Danantara

Indonesian sovereign wealth fund Danantara's planned dollar notes are unlikely to price quickly as a global bond rout impacts debt issuance, according to sources familiar with the matter.

Indonesia’s sovereign wealth fund Danantara has hired banks to assess investor demand for a potential second dollar bond sale, following its first offshore debt offering.

Hong Kong Investment Corporation CEO Clara Chan emphasized that official support and private capital collaboration are crucial for sovereign wealth fund success, highlighting partnerships as key to achieving high returns. The comments were made at the Nusa Dua Forum organized by South China Morning Post and Indonesia's Danantara.

Indonesia’s Danantara must outlive political administrations to prove its worth, according to its chief investment officer Pandu Sjahrir, who emphasized initiatives like demutualizing Jakarta’s stock market and establishing a financial center in Bali to boost investor confidence.

MSCI will decide on June 23 whether to downgrade Indonesia to a frontier market, risking $13 billion in capital outflows. The potential downgrade follows concerns about ownership data opacity and market activity, contributing to a 28% decline in the Jakarta Composite Index in 2026. Investor concerns include policies under President Prabowo Subianto, such as fiscal strain and increased state economic control.

Danantara is considering a 30-year bond issuance shortly after the debut sale of its wealth fund. PT Bank Syariah Indonesia, part of Danantara's portfolios, is featured in advertisements in Jakarta.

Danantara has initiated a bond sale as a test following a selloff in Indonesia. The move comes after a significant market downturn in the region.

Danantara is initiating a US bond roadshow as Indonesia's financial situation worsens. Indonesia's finance and central bank officials announced plans to stabilize the currency and attract capital inflows.

Indonesian President Prabowo Subianto has announced a major economic intervention to centralize exports of strategic commodities including palm oil, coal, and ferroalloys through a state-controlled structure linked to the sovereign fund Danantara. The government claims this move will recover hundreds of billions of dollars previously lost to Indonesia.

Danantara remains committed to investing in the Middle East despite ongoing conflicts. The company's focus on investment persists amid regional instability.