Temasek investment expansion in Indonesia is gaining strong momentum as the Indonesian government pledges full support for the Singaporean state-owned firm. Coordinating Minister for Economic Affairs Airlangga Hartarto met with Temasek and Singtel Chairman Lee Theng Kiat on July 18, 2025, in Jakarta to discuss the company’s potential investment growth in the country. The meeting highlights Indonesia’s increasing appeal to international investors seeking long-term opportunities in Southeast Asia.
Airlangga emphasized the government’s commitment to facilitating Temasek’s plans. “The government is ready to facilitate Temasek’s investment expansion in the country,” he said in an official statement on July 19. He added that Temasek plays a significant role in Indonesia’s business ecosystem, particularly through capital injection in startup ventures. The meeting also introduced Temasek’s board members and explored the company’s broader global investment role.
Government Backs Temasek Investment Expansion
The Indonesian government sees Temasek as a strategic partner in advancing its national economic goals. According to Airlangga, Temasek has contributed to startup growth in Indonesia and demonstrated a long-term commitment to the market. The government welcomes Temasek’s continued expansion, viewing it as a pathway to boost capital inflows and innovation.
“We appreciate Temasek’s support in Indonesia’s economic development and encourage Temasek to continue expanding its presence in the country,” said Airlangga. His comments underline Indonesia’s proactive stance on foreign investment, especially from regional partners with strong financial portfolios.
Strategic Focus on Green Energy Projects
Temasek’s recent efforts in Indonesia align with national priorities in renewable energy and sustainability. Through its subsidiary Sembcorp Urban, the company began investing in green industrial zones earlier this year. These projects are located in West Java, Tanjung Sauh, and Tembesi, Batam.
Airlangga highlighted the importance of such initiatives in supporting Indonesia’s energy transition goals. The collaboration not only accelerates clean energy adoption but also drives local economic activity. The government fully supports the expansion of green infrastructure as a key pillar in its development agenda.
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Singapore–Indonesia Economic Ties Deepen
The meeting between Airlangga and Lee Theng Kiat also reflected the growing strength of economic cooperation between Singapore and Indonesia. Chairman Lee expressed his appreciation for the Indonesian government’s support, stating, “Indonesia remains an important partner in the development of Temasek’s investment portfolio in Southeast Asia. Going forward, Temasek will continue to grow its existing investments in Indonesia and explore new partnership opportunities.”
President Prabowo Subianto also acknowledged Singapore’s influence on Indonesia’s economic policy. Referring to Temasek’s success, he remarked to Prime Minister Lawrence Wong, “Another achievement of Singapore that we proudly emulate is your sovereign wealth fund, Temasek. A few months ago, we launched our own sovereign wealth fund, which we call Danantara.”
Southeast Asia Portfolio Highlights
Temasek’s portfolio in Southeast Asia reflects its long-term investment strategy. In Indonesia, the company has placed capital in a wide range of sectors including finance, telecommunications, healthcare, and energy. Notable investments include Telkomsel, DBS Bank, Siloam International Hospitals, Matahari Putra Prima, and Olam International.
Its subsidiaries, such as ST Engineering, Singtel, and Sembcorp, have played a central role in expanding Temasek’s presence across Indonesia’s key industries. These investments have not only generated strong returns but also contributed to infrastructure, employment, and service development.
Read More: Southeast Asia Investment Growth Hits Six-Year High in 2024
Indonesia Strengthens Role in Regional Investment
As Temasek continues to grow its presence in Indonesia, the country strengthens its reputation as a prime destination for foreign investment in Southeast Asia. Government support, combined with Temasek’s active involvement in high-impact sectors, signals positive momentum for long-term collaboration.
With increasing investor confidence and strategic projects underway, Indonesia stands at the forefront of regional economic transformation. The partnership between Temasek and the Indonesian government sets the stage for sustainable growth and mutual progress.
Source: tempo.co, news.ddtc.co.id
Image: Bloomberg / Kontributor / Getty Images
