JAKARTA – President Prabowo Subianto inaugurated and launched the Investment Management Agency (BPI) of Danantara on Monday (24/2). The presence of this Sovereign Wealth Fund (SWF), with assets of USD 900 billion, is projected to be a positive sentiment for several state-owned enterprises (SOE) issuers.

“Public companies under Danantara have the potential to experience increased efficiency, better capital allocation, and stronger financial discipline,” wrote analysts from BRI Danareksa Sekuritas Indonesia in their latest research report.

In its initial phase, Danantara will manage investments worth USD 20 billion, sourced from the reallocation and efficiency of state budgets. These initial investments will be channelled into 15 to 20 strategic projects in 2025.

Danantara will oversee at least seven BUMN. With its presence, these seven BUMN are expected to offer higher dividend yields.

BRI Danareksa Sekuritas analysts project dividend yields for state-owned companies such as PT Bank Mandiri (Persero) Tbk (BMRI) to increase to 9.6%, PT Bank Negara Indonesia (Persero) Tbk (BBNI) to 11.2%, and PT Telkom Indonesia (Persero) Tbk (TLKM) to 7.1%. Previously, the dividend yield projections for these three issuers were only 7.2% (BMRI), 7.7% (BBNI), and 6.9% (TLKM).

However, BRI Danareksa Sekuritas analysts also highlight potential risks in Danantara's governance.

Considering all factors, BRI Danareksa Sekuritas provides a BUY recommendation for BMRI shares, with a target price of IDR 5,900. Meanwhile, BBNI and TLKM shares also received BUY recommendations, with target prices of IDR 5,100 and IDR 3,680, respectively. (KR/ZH)