Fitch Maintains Danantara Rating at 'BBB' - BCA Sekuritas

Fitch Ratings has affirmed the long-term foreign and local currency ratings of Danantara Investment Management (DIM) Indonesia at ‘BBB’, indicating good credit quality and relatively low default risk.

Fitch maintains a negative outlook, meaning the rating could be downgraded if DIM’s credit profile weakens. On Monday (21 September), Fitch stated that it considers government support for DIM to be ‘almost certain’ should the company require it.

‘We align DIM’s rating with the sovereign rating, reflecting our assessment of the strong link between DIM and the Indonesian government,’ said Fitch.

The negative outlook reflects Fitch’s move in March to downgrade the outlook on Indonesia’s long-term foreign currency issuer default ratings from stable to negative, amid increasing policy uncertainty and more centralised policymaking.

The government maintains full ownership of DIM through BPI Danantara, a sovereign wealth fund launched by President Prabowo Subianto in February 2025. This fund consolidates over US$1 trillion in state-owned assets and investments under a single structure, aiming to enhance the government’s wealth management capabilities.

The fund oversees the management of state-owned enterprises (SOEs) through Danantara Asset Management, while DIM serves as its investment arm, tasked with investing dividends from these companies to generate returns.

Fitch stated that it considers the parent entity when assessing DIM because the investment arm has a strong relationship with the Indonesian government and performs public policy functions. ‘Government support has been demonstrated despite DIM being relatively new,’ the agency noted.

DIM received a capital injection of 70 trillion rupiah (US$3.9 billion) from BPI Danantara in 2025, funded by dividends from SOEs collected through Danantara Asset Management. Fitch expects further annual capital injections to support DIM’s liquidity, investment commitments, and portfolio growth.

The agency also highlighted the regulations governing how SOE dividends are managed through Danantara. Under this framework, funds can be allocated to DIM for investment, while Danantara Asset Management retains funds for SOE restructuring, and BPI Danantara holds funds for its operational costs and liquidity.

Fitch also maintained DIM’s National Long-Term Rating at ‘AAA’ with a stable outlook, meaning DIM carries the lowest default risk relative to all other Indonesian issuers and obligations. The agency also affirmed DIM’s short-term foreign currency issuer default rating at ‘F2’, as well as its global medium-term note programme and senior unsecured notes at ‘BBB’.