By Ying Xian Wong and Amanda Lee
Indonesia's sovereign wealth fund on Friday reiterated its commitment to operating with full transparency, coming after Moody's Ratings cut its outlook for the country to negative from stable.
Danantara Indonesia took the action by the ratings firm as a "constructive reminder" to reinforce institutional strength, policy clarity and maintain disciplined execution, said Rosan Roeslani, chief executive of the sovereign wealth fund.
Danantara, which manages over $900 billion in assets, will continue to stick to strict governance standards, said Rosan, a former minister for investment.
In a report on Thursday, Moody's lowered its ratings outlook for Indonesia to negative, citing reduced predictability in policymaking. It maintained the country's investment-grade rating, but cited risks that could lead to a downgrade.
Among those was insufficiently strong governance by Danantara leading to a material weakening in state-owned enterprises' financial health and poor returns on investments.
The establishment of the fund last year has raised uncertainty regarding its financing, governance, and investment priorities, Moody's said.
It noted early signs of efficiency improvement but said that questions around investment prioritization, risk management and regulatory relationships remain.
That said, Moody's baseline assumption is that more institutional development will bring greater clarity around Danantara's operations.
"As a newly established sovereign wealth fund, Danantara Indonesia is in its institutional-building phase," said Rosan.
The fund will continue to operate with institutional rigor, prudent risk management, and full transparency, he added.
Write to Ying Xian Wong at yingxian.wong@wsj.com and Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
February 06, 2026 03:11 ET (08:11 GMT)
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