Jakarta. Danantara unveiled Tuesday a $250 million investment in one of the companies running the largest oil-producing basin in the US.

The sovereign wealth fund’s investment arm Danantara Investment Management (DIM) has clinched a deal with the Texas-based HighPeak Energy. This company operates the Midland portion of the Permian Basin. 

DIM intends to make the transaction through a series of convertible preferred stock. According to a Danantara statement, HighPeak will use the proceeds to bolster its capital structure and financial flexibility. 

“We expect this partnership to facilitate meaningful expertise sharing in support of the development of Indonesia's energy sector, while further strengthening the longstanding [bilateral] energy and economic relationship,” DIM chief executive officer Pandu Sjahrir wrote.

HighPeak boss Michael Hollis said that the deal could enable the company to expand its drilling program. 

“This partnership brings together long-term investors who share our commitment to sustainable growth and value creation,” Hollis stated.

The investment completion will hinge on whether they can fulfill the applicable conditions and comply with relevant policies, according to Danantara, without disclosing a deadline. 

The Permian Basin makes up nearly half of the national production. Reports showed HighPeak’s production averaged around 45,500 barrels of oil equivalent per day in the first half of 2026. If the transaction goes well, HighPeak will “develop training and secondment programs for Indonesians”. 

The deal is expected to grant Danantara downside protection, while allowing the fund to participate in future equity upside through conversion to common stock and an option to subscribe to future HighPeak private placements. DIM will also gain the power to appoint a director to HighPeak’s board.

But Danantara — which oversees all Indonesian state enterprises —  is not HighPeak’s only Indonesian partner.

In an Indonesian Stock Exchange disclosure document, the Jakarta-headquartered oil producer Energi Mega Persada revealed to have shaken hands on a separate $200 million deal with HighPeak for newly issued convertible preferred stock. Energi Mega Persada is under the conglomerate Bakrie Group.

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