# Danantara Commits Another $5 Billion for Investment in Indonesia By John Kim Canonical URL: https://www.tokenpost.com/news/business/33500 Published: 2026-10-16T21:31:47.000Z Updated: 2026-10-16T21:31:47.000Z Section: Business > The fund had deployed about $5 billion to $6 billion of its roughly $13 billion 2026 investment plan. MSCI opened its consultation Oct. 15; Indonesia’s benchmark index fell 11.57% at the Oct. 16 close. Danantara, Indonesia’s sovereign wealth fund, has committed another $5 billion mainly for investment in the country, putting fresh capital in focus as MSCI weighs a market reclassification. Chief investment officer Pandu Patria Sjahrir disclosed the commitment Oct. 9. Danantara’s investment plan for 2026 totals about $13 billion, of which the fund had deployed roughly $5 billion to $6 billion, he said. Sjahrir has described Indonesian businesses with healthy fundamentals as investment targets. “Why wouldn’t we be buyers of these types of businesses? It’s our job to look at, support and buy great companies,” he said. MSCI opened a consultation Oct. 15 on a proposal to change its Indonesia indexes from emerging-market to standalone status. The proposal is not final. MSCI cited concerns about opaque shareholding structures, suspected coordinated trading and insufficient evidence of meaningful enforcement. Indonesian authorities have announced reforms that include ownership disclosures for shareholders with more than 1% stakes, more detailed investor classifications, reporting on high ownership concentration and a roadmap toward a 15% minimum free float. MSCI said it expects to proceed with the proposal unless the consultation finds clear evidence of material improvements in market governance and functioning. MSCI had raised the possibility of a reclassification consultation in its June market review if it did not see sufficient progress by November. In its October proposal, it said market participants had not observed consistent progress. A standalone classification would put Indonesia outside MSCI’s emerging- and frontier-market index products. Funds that track or benchmark against those products could then adjust their holdings, though the final outcome and any resulting flows remain uncertain. At the Oct. 16 close, the Jakarta Composite had lost 11.57%, its largest daily decline since January 1998. The drop followed MSCI’s consultation announcement and added to the [market sell-off](). MSCI will accept feedback through April 30, 2027, and plans to announce its decision on or before June 30, 2027. ## Links in this article - [market sell-off](https://www.tokenpost.com/news/investing/33312)