Batam, Indonesia (gokepri) – Sembcorp and Panbil Group’s collaboration aims to transform Batam’s industrial landscape with green projects. Singapore’s Minister Maliki Osman highlights the economic potential during his visit.
Batam’s industrial zones are expanding thanks to the Sembcorp and Panbil Group partnership. In a strategic move that underscores the growing economic ties between Singapore and Indonesia, Sembcorp Industries and Panbil Group have announced a new partnership aimed at developing industrial zones in Batam. The collaboration focuses on the expansion of industrial areas in Tembesi and Tanjung Sauh, promising a surge of Singaporean investment into the region.
The partnership was highlighted during an official visit by Singapore’s Second Minister for Foreign Affairs and Education, Maliki Osman, to the Panbil Industrial Estate in Tembesi on August 22, 2024. This visit marks the first official engagement by Singaporean officials at the 100-hectare industrial park, emphasizing the commitment to strengthening economic relations between the two nations.
Minister Maliki’s visit was accompanied by Weiming Tan, Deputy Director-General of the Southeast Asia I Directorate at Singapore’s Ministry of Foreign Affairs, and Gavin Ang, Singapore’s Consul-General in Batam. Panbil Group was represented by Chairman Johanes Kennedy, CFO Mahdian, and COO Patrick Aritonang.
Minister Maliki highlighted Batam’s rapid economic growth, noting that the establishment of Panbil Group’s industrial zones in Tembesi and Tanjung Sauh presents a significant opportunity for international collaboration between Singapore and Indonesia. He expressed optimism that these developments would bolster Batam’s economic and social progress, while enhancing its global market appeal.
“Every visit to Batam reveals new developments. Now, with the Tembesi and Tanjung Sauh industrial areas, there is a substantial opportunity for collaboration between Singapore and the Riau Archipelago,” Minister Maliki said during a press briefing at Oakwood Hotel & Apartments on August 23.
Johanes Kennedy, Chairman of Panbil Group, welcomed the minister’s visit as a catalyst for strengthening cooperation across various sectors, including manufacturing, technology, and human resources development. He affirmed Panbil Group’s dedication to creating a business-friendly environment conducive to investment.
Panbil Group also has ambitious plans for the industrial zones, including a focus on green energy and achieving Net Zero Emissions (NZE) by 2060. The Panbil development area, situated in the heart of Batam, spans 300 hectares and includes industrial, commercial, and residential zones. Currently, it houses over 25 multinational manufacturing companies, 700 residential units, and a vibrant commercial area.
The industrial zone in Tembesi, which is in development, is strategically located and equipped with modern infrastructure and a skilled workforce. It is expected to drive Batam’s competitiveness as a key industrial and trade hub in Southeast Asia.
The collaboration between Panbil and Sembcorp marks a return to Batam for Sembcorp, a Singaporean corporation with a long history in the region dating back to the 1990s. The partnership will see the development of two green industrial zones, one of which will be situated in the Special Economic Zone (SEZ) of Tanjung Sauh. Both companies signed a memorandum of understanding (MoU) on August 1, 2024.
Sembcorp, through its subsidiary Sembcorp Development, will invest significantly in these projects. Lee Ark Boon, CEO of Sembcorp Development, emphasized the company’s track record in energy and integrated urban solutions, expressing confidence that the low-carbon industrial zones will promote environmentally friendly business practices and strengthen Singapore-Batam partnerships.
The Tembesi industrial zone will span 100 hectares and cater to various industries including electronics, electrical engineering, precision engineering, and pharmaceuticals. Meanwhile, the Tanjung Sauh zone will cover 500 hectares within an SEZ designated for industrial development. This zone aims to support light to medium industries and energy-intensive businesses such as advanced manufacturing and data centers, with a focus on sustainable energy solutions.
Initial investments in the Tanjung Sauh SEZ are projected to reach IDR 30-35 trillion, with a cumulative total investment estimated between IDR 180-190 trillion over 10-20 years. Early-stage investments will include IDR 10 trillion for infrastructure such as reservoirs, ports, and roads.
The Tanjung Sauh SEZ will feature a transshipment port capable of handling up to 5 million TEUs, positioning it as a logistics hub in the Malacca Strait. It will also serve as a research and development center for energy, producing alternative, renewable, and primary energy to meet the needs of Batam and Bintan.
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