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.

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’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.