The Jakarta Composite Index (JCI) Plummeted Not Because of the Daya Anagata Nusantara/BPI-Danantara Investment Management Agency
February 25, 2025
By: Prof. Dr Murpin Josua Sembiring SE MSi, Chairman of the East Java Indonesian Professors/Teachers Association (DPD Pergubi)
SURYA.co.id – On Tuesday, February 25, 2025, the Jakarta Composite Index (JCI) experienced a significant decline of 2.41 per cent, closing at 6,587.09.
This decline occurred one day after President Prabowo Subianto launched the Danantara Investment Management Agency (BPI).
Danantara’s presence is expected to have a positive impact on the economy and investment in strategic sectors in the medium to long term.
However, it is important to understand that the JCI decline was caused more by external factors, not the presence of Danantara.
There are at least two main factors triggering the stock market decline:
1. The downgrade of MSCI Indonesia’s stock rating from ‘equal weight’ to ‘underweight’ by Morgan Stanley triggered selling by foreign investors.
2. United States trade policies, including the imposition of tariffs on Canada and Mexico, also added to negative market sentiment.
5 Tips for Investors
To navigate volatile market conditions, here are several strategies that investors, both foreign and domestic, can implement:
1) Remain calm and avoid panic. Re-evaluate your portfolio and avoid emotional decisions that could be detrimental.
2) Diversify your portfolio, spreading your investments across various sectors to minimise risk. Sectors such as healthcare, primary consumption, and infrastructure are often considered more stable during market volatility.
3) Fundamental and technical analysis: Conduct in-depth analysis of your stocks to ensure good long-term prospects.
4) Consider an Average Down Strategy: If you are confident in a stock’s long-term prospects, consider buying additional shares when the price drops to lower the average purchase price.
5) Monitor policy developments and market sentiment by staying abreast of the latest economic opinions and policies that could impact the stock market.
Collaboration and Synergy, Key to Danantara’s Success
Collaboration and synergy are required between various relevant parties.
The Ministry of State-Owned Enterprises (SOEs) is responsible for the management and supervision of SOEs and plays a role in providing policy direction for Danantara and encouraging share buybacks by SOEs to maintain share price stability.
The Financial Services Authority (OJK) oversees the financial services sector, including banking and capital markets, ensuring financial system stability and continuously coordinating with relevant ministries and the banking industry regarding the technical implications of establishing the Danantara BPI.
The Ministry of Finance is responsible for managing state finances and assets and overseeing state investments, including those managed by Danantara.
The Daya Anagata Nusantara Investment Management Agency (Danantara) is an agency tasked with managing state assets separately from the state budget (APBN). Danantara has the flexibility and innovation to optimise state assets for strategic investments.
The Advisory Board, consisting of Susilo Bambang Yudhoyono and Joko Widodo, and the implementing agency led by Rosan Roeslani (Minister of Investment and Downstream Development) and Dony Oskara (Deputy Minister of State-Owned Enterprises), with Erick Thohir as Chairman of the Supervisory Board, demonstrates a strong commitment to national investment management.
The synergy between these ministries and authorities is expected to provide clarity on Danantara’s policy direction and encourage strategic measures, such as share buybacks by state-owned enterprises, to maintain market stability.
With a calm approach, explanations of the Danantara BPI roadmap and blueprint that reassure the public and provide appropriate strategies,
Investors can navigate market volatility more wisely, minimise potential losses, and remain optimistic that President Prabowo’s administration is seriously pursuing the gradual process of achieving the “National Transformation Strategy Towards Golden Indonesia 2045″—Indonesia becoming a developed and prosperous nation.
Optimistic.