Indonesia's Danantara says it could step in during market selloffs if valuations attractive
EIDO•Danantara has invested about $3 billion in public stocks and bonds and plans to invest another $1 billion by year-end, depending on market conditions. Executives said it could buy during market stress if investments look profitable and may retain a 120 trillion rupiah ($6.7 billion) dividend.
1. Public investment plans
Danantara’s public investment arm has deployed about $3 billion in foreign and domestic stocks and bonds, and plans to invest another $1 billion by year-end depending on market conditions. Head of public investment Rani Piputri said the fund might step into Indonesia’s stock market during a selloff if it sees value, after conducting due diligence.
2. Portfolio and AI exposure
Piputri said about 65% of the fund’s assets are in equities, 30% in fixed income and 5% in hedge funds, with roughly a quarter invested in Indonesia. She described its AI exposure as “judicious” and said the fund is cautious about entering the sector because it is “rather late.”
3. Returns and dividend
Managing director Pahala Mansury said Danantara is expected to deliver returns 200 to 300 basis points above its cost of capital, which was 5.35% at a five-year dollar bond sale in June. The fund may retain a 120 trillion rupiah dividend previously expected to be paid to the government this year, pending a final decision.
