Danantara Claims Investor Confidence Is Recovering

Danantara Indonesia has claimed that market confidence is starting to recover. This signal is reflected in the strengthening stock market and rupiah exchange rate in recent times. Corporate actions in the form of buybacks are also being undertaken to strengthen fundamentals. This was conveyed by Danantara Indonesia Chief Operating Officer and Head of the State-Owned Enterprise Management Body, Dony Oskaria, after a flag off at the 2026 BTN Jakarta International Marathon in Jakarta on Sunday. He stated that the appreciation of the Composite Stock Price Index (IHSG) and the rupiah exchange rate is evidence that investors are beginning to look at the fundamental aspects of the Indonesian economy and its companies. “We are certainly grateful to all investors who have shown confidence in our economic fundamentals and the fundamentals of Indonesian companies. This good performance has led to a significant strengthening of the IHSG, including the rupiah which has also shown appreciation,” he said. On Friday trading, the IHSG closed at 6,007.66. Over the past week, the IHSG recorded an appreciation of 665.52 points, or strengthened by 12.45 percent, from its low of 5,342.14 on Monday. Similarly, the rupiah exchange rate appreciated by 250 points, or 1.37 percent, over the week, from its low of Rp 18,171 per US dollar on Monday to Rp 17,921 per US dollar on Friday. Dony added that short-term market movements have been influenced by various sentiments. However, investors will eventually reassess the national economic fundamentals and the performance of each company. According to him, national companies, especially state-owned enterprises, still have strong fundamentals, such as in the banking, mining, and infrastructure sectors. Therefore, corporate actions are carried out as a normal business mechanism to strengthen these fundamental values. “Buyback is actually a normal process. If we see our shares are too low, of course, we will definitely buy them. It would be a pity, rather than investing elsewhere, it is better we invest in our own shares,” he said. At the same event, President Director of PT Bank Tabungan Negara (Persero) Tbk, Nixon LP Napitupulu, conveyed that BTN is optimistic about maintaining its growth momentum by continuing to drive public demand for housing through various financing innovations. “We must be able to create demand, not just wait for the market. Therefore, BTN continues to push various strategies so that the housing sector keeps moving and the public continues to have access to buy houses,” said Nixon. He added that the company is also maintaining its growth targets with discipline amid economic dynamics. Credit expansion will continue with a growth target of 8-10 percent while maintaining asset quality below 3 percent. Bank Indonesia Senior Deputy Governor Destry Damayanti stated that the rupiah’s strengthening over the past week reflects a positive market response to the policy mix adopted by BI. These policies include raising the benchmark interest rate to 5.5 percent, strengthening the interest rate structure for Bank Indonesia Rupiah Securities, providing hedging swap incentives for investors, opening access to repurchase agreements, and enhancing monetary operations. “Following the BI Rate increase, foreign capital inflows have experienced positive developments, supported by the attractiveness of domestic financial instruments,” she said in a written statement on Friday. The high investor interest was reflected in foreign capital inflows in SRBI and Government Bond transactions on 10-11 June 2026, amounting to Rp 15.11 trillion and Rp 3.91 trillion, respectively. In addition, foreign capital inflows were also recorded in Danantara’s international bonds amounting to Rp 26.9 trillion. External resilience is further strengthened through financial cooperation between BI, the People’s Bank of China, and the Hong Kong Monetary Authority, covering regional financial stability, bilateral currency swap agreements, and local currency transactions. Destry added that BI will continue to be present in the market and optimise all policy instruments consistently and measurably. BI will also strengthen coordination with the government and stakeholders to maintain stability and strengthen external resilience. “With the above developments, it is believed the rupiah will continue to strengthen against the US dollar towards its fundamental level,” she said. However, Senior Economist at PT Samuel Sekuritas Indonesia, Fithra Faisal Hestiadai, cautioned that rupiah stability will remain a primary market concern, especially if external pressures and demand for the US dollar persist. Additionally, the government’s ability to manage debt, diversify funding sources, and execute the 2027 growth strategy will be important factors in maintaining future investor confidence. “Market sentiment still tends to be cautious, influenced by foreign selling and volatility in domestic and regional stock markets,” he said in an analysis on Friday. Over the past week, foreign investors recorded a net sell of Rp 5 trillion.