The Risks Behind Danantara's Move to Enter Indonesian Capital Market
Danantara Indonesia plans to enter the Indonesian stock market, with the majority of its funds coming from managing dividends from state-owned enterprises (SOEs).
The company believes this move will strengthen the fundamental liquidity of the domestic stock market. According to the Chief Investment Officer of Danantara Indonesia, Pandu Patria Sjahrir,
"This year, we will invest 80 percent domestically. Some will be invested in the public market, bonds, and the capital market,"as quoted by Tempo during a replay on the IDX YouTube account.
Danantara's plan to enter the stock market is not new, as it opened opportunities to become a liquidity provider in the capital market in April.
Author's summary: Danantara enters Indonesian stock market.