How Much of IDX Shares Will Danantara Indonesia Own?
It is believed that Danantara's entry into the IDX will encourage an increase in Indonesia's capital market capitalization.
Danantara Indonesia Investment Management Agency is exploring the possibility of acquiring shares in the Indonesia Stock Exchange (IDX). However, the exact stake size is yet to be finalized in discussions with the Financial Services Authority (OJK) and IDX management. The decision on the shareholder percentage will be based on capital requirements and the infrastructure development needed to boost the IDX's market capitalization. This initiative aims to attract both foreign and domestic investors.
The ultimate goal is to enhance market capitalization, as the current Indonesia market capitalization is estimated to be 50-60 percent of its gross domestic product (GDP). For comparison, Malaysia and India have achieved a market capitalization of around 100-120 percent of GDP, indicating a significant potential for growth in Indonesia's market.
If Danantara were to invest a substantial amount in the IDX, the exchange's management could benefit from their expertise. However, this would depend on the terms and conditions agreed upon with other IDX shareholders. The amount of capital Danantara plans to invest will be contingent on the IDX's valuation and the ownership percentage agreed upon.
PT Danantara Investment Management's Managing Director of Finance, Djamal Attamimi, remains optimistic about the potential impact of Danantara's involvement on Indonesia's stock market capitalization, provided the valuation and ownership percentage are favorable.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
