Indonesian President Prabowo Subianto proposed a partnership between Temasek Holdings, Singapore’s state-owned investment firm, and Indonesia’s sovereign wealth fund, Badan Pengelola Investasi Daya Anagata Nusantara (Danantara).

This discussion occurred during a meeting with Singapore’s Prime Minister Lawrence Wong at Parliament House in Singapore on June 16, 2025.

Prabowo highlighted potential collaboration areas, particularly in renewable energy and sustainable industries.

He mentioned possible joint projects in the Batam, Bintan, and Karimun regions, focusing on low-carbon energy initiatives and infrastructure development.

Danantara, launched on February 24, 2025, is designed to manage Indonesia’s state-owned enterprises and act as a government investment vehicle. Rosan Roeslani serves as its Group CEO.

Prabowo noted that Danantara’s establishment drew inspiration from Temasek’s model. Temasek has operated since 1974 and manages a portfolio valued at S$389 billion as of March 31, 2024.

Temasek’s investments are primarily in Singapore, comprising 53% of its portfolio. It also holds additional investments in China, the Americas, and regions in Europe, the Middle East, and Africa.

🔗 Source: Tempo.co

🧠 Food for thought

1️⃣ Temasek’s proven track record offers valuable lessons for Indonesia’s nascent wealth fund

Temasek’s success as a sovereign wealth fund is backed by impressive metrics: a total shareholder return of 14% since inception in 1974 and consistent Aaa/AAA credit ratings maintained since 2004 1.

This performance stands in contrast to Indonesia’s historical challenges with state-owned enterprises, which have often struggled with efficiency and profitability—as indicated by Garuda Indonesia’s persistent losses.

The 50-year experience gap between Temasek (established 1974) and Danantara (launched February 2025) represents both a challenge and opportunity, as Indonesia can potentially adopt proven governance models and investment strategies 1.

Temasek’s diversified portfolio, spanning technology, life sciences, consumer businesses, and financial services, demonstrates how Indonesia might evolve beyond its traditional resource-focused economy to create sustainable long-term value 1.

The collaboration targeting renewable energy aligns with Temasek’s commitment to achieving net-zero carbon emissions by 2050, potentially supporting Indonesia’s own transition to sustainable development 1.

2️⃣ Indonesia’s sovereign wealth fund emerges amid challenging human capital landscape