First Time: Moody's Assigns Baa2 Rating to Danantara with Negative Outlook

Global rating agency Moody’s has assigned a Baa2 rating to PT Danantara Investment Management (DIM). This marks the first time DIM has obtained a debt rating from Moody’s.

“We have assigned a provisional Baa2 rating to DIM’s unsecured global medium-term note (MTN) programme. The notes under this programme may be issued by DIM itself, or by DIM and its subsidiaries jointly or several parties. We have also assigned a Baa2 rating to the proposed unsecured senior notes issued by DIM,” Moody’s stated in its latest report, as reported by CNBC Indonesia on Wednesday (3/6/2026).

Moody’s added that the outlook for all of DIM’s debt ratings is negative.

“The Baa2 rating for Danantara Investment Management with a negative outlook is aligned with the Government of Indonesia’s rating (Bara2 negative), supported by strong credit linkages, including its ownership structure within the Danantara institutional framework and our expectation of extraordinary government support,” said Rachel Chua, Vice President and Senior Analyst at Moody’s Ratings.

Reasons for the Baa2 Rating

Moody’s explained that DIM’s Baa2 issuer rating is aligned with the Government of Indonesia’s Baa2 sovereign rating, reflecting the strong credit interdependency between DIM and the government. This linkage includes DIM’s ownership structure and its role within the Daya Anagata Nusantara Investment Management Agency (BPI Danantara).

Moody’s classifies DIM as a Government-Related Entity (GRE) and applied a top-down approach. No Standalone Credit Profile was provided, reflecting DIM’s early stage of development, limited track record, and lack of significant independent operations. Consequently, the rating is primarily driven by government linkages rather than independent credit strength.

The rating alignment is supported by DIM’s legal foundation and ongoing ownership links. DIM was established under Indonesian Law Number 1s of 2025 as part of the Danantara institutional structure, which designates BPI Danantara as the parent entity responsible for managing and optimising State-Owned Enterprise (SOE) assets and investments. DIM is wholly owned by BPI Danantara, and the legal framework requires any divestment to be conducted through legislative amendments, strengthening the continuity of the ownership relationship.

Moody’s also considered the high level of government oversight and governance integration, which supports the high likelihood of extraordinary government support. Governance integration is further strengthened by overlapping senior management and board representation between BPI Danantara and DIM, supporting the alignment of strategy and investment execution.

DIM’s annual budget is consolidated into the overall budget of BPI Danantara, which is approved by the BPI Danantara Supervisory Board, consisting of 11 members, including nine sitting ministers alongside the Chairperson, providing a direct channel for government oversight regarding DIM’s resource allocation and strategic priorities. The legal framework also requires DIM’s annual work plan and budget to be consulted with the House of Representatives (DPR).

DIM’s investment decisions are governed by a structured approval framework. Investment proposals are subject to a multi-level approval process—ranging from DIM’s internal Investment Committee to the Board of Directors and Board of Commissioners, and potentially up to BPI Danantara as the sole shareholder—depending on the size and materiality of the transaction, reinforcing the depth of oversight over DIM’s investment activities.

Financial integration within the Danantara structure supports DIM’s liquidity and underscores the support framework. Under the group’s cash flow structure, SOE dividends are collected at BPI Danantara and subsequently allocated, with a portion injected into DIM as equity for investment deployment. DIM received an initial equity injection of Rp 70 trillion in 2025, with an additional Rp 50 trillion expected in 2026. Furthermore, with the approval of the supervisory board, BPI Danantara is authorised to act as a guarantor for DIM, strengthening the financial linkages within the structure.

Outlook

The negative outlook on DIM’s rating is in line with the negative outlook on the Government of Indonesia’s sovereign rating, reflecting the strong credit linkage between the two.

Liquidity

Moody’s noted that DIM’s liquidity is very good. Liquidity at the holding level is supported by equity injections received from BPI Danantara. The company has also established external funding channels, including Rp 68.4 trillion obtained through the issuance of Patriot Bonds and a US$10 billion revolving credit facility, of which US$1 billion has been committed. The revolving credit facility has been partially drawn to fund placements in private funds and related real estate investments. The company expects further drawdowns as it continues its capital placements.

DIM has no obligation to pay dividends and has no debt maturities over the next two to three years.

Factors for Rating Upgrades and Downgrades

A rating upgrade for DIM is unlikely given the negative outlook on the Government of Indonesia’s bond rating. In the long term, the rating is likely to move in tandem with Indonesia’s sovereign debt rating. Therefore, an upgrade in Indonesia’s sovereign rating could lead to an upgrade for DIM, provided the government linkage remains unchanged.

DIM’s rating could be downgraded if the Government of Indonesia’s sovereign rating is downgraded. The rating could also be pressured if there is a weakening of the relationship with the government, including changes to the mandate, ownership, or role within the Danantara structure.