EL7.AI
GeneralMedium•22 October 2026•
4 min read

Indonesia's Danantara seeks $1 billion loan to fund acquisitions and expand investments

Key Facts

1Danantara is seeking to raise the equivalent of $1 billion through a multicurrency loan, according to Bloomberg sources.
2The fund deployed more than $5 billion in investments this year, according to Bloomberg.
3Danantara had planned to invest about $13 billion this year, according to Chief Investment Officer Pandu Sjahrir.
4The proposed margin on the dollar tranche is 95 basis points over the Secured Overnight Financing Rate, matching the previous deal.
5Danantara manages about $900 billion in state assets across 1000 companies, according to Reuters.

Indonesia's Danantara is seeking to raise the equivalent of $1 billion through a multicurrency loan to fund acquisitions and investments, Bloomberg reported, citing people familiar with the arrangements. The financing request comes after the fund deployed more than $5 billion in investments this year, according to the report. Bloomberg's sources described the proposed financing as a "3-year revolving credit facility." Its uses include general corporate purposes, as well as financing acquisitions and the fund's investment activity. DBS and HSBC are underwriting the facility, with participation from Standard Chartered and United Overseas Bank. The new borrowing effort thus draws on international banks to finance Danantara's ongoing investment program.

The proposed financing comes on top of an earlier $1 billion loan, according to the people familiar with the matter who spoke to Bloomberg. The earlier loan is being extended to align its maturity with that of the new facility, alongside arrangements for the additional borrowing. The dollar tranche of the proposed facility targets a margin of 95 basis points over the Secured Overnight Financing Rate. That margin matches the level used in the previous deal, according to the same sources, while the facility is being arranged in multiple currencies. Banks are currently marketing the facility to the broader lending market to attract other lenders to the syndicated financing.

On its investment program, Chief Investment Officer Pandu Sjahrir said Danantara had planned to invest about $13 billion this year, according to Bloomberg. The fund's plans include additional funding rounds to support its activities, according to Sjahrir's remarks carried by the agency. Options under consideration include potential bond sales in the United States and China, adding another funding avenue alongside the bank borrowing being arranged. In public markets, Danantara's arm responsible for that business had invested about $3 billion by the time Reuters interviewed fund officials. Those investments were spread across stocks and bonds and included domestic and foreign instruments, according to the officials. The arm plans to deploy an additional $1 billion by the end of this year. Fund officials linked the execution of those additional investments to market conditions, according to Reuters.

Danantara manages about $900 billion in state assets across 1000 companies, according to Reuters. The fund deploys dividends from those companies to maximize investment returns as part of its role in managing state assets. In its latest announced investments, Danantara said in October it had invested $250 million in U.S. company HighPeak Energy. The investment was made through its Danantara Investment Management arm, according to a statement the fund issued on the deal. Its acquisitions also included hospitality assets in Mecca, according to a separate Danantara statement on completed acquisitions there. These included an operating hotel with 1461 rooms and suites. The statement said the hotel's acquisition and handover were completed on August 11, 2026.

On its upcoming calendar, Danantara is organizing its inaugural Technology and Innovation Investment Forum from October 26 to 28, 2026, according to an announcement by the fund. The Fairmont Jakarta hotel will host the forum, which Danantara is dedicating to this investment sector. In November, Indonesia's stock market awaits an update from MSCI on its review of Indonesia's classification, according to a Reuters report published in October. The agency said a downgrade could weigh on stocks as the public markets investment arm aims to continue deploying funds in markets. On industrial projects, Danantara finalized an investment partnership with the Indonesia Investment Authority and Chandra Asri in a chlor-alkali and ethylene dichloride project. The fund said in its statement that the project "remains on track to begin commercial operations in 2027." That is the target date for the joint project's next operational phase.