Danantara Turns Market Doubts into Confidence, Says CIO Pandu Sjahrir
Main Takeaways
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JAKARTA, Investortrust.id — Public perception of Indonesia’s sovereign wealth fund, Danantara, has shifted dramatically in recent months—from initial skepticism to growing confidence. What was once dubbed “Danantara Fear” has now evolved into what market watchers call the “Danantara Effect,” as shares of state-owned enterprises (SOEs) linked to the fund begin to outperform the broader market.
“People used to talk about ‘Danantara Fear.’ Now they’re calling it the ‘Danantara Effect.’ So it’s been a good momentum so far,” said Danantara Chief Investment Officer Pandu Sjahrir during a gathering with media leaders in Jakarta on Friday, July 25.
According to Pandu, shares of SOEs associated with Danantara have outpaced the main stock index over the past few months. He recalled how, in November last year, the fund held its first closed-door discussion with editors in a modest meeting room. Back then, the benchmark index hovered around 4,700 to 4,800. “Today, we’re at 7,300,” he said, highlighting the market’s growing optimism.
Still, Pandu acknowledged lingering challenges—particularly around deepening capital market liquidity. He cited India’s stock exchange, which sees daily turnover of $18 billion, as a benchmark. “We need to learn from that,” he said, adding that Danantara is working closely with Indonesia’s Financial Services Authority (OJK) and international advisors like economist Jeffrey Sachs and legal expert F. Chapman Taylor to promote easier IPO access.
Global Confidence, Strategic Vision
A key strength of Danantara, Pandu emphasized, lies in the trust it has built with global financial institutions. In just five months since its launch, the fund has secured over $10 billion in investment commitments. Partners include Qatar, the Japan Bank for International Cooperation (JBIC), China Investment Corporation (CIC), Saudi Arabia’s ACWA Power, and investors from Russia and the United Arab Emirates.
While Danantara operates as a general-purpose investment vehicle, its primary mission is to finance Indonesia’s strategic national projects. “The most important thing here is trust. This is, after all, a five-month-old institution,” Pandu said.
CEO Rosan Roeslani, who also serves as Indonesia’s Minister of Investment, echoed the sentiment. According to him, foreign investors are increasingly choosing to partner with Danantara when entering the Indonesian market. “Now when they want to invest, they prefer coming in through us. And when they need a local partner, that partner can be us,” Rosan said.
He stressed that long-term commitment and business stability remain the top priorities for global investors. “What they’re looking for is long-term stability. That’s what we offer—and that’s our strength,” he concluded.