The Investment Management Agency (BPI) Daya Anagata Nusantara, better known as Danantara, which oversees the government’s strategic investments, plans to channel state-owned enterprise (SOE) dividend proceeds into the capital market. Approximately Rp16 trillion will be invested in various Indonesian stocks. The key question now is — which shares will Danantara target?

This move, which directs part of SOE dividends to the Indonesia Stock Exchange (IDX), aims to strengthen liquidity and maintain market stability. Danantara’s Chief Investment Officer, Pandu Patria Sjahrir, explained that the institution only has about two months in 2025 to manage and allocate the funds.

Given the limited timeframe, Danantara will prioritize the most liquid and secure investment instruments. “We only have two months, so we need to choose the fastest and most liquid instruments. One of them is the bond market, but we’re also interested in entering the public equity market,” Pandu said on Thursday (Oct 16).

Initially, Government Securities (SBN) will be the main choice due to their safety and liquidity. However, Pandu clarified that the SBN placement will only be temporary.

“In the long run, the investments will be a mix between the equity market and the bond market,” he added.

Danantara is also preparing further steps to increase its exposure to the stock market, though Pandu pointed out that Indonesia’s daily trading volume remains relatively low.

According to IDX data as of Thursday (Oct 16), daily transactions reached only US$988 million, which he considers far from ideal. “We need to raise it to around US$5–8 billion per day. We can’t lag behind India,” he emphasized.

Previously, Pandu had stated that Danantara would act as a liquidity provider in the stock market. The total investment fund prepared amounts to US$10 billion, with around 5–10% (Rp8.29–Rp16.58 trillion) allocated to strengthen Indonesia’s equity market.

This initiative is expected to stabilize the Jakarta Composite Index (JCI), which remains above the 8,000 level. On Thursday (Oct 16), the JCI closed 0.91% higher at 8,124.75.

State-owned banking stocks also rebounded, including:

• BBNI up 2.12%

• BMRI up 0.99%

• BBRI up 0.86%

Stock Recommendations

Budi Frensidy, a capital market analyst from the University of Indonesia, believes Danantara’s move will be more effective if focused on equities rather than government bonds.

“Investing in the stock market can boost daily transaction volume and help stabilize the index. However, ideally, a larger portion of the funds should go into real-sector projects that provide broader benefits for society and industry,” he said.

Meanwhile, Ekky Topan, an investment analyst at Infovesta Kapital Advisori, stated that Danantara’s commitment to becoming a liquidity provider will strengthen market stability.

“This capital injection can help maintain liquidity and reduce volatility, especially for blue-chip stocks,” he explained.

However, he added that the effect on the JCI will likely be stabilizing rather than driving, since external global factors still largely influence the market direction.

According to Muhammad Wafi, Head of Research at KISI Sekuritas, Danantara’s large capital injection will play a crucial role in maintaining domestic stock liquidity.

“The impact may not immediately lift the index, but it will stabilize prices and attract institutional and foreign investors,” he said.

Wafi predicts that state-owned construction stocks such as WIKA and ADHI may recover as Danantara’s green projects progress, while energy-related stocks like TPIA and BRPT could become key drivers, especially in energy transition initiatives.

Indy Naila, an analyst at Edvisor Provina Visindo, added that banking and renewable energy sectors remain attractive. Her top stock picks include:

• BBRI, with a target price of Rp5,025

• BMRI, target price Rp5,200

• PGEO (renewable energy), target Rp1,500

Ekky Topan also advised investors to accumulate fundamentally strong stocks linked to national strategic projects — such as energy, infrastructure, and mineral downstreaming sectors.

“While waiting for clarity on Danantara’s investment rollout, investors can start taking medium- to long-term positions,” he said.

Danantara’s plan to inject SOE dividend funds into the stock market sends a positive signal for Indonesia’s economy. In addition to improving market liquidity, this move could attract more foreign investors and help stabilize the JCI amid ongoing global uncertainties.

If realized, the Rp16 trillion capital injection could serve as new momentum for Indonesia’s equity market — helping it move closer to the government’s long-term vision of achieving multi-billion-dollar daily trading volumes.