Indonesia’s first aviation leasing fund launched

By Romel S. Gurky

Danantara Investment Management, SMBC Aviation Capital and Mandiri Investment Management have agreed to develop Indonesia’s first aviation leasing fund, with an initial portfolio value of about $800 million.

The Mandiri Aviation Leasing Fund will serve as a dedicated platform to invest in global aviation assets, combining SMBC Aviation Capital’s leasing expertise, Danantara’s role as anchor investor and Mandiri Investment Management’s fund structuring and execution capabilities, the parties said in a joint release dated April 1.

The fund will be co-managed by Mandiri Investment Management and SMBC Aviation Capital, and is designed as a scalable, institutional-grade investment vehicle aimed at delivering risk-adjusted returns while expanding Indonesia’s role in the global aviation leasing market.

SMBC Aviation Capital will provide aviation and leasing services to the platform, supporting the development of domestic capabilities in aircraft leasing.

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Chief Investment Officer of Danantara Indonesia Pandu Sjahrir said the partnership marks a step toward building participation in global aviation finance.

“This partnership represents a significant step in Indonesia’s participation in the global aviation finance ecosystem,” he said.

Chief Commercial Officer of SMBC Aviation Capital Barry Flannery said the collaboration would support growth and innovation in the aviation sector.

Meanwhile, Chief Executive Officer of Mandiri Investment Management Baskoro Adi said the fund aims to connect global investors with high-quality aviation assets while positioning the region as an emerging player in aircraft leasing.

The partnership is also expected to support broader cross-border investment between Indonesia and Japan and could pave the way for expansion into other global asset classes, the companies said.

Editing by Alexander Ginting