Danantara Strengthens Risk Management to Maintain Investor Confidence
Danantara has affirmed that risk management is its primary foundation for safeguarding state-owned enterprise (SOE) assets while bolstering investor confidence. The separation of asset management and investment functions is described as an initial design to ensure investment activities do not disrupt the health of state companies.
Chief Operating Officer of the Investment Management Agency Daya Anagata Nusantara (Danantara), Dony Oskaria, stated that Danantara was built from the outset with a clear risk protection mechanism. This mechanism is realised through the separation of Danantara Asset Management and Danantara Investment Management.
“From the beginning, we designed it to be split. Within Danantara, there are two entities. Danantara Asset Management as the consolidator of SOEs, and Danantara Investment Management as its investment arm,” Dony said on Wednesday (25/6).
According to Dony, this separation is crucial to ensure that investment risks do not directly impact the managed SOE assets. He stressed that Danantara’s investment funds do not originate from the core assets of the SOEs, but rather from dividends generated by the healthy management of those SOEs.
“The assets invested are dividends. The dividends generated by Danantara Asset Management are subsequently invested in productive activities, such as accelerating our economic growth,” he stated.
Dony assessed that the governance of state companies must be executed properly. With this foundation, Danantara is expected to become an instrument for managing state assets that continues to prioritise the principle of prudence.
Chief Executive Officer of Danantara, Rosan Peres Roeslani, stated that global investor confidence in Indonesia remains high. This is reflected in Danantara’s inaugural US dollar-denominated global bond issuance, which was oversubscribed by more than three times.
Rosan said Danantara initially targeted raising US$1 billion. However, investor demand during the book-building process reached approximately US$4.6 billion, leading to an increase in the issuance size to US$1.5 billion.
“This is a very good result and proves that investor confidence in Indonesia is high. And this is real,” Rosan stated.
The funds raised from the bond issuance are divided into 5-year and 10-year tenors, each worth US$750 million. The yield for the 5-year tenor was set at 5.35%, while the 10-year tenor was set at 5.95%.
Rosan noted that the composition of bond buyers was dominated by investors from the United States, Europe, and the Middle East. According to him, this demonstrates that Indonesia’s access to funding in international markets remains strong amid global economic uncertainty.
Danantara is also promoting the acceleration of digital transformation for SOEs by strengthening business models, customer experience, operational models, technology infrastructure, and data governance and utilisation. This transformation will be carried out in stages, starting with measuring the digital readiness of all SOEs and building a collaboration foundation within the first six months.