SINGAPORE - Singapore sovereign wealth fund GIC has inked a deal to invest 5.2 trillion rupiah (S$540 million) in Trans Retail, the main retail arm of Indonesian conglomerate CT Corp.

Trans Retail operates hypermarkets, supermarkets, as well as cash and carry stores under the Carrefour and TRANSmart brands in Indonesia.

Both GIC and CT Corp, in a joint press release on Wednesday (Feb 24), said that the collaboration will allow Trans Retail to "capture the full potential of Indonesia's modern retail market".

It added: "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."

Mr Amit Kunal, head of direct investments group for South-east Asia at GIC, said that the investment reflects the firm'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."