Antara News·Indonesia·Friday, October 16, 2026 at 12:01 PM UTC

Danantara sees JCI plunge as opportunity for long-term investments

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Aria Ananda, Yashinta Difa

Danantara always views investment as a long-term commitment,

Jakarta (ANTARA) - Indonesia's investment management agency Danantara views the recent sharp correction in the Jakarta Composite Index (JCI) as an opportunity to make long-term investments, according to its CEO, Rosan Roeslani.

Speaking at a press conference at the Indonesia Stock Exchange (IDX) in Jakarta on Friday, Rosan expressed optimism about the domestic market despite an 8.01 percent plunge in share prices.

“We must continue to see this as an opportunity. We are optimistic, we believe in it, and Danantara is ready to enter the market. Looking back, this is a very good moment for us to invest in Indonesian stocks,” Rosan said.

The market downturn saw the JCI drop 469.86 points to 5,393.92 on Friday morning, triggering an automatic 30-minute trading halt.

The decline followed global index provider MSCI's launch of a consultation on potentially reclassifying Indonesia's capital market from an “Emerging Market” to a “Standalone Market.”

According to Rosan, the market correction has pushed the share prices of numerous listed companies, including state-owned enterprises, to relatively low levels, creating attractive entry points for investors.

He emphasized that Danantara prioritizes long-term investment positions over short-term trading strategies, supported by the solid fundamentals of listed companies.

Rosan highlighted the banking sector, noting that some financially sound institutions were trading at price-to-book value (PBV) ratios below one and below industry medians.

He also identified investment opportunities in the infrastructure and telecommunications sectors.

“Danantara always views investment as a long-term commitment,” Rosan said, adding that current market pressures were driven primarily by technical factors, rumors, and non-fundamental sentiment rather than structural weaknesses in companies' balance sheets.

He also commended the proactive measures taken by the Financial Services Authority (OJK) and the IDX to strengthen governance, transparency, and accountability in the capital market.

At the same briefing, OJK Board of Commissioners Chair Friderica Widyasari Dewi outlined market reforms that had been implemented since January 2026.

The measures include mandatory disclosure of share ownership exceeding 1 percent, an expansion of the investor classification system from nine to 39 categories, a phased roadmap to raise the minimum public float to 15 percent, and monitoring of concentrated share ownership.

Despite the market correction, retail investor participation has continued to grow.

The JCI stood at 6,071.14 at the end of September, down 29.79 percent since the beginning of the year, while the total number of capital market investors increased by 57.96 percent over the same period to reach 32.17 million.

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