Daeng Ibrahim was born in Pulau Bulang, Kepulauan Riau on 8 December 1810 as the second son to Temenggong Abdul Rahman and Inche Yah Moffar.

In 1823, his father moved the family and their followers to the 200 acres of land (part of Teluk Belanga area) that was assigned by Stamford Raffles, the palace was known as Istana Lama and was later completed in 1824.

His father died in the palace on 8 December 1825 and was informally succeeded by his elder brother Tun Haji Abdullah as the de facto Temenggong of Johor.

[1] On 10 March 1855, Ali Iskandar and Temenggong Daeng Ibrahim signed a treaty with the British Government in Singapore as officiated by the 5th Governor of the Straits Settlements William John Butterworth.

Thus, Temenggong Daeng Ibrahim became the Ruler of Johor, he renamed this territory as Iskandar Puteri and administered it from his residence in Teluk Belanga.