Danantara Chief Says State-Owned Issuers Are Undervalued Despite Strong Fundamentals
JAKARTA – Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) Chief Executive Officer Rosan Roeslani said the correction in the Indonesian stock market presented a long-term investment opportunity, particularly in shares of state-owned enterprises (SOEs), which he considers undervalued despite their strong fundamentals.
Rosan said capital-market reforms to improve governance, transparency and accountability provided an opportunity for long-term investors to enter the Indonesian stock market.
In his view, the recent share-price correction had brought the valuations of several listed companies, including SOE issuers, to relatively low levels.
“We see this as an opportunity for the future, because Danantara always views investment as long-term, rather than as an investor that comes in and out. We believe, and our analysis shows, that the fundamentals of our companies (SOEs) are very strong,” the Danantara chief said at a press conference in Jakarta on Friday, 16 October 2026.
He cited the banking sector, whose fundamentals are solid but whose valuation remains below one times its price-to-book value (PBV) and below the industry median. Rosan said similar valuations were also a concern in the infrastructure and telecommunications sectors.
Rosan said he believed companies listed on the Indonesia Stock Exchange (IDX) had prospects for increasing their valuations. He said current market pressure was driven more by technical factors, rumours and non-fundamental sentiment than by companies’ underlying fundamentals.
“Yes, there are bound to be ups and downs on our stock exchange, but we do not see this as being about fundamentals. It is more about technical factors, market rumours and non-fundamental issues,” Rosan said.
Against this backdrop, Rosan said Danantara continued to regard the Indonesian stock market as a long-term investment opportunity. He said investors should remain focused on company fundamentals amid market volatility.