Fitch affirms Danantara Investment Management at ‘BBB’, keeps negative outlook

[JAKARTA] Fitch Ratings affirmed Indonesia’s Danantara Investment Management’s (DIM) long-term foreign and local-currency issuer default ratings at “BBB”, which indicates good credit quality and a relatively low risk of default.

Fitch kept the outlook negative, which meant that the rating could be downgraded if DIM’s credit profile weakens.

On Monday (Sep 21), the credit rating agency said that it considered government support for DIM to be “virtually certain”, if the company needed it.

“We equalise DIM’s ratings with those of the sovereign, reflecting our assessment of strong linkages between DIM and the Indonesian government,” Fitch noted.

The negative outlook mirrored its March move to cut the outlook on Indonesia’s long-term foreign-currency issuer default rating to negative from stable amid rising policy uncertainty and increasingly centralised policymaking.

The government retains full ownership of DIM through BPI Danantara, the sovereign wealth fund launched by President Prabowo Subianto in February 2025.

It brings more than US$1 trillion in state-owned assets and investments under a single structure, aimed at improving how the government manages its wealth.

The fund oversees the management of state-owned companies through Danantara Asset Management, while DIM is its investment arm, tasked with investing dividends from those companies and generating returns.

Fitch said it considered the parent entity when assessing DIM because the investment arm has strong ties to the Indonesian government and carries out public-policy functions.

SEE ALSO

Indonesia puts US$70 billion commodity exports under closer watch as Danantara’s platform goes live

“Government support had already been demonstrated despite DIM being relatively new,” it noted.

DIM received a 70 trillion rupiah (US$3.9 billion) capital injection from BPI Danantara in 2025, funded by dividends from state-owned enterprises 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 rules governing how state-owned enterprise dividends are managed through BPI Danantara.

Under the framework, funds can be allocated to DIM for investments, while Danantara Asset Management keeps funds for restructuring state-owned enterprises. BPI Danantara retains funds for its operating expenses and liquidity.

Fitch also maintained DIM’s “AAA” national long-term rating, with a stable outlook. This means DIM has the lowest default risk relative to all other Indonesian issuers and obligations.

The agency 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”.