Jakarta. Sovereign investment wealth fund Danantara Indonesia has agreed to invest $2.5 billion (Rp 44.65 trillion) for a 25% stake in a newly formed joint venture with Brazilian food giant JBS S.A.

The investment, made through Danantara Investment Management (DIM), establishes a long-term partnership focused on JBS's Australia and New Zealand operations, the companies announced on Friday.

The transaction values the new joint venture at approximately $10 billion on a post-money equity basis. In addition to Danantara's initial equity investment, the joint venture could deploy up to another $2.5 billion, bringing total available capital to as much as $5 billion for acquisitions and greenfield projects across Indonesia, Southeast Asia, Australia and New Zealand.

The transaction remains subject to regulatory approvals and customary closing conditions. Danantara said it is committed to completing the deal in accordance with applicable regulations.

Danantara said the partnership aligns with its strategy of investing alongside global industry leaders in sectors with long-term growth potential.

"This strategic partnership reflects Danantara Indonesia's commitment to building collaborations with global partners that are aligned with our investment mandate," Danantara Chief Investment Officer Pandu Patria Sjahrir said in a statement.

Pandu said the partnership would provide Danantara access to an established business in a developed market while leveraging JBS's operational expertise and global distribution network to support the long-term development of Indonesia's protein industry.

JBS, the world's largest meat processor by sales, operates an extensive protein business spanning beef, poultry, pork and value-added food products. Its Australian and New Zealand operations include more than 50 production facilities, feedlots and aquaculture assets supplying domestic retailers and export markets across more than 50 countries.

JBS Global Chief Executive Officer Gilberto Tomazoni said the partnership represents an important milestone in the company's Southeast Asia expansion strategy.

"Our partnership with Danantara Indonesia marks an important step in our long-term growth strategy in Southeast Asia," Tomazoni said.

"As a cornerstone of the broader JBS global platform, our Australia and New Zealand footprint provides strong operations, world-class standards and significant growth potential. Together with Danantara, we are well positioned to expand our presence across Indonesia and Southeast Asia, strengthen regional protein supply chains, broaden market access, and accelerate the development of Indonesia's protein sector."

Danantara said the investment would provide exposure to an established business with an experienced management team that has demonstrated sustained growth and resilience across industry cycles.

JBS Australia's business has benefited from strong demand for red meat despite rising livestock procurement costs. In fiscal year 2025, the company reported record net sales of $8.08 billion, up 21.5% from a year earlier, while adjusted pre-tax earnings rose 37.9% to $916 million. The division posted an EBITDA margin of 11.3%, supported by robust domestic and export demand that offset an approximately 20% increase in cattle costs.

At the group level, JBS generated record net revenue of approximately $86.2 billion in 2025, with net income of $2 billion and adjusted EBITDA of $6.8 billion.

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