Interested in Entering the Stock Exchange, Danantara's Boss Promises to Maintain Independence

JAKARTA - Danantara Indonesia CEO Rosan Roeslani ensures that his agency will continue to maintain independence in line with the plan to become a shareholder of PT Bursa Efek Indonesia (BEI) after the demutualization process is completed.

Rosan emphasized that by mandate, Danantara has room to invest both directly and indirectly, including in the capital market. However, every investment decision will still be based on strict evaluation, especially from the fundamental and valuation sides.

"We can indeed invest directly and indirectly, both in accordance with our policies in all different classes of assets, public, and of course we will remain independent," he said when met at the Indonesia Stock Exchange (IDX) Office, Jakarta, Sunday, February 1.

According to Rosan, Danantara will also conduct a thorough evaluation before entering the capital market. He said, his agency will only enter the capital market if the price aspect is considered attractive and in accordance with the investment criteria that have been set.

"If it is good in terms of pricing, of course we will enter the capital market," said Rosan.

Regarding the plan for Danantara to enter the IDX after the demutualization process, Rosan emphasized that until now there has been no definite figure regarding the portion of the shareholding that will be taken. According to him, all options will still be thoroughly reviewed.

"Regarding demutualization, we will certainly study first how much percent we want to enter. We also have criteria when we enter and invest," said Rosan.

According to Rosan, the involvement of sovereign wealth funds (SWF) in the stock exchange is not new at the global level. In a number of countries, the proportion of SWF ownership in the stock exchange varies, ranging from 15 percent to above 30 percent.

"In almost all other exchanges in this world, the SWF is indeed involved, the range can be 15 percent, some are 25 percent, some are 30 percent, some are more than that," he said.

However, Rosan emphasized that in the future, the ownership of shares of the Indonesia Stock Exchange would not only be open to Danantara. He said, other SWFs also have the potential to enter as shareholders, as is the practice in various countries.

"But what comes in is not only from Danantara, but also other SWFs," he said.

Previously reported, Danantara Indonesia is interested in becoming a shareholder of the Indonesia Stock Exchange (IDX). However, with the proviso that if the demutualization process of the IDX has been realized.

Danantara Indonesia CEO Rosan Roeslani said his party was very open to the possibility.

"We are open, if this has happened, then Danantara certainly wants to enter as well," he said when met at Danantara House, Jakarta, Friday, January 30.

Regarding the scheme for Danantara's entry into the stock exchange, Rosan has not confirmed whether it will be carried out through the initial public offering (IPO) mechanism or other ways.

Rosan said that his party would still look at the most appropriate structure and provide the best benefits in the future. According to him, this demutualization effort is carried out so that there is transparency in the stock market.

"We see, we see the best structure. The important thing is that with our courage we want to be better and more open," he said.