Singapore sovereign wealth fund GIC has agreed to invest IDR 5.2 trillion (US$364 million) into PT Trans Retail, operator of the Carrefour Indonesia and TranSmart retail networks.

The investment was jointly announced by Trans Retail’s parent CT Corp and GIC today, (February 24).

Trans Retail is described as Indonesia’s leading operator of hypermarkets, supermarkets, and cash & carry stores under the Carrefour and TranSmart banners.

“The collaboration will allow Trans Retail to capture the full potential of Indonesia’s modern retail market. Given Trans Retail’s strong reputation and brand equity, combined with its strategic focus on the Indonesia modern retail format, it is uniquely positioned to take advantage of the rapidly expanding consumer class and the secular shift from traditional trade formats to modern trade formats,” the companies said in a statement.

CT Corp chairman Chairul Tanjung described the partnership as a significant step forward in enabling Trans Retail to expand its store footprint, realising its vision of becoming a leading multi-format retailer and transforming the Indonesian consumer’s shopping experience.

“I believe the retail sector has strategic importance to the country’s economic development moving forward. Apart from providing numerous employment opportunities, it also ensures the availability of consumer goods at affordable prices and supports local business enterprises. This partnership will strengthen Trans Retail’s leadership position in the industry and enhance the Indonesian consumer experience positively.”

Amit Kunal, head of GIC’s Direct Investments Group for Southeast Asia, said the investment reflected GIC’s confidence in Indonesia’s long-term growth potential.

“We are keen to build lasting partnerships with reputable local partners and look forward to a deep relationship with CT Corp, which also has a strong track record for making good investments and share our investment values.”