Indonesia's Danantara Investment Management and Mandiri Investment Management have jointly launched Indonesia's first dedicated aircraft leasing fund, valued at $800 million. In collaboration with Japan’s SMBC Aviation Capital, the Mandiri Aviation Leasing Fund aims to provide investors access to high-quality global aviation assets through an institutional-grade platform. The fund will be managed jointly by Mandiri and SMBC, with Danantara serving as a strategic anchor investor.
SMBC Aviation Capital, recognized for its expertise in aircraft leasing, will supply leasing services and support Danantara’s efforts to expand into other global asset classes over time. This partnership not only marks a significant milestone for Indonesian aviation finance but also fosters economic cooperation between Indonesia and Japan, opening pathways for further cross-border investments.
Given the global trend of banks retreating from aviation lending amid rising capital requirements, alternative capital sources have become increasingly vital. This new initiative illustrates the evolution of private credit across Asia, with lessors turning to private capital for funding and growth. Aviation financing remains attractive due to its stable income, real asset security, and resilience amid global demand shifts. The broader asset-backed finance sector in Asia is expected to gain momentum, driven by regional infrastructure development needs.
