China Will Invest in Indonesia, the Value Reaches IDR 45 Trillion


Good relations between Indonesia and China continue. This is further strengthened by the business and investment relations between the two countries. The Silk Road Fund (SRF) from China is known to invest up to 20 billion yuan (about US$ 2.99 billion) or around Rp. 44.55 trillion (exchange rate of Rp. 14,900/US$).

The investment that will be invested by China in Indonesia will be through the Indonesia Investment Authority (INA).

On July 4, 2022, the Indonesia Investment Authority (INA) and the Silk Road Fund (SRF) of the People’s Republic of China (PRC) signed an Investment Framework Agreement (IFA) to facilitate investment cooperation between the two parties in Indonesia.

“We believe that investment in Indonesia and the region around it has high potential, especially if it is done jointly with INA. SRF intends to invest up to RMB20 billion or an equivalent amount under this IFA agreement,” said Yanzhi Wang, President of SRF in a statement. officially quoted, Tuesday (5/7/2022).

Based on an official statement quoted on Tuesday (5/7/2022), IFA established general terms and principles that SRF and INA would follow when screening and making joint investments.

The Silk Road Fund (SRF) is a medium and long-term development and investment fund established in response to the Belt and Road Initiative.

To support the construction of the Belt and Road, the Silk Road Fund is committed to promoting multilateral and bilateral connectivity, economy, and trade, as well as cooperation between China and other relevant countries.

Through joint efforts, INA and SRF intend to enhance economic cooperation between China and Indonesia.

“Like SRF, INA has a strong commitment to promoting bilateral economic relations. As part of the signed agreement, INA will invest together with SRF, also opening up the possibility to invite other investors,” said Ridha Wirakusumah, Chairman of the Board of Directors of INA.

Both parties intend to leverage each other’s market insights, close ties to relevant local business communities, deal initiating capabilities, and portfolio management expertise.

The scope of investment stipulated in the IFA covers a wide range of asset classes and funds and targets all business sectors open to foreign investment, in particular those that promote community development and economic connectivity between Indonesia and China.