China, Indonesia Sovereign Wealth Funds Boost Investment Ties

China and Indonesia agreed to step up ties between their economies during Premier Li Qiang’s visit to Jakarta, including one on investment involving their sovereign wealth funds. The two countries will boost cooperation on tourism and agricultural exports, while wealth funds China Investment Corporation and Danantara Indonesia entered an investment agreement.

Jakarta, 05/25/2025 - China and Indonesia have agreed to bolster their economic ties during Premier Li Qiang's visit to Jakarta, including a significant investment agreement involving their respective sovereign wealth funds. The two nations have committed to enhancing cooperation in various sectors, with a particular focus on tourism and agricultural exports.

During a ceremony attended by Premier Li Qiang and President Prabowo Subianto, the central banks of both countries signed a memorandum of understanding (MOU) on a framework for bilateral transactions in local currencies. This agreement aims to facilitate smoother and more efficient financial transactions between the two economies [2].

Additionally, the wealth funds China Investment Corporation (CIC) and Danantara Indonesia entered an investment agreement, although specific details were not disclosed. This move is part of a broader strategy to strengthen economic ties and foster mutual growth in strategic sectors. The agreement is expected to deepen the financial cooperation between the two nations, potentially opening new avenues for investment and trade [1].

Premier Li Qiang's visit to Jakarta comes amidst China's efforts to strengthen its relationships with Southeast Asian countries, particularly in response to intensifying trade tensions with the United States. This visit follows an inaugural 2+2 dialogue between Chinese and Indonesian foreign and defense ministers, which was seen as a strategic move to court the wider regional bloc [2].

The visit also marks the first time Premier Li Qiang will meet with President Prabowo Subianto since the latter took office. Previous visits by Premier Li Qiang to Indonesia have resulted in substantial business deals, underscoring the strong economic ties between the two countries. China remains Indonesia's largest trading partner and a key investor in its commodity and infrastructure sectors [3].

References:
[1] https://jakartaglobe.id/business/luhut-proposes-1-billion-joint-investment-between-indonesias-danantara-and-chinas-sovereign-wealth-entities
[2] https://www.bloomberg.com/news/articles/2025-05-25/china-indonesia-sovereign-wealth-funds-boost-investment-ties
[3] https://en.tempo.co/read/2010363/prabowo-set-to-receive-chinese-premier-li-qiangs-visit-on-sunday