Indonesia’s sovereign wealth fund, Danantara, is seeking to raise as much as US$10 billion (RM42.16 billion) through a multicurrency loan in what may become the largest such transaction in Southeast Asia to date, according to individuals familiar with the matter.
Formally known as Daya Anagata Nusantara, the fund has circulated a request for proposals to both regional and international banks for a facility with a proposed tenor of approximately three to five years. Sources, who requested anonymity due to the confidential nature of the discussions, indicated that the loan will be unsecured and will not be backed by any government guarantees or letters of support. Banks have been asked to submit both underwritten and uncommitted proposals.
The intended use of proceeds is for general corporate purposes.
Danantara, which operates under the direct authority of President Prabowo Subianto, plays a central role in his administration’s strategic plan to drive economic growth to 8% over the course of his presidency. The fund oversees a substantial portfolio of state-owned enterprises, including major banks, oil and gas company PT Pertamina, and the government’s mining interests. Executive sources have projected the fund could eventually control more than US$1 trillion in assets.
Despite its ambitious scope, details about the fund’s operational framework remain limited. This opacity is not unexpected given the fund’s early stage, though it complicates assessments of both risk and potential, said Nicolas Painvin, global head of international public finance at Fitch Ratings, in a May interview with Bloomberg News.
Earlier in June, Danantara’s managing director Arief Budiman outlined plans to invest across eight strategic sectors, including renewable energy, digital infrastructure, and healthcare.
The proposed borrowing would surpass Indonesia’s previous largest loan — a €3 billion (RM14.88 billion) sovereign facility raised in September 2023 — and exceed Southeast Asia’s current largest loan, a US$9.75 billion bridge facility supporting a Singapore consortium’s acquisition of Fraser & Neave in 2012, according to Bloomberg-compiled data.
The International Financing Review (IFR) was first to report on Danantara’s funding initiative.
-Bloomberg
