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Government officials, sovereign investors, bankers and technology executives gathered at the South China Morning Post’s China Conference: Southeast Asia 2026 to examine how collaboration across capital, policy and innovation is shaping the region’s next growth phase.
Held on February 10–11 at The St Regis Jakarta, the event coincided with the 75th anniversary of diplomatic ties between China and Indonesia. Discussions focused on supply chain diversification under the China+1 strategy, institutional reform, digital transformation and sustainable development. A consistent theme emerged: growth will depend on execution, transparency and cross-border connectivity.
Reforming institutions, deploying capital
In a keynote fireside chat, Pandu Sjahrir, chief investment officer, Danantara Indonesia, reflected on the sovereign Fund’s first year.
“Danantara was established on February 24 last year,” Pandu said. “At that time, the market didn’t really welcome the idea. Our first hurdle was to move from a trust deficit to neutral.”
Danantara Indonesia is positioning itself as the country’s second sovereign wealth fund, seeded with an initial US$20 billion and designed to function as a strategic investment management platform focused on generating sustainable returns and national value creation.
For 2026, the fund plans to deploy more than US$13 billion across global public and private markets. Its guiding principle, Pandu explained, is clear: “Does it bring transfer of knowledge, transfer of value and transfer of technology?”
Transparency, he added, is essential to attracting long-term capital. “What matters is transparency. If we don’t change, somebody else will change us.”
Supporting cross-border investment
Another key theme at the conference was that financial institutions are central to enabling that transformation.
Lenny Umarslamet, head of markets and securities services at HSBC Indonesia, highlighted the bank’s long-standing presence and global connectivity: “We have been serving clients in Indonesia for the last 141 years,” she said.
As supply chains evolve, she noted, businesses require both international reach and local expertise. “In today’s environment, clients need global connectivity combined with strong local execution. She pointed to the importance of navigating regulatory frameworks, managing foreign exchange exposure and scaling regionally.
Her remarks underscored how integrated banking networks help facilitate capital flows linked to China+1 diversification strategies.
Banking the China+1 shift
The changing nature of Chinese investment was further examined by Roy Tan, head, enterprise banking international at OCBC.
OCBC’s Tan observed a significant shift: “In the beginning, many of the companies coming in were trading companies. If you fast-forward 10 years later to today, what you see is that the Chinese are coming here for different reasons — not just trading.”
Through its “One Connect” initiatives across Indonesia, Malaysia, Singapore and Hong Kong, OCBC has seen companies seeking manufacturing partnerships, strategic investments and longer-term operational bases.
“The flows are really very different now,” Tan said. “For Indonesia, it is obviously the large domestic market that companies are going after right now.”
He stressed that successful investment extends beyond financing. “It’s not just about banking; it’s not just about capital flows,” he said. “If you don’t get the soft aspects right — understanding culture, helping companies land well — you will find it very difficult to bring in investments.”
Looking ahead, Tan highlighted the importance of systems integration. “Connectivity is key — not just infrastructure connectivity, but digital connectivity in trade documents and systems. That makes a world of difference.”
Technology infrastructure is another pillar of competitiveness.
Andy Wu, president of Huawei’s mining business unit, outlined how digital solutions are transforming traditional sectors such as mining: “We would like to leverage information and communications technology, and also AI technology in the mining business,” he said. “This is where we try to improve efficiency, and where we try to make the workplace safe and human-centric.”
By integrating connectivity, automation and data platforms, companies are able to raise productivity while strengthening safety standards and supporting sustainability goals.
A collaborative model
Across sessions, speakers stressed that Southeast Asia’s momentum will depend on a coordinated effort. Sovereign funds are strengthening governance and deploying capital. Banks are enabling cross-border flows and enterprise expansion. Technology providers are embedding intelligence into core industries.
“We have such wonderful stories to tell,” Sjahrir said. “Our job is to communicate, and communicate, and communicate.”
As China and Indonesia deepen economic cooperation, the conference highlighted a shared ambition: to align capital, talent and digital innovation in building a more resilient and competitive Southeast Asia.
