Danantara Invests USD250 Million in US Oil and Gas
Danantara Indonesia is expanding its global investment portfolio into the United States oil and gas sector. Through its investment holding, PT Danantara Investment Management (DIM), Danantara is investing USD250 million, which is equivalent to approximately IDR 4.48 trillion, assuming an exchange rate of IDR 17,900 per US dollar.
The investment is directed towards HighPeak Energy, Inc. (NASDAQ: HPK). The Texas-based company is involved in the acquisition, development, exploration, and exploitation of oil and gas. HighPeak holds an asset portfolio in the Permian Basin, one of the largest oil-producing regions in the United States.
Chief Executive Officer of Danantara Investment Management, Pandu Sjahrir, stated that the investment aligns with DIM’s mandate. He noted that the move strengthens a diversified global portfolio.
“This investment is in line with our mandate to invest in strategic sectors that provide sustainable long-term returns while supporting Indonesia’s national interests,” Pandu said in a written statement on Tuesday, 6 October 2026.
“HighPeak’s strategic position in one of the world’s most advanced upstream oil and gas markets makes it a potential investment opportunity as we work to build a globally diversified investment platform,” he added.
Danantara’s investment is being executed through the issuance of convertible preferred stocks. This issuance will take place in several stages. Through this transaction, DIM gains strategic access to HighPeak’s assets in the Permian Basin. HighPeak’s portfolio in the region is dominated by oil assets, and the company will use the investment funds to strengthen its capital structure, support financial flexibility, and develop its asset portfolio.
The Permian Basin was a key strategic consideration for Danantara. According to data from the US Energy Information Administration (EIA), the Permian Basin contributed approximately 48 per cent to the total US crude oil production throughout 2025.
Growth in the Permian Basin since 2007 has been primarily driven by horizontal drilling technology, combined with hydraulic fracturing, or fracking. This technique is applied not only to new oil and gas fields but also to mature onshore fields, provided reservoir conditions are favourable, to increase well productivity and oil and gas recovery. Such conditions are considered highly relevant for Indonesia as it seeks to increase its domestic oil and gas production.
This investment provides more than just exposure to US oil and gas assets; the partnership also opens opportunities for the transfer of knowledge and technical expertise to Indonesia. Once the transaction is complete, HighPeak will develop training programmes for the Indonesian workforce. These programmes will also include work assignments or secondments for Indonesian personnel, aimed at enhancing capabilities and the exchange of upstream oil and gas technical expertise.
Pandu stated that the cooperation is expected to provide broader benefits for Indonesia. “We hope this collaboration can facilitate knowledge transfer to support the development of Indonesia’s energy sector, while strengthening the long-standing energy and economic ties between Indonesia and the United States,” said Pandu.
In terms of structure, DIM is protected against potential declines in investment value and has the opportunity to profit when HighPeak’s equity value increases. Under the investment terms, DIM’s convertible preferred shares can be converted into ordinary shares, subject to applicable terms. DIM also holds an option to participate in HighPeak’s subsequent share offerings through private placements. Furthermore, DIM will appoint one representative to HighPeak’s Board of Directors.
HighPeak Energy’s President and CEO, Michael Hollis, welcomed the investment from DIM. He noted that the investment could support the development of the company’s assets in the Permian Basin, including the expansion of drilling programmes.
“HighPeak operates a large-scale, oil-dominated asset portfolio in the Permian Basin. We believe the partnership with DIM will accelerate the development of these assets through sustainable investment, including the expansion of drilling programmes. This partnership brings together long-term investors with a shared commitment to sustainable growth and value creation,” said Michael.
Danantara stated that the investment is part of the execution of DIM’s investment mandate, conducted with a disciplined, long-term approach. Danantara also believes this investment can contribute to Indonesia’s economic growth. However, the completion of the transaction remains subject to various applicable requirements and must comply with relevant policies.