Indonesia’s stock market, the world’s worst performer with a 28% drop, must become 'obviously more transparent' to rebuild investor confidence, according to Pandu Sjahrir, CIO of sovereign wealth fund Danantara. The comments follow MSCI’s June warning about deteriorating information flow and potential downgrade to frontier market status due to opacity in shareholding and manipulation concerns. Pandu emphasized the need for stronger domestic institutional support as foreign capital flees amid illiquidity.
Danantara, tasked with managing $900bn in state assets, plans to take a stake in the Indonesia Stock Exchange ahead of its listing. The fund’s governance has drawn scrutiny from Fitch and the IMF over fiscal transparency and quasi-fiscal risks. Pandu defended Danantara’s record, citing its investment-grade rating and successful $1.5bn bond issuance, and pledged better market communication.
The fund has not published annual statements since its 2025 launch, but Pandu expects its first report in November after state audit.
Source: Financial Times Markets · Summarized by HeadlinesBriefing