Global rating agency Moody\u2019s has assigned a Baa2 rating to PT\nDanantara Investment Management (DIM). This marks the first time DIM has\nobtained a debt rating from Moody\u2019s.<\/p>\n
\u201cWe have assigned a provisional Baa2 rating to DIM\u2019s unsecured global\nmedium-term note (MTN) programme. The notes under this programme may be\nissued by DIM itself, or by DIM and its subsidiaries jointly or several\nparties. We have also assigned a Baa2 rating to the proposed unsecured\nsenior notes issued by DIM,\u201d Moody\u2019s stated in its latest report, as\nreported by CNBC Indonesia on Wednesday (3\/6\/2026).<\/p>\n
Moody\u2019s added that the outlook for all of DIM\u2019s debt ratings is\nnegative.<\/p>\n
\u201cThe Baa2 rating for Danantara Investment Management with a negative\noutlook is aligned with the Government of Indonesia\u2019s rating (Bara2\nnegative), supported by strong credit linkages, including its ownership\nstructure within the Danantara institutional framework and our\nexpectation of extraordinary government support,\u201d said Rachel Chua, Vice\nPresident and Senior Analyst at Moody\u2019s Ratings.<\/p>\n
Reasons for the Baa2 Rating<\/strong><\/p>\n Moody\u2019s explained that DIM\u2019s Baa2 issuer rating is aligned with the\nGovernment of Indonesia\u2019s Baa2 sovereign rating, reflecting the strong\ncredit interdependency between DIM and the government. This linkage\nincludes DIM\u2019s ownership structure and its role within the Daya Anagata\nNusantara Investment Management Agency (BPI Danantara).<\/p>\n Moody\u2019s classifies DIM as a Government-Related Entity (GRE) and\napplied a top-down approach. No Standalone Credit Profile was provided,\nreflecting DIM\u2019s early stage of development, limited track record, and\nlack of significant independent operations. Consequently, the rating is\nprimarily driven by government linkages rather than independent credit\nstrength.<\/p>\n The rating alignment is supported by DIM\u2019s legal foundation and\nongoing ownership links. DIM was established under Indonesian Law Number\n1s of 2025 as part of the Danantara institutional structure, which\ndesignates BPI Danantara as the parent entity responsible for managing\nand optimising State-Owned Enterprise (SOE) assets and investments. DIM\nis wholly owned by BPI Danantara, and the legal framework requires any\ndivestment to be conducted through legislative amendments, strengthening\nthe continuity of the ownership relationship.<\/p>\n Moody\u2019s also considered the high level of government oversight and\ngovernance integration, which supports the high likelihood of\nextraordinary government support. Governance integration is further\nstrengthened by overlapping senior management and board representation\nbetween BPI Danantara and DIM, supporting the alignment of strategy and\ninvestment execution.<\/p>\n DIM\u2019s annual budget is consolidated into the overall budget of BPI\nDanantara, which is approved by the BPI Danantara Supervisory Board,\nconsisting of 11 members, including nine sitting ministers alongside the\nChairperson, providing a direct channel for government oversight\nregarding DIM\u2019s resource allocation and strategic priorities. The legal\nframework also requires DIM\u2019s annual work plan and budget to be\nconsulted with the House of Representatives (DPR).<\/p>\n DIM\u2019s investment decisions are governed by a structured approval\nframework. Investment proposals are subject to a multi-level approval\nprocess\u2014ranging from DIM\u2019s internal Investment Committee to the Board of\nDirectors and Board of Commissioners, and potentially up to BPI\nDanantara as the sole shareholder\u2014depending on the size and materiality\nof the transaction, reinforcing the depth of oversight over DIM\u2019s\ninvestment activities.<\/p>\n Financial integration within the Danantara structure supports DIM\u2019s\nliquidity and underscores the support framework. Under the group\u2019s cash\nflow structure, SOE dividends are collected at BPI Danantara and\nsubsequently allocated, with a portion injected into DIM as equity for\ninvestment deployment. DIM received an initial equity injection of Rp 70\ntrillion in 2025, with an additional Rp 50 trillion expected in 2026.\nFurthermore, with the approval of the supervisory board, BPI Danantara\nis authorised to act as a guarantor for DIM, strengthening the financial\nlinkages within the structure.<\/p>\n Outlook<\/strong><\/p>\n The negative outlook on DIM\u2019s rating is in line with the negative\noutlook on the Government of Indonesia\u2019s sovereign rating, reflecting\nthe strong credit linkage between the two.<\/p>\n Liquidity<\/strong><\/p>\n Moody\u2019s noted that DIM\u2019s liquidity is very good. Liquidity at the\nholding level is supported by equity injections received from BPI\nDanantara. The company has also established external funding channels,\nincluding Rp 68.4 trillion obtained through the issuance of Patriot\nBonds and a US$10 billion revolving credit facility, of which US$1\nbillion has been committed. The revolving credit facility has been\npartially drawn to fund placements in private funds and related real\nestate investments. The company expects further drawdowns as it\ncontinues its capital placements.<\/p>\n DIM has no obligation to pay dividends and has no debt maturities\nover the next two to three years.<\/p>\n Factors for Rating Upgrades and Downgrades<\/strong><\/p>\n A rating upgrade for DIM is unlikely given the negative outlook on\nthe Government of Indonesia\u2019s bond rating. In the long term, the rating\nis likely to move in tandem with Indonesia\u2019s sovereign debt rating.\nTherefore, an upgrade in Indonesia\u2019s sovereign rating could lead to an\nupgrade for DIM, provided the government linkage remains unchanged.<\/p>\n DIM\u2019s rating could be downgraded if the Government of Indonesia\u2019s\nsovereign rating is downgraded. The rating could also be pressured if\nthere is a weakening of the relationship with the government, including\nchanges to the mandate, ownership, or role within the Danantara\nstructure.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/first-time-moodys-assigns-baa2-rating-to-danantara-with-negative-outlook-1780851253",
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