President Prabowo Subianto on Monday signed a regulation that officially established a new sovereign wealth fund, "Danantara Indonesia", which will hold government stakes in state firms and is intended to operate like Singapore's investment arm Temasek.

Indonesia on Monday launched a new sovereign wealth fund that will aim to manage state assets worth more than $900 billion as President Prabowo Subianto looks to turbo-charge growth in Southeast Asia's biggest economy.

Indonesia’s Prabowo officially establishes Danantara, which is modelled on Singapore’s investment arm Temasek.

Danantara will invest in sustainable high-impact projects across sectors such as renewable energy, advanced manufacturing, downstream industries and food production, Prabowo has said.