Danantara CEO Rosan Roeslani said the fall of the Jakarta Composite Index (IHSG) below the 5,000 level could present a long-term investment opportunity. Speaking on Monday at the Presidential Palace (Istana Negara), he said Danantara plans to add stock market investments gradually. The fund will focus on fundamentally strong stocks with attractive valuations.
Valuations seen as cheap
Rosan said the companies in Danantara’s portfolio are very solid, and their valuations have become very cheap. As investors, he said, the fund sees this as an opportunity for long-term investment.
He cited dividend yields of 16 percent at Bank Mandiri (BMRI) and 13 percent at Bank Rakyat Indonesia (BBRI). He also said some bank stocks have traded below one times price-to-book value. Investment decisions, he added, weigh business prospects and fundamentals, not only share price movements.
Gradual entry, multiple screens
Rosan said Danantara will analyse stocks fundamentally, technically and in terms of market perception before buying. The fund has decided to enter gradually rather than all at once. Buying will be spread over time.
The Indonesia Stock Exchange (BEI) is the venue for these purchases. The timing of individual trades was not specified.
Source: Danantara
