Danantara Enters Stock Market with Caution

RRI.CO.ID, Jakarta - Danantara’s decision to invest funds in the stock market is legally acceptable. Stock investment is a common practice, but it also carries inherent risks, including potential financial losses. This must be understood upfront.

From a positive perspective, Danantara’s presence in the stock market could help strengthen Indonesia’s domestic investor base. This is important for reducing excessive dependence on foreign investors and supporting market stability.

Preferably, Danantara’s investment approach should focus on the medium- to long-term. It should not be driven by short-term profit targets. A long-term orientation would help support a stock market based on strong fundamentals rather than speculation.

Danantara is also expected to become an investor that represents national interests. With strong and consistent principles, Danantara should not be swayed by engineered economic narratives or manipulated by market rumours to move prices in certain directions.

In practical terms, Danantara could serve as a counterbalance to market manipulation. It may help respond to situations where stock market issues are intentionally amplified by certain influential groups pursuing short-term profits. This role could bring additional positive value to the capital market.

However, Danantara will inevitably face public criticism and scrutiny. Once Danantara enters the stock market, society will demand a high level of financial transparency. This is reasonable, as many people expect Danantara to prioritize industrial development and job creation.

There is also a strong public expectation that Danantara’s funds should mainly support productive sectors rather than financial markets. Strategic investment policies are expected to drive economic growth without relying solely on the state budget.

Therefore, while stock market investment may be allowed, it should not become Danantara’s main investment option. Financial markets should only be used when there is temporary idle capital. Danantara’s primary focus must remain on strengthening the real sector and safeguarding Indonesia’s long-term economic resilience.

Writer: Gunawan Benjamin (Economist at the Islamic University of North Sumatra)