Danantara confident aviation leasing development will yield significant benefits

The Danantara Investment Management Agency (BPI Danantara) believes that the plan to establish an aviation leasing fund will provide numerous benefits.

Speaking in Jakarta on Wednesday, Danantara’s Chief Operating Officer (COO), Dony Oskaria, explained that the formation of an aviation leasing company is currently undergoing in-depth study. According to him, given the projected growth of Indonesian aviation in the future, owning a leasing company is considered a more effective option.

He emphasised that no final decision has been made regarding the formation of the leasing company. Therefore, all business aspects are still being evaluated to ensure the chosen scheme provides optimal benefits.

“We are exploring the possibility of having our own leasing company. As Garuda Indonesia develops in the future, it will be more effective for us to possess this. This is being studied, but everything must be approached carefully and thoroughly. We will determine which is the best option,” said Dobby.

According to Dony, if the leasing company is eventually formed, its operations will function like any standard leasing firm. “If it becomes a leasing company, it will certainly operate as such, but it is still under review. Leasing is about financing. So, Garuda would be the buyer, but the financing would be provided by the leasing company,” he added.

He assessed that such a financing model could strengthen the financial condition of airlines, particularly PT Garuda Indonesia (Persero) Tbk, while simultaneously creating broader benefits for the financial services sector.

Previously, PT Danantara Investment Management (DIM), SMBC Aviation Capital, and Mandiri Investment Management announced a cooperation agreement to develop the Mandiri Aviation Leasing Fund. This is Indonesia’s first aviation leasing investment platform, with an initial portfolio value of approximately US$800 million.

Danantara’s Chief Investment Officer (CIO), Pandu Sjahrir, stated that this partnership is a significant step in Indonesia’s participation in the global aviation financing ecosystem. “By becoming a key partner in this initiative alongside SMBC Aviation Capital and Mandiri Investment Management, Danantara is investing in a world-class platform that provides 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 great pleasure in establishing this strategic partnership, which will help advance the aviation ecosystem both in Indonesia and abroad. “Through close cooperation with Mandiri and Danantara, we hope to support long-term growth, innovation, and collaboration across this entire sector,” said Barry.

Mandiri Investment Management’s Chief Executive Officer (CEO), Baskoro Adi, stated that the partnership reflects a commitment to developing innovative investment solutions that connect global investors with high-quality aviation assets.

“We are proud to work with SMBC Aviation Capital, with the support of DIM, to form Indonesia’s first aviation leasing investment platform, which offers attractive returns while considering risk, and positions this region as a new player in the global aviation leasing market,” said Baskoro. The Mandiri Aviation Leasing Fund combines the complementary strengths of each party, including the role of DIM as a strategic investor.