Jakarta, May 19 -- Banking stocks on the Indonesia Stock Exchange (IDX) are currently undervalued, with price-to-book value (PBV) ratios still below 1x, Danantara CEO Rosan Roeslani said on Tuesday.

Under normal market conditions, banking stocks should trade at more than 2x to 3x PBV, Roeslani said in Jakarta.

"If we look at banking stocks, their price-to-book ratios are below 1, whereas under normal conditions they should be above 2 or 3. So definitely there's potential upside," he said.

Roeslani said market volatility was normal and stressed that Indonesian listed companies remained fundamentally strong and continued to offer attractive returns.

He added that confidence in Indonesia's capital market was reflected in the growing numb...