Danantara Says It Has Bought Shares as the JCI Falls

Jakarta, CNBC Indonesia — BPI Danantara Indonesia says it has begun investing in the Indonesian stock market amid pressure on the Jakarta Composite Index (JCI) in recent weeks.

Danantara Indonesia Chief Investment Officer Pandu Sjahrir said the current market weakness presents an investment opportunity for the Investment Management Agency (BPI). “As of yesterday, and today, we have started buying shares that we consider effective, and we will continue as long as the prices are attractive and the prospects are good,” Pandu said at a Danantara Indonesia coffee morning in Jakarta on Thursday, 22 October 2026.

He said Danantara intends to increase its holdings in a number of state-owned companies, taking into account their profit potential and the balance between risk and return. State-owned company shares, he said, have sound fundamentals, promising growth prospects and attractive valuations.

Pandu added that the investments were already being executed and reflected Danantara’s view of the prospects for state-owned companies listed on the stock market. The investment focus, he said, would remain on company fundamentals and potential returns.

On its fund deployment strategy, Managing Director for Global Relations and Communications Pahala Mansury said the amount earmarked for investment would be broadly similar to the funds Danantara had placed in the previous period.

“We do not pick stocks ourselves. We partner with other parties, who will make decisions based on their professional judgement. We conduct due diligence,” Pahala said.

The move comes as financial markets have faced growing pressure following an announcement by MSCI about a possible change in the status of Indonesia’s stock market from Emerging Market to Standalone Market.

The announcement on Friday, 16 October 2026, triggered a major sell-off on the Indonesia Stock Exchange (IDX). The JCI plunged by about 11.6% in trading that day and came under further pressure on Monday, 19 October.

The JCI was back in positive territory midway through the first trading session today. At 9.56am Jakarta time, it stood at 5,381.43, up 53.07 points, or 1%, after falling by as much as 2% at the market open.

The developments coincided with a wave of share buy-backs by IDX-listed companies between October and December 2026. Some companies have earmarked funds of up to trillions of rupiah for the corporate actions.