Indonesia's Danantara Investment Management Receives Baa2 Rating from Moody's

PT Danantara Investment Management (DIM) has received a Baa2 rating, categorized as medium, from Moody's Ratings, accompanied by a negative outlook. This assessment closely mirrors the credit rating of the Indonesian government, underscoring the strong credit linkage between DIM and the state. The Indonesian investment manager views this rating as a crucial milestone in its institutional development, reinforcing its solid foundation and ongoing efforts to engage with the global financial markets.

In a written statement on Friday, June 5, 2026, the Danantara Communications Team highlighted that DIM's rating and outlook align with Indonesia's sovereign rating, a common scenario for entities closely tied to a nation's creditworthiness. Danantara believes this recognition bolsters confidence in its strategic direction, governance, and long-term positioning, supporting its goals of expanding access to international funding and advancing Indonesia's economic priorities.

Rachel Chua, Vice President and Senior Analyst at Moody's Ratings, explained that the rating reflects the robust credit ties between DIM and the government, including its ownership structure within Danantara's institutional framework and Moody's expectation of timely, extraordinary government support. Moody's classifies DIM as a Government Related Issuer (GRI) and applies a top-down approach, noting that DIM's development stage, limited track record, and lack of significant standalone operations mean no Baseline Credit Assessment (BCA) was assigned.

The rating agency assessed DIM's liquidity as excellent, noting its established external funding channels. These include Rp 68.4 trillion raised through Patriot Bonds and a US$10 billion credit facility, with US$1 billion committed. Moody's report also stated that DIM has no dividend obligations and no debt maturities for the next two to three years. The primary driver for the rating is governance, stemming from full government ownership via BPI Danantara and high government oversight of DIM's strategy, funding, and investment decisions. Moody's indicated that an upgrade for DIM is unlikely given the negative outlook on Indonesia's sovereign rating, suggesting future rating movements will likely track the sovereign's trajectory. An upgrade could occur if the country's rating improves, provided the relationship with the government remains unchanged. Conversely, the rating could face pressure if the relationship with the government weakens, including changes in mandate.