Danantara and Partners Set to Launch Indonesia's First "Aviation Leasing Fund"

This partnership represents an important step in Indonesia’s participation in the global aviation financing ecosystem. Jakarta (ANTARA) - PT Danantara Investment Management (DIM), SMBC Aviation Capital, and Mandiri Investment Management have announced a cooperation agreement for the development of the Mandiri Aviation Leasing Fund, Indonesia’s first aviation leasing investment platform with an initial portfolio value of around US$800 million. Danantara’s Chief Investment Officer (CIO), Pandu Sjahrir, stated that this partnership is a crucial step in Indonesia’s involvement in the global aviation financing ecosystem. “By becoming the main partner in this initiative alongside SMBC Aviation Capital and Mandiri Investment Management, Danantara is investing in a world-class platform that delivers optimal returns while building strategic capabilities for Indonesia,” Pandu said in an official statement in Jakarta on Wednesday. SMBC Aviation Capital’s Chief Commercial Officer, Barry Flannery, expressed delight at establishing this strategic partnership, which will advance the aviation ecosystem in Indonesia and beyond. “Through close collaboration with Mandiri and Danantara, we hope to support long-term growth, innovation, and collaboration across this sector,” Barry said. Mandiri Investment Management’s Chief Executive Officer (CEO), Baskoro Adi, noted that this partnership reflects a commitment to developing innovative investment solutions that connect global investors with high-quality aviation assets. “We are proud to collaborate with SMBC Aviation Capital, supported by DIM, to form Indonesia’s first aviation leasing investment platform, which offers attractive returns considering risks while positioning this region as a new player in the global aviation leasing market,” Baskoro said. The Mandiri Aviation Leasing Fund combines complementary strengths from each party, including DIM’s role as the primary strategic investor. Meanwhile, SMBC Aviation Capital holds its position as one of the world’s largest aviation leasing companies, with over two decades of track record and global operational activities. Additionally, the financing and investment asset management ecosystem from the Mandiri Group, initiated by Mandiri Investment Management, the sole subsidiary of a state-owned bank licensed as an overseas investment asset management company. The Mandiri Aviation Leasing Fund is designed as an institutional-grade and scalable investment platform to provide access for investors to invest in global aviation assets. The Mandiri Aviation Leasing Fund will be jointly managed by Mandiri Investment Management and SMBC Aviation Capital, based on a cooperation agreement that combines Mandiri Investment Management’s capabilities in designing investment fund platform structures with SMBC Aviation Capital’s deep operational expertise in the aviation leasing industry. As part of the partnership, SMBC Aviation Capital will provide operational services and aircraft leasing management to the Mandiri Aviation Leasing Fund, while building long-term capabilities in the aviation leasing business in Indonesia. In the long term, the success of this platform is expected to support DIM’s expansion into global asset classes. The Mandiri Aviation Leasing Fund is anticipated to deliver optimal returns adjusted for risks for investors, while placing Indonesia within the global value chain in the aviation leasing industry. The three parties will work closely together and participate in the fund’s governance to ensure strategic alignment for all involved. This partnership also serves as a foundation for broader economic cooperation between Indonesia and Japan, opening opportunities for sustainable cross-border investments between SMBC Group and Danantara Indonesia.