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View all search resultsDanantara's $10b loan move signals trust, but raises jitters over urgency
While acknowledging the inherent trust demonstrated by foreign banks in committing to such a large amount, and without collateral at that, economists have questioned the urgency of the move and cautioned about potential risks such as mismanagement and project selection.
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The logo sign for Danantara Indonesia stands atop a marquee at the headquarters of the Daya Anagata Nusantara state asset fund on Jl. Soeroso in Menteng, Central Jakarta, in this picture taken on Feb. 28, 2025. (Reuters/Willy Kurniawan)
D
anantara’s move to secure a US$10 billion loan from foreign banks suggests significant trust in the state asset management agency that was only established in February.
However, analysts have raised concerns about the timing of raising funds at such an early stage, despite the availability of dividends from state-owned enterprises (SOEs), as well as the potential risk of future cash flow issues.
Danantara CEO Rosan Roeslani announced on Tuesday that the agency had secured a loan commitment from a consortium of 12 foreign banks, which he described as a vote of confidence in Danantara’s financial governance and repayment capability.
“They saw that Danantara has a proper and orderly system, especially in terms of a clear payment scheme,” Rosan said.
He went on to explain that the agency’s repayment scheme relied primarily on two channels: annual dividends from SOEs and affiliated entities, and returns from reinvestments through its independently managed investment arm.
“From an investment perspective, there will also be a good return,” he added.
While declining to name the participating banks, Rosan emphasized that the loan facility did not involve any collateral, including promises of future dividends or equity.
