Danantara CEO: Significant Upside Potential in Indonesian Banking Shares

Chief Executive Officer (CEO) of Danantara Indonesia, Rosan Roeslani, believes that the price of shares in the banking sector on the Indonesia Stock Exchange (BEI) is currently still below fair value or undervalued. This is evident from the Price to Book Value (PBV) of banking issuers, the majority of which remain below 1 time. Rosan explained that in normal market conditions, the valuation of banking shares should be in the range of 2 to 3 times PBV. The current low valuation is seen as an opportunity for investors due to potential price appreciation in the future. ‘Moreover, if we look at banks, from the Price to Book it’s below 1, below 1, whereas in normal conditions it would be above 2, above 3. So definitely there’s a potential upside,’ Rosan said at a press conference at the BEI Building, Jakarta, Tuesday (19/5/2026). Although the stock market is volatile, Rosan stressed that the fundamentals of issuers in Indonesia remain solid with attractive yield potential. He noted that price fluctuations are normal in the dynamics of the exchange. ‘So, for us at Danantara this market certainly has ups and downs. But if we look at the company’s fundamentals, they are good, with high yield, current pricing is very good,’ he added. Danantara’s optimism is also supported by significant growth in the number of retail investors now reaching 26-27 million people, up from last year’s figure of around 20 million investors. According to Rosan, adding around 6 million investors is evidence of increasing public confidence in the prospects of the national capital market. On the other hand, intra-session data on Tuesday (19/5) showed the Jakarta Composite Index (IHSG) closed down significantly by 202.97 points or 3.08% to the level of 6,396.27. A total of 611 shares were down, while turnover reached Rp15.13 trillion. The visit by Danantara officials to BEI was accompanied by Deputy Speaker of the House of Representatives Sufmi Dasco Ahmad and was welcomed by the Chairman of the OJK Board of Commissioners Friderica Widyasari Dewi together with BEI directors.