosan said. They tend not to engage in daily trading or liquidate assets within short durations on the domestic stock exchange.
He stated that external investors are not expected to instantly liquidate their investment portfolios when facing stock price fluctuations over a matter of weeks. Their investment decisions remain anchored to the transparency and governance of issuers listed on the stock exchange.
Rosan added that global investors always view investment for the long term, whereas domestic investors, particularly in the real sector, tend to have a short-term perspective.
“So they look at the fundamentals. The technical factors, the ups and downs, certainly have an influence. But if the policies and perceptions are positive, they will continue to see this investment as having the potential to grow going forward,” he said.