Danantara Effect: Political Risk Surges
The launch of Danantara triggers a market sell-off in key SOEs and casts doubt on its mission to boost valuations.
Yopie Hidayat
February 17, 2025

IN the stock market, one risk unnerves investors the most: political risk, as it is often difficult to predict. Shifts in political winds and policy changes can affect nearly all companies, particularly those reliant on government contracts, concessions, and regulations. The businesses most exposed to this risk are state-owned enterprises (SOEs).
This is hardly surprising. SOEs are highly vulnerable to political interference. They are frequently
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