However, he stressed that improved market liquidity is essential to attract major investors.
“We want to enter the public equity market, but equity requires greater liquidity. Our average daily trading value is only 1 billion US dollars, while ideally, it should reach 5 to 8 billion,” Pandu said here on Thursday.
He explained that Indonesia’s current average daily trading volume stands at around 1 billion US dollars, which he believes must increase significantly to support long-term investments like those targeted by Danantara.
For now, Indonesia's sovereign wealth fund and investment management agency is allocating its investments to government securities, citing the bond market’s higher liquidity and suitability for short-term investment horizons.
“We only have two months, so we must choose the fastest and most liquid market. One of them is the bond market,” he added.
Pandu noted that Indonesia’s stock market has strong potential, backed by a large population and steady economic growth. However, he said this potential remains underutilized due to shallow market depth and low public participation.
As a comparison, he cited India’s daily stock transactions at 12–15 billion US dollars and Hong Kong’s at 30–50 billion, underscoring the gap in market scale.
“The main challenge for venture capital and long-term investments is the absence of a strong public market,” Pandu emphasized.
Danantara aims to help deepen Indonesia’s capital market, strengthen the investment ecosystem, and expand long-term financing to support national economic development.
Translator: Primayanti
Editor: Aditya Eko Sigit Wicaksono
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