Investors Dump Indonesia Stocks as Prabowo Flexes Market Muscles
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An unprecedented accumulation of power in Indonesia’s corporate landscape is fueling investor concern about political influence and transparency in Southeast Asia’s biggest equity market.
Newly launched sovereign wealth fund Danantara — which has a direct reporting line to President Prabowo Subianto — announced last month it would take over management of seven state-owned enterprises. Its holdings include three of the nation’s biggest banks, with total assets of more than $340 billion. Worries about the deal sent shares tumbling by the most in weeks, pressuring a stock market that’s already one of the world’s worst performers this year.