Indonesian sovereign wealth fund Danantara and China Investment Corp (CIC) have signed an investment agreement.
The pact was signed during Chinese Premier Li Qiang’s visit to Jakarta on May 25 in a ceremony witnessed by Li and Indonesian President Prabowo Subianto, Bloomberg reports on May 25.
Details of the agreement were not disclosed. Spokespersons for Danantara and CIC, China’s sovereign wealth fund, did not immediately respond to questions from Asia Asset Management.
Meanwhile, during a visit to Beijing last week, Luhut Binsar Pandjaitan, chairman of Indonesia’s National Economic Council, proposed the formation of a joint US$2 billion fund between Danantara and China for investing in Indonesian assets, according to the Jakarta Globe.
Luhut led an Indonesian delegation to Beijing from May 20-22 and met with Chinese Foreign Minister Wang Yi.
“…I asked the foreign minister: why not establish a joint sovereign wealth fund – $1 billion from Danantara, $1 billion from China – and it seems this idea is gaining traction,” Luhut is quoted as saying in the report on May 23.
Launched in February, Danantara is Indonesia’s second wealth fund and Prabowo’s main vehicle to achieve his 8% economic growth target within four years by managing shares of state-owned enterprises and reinvesting the dividends in commercial projects. It’s often described as Indonesia’s version of Singapore’s state investment company Temasek Holdings.
Indonesia Investment Authority, the first wealth fund, was established in 2021 to invest in infrastructure assets such as toll roads and data centres.
Original link: https://www.asiaasset.com/post/29661-danantarachina-gte-0526