Moody's Ratings assigns first-time Baa2 issuer rating to Danantara Investment Management (P.T.); outlook negative

(Singapore, June 03, 2026)--Moody's Ratings (Moody's) has assigned a Baa2 issuer rating to Danantara Investment Management (P.T.) (DIM).

We have assigned a provisional (P)Baa2 rating to the senior unsecured global medium-term note (MTN) programme established by DIM. Notes under the programme may be issued by DIM alone or by DIM and subsidiary issuers on a joint and several basis. We have also assigned a Baa2 rating to the proposed senior unsecured notes issued by DIM.

The outlook on all ratings is negative.

"Danantara Investment Management's Baa2 issuer rating with a negative outlook is aligned with the sovereign rating of the Government of Indonesia (Baa2 negative), underpinned by strong credit linkages, including its ownership structure within the Danantara institutional framework and our expectation of timely extraordinary government support," says Rachel Chua, a Moody's Ratings Vice President and Senior Analyst.

RATINGS RATIONALE

DIM's Baa2 issuer rating is aligned with the Baa2 sovereign rating of the Government of Indonesia, reflecting strong credit linkages between DIM and the government. These linkages include DIM's ownership structure, its role within Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), and our expectation of timely extraordinary government support.

We classified DIM as a Government Related Issuer (GRI) and applied a top down approach. No Baseline Credit Assessment (BCA) is assigned, reflecting DIM's nascent stage of development, limited track record, and absence of meaningful standalone operations; the rating is therefore primarily driven by sovereign linkage rather than standalone credit strength.

The rating alignment is underpinned by DIM's statutory anchoring and durable ownership links. DIM is established under Indonesia's Law No. 16 of 2025 as part of the Danantara institutional structure that also establishes BPI Danantara as the overarching entity responsible for managing and optimizing state owned enterprise (SOE) assets and investments. DIM is wholly owned by BPI Danantara, and the legal framework requires any divestment to be effected through legislative amendment, reinforcing the endurance of the ownership relationship.

We also consider the high degree of government oversight and governance integration, which supports a very high likelihood of timely extraordinary support. Governance integration is further reinforced by overlap in senior management and board representation between BPI Danantara and DIM, supporting alignment of strategy and investment execution.

DIM's annual budget is consolidated into BPI Danantara's overall budget, which is approved by BPI Danantara's 11 member Supervisory Board, including nine sitting ministers apart from the Chairman, providing a direct channel for government linked oversight over DIM's resource allocation and strategic priorities. The legal framework also requires DIM's annual corporate work plan and budget to be consulted with the House of Representatives.

DIM's investment decisions are governed by a structured approval framework. Investment proposals are subject to a tiered approval process—ranging from DIM's internal Investment Committee to its Board of Directors and Board of Commissioners, and potentially to BPI Danantara as sole shareholder—depending on transaction size and materiality, reinforcing the depth of oversight over DIM's investment activities.

Financial integration within the Danantara structure supports DIM's liquidity and underscores the support framework. Under the group's fund flow structure, SOE dividends are collected at BPI Danantara and then allocated, with a portion injected into DIM as equity for investment deployment. DIM received an initial equity injection of IDR 70 trillion in 2025, with a further IDR 50 trillion expected in 2026. In addition, subject to supervisory board approval, BPI Danantara has authority to act as a guarantor for DIM, reinforcing the strength of financial linkages within the structure.

OUTLOOK

The negative outlook on DIM's rating is aligned with the negative outlook on the Government of Indonesia's sovereign rating, reflecting the strong credit linkages between the two.

LIQUIDITY

DIM's liquidity is excellent. Liquidity at the holding level is supported by equity injections received from BPI Danantara. The company has also established external funding channels, including IDR 68.4 trillion raised through the issuance of Patriot Bonds and $10 billion of revolving credit facilities, of which $1 billion is committed. The revolving credit facility has been partially drawn down to fund deployments into private funds and a real estate linked investment. The company expects further drawdowns as it continues to deploy capital.

DIM has no obligation to pay dividends and has no debt maturities over the next two to three years.

ESG CONSIDERATIONS

Governance considerations are a key driver of the rating. This reflects DIM's full government ownership through BPI Danantara and the high degree of government oversight over its strategy, funding and investment decisions. These features support our expectation of timely extraordinary support from the Government of Indonesia.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

An upgrade of DIM's rating is unlikely given the negative outlook on the Government of Indonesia's sovereign rating. Over the longer term, the rating is likely to move in line with the sovereign rating. Accordingly, an upgrade of the sovereign rating could lead to an upgrade of DIM's rating, provided that its linkages with the government remain unchanged.

DIM's rating could be downgraded if the Government of Indonesia's sovereign rating is downgraded. The rating could also come under pressure if there is a weakening of its linkages with the government, including changes to its mandate, ownership or role within the Danantara structure that reduce our expectation of timely extraordinary government support.

METHODOLOGY

The principal methodology used in these ratings was Government-related Issuers published in May 2025 and available at https://ratings.moodys.com/rmc-documents/443641. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.

The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement.

COMPANY PROFILE

Danantara Investment Management (P.T.) (DIM) is an investment management entity established under Indonesia's Law No. 16 of 2025 as part of the Danantara institutional structure. BPI Danantara is mandated to manage and optimize the government's portfolio of SOE assets and investments, and within this structure DIM serves as an investment management entity supporting the implementation of BPI Danantara's strategy, including through capital deployment and investment execution. DIM is wholly owned by BPI Danantara. (ends)