Indonesia' government will set up a state investment agency to manage holdings in some of the biggest state companies after parliament passed a bill on Tuesday approving the body, which is intended to operate like Singapore's investment arm Temasek.

Singapore maintains its position as the largest investor in Indonesia. In 2024, the total investment reached US$20.1 billion.

Indonesia has amended a law governing the Southeast Asian nation’s powerful state-owned enterprises, laying the legal foundation for a new agency to manage billions of dollars in state assets while seeking investments domestically and potentially overseas.

Indonesia's parliament will on Tuesday vote on a bill that will allow the government to set up a new investment agency expected to manage its stakes in some of the biggest state companies.