Beijing. Indonesia’s Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, met with senior Chinese officials this week to discuss a potential $1 billion mutual investment between Indonesia’s sovereign wealth fund Danantara and a Chinese counterpart.

During a high-level meeting with Chinese Foreign Minister Wang Yi, Luhut proposed the creation of a joint sovereign wealth initiative, with each side contributing $1 billion -- or another mutually agreed amount -- to co-invest in strategic sectors.

“In the meeting with Foreign Minister Wang Yi, I explained that Danantara is a consolidation of all our state-owned enterprise (SOE) assets,” Luhut said in a statement from Beijing on Thursday. “Danantara now manages nearly $1 trillion in assets. So 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 led the Indonesian delegation to Beijing from May 20–22, 2025. The delegation included DEN's Deputy Chair, Mari Elka Pangestu, Executive Director Mochammad Firman Hidayat, Deputy Finance Minister Thomas Djiwandono, Deputy Investment Minister Todotua Pasaribu, Danantara CIO Pandu Sjahrir, and other senior officials.

In addition to meeting Wang Yi, the Indonesian delegation held talks with key figures from the National Development and Reform Commission (NDRC), China Investment Corporation (CIC), Industrial and Commercial Bank of China (ICBC), State Development and Investment Corporation (SDIC), and Bank of China (BOC).

Luhut said China’s government and business leaders continue to view Indonesia as a highly attractive investment destination.

“They’ve seen returns from Indonesia,” he noted. “I also mentioned that China could collaborate with us on critical mineral supply chains. We could even bring in the United States or Abu Dhabi -- there’s no need for conflict when we can cooperate.”

He emphasized that the time for discussions has passed and implementation must begin.

“What I observed in China is unity of direction -- no one pulling north, east, or south. They’re focused. And I believe President Prabowo Subianto is also clear in his vision. Now, his team must be swift in implementing it,” Luhut added.

Beyond the Danantara partnership, the meetings also addressed green economy initiatives, including cooperation on Carbon Capture and Storage (CCS) and Carbon Capture, Utilisation, and Storage (CCUS) -- technologies that allow carbon dioxide (CO₂) emissions to be captured at the source, transported, and permanently stored underground.

“These technologies are vital for decarbonizing sectors like power generation, heavy industry, and manufacturing,” Luhut said. “Indonesia has a CCS capacity of 600 gigatons. By collaborating and storing the carbon underground, we can truly go green and achieve our 2050 emission targets.”