Danantara Says Stake in Indonesia Stock Exchange Will Consider Valuation

The Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia) has stated that its ownership percentage in PT Bursa Efek Indonesia (IDX) will take into account the IDX’s valuation following the demutualisation process.

Managing Director of Finance at PT Danantara Investment Management (DIM), Djamal Attamimi, believes that Danantara’s entry will help drive an increase in Indonesia’s capital market capitalisation.

“That will of course depend on the valuation and the ownership percentage. But we see the main objective as how we can increase market capitalisation, especially compared with Gross Domestic Product (GDP),” Djamal said in an interview at the IDX Building in Jakarta on Thursday.

Djamal compared the ratio of capital market capitalisation to GDP in several other countries, which is higher than Indonesia’s range of 50-60 per cent of GDP.

“But in other countries such as Malaysia and India, capitalisation is already 100-120 per cent of GDP. So the potential for increasing that volume is still quite substantial,” Djamal said.

IDX President Director Jeffrey Hendrik revealed that Danantara Indonesia has already expressed interest in owning shares in PT BEI, conveyed through DIM.

“The one that has expressed interest is BPI Danantara, through DIM,” Jeffrey said.

Jeffrey further confirmed that the IDX will continue to maintain communication with Danantara while awaiting the issuance of the Financial Services Authority (OJK) Regulation on Demutualisation.

“So going forward, we will of course continue to build communication while waiting for the POJK. Everything will be regulated through the POJK,” Jeffrey said.

He explained that the POJK on Demutualisation will also regulate ownership by investors outside Exchange Members, including Danantara’s stake in the IDX.

“Yes, that (ownership limit) will be regulated by the POJK,” Jeffrey said.