Danantara Invests $250 Million in US Oil Producer HighPeak Energy

Indonesia’s sovereign investment institution Danantara Indonesia is investing $250 million in US oil and gas producer HighPeak Energy, expanding its international energy portfolio through a transaction in one of the world’s most important oil-producing regions. The investment was announced on Oct. 6 through Danantara Investment Management, the institution’s investment arm.

The investment will be made through convertible preferred stock issued by HighPeak, a Texas-based company focused on acquiring, developing, exploring and producing oil and natural gas assets in the Permian Basin. The transaction gives Danantara exposure to an oil-weighted upstream portfolio in the United States.

The deal is part of a larger capital injection into HighPeak. Indonesia’s Energi Mega Persada, part of the Bakrie Group, is separately investing $200 million, bringing the total investment from the two Indonesian investors to $450 million.

HighPeak plans to use the proceeds to strengthen its balance sheet and financial flexibility. The company is also refinancing $1.17 billion of debt and arranging a new $800 million reserve-based lending facility from Citibank and Fifth Third Bank, according to Indonesian financial reporting.

The transaction gives Danantara several strategic rights in addition to its financial exposure. The investment provides downside protection, an opportunity to convert into common shares, the option to participate in future private placements and the right to appoint one director to HighPeak’s board.

HighPeak’s assets are located in the Permian Basin, the largest crude-oil-producing region in the United States. The US Energy Information Administration has said the basin accounted for 48% of US crude oil production in 2025, highlighting the scale of the resource base behind Danantara’s investment.

The investment also represents a shift in Danantara’s international strategy toward direct exposure to global energy assets. Rather than concentrating solely on Indonesian state-linked assets, the institution is building a portfolio that can participate in international commodities and energy markets.

Pandu Sjahrir, chief executive of Danantara Investment Management, said the transaction is intended to generate sustainable long-term returns while supporting Indonesia’s strategic interests. The institution also expects the relationship to facilitate technical knowledge transfer to Indonesia’s energy sector.

HighPeak will establish training and secondment programs for Indonesian workers following completion of the transaction. The initiative adds an industrial component to the investment by linking the US upstream operation with Indonesian technical capability development.

Completion of the investment is expected in the fourth quarter of 2026, subject to applicable conditions and regulatory requirements. The HighPeak transaction marks one of Danantara’s clearest recent moves to build an international investment portfolio around strategic energy assets and deepen Indonesia-US economic ties.