Shares of Indonesia’s state-owned enterprises closed sharply higher on the Indonesia Stock Exchange on Tuesday, with 20 BUMN shares and their subsidiaries rising while six others remained suspended. The Jakarta Composite Index, known as IHSG, rebounded 5.65 percent, or 282 points, to close at 5,278.89. Transaction value for the day reached 26.51 trillion rupiah.
Sectors lead rebound
The infrastructure sector gained 8.8 percent. Financials rose 6.4 percent, while basic materials added 4.6 percent. Combined transaction value across the 20 BUMN shares reached 6.34 trillion rupiah.
PT Pertamina Geothermal Energy Tbk gained 19.28 percent to Rp990. PT Telkom Indonesia (Persero) Tbk rose 16.38 percent to Rp2,060, with transaction value of 1.29 trillion rupiah. PT Bank Rakyat Indonesia (Persero) Tbk recorded transaction value of 1.87 trillion rupiah. Six BUMN shares, including ADHI, INAF, PTPP, WIKA, WSBP and WSKT, stayed suspended.
Danantara signals support
The rally followed a steep slide: IHSG fell 11.57 percent on Friday 16 October 2026, then dropped a further 3.64 percent to 4,996.61 on Monday, after MSCI opened the possibility of reclassifying Indonesia from Emerging Market to Standalone Market status. The MSCI consultation runs until April 2027, with a final decision due by 30 June 2027 at the latest.
Dony Oskaria, Kepala BP BUMN and COO of Danantara, confirmed readiness to add ownership in fundamentally strong BUMN shares, saying this would give the market confidence that large buyers exist when state-owned share prices are discounted. Rosan Perkasa Roeslani, CEO of Danantara, said the sovereign wealth fund sees the current situation as an opportunity for long-term investment, adding that company performance under Danantara is very solid and valuations are now very cheap. Rosan noted bank stock price-to-book ratios average below one time.
The Indonesia Stock Exchange separately introduced two measures: adding affiliation information to disclosures of shareholdings above 1 percent, and excluding High Shareholding Concentration stocks from IHSG calculation. President Prabowo Subianto asked the Financial Services Authority, OJK, to act firmly against capital market violators, particularly coordinated trading. PT Bank Tabungan Negara (Persero) Tbk rose after management said it was studying a share buyback.
Related: Jakarta Composite Index opens down 8.01% and halts trading
Source: Danantara