Moody's Assigns Baa2 Rating to Danantara Investment Management
Global rating agency Moody’s Ratings has assigned an issuer rating of Baa2 for the first time to PT Danantara Investment Management (DIM), while maintaining a negative outlook in line with the sovereign rating prospects of the Indonesian government.
Moody’s has set a provisional Baa2 rating for the global senior unsecured medium-term note (MTN) programme issued by DIM, as well as for the planned issuance of senior unsecured notes, all of which carry a negative outlook.
“The Baa2 issuer rating for Danantara Investment Management with a negative outlook is aligned with the sovereign rating of the Indonesian government (BCA Baa2 negative), supported by strong credit ties, including its ownership structure within the Danantara institutional framework and our expectation of timely extraordinary support from the government,” stated Rachel Chua, Vice President and Senior Analyst at Moody’s Ratings, in an official statement in Jakarta.
Moody’s classifies DIM as a Government-Related Issuer (GRI) and has applied a top-down approach. No Baseline Credit Assessment (BCA) was provided, reflecting DIM’s nascent stage of development, limited track record, and lack of significant independent operations. Consequently, the rating is primarily driven by sovereign linkage rather than standalone credit strength.
The agency noted high levels of government oversight and governance integration, which increases the likelihood of timely extraordinary support. This integration is further strengthened by overlapping senior management and board representation between BPI Danantara and DIM, ensuring alignment in strategy and investment execution.
DIM’s annual budget is consolidated into the overall BPI Danantara budget and approved by 11 members of the BPI Danantara Supervisory Board, including nine active ministers. Furthermore, the legal framework requires DIM’s corporate work plans and annual budgets to be consulted with the House of Representatives (DPR).
Moody’s also highlighted that the financial integration within the Danantara structure supports DIM’s liquidity. Under the group’s cash flow structure, dividends from State-Owned Enterprises (SOEs) are collected by BPI Danantara and subsequently allocated, with a portion injected into DIM as equity for investment placements. DIM received an initial capital injection of IDR 70 trillion in 2025, with an additional IDR 50 trillion expected in 2026.
DIM’s liquidity is assessed as excellent, supported by capital injections from BPI Danantara and established external funding channels, including IDR 68.4 trillion raised through Patriot Bonds and a USD 10 billion revolving credit facility, of which USD 1 billion has been committed. The agency noted that DIM has no obligation to pay dividends and has no debt maturing within the next two to three years.