Danantara Reviews Potential Stake in Indonesia Stock Exchange

The Daya Anagata Nusantara Investment Management Agency (Danantara) is reviewing plans to acquire shares in the Indonesia Stock Exchange (IDX) in line with the bourse’s demutualisation process. The initiative aims to strengthen governance and boost investor confidence in the domestic capital market ecosystem. Danantara CEO Rosan Roeslani stated that the sovereign wealth fund is interested in joining the exchange’s ownership structure, noting that such involvement is common practice in many developed countries. “Oh yes, we are certainly interested in the demutualisation being carried out by the OJK, by the exchange, because this is one of the things that needs to be done by the OJK and is also a suggestion on how to make our exchange better in terms of governance, transparency, and accountability,” he said when met at the DPR RI Building in Jakarta on Wednesday. Regarding the size of the stake to be acquired, Rosan said calculations and analysis are still underway. He emphasised that the main objective is to optimise the exchange’s performance to meet global standards through strengthened transparency and accountability. “We are still reviewing what percentage, because the main point is that together we want to build our exchange to be better, more optimal,” Rosan said. He expressed hope that the move would positively impact market participants who require a high level of trust in transactions. “People transacting on the exchange need high trust, and this is something that has been done in almost all exchanges around the world. So in this case, Danantara is very interested because we see that in other exchanges in other countries, their sovereign wealth funds also have a stake in the ownership,” he concluded. The government has previously enacted a new regulation under the Financial Sector Development and Strengthening Law (UU P2SK). The law stipulates that three state institutions may become shareholders of the IDX: the Ministry of Finance, Bank Indonesia, and the Daya Anagata Nusantara Investment Management Agency (Danantara). However, the regulation also mandates that the IDX must maintain its independence as a capital market institution. Further provisions regarding shareholders of the Stock Exchange are regulated in the OJK regulation.