Indonesia’s sovereign investment arm Danantara is preparing to enter the domestic capital market in 2026, a move welcomed by Bursa Efek Indonesia (IDX) as part of broader efforts to deepen market activity and broaden funding sources for strategic state-linked initiatives.
IDX officials confirmed that Danantara has communicated its intention to start accessing the market this year, though specific timelines and execution details remain under discussion. To date, Danantara has not engaged in any public trading activity on the exchange.
“We hope Danantara can begin entering the market and that there is a state-owned enterprise (BUMN) that can carry out an IPO,” said IDX’s director of trading and member regulation Irvan Susandy, according to local reports. “It hasn’t been discussed exactly when, but they said this year.”
Market authorities see the prospective listing as a milestone that could channel Danantara’s substantial capital into tradable instruments, potentially including equity stakes in subsidiaries or issuance of bonds, further supporting liquidity and investor participation in Indonesian markets.
Danantara has a broad mandate to manage and deploy government and state-enterprise assets to support national development goals. Its planned capital market entry reflects a shift towards leveraging public markets to complement private investment activities.
Investment deployment
Danantara has also entered the deployment phase, beginning to channel approximately 202 trillion rupiah ($12 billion) into priority sectors this year, Chief Investment Officer Pandu Sjahrir said, marking a shift from planning to execution.
The deployment plan spans multiple strategic initiatives that dovetail with national economic goals. First, Waste-to-Energy (WtE) where the fund is moving forward with Pengolahan Sampah Menjadi Energi Listrik (PSEL) projects, with winners from the first competitive tender expected in mid-February 2026 and project groundbreakings slated by late March. This first phase focuses on four municipal hubs: Bogor, Bekasi, Denpasar and Yogyakarta. Each facility is expected to cost roughly 2.5-3 trillion rupiah ($150–170 million) per site.
Second, Textile and Food Sector Support where Danantara plans to back the creation of a new state-owned textile entity with around 101 trillion rupiah ($6 billion) in funding to bolster competitiveness against global cost pressures, alongside approximately 20 trillion rupiah ($1.2 billion) for integrated poultry production to address local food price volatility.
Third, the Kampung Haji Project in Mecca. The sovereign arm has signed agreements to acquire the Novotel hotel and adjacent land in Thakher City, Saudi Arabia, potentially investing around $1.5 billion in hotel and retail redevelopment, with a further $800 million earmarked for integrated facilities by late 2026.
Lastly, Strategic Downstream and Energy Projects—Danantara is preparing several downstream industrial projects worth about $6 billion (101 trillion rupiah), including aluminium smelters, bauxite processing, bioavtur, and bioethanol production.
