Danantara's Investment Arm Swings to Profit Due to Foreign Exchange Appreciation

JAKARTA, Investortrust.id — PT Danantara Investment Management (DIM) swung to a net profit of $40.61 million (Rp 705.73 billion) for the four months ending April 30, 2026, driven by a sharp surge in foreign exchange appreciation and non-operating windfalls.

The performance marks a dramatic turnaround for the investment vehicle initiated under President Prabowo Subianto, reversing a net loss of Rp 131 million ($7,500) recorded in the same period last year. The four-month bottom line also surged 506.65% past the firm's entire 2025 net profit of Rp 116.33 billion ($6.69 million).

DIM commenced formal commercial operations in late October 2025 following its initial capital injection from parent entity Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara), meaning baseline operations from early 2025 reflected only nominal activity.

FX Surge and Non-Operating Income Drive Turnaround

Filings released on the Singapore Exchange on Monday, November 2, 2026, show that the firm's bottom-line recovery was propelled by extraordinary growth across non-operating line items.

Foreign exchange gains skyrocketed to Rp 306.03 billion for the four-month stretch, up from just Rp 64 million in 2025. Non-operating earnings were further bolstered by a 113.75% jump in the amortization of deferred gains, which climbed to Rp 644.23 billion from Rp 301.39 billion.

The non-operating windfall complemented rapid top-line growth. Revenue for the first quarter of 2026 reached Rp 1.10 trillion ($63.01 million), climbing 36.67% above the Rp 801.24 billion booked across the entirety of 2025.

Operational overhead expanded alongside the firm's growing footprint. Operating costs through April reached Rp 330.56 billion, or 62.89% of full-year 2025 operational expenses, while finance costs climbed 119.00% to Rp 1.01 trillion from Rp 460.74 billion.

Asset Expansion Amid Outflows for Investment Deployment

The surge in retained earnings lifted DIM's balance sheet through the end of April. Total assets expanded 6.09% to Rp 140.03 trillion from Rp 131.99 trillion at year-end 2025. Total equity edged up 1.01% to Rp 70.82 trillion, supported by a 626.76% spike in retained earnings to Rp 818.33 billion from Rp 112.60 billion.

Total liabilities rose 11.85% to Rp 69.20 trillion, primarily reflecting an 11.27% increase in long-term notes to Rp 68.25 trillion.

Cash flow statements highlighted heavy deployment into new investment assets. Operating cash flow recorded a negative Rp 15.89 trillion for the four-month period, reversing from a positive Rp 236.41 million in 2025, while cash and cash equivalents trimmed 6.52% to Rp 123.03 trillion.

Moody’s Ratings assigned an inaugural Baa2 issuer rating to DIM with a negative outlook last June, aligning the entity directly with Indonesia’s sovereign credit rating.

The ratings are underpinned by strong credit links, including ownership structure within the Danantara institutional framework and our expectation of timely extraordinary support from the government, Moody’s Ratings said.

DIM is wholly owned by BPI Danantara under Law No. 16 of 2025 and overseen by a board that includes nine active cabinet ministers. Following an initial capitalization of Rp 70 trillion in 2025 and a projected Rp 50 trillion injection in 2026, DIM also holds Rp 68.4 trillion in Patriot Bonds and access to a $10 billion revolving credit facility, leaving its liquidity base well supported by the state.