Latest news with #Danantara
The Star
2 days ago
- Business
- The Star
Prabowo pushes for Temasek, Danantara cooperation to develop Batam
President Prabowo Subianto and his ministers attending the annual leaders' retreat with Singapore Prime Minister Lawrence Wong and his delegation at the Parliament House in Singapore on June 16. - Presidential Secretariat JAKARTA: President Prabowo Subianto has pushed for cooperation between Singapore's sovereign wealth fund Temasek and Indonesia's state-asset fund Danantara in the development of Batam, Riau Islands. In his first state visit to Singapore following his inauguration in October, Prabowo attended the annual leaders' retreat with Singapore Prime Minister Lawrence Wong in which he expressed the hope of partnership between the funds. 'We look forward to close collaboration between Temasek and Danantara in all sectors, especially the sectors of renewable energy, sustainable industrial zones and the development of Batam, Bintan and Karimun,' said Prabowo on Monday (June 16), referring to the three islands that are in proximity of one other. Prabowo hopes for Temasek's support in the development of the low carbon energy sector and critical infrastructure in the region with the special economic zones status. It remains unclear in what shape the cooperation could manifest. In the case of Batam, it is located some 20 to 30km of the Singapore Strait, equivalent to around an hour-long ferry ride, while Bintan is located east of Batam and Karimun west. Batam and Singapore are connected with multiple terminals that have ferries departing every day, making it common for people to live in Batam and commute to Singapore daily. In his address, Prabowo bluntly said that Temasek was Singapore's achievement that Indonesia copies 'with pride' when establishing Danantara. He also added his administration housing programme also took some inspiration from the city-state's own programme. 'In school, we're not allowed to copy our friends' homework or exams. But in real life, why not copy the best practice? […] I hope there's no copyright,' Prabowo said. Established in February and modelled after Temasek, Danantara aims to eventually manage over US$900 billion in assets with initial capital of $20 billion. Danantara has brought 844 state-owned enterprises (SOEs) under its operational umbrella, whose dividends, projected at around $7 billion this year, were among the sources of Danantara's funding to execute its strategic investment plans. Prabowo's and Wong's meeting, the first for both recently inaugurated leaders, produced 19 agreements, including the implementation of a defence cooperation agreement (DCA), cross-border electricity trade, a sustainable industrial zone and a bilateral financial agreement between the Monetary Authority of Singapore (MAS) and Bank Indonesia (BI). 'I think this marks the high value we attach to the relationship and the friendship between Singapore and Indonesia,' Prabowo said in a joint statement. While Monday's meeting marked the first official meeting between the leaders, Prabowo has met Wong several times, including during the latter's state visit to Jakarta in November for an 'introductory' meeting. Wong said 'Singapore-Indonesia relations are in excellent shape', and the two leaders had agreed to 'take it further and chart even stronger ties in this new era of cooperation'. Before the meeting of two leaders, Indonesia has reiterated that it agreed to export 3.4 gigawatts (GW) of clean electricity to Singapore by the end of 2035. This followed an agreement between Singapore's Energy and Science and Technology Minister-in-charge, Tan See Leng, and Energy and Mineral Resources Minister Bahlil Lahadalia on cross-border electricity on June 13 in Jakarta. - The Jakarta Post/ANN
Bloomberg
2 days ago
- Business
- Bloomberg
Temasek Looks to Work With Indonesian Wealth Fund Danantara
Singaporean state-owned investor Temasek Holdings Pte said it welcomes the chance to work with Indonesia's newly-formed sovereign wealth fund Danantara. 'Temasek has a valued network of relationships with other sovereign wealth funds and pension funds globally,' a spokesperson said in an email. 'We welcome the opportunity to work with Danantara and look forward to a productive relationship with its leadership.'
