Danantara Steps Into Market as Indonesia Stocks Slide Nearly 5%, Officials Urge Calm

JAKARTA, Investortrust.id — Indonesia’s sovereign investment agency Danantara actively purchased stocks on Monday, Feb. 2, 2026 in Jakarta as the Jakarta Composite Index slid 4.88% to 7,922, a sharp market selloff that officials described as temporary amid policy reforms and leadership transitions.

The benchmark index fell 406.88 points with trading value reaching Rp 27 trillion, as selling pressure hit all sectors, mirroring broader weakness across Asian markets and amplifying investor caution.

Daya Anagata Nusantara, known as Danantara, said it had already begun injecting liquidity into the domestic equity market through active stock purchases on the Indonesia Stock Exchange.

“Danantara is already active in the market today,” said Pandu Sjahrir, chief investment officer of Danantara, speaking at the exchange building ahead of an online meeting with MSCI. “We are buying stocks that we see as attractively valued, with strong cash flow, solid fundamentals, and good liquidity.”

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Pandu reiterated that roughly half of Danantara’s investment allocation for 2026 would be directed to public markets, with the majority focused on Indonesian equities.

“Half of the funding will go into public markets, and most of that will be in Indonesia,” he said, adding that investments would be executed through asset managers to support market depth and stability.

Danantara targets total investments of $14 billion this year, funded by dividends from state-owned enterprises and bond issuance. With about $7 billion, equal to roughly Rp 117 trillion, earmarked for equities, the agency is positioning itself as a stabilizing long-term investor during periods of heightened volatility.

Pandu said the domestic focus reflected Danantara’s mandate as Indonesia’s sovereign wealth fund to support national economic growth and strengthen the local capital market ecosystem.

The market downturn came despite selective buying by foreign investors and amid uncertainty linked to leadership changes at financial regulators and ongoing discussions with global index provider MSCI.

Finance Minister Purbaya Yudhi Sadewa played down the market decline, calling the swings a normal part of market dynamics.

“Let it be. Up and down, up and down, that is normal, especially during a period of transition,” Purbaya said on Monday in Bogor.

He suggested the market was still waiting for clarity over the appointment of a definitive chair of the Financial Services Authority, following recent resignations of senior officials.

“This is still temporary. The market may be waiting for certainty over who will lead OJK,” he said. “But if it were me, I would be buying on the dip.”

Purbaya emphasized that Indonesia’s economic fundamentals remained strong and unchanged, arguing that recent price declines presented an opportunity rather than a warning sign.

“The foundation of the economy is still good, nothing has changed, and it will continue to improve,” he said.

He added that the government had begun the process of forming a selection committee for new OJK leadership and expected clarity within one to two weeks, a development he believes could help restore market confidence.

Monday’s selloff pushed all major sectors deep into negative territory, with basic materials tumbling more than 10%, energy down over 7%, consumer staples sliding nearly 8%, infrastructure off 6%, and property stocks losing more than 6%.

Despite the broad decline, policymakers and Danantara framed the turbulence as short-term noise against a backdrop of regulatory reform, improving transparency, and long-term investment commitments.

With Danantara entering the market as an active buyer and the government accelerating institutional reforms, officials signaled confidence that Indonesia’s stock market would stabilize once uncertainty eases.