Danantara Plans SOE IPOs Within 6-12 Months to Boost Market Liquidity
Indonesia's state wealth fund Danantara will prepare Initial Public Offerings for several state-owned enterprises over the next 6 to 12 months, aiming to enhance liquidity in the Indonesian capital market.
Danantara Plans SOE IPOs Within 6-12 Months to Boost Market Liquidity
Indonesia's sovereign wealth fund Danantara has announced plans to prepare Initial Public Offerings (IPOs) for several state-owned enterprises (SOEs) within the next 6 to 12 months, as part of its strategy to strengthen the nation's capital markets.
Pandu Sjahrir, Chief Investment Officer of Danantara Indonesia, confirmed that the preparation process for these SOE IPOs would be managed through PT Danantara Asset Management (DAM). Speaking at the launch of a Gold ETF at the Indonesia Stock Exchange (IDX) in Jakarta on Monday, Sjahrir emphasized the initiative's dual purpose.
"The process is being managed within DAM. We can focus on this over the next 6 to 12 months. There will also be a process involving the stock exchange, as the intention is to boost liquidity in the Indonesian capital market," he said.
Established on February 24, 2025, under Law Number 1 of 2025, Danantara serves as Indonesia's second sovereign wealth fund following the Indonesia Investment Authority (INA), which was created in 2021. Modeled after Singapore's Temasek Holdings, Danantara manages assets valued at approximately US$900 billion, positioning it as the seventh-largest sovereign wealth fund globally.
Sjahrir did not specify which SOEs would proceed with IPOs or provide concrete timelines, noting that further details would be shared by Danantara Indonesia's Chief Operating Officer, Dony Oskaria.
Major SOEs Under Consideration
Previously, COO Dony Oskaria identified several SOEs and holding companies as strong candidates for public listings on the IDX. Among them are PT Pegadaian, PT Pupuk Indonesia, PT Pelabuhan Indonesia (Pelindo), and PT Angkasa Pura Indonesia (InJourney Airports).
"We have many excellent SOEs such as Pegadaian, Pupuk Indonesia, Pelindo, Angkasa Pura, and so many others that have the market capitalization to make them eligible for an IPO," Dony said.
PT Pegadaian, Indonesia's state-owned pawnbroker established in 1901 and now operating as a subsidiary of Bank Rakyat Indonesia, serves over 24 million customers through more than 4,000 outlets nationwide. In January 2025, the company became Indonesia's first bullion bank after receiving approval from the Financial Services Authority (OJK), offering services including gold deposits, gold working capital loans, and gold trading.
PT Pupuk Indonesia, the largest fertilizer manufacturer in Southeast Asia, operates with a total production capacity of 12.71 million tonnes per year. Originally incorporated in 1959 as PT Pupuk Sriwidjaja, the company plays a significant role in regional fertilizer markets.
PT Pelabuhan Indonesia (Pelindo), officially founded on October 1, 2021, resulted from the integration of four state-owned port enterprises (PT Pelindo I, II, III, and IV). The consolidated entity now operates Indonesia's integrated port services throughout the archipelago.
Five-Year Transformation Roadmap
Dony explained that the IPO plans form part of a comprehensive SOE transformation roadmap spanning the next five years. The strategy will determine which enterprises pursue strategic partnerships, which go public, and which remain privately held.
"We will assign which ones will pursue strategic partnerships, go public, or remain privately held, we will discuss these options with the Ministry of Finance as well, with the direction ultimately determined by their status as state-owned entities. After that, we will seek to raise their potential to an even higher level," he said.
The IPO initiative aligns with President Prabowo Subianto's administration goal to increase Indonesia's average economic growth rate to around 8% during his term, compared to approximately 4% during the previous administration.
The Indonesia Stock Exchange, which has a market capitalization of approximately US$1 trillion as of 2025, making it ASEAN's largest, currently hosts 956 listed companies as of December 2025. In April 2026, the IDX launched a Liquidity Provider program designed to narrow bid-ask spreads and deepen market liquidity for both domestic and global investors.
Danantara was initially seeded with stakes in seven state-owned enterprises when established in the first quarter of 2025, with Global SWF valuing those stakes at US$172 billion.