Business Times
3 days ago
- Business
- Business Times
Indonesia's sovereign wealth funds Danantara and INA eye investment in Chandra Asri's 15 trillion rupiah chemical plant
[JAKARTA] Indonesia's sovereign wealth funds, Danantara and the Indonesia Investment Authority (INA), are exploring a strategic investment in the planned 15 trillion rupiah (S$1.2 billion) chlor-alkali and ethylene dichloride facility by the country's giant petrochemical producer Chandra Asri Pacific. The two sovereign wealth funds have signed a memorandum of understanding with Chandra Asri to explore the possibility of participating in the project as strategic investors. Erwin Ciputra, president director of Chandra Asri Group, stated that the potential partnership aims to boost the domestic production of caustic soda, a major product of the chlor-alkali process, and ethylene dichloride. 'This collaboration supports our efforts to reduce reliance on imports and build a stronger domestic industrial supply chain,' said Ciputra in a statement on Tuesday (Jun 17). Caustic soda plays a crucial role in the refining of nickel, an important component of electric vehicle (EV) batteries. The plant will thus support Indonesia's strategy to solidify its position in the global EV supply chain. The project will be executed through Chandra Asri's subsidiary, Chandra Asri Alkali (CAA). It will involve the construction of a facility designed to produce approximately 400,000 tonnes of solid caustic soda annually (equivalent to around 827,000 tonnes in liquid form), alongside 500,000 tonnes of ethylene dichloride. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up A potential second phase, currently under feasibility assessment, seeks to increase chlor-alkali production capacity and introduce additional chlorine derivatives, with the goal of optimising operational efficiency and generating a broader range of value-added products. The plant, which is located in Cilegon, Banten, is expected to be completed and start commercial operations in 2027. The project is part of Indonesia's national strategic road map for the next five years, granting it government-backed legal support and priority status. The Indonesian government is working to reduce its reliance on caustic soda imports, which currently amount to nearly five trillion rupiah annually. Pandu Sjahrir, chief investment officer at Danantara, called the project a key part of Indonesia's industrial transformation strategy. The initiative, he said, aligns with the country's broader agenda to strengthen industrial downstreaming and enhance domestic manufacturing capabilities. 'The chemical sector underpins many strategic value chains, from manufacturing to energy transition. This collaboration will foster scalable industrial growth and reduce import dependency, while offering long-term economic benefits,' he added. In addition to helping replace imports, the plant is expected to contribute significantly to exports. Ethylene dichloride output will be targeted for export markets, potentially generating up to five trillion rupiah in annual foreign exchange revenue.
Business Times
4 days ago
- Business
- Business Times
Indonesia's sovereign wealth funds Danantara and INA eye investment in Chandra Asri's US$800 million chemical plant
[JAKARTA] Indonesia's sovereign wealth funds, Danantara and the Indonesia Investment Authority (INA), are exploring a strategic investment in the planned US$800 million chlor-alkali and ethylene dichloride facility by the country's giant petrochemical producer Chandra Asri Pacific. The two sovereign wealth funds have signed a memorandum of understanding with Chandra Asri to explore the possibility of participating in the project as strategic investors. Erwin Ciputra, president director of Chandra Asri Group, stated that the potential partnership aims to boost the domestic production of caustic soda, a major product of the chlor-alkali process, and ethylene dichloride. 'This collaboration supports our efforts to reduce reliance on imports and build a stronger domestic industrial supply chain,' said Ciputra in a statement on Tuesday (Jun 17). Caustic soda plays a crucial role in the refining of nickel, a crucial component in electric vehicle (EV) batteries. The plant will thus support Indonesia's strategy to solidify its position in the global EV supply chain. The project will be executed through Chandra Asri's subsidiary, Chandra Asri Alkali (CAA). It will involve the construction of a facility designed to produce approximately 400,000 tonnes of solid caustic soda annually (equivalent to around 827,000 tonnes in liquid form), alongside 500,000 tonnes of ethylene dichloride. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up A potential second phase, currently under feasibility assessment, seeks to increase chlor-alkali production capacity and introduce additional chlorine derivatives, with the goal of optimising operational efficiency and generating a broader range of value-added products. The plant, which is located in Cilegon, Banten, is expected to be completed and start commercial operations in 2027. With a total investment of approximately 15 trillion rupiah (S$1.2 billion), the project is part of Indonesia's national strategic road map for the next five years, granting it government-backed legal support and priority status. The Indonesian government is working to reduce its reliance on caustic soda imports, which currently amount to nearly five trillion rupiah annually. Pandu Sjahrir, chief investment officer at Danantara, called the project a key part of Indonesia's industrial transformation strategy. The initiative, he said, aligns with the country's broader agenda to strengthen industrial downstreaming and enhance domestic manufacturing capabilities. 'The chemical sector underpins many strategic value chains, from manufacturing to energy transition. This collaboration will foster scalable industrial growth and reduce import dependency, while offering long-term economic benefits,' he added. In addition to helping replace imports, the plant is expected to contribute significantly to exports. Ethylene dichloride output will be targeted for export markets, potentially generating up to five trillion rupiah in annual foreign exchange revenue.
CNA
4 days ago
- Business
- CNA
Indonesia sovereign wealth funds Danantara, INA sign MOU with Chandra Asri Pacific
JAKARTA :Sovereign wealth funds Danantara Indonesia and Indonesia Investment Authority (INA) said on Tuesday that they had signed a memorandum of understanding with petrochemical and energy firm Chandra Asri Pacific worth up to $800 million. The agreement would explore the potential entry of Danantara and INA as new investors to build a chlor-alkali – ethylene dichloride plant, the companies said in a joint statement. The plant, which will be managed by a subsidiary of Chandra Asri, is expected to have production capacity of 400,000 tons of solid caustic soda per year and 500,000 tons of ethylene dichloride.
