Danantara to Consider IDX Valuation in Stake Acquisition Plans

The Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia) has stated that its ownership percentage in PT Bursa Efek Indonesia (IDX) will consider the bourse’s valuation after the demutualisation process. Managing Director Finance of PT Danantara Investment Management (DIM), Djamal Attamimi, expressed confidence that Danantara’s entry could boost Indonesia’s capital market capitalisation. “That will certainly depend later on the valuation and the ownership percentage. But we see the main objective as how we can increase market capitalisation, especially compared to Gross Domestic Product (GDP),” Djamal said during an interview at the IDX Building in Jakarta on Thursday. Djamal compared the market capitalisation-to-GDP ratio of several other countries, which is higher than Indonesia’s current range of 50 to 60 percent of GDP. “In other countries like Malaysia and India, the capitalisation is already 100 to 120 percent of GDP. So the potential for increasing volume is still quite significant,” he said. IDX President Director Jeffrey Hendrik revealed that Danantara Indonesia has already expressed interest in owning shares in PT BEI. “Oh, the one that has expressed interest is BPI Danantara, through DIM,” Jeffrey stated. He confirmed that the IDX will continue to build communication with Danantara while awaiting the issuance of the Financial Services Authority (OJK) Regulation on Demutualisation. “So going forward, we will certainly continue to build communication while waiting for the POJK. Everything will be regulated through the POJK,” he said. Jeffrey explained that the demutualisation regulation would also govern the ownership of investors outside of Exchange Members, including Danantara, in the IDX. “Oh yes, that (the ownership limit) will be regulated by the POJK,” Jeffrey confirmed. Previously, Danantara Indonesia’s Chief Investment Officer, Pandu Sjahrir, said that his party was currently in discussions with the OJK regarding the process to acquire ownership in the IDX. “Yes, the demutualisation is still in process, both with the OJK and with the exchange’s board of directors. God willing, it can be completed in the next few months,” Pandu said.