Danantara Buys Indonesian Stocks Amid MSCI-Driven Sell-Off
Indonesia's sovereign wealth fund, Danantara, has purchased stakes in several companies it sees as attractive investments as the country's stock market faces turmoil over a possible MSCI downgrade.
Fund sees opportunities despite market pressure
Speaking at a press conference on Thursday after the market rout, Chief Investment Officer Pandu Sjahrir said some companies, including state-controlled businesses, still had strong fundamentals, Reuters reported.
The sell-off followed MSCI's warning the previous Friday that Indonesia's stock market could be downgraded to standalone market status.
Pandu said Danantara would keep buying shares with promising prospects, provided prices remained consistent with the companies' value and investment potential. "We are always focused on returns. From a risk-return perspective, the situation looks attractive now," he said.
He named none of the companies Danantara had invested in and did not say how much the fund had committed to those purchases.
A $5 billion plan predates the downgrade proposal
The purchases come alongside a broader investment plan. Fortune reported on Oct. 16, 2026, that Danantara planned to put $5 billion into Indonesian businesses over the following six to nine months. According to the report, Pandu made that commitment before MSCI proposed the downgrade to standalone status.