Danantara's CEO Says Bank Stocks on the IDX Are Still Undervalued

JAKARTA – Rosan Roeslani, Chief Executive Officer of Danantara Indonesia, says that bank stocks on the Indonesia Stock Exchange (BEI) are currently undervalued, with several bank stocks trading at a price-to-book value (PBV) below 1x. In normal conditions, banking sector valuations typically sit above 2x to 3x PBV. “If we look at the banking sector, its price to book value is still below 1x. In normal conditions it could be above 2x to 3x. So there is obviously room for appreciation,” Rosan said at a press conference at the BEI building in Jakarta on Tuesday (19 May 2026). Rosan stressed that stock price volatility in the capital market is normal. However, fundamentally, the outlook for Indonesian-listed companies remains solid with attractive yields. He noted that optimism is also reflected in the growing number of retail investors in the Indonesian market. Currently, the number of retail investors is around 26 million to 27 million, up significantly from about 20 million the previous year. According to Rosan, the rise in the number of investors indicates increasing public confidence in the prospects of the Indonesian capital market. “If the number of investors continues to rise, it means there is confidence that our capital market has good prospects ahead. If there is no optimism, the number of investors would not increase,” he said. Rosan added that the growth of retail investors is inseparable from BEI and the Financial Services Authority (OJK) education efforts, especially towards domestic investors and the younger generation.