Danantara Investment Management (DIM), the investment vehicle of Indonesia's state-owned investment manager, is looking to issue new global bonds as part of its $5 billion Global Medium-Term Note (GMTN) program. This issuance follows a successful debut bond sale of $1.5 billion in June. The new debt aims to align long-term overseas equity investments with long-term US dollar funding sources, mitigating currency mismatch risks, and reducing pressure on domestic US dollar demand.
Fitch Ratings has assigned a 'BBB' long-term rating to DIM's proposed US dollar senior unsecured notes, aligning it with DIM's Issuer Default Rating (IDR) and Indonesia's sovereign credit rating, both at 'BBB' with a negative outlook. Moody's Ratings similarly assigned a 'Baa2' rating to DIM's proposed notes and its GMTN program, also with a negative outlook, reflecting strong credit linkages and the expectation of timely extraordinary government support. These ratings are considered investment grade.
The ratings from both Fitch and Moody's emphasize the expectation of strong government support for DIM, with Fitch assessing the likelihood of government support as "almost certain" if needed. This support is based on DIM's role within the broader investment structure and its strategic importance to the Indonesian administration. The ratings are heavily influenced by the sovereign rating, and any changes to Indonesia's sovereign credit rating or the assessment of government support could impact DIM's ratings.
DIM maintains an excellent liquidity position, holding Rp123 trillion in cash and cash equivalents as of April 30, 2026. This is further bolstered by its debut bond issuance of $1.5 billion, Rp68.4 trillion from Patriot Bonds, and $10 billion in multicurrency revolving credit facilities, $1 billion of which is committed. Despite global bond market volatility, Danantara has no immediate pressure to issue bonds, as it has no debt maturities in the next two to three years. The potential sale could involve long tenors, possibly 20 or 30 years, and will test international investor appetite for long-term funding for Danantara.
