Danantara Investment Management, SMBC Aviation Capital, and Mandiri Investment Management announced Wednesday the framework agreement for the development of Mandiri Aviation Leasing Fund, Indonesia’s first dedicated aviation leasing investment platform. The initial portfolio value of the fund is around $800 million.
The fund brings together three complementary capabilities: SMBC Aviation Capital’s position as one of the world’s largest aircraft lessors, with a track record spanning over two decades and operations across multiple global offices; Danantara Investment Management’s role as a strategic anchor investor; and Mandiri Group’s execution and financing ecosystem, anchored by Mandiri Investment Management – the only subsidiary of an Indonesian state-owned bank to hold an offshore investment management license, Danantara said in a statement.
The Mandiri Aviation Leasing Fund is structured as a scalable, institutional-grade platform designed to provide investors with access to high-quality global aviation assets.
The fund will be co-managed by Mandiri Investment Management and SMBC Aviation Capital under a framework agreement that combines Mandiri Investment Management’s fund structuring capabilities with SMBC Aviation Capital’s deep operational expertise in aircraft leasing.
As part of the partnership, SMBC Aviation Capital will provide aviation and leasing services to the Mandiri Aviation Leasing Fund, building long-term institutional capabilities in aviation leasing within Indonesia.
Over time, the success of this platform is expected to support Danantara Investment Management’s expansion into adjacent global asset classes.
The fund is expected to deliver attractive risk-adjusted returns to investors while positioning Indonesia within the global aviation leasing value chain. All three parties will work closely and participate in the fund’s governance, ensuring strategic alignment across all partners.
The partnership also serves as a foundation for broader economic cooperation between Indonesia and Japan, creating opportunities for further cross-border investment between SMBC Group and Danantara Indonesia.
“This partnership represents a significant step in Indonesia’s participation in the global aviation finance ecosystem,
“By anchoring this project alongside SMBC Aviation Capital and Mandiri Investment Management, Danantara Indonesia is investing in a world-class platform that delivers strong returns while building strategic capabilities for the nation,“ said Pandu Sjahrir, Chief Investment Officer Danantara Indonesia.
Barry Flannery, Chief Commercial Officer of SMBC Aviation Capital, said this strategic partnership will help progress the aviation ecosystem in Indonesia and beyond.
“Working closely with Mandiri and Danantara Indonesia, we look forward to supporting longterm growth, innovation and collaboration across the sector,” he added.
Baskoro Adi, Chief Executive Officer of Mandiri Investment Management, said this partnership reflects their commitment to developing innovative investment solutions that connect global investors with high-quality aviation assets.
“We are proud to collaborate with SMBC Aviation Capital, with the support of Danantara Investment Management, to establish Indonesia’s first aviation leasing fund—delivering attractive risk-adjusted returns while positioning the region as an emerging player in the global aviation leasing market,” he added.
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