In a significant development for Indonesia’s industrial sector, the Industropolis Batang Special Economic Zone (SEZ) has welcomed its first Malaysian investor, Thong Guan Industries Bhd., a leading plastic packaging company from Malaysia. The company’s commitment to invest USD 7 million (approximately IDR 115 billion) in the zone marks a substantial milestone for Batang SEZ, signaling growing global confidence in Indonesia’s strategic industrial zones.
The investment was formalized through an Industrial Land Use Agreement (PPTI), signed on 25 July, between Thong Guan Industries’ Managing Director, Dato’ Ang Poon Chuan, and Ngurah Wirawan, President Director of the Industropolis Batang SEZ. The ceremony was witnessed by Indonesian Consul General in Penang, Wanton Saragih, and Saribua Siahaan, Director of the Ministry of Investment and Downstreaming/BKPM.
Thong Guan Industries plans to construct a 5-hectare manufacturing facility in Batang SEZ to produce a wide range of plastic products, including plastic wrapping, garbage bags, and plastic film, catering to both domestic and international markets. The upcoming factory will adopt green technologies, including energy-efficient machinery, plastic waste recycling systems, and internationally certified environmental management standards.
“This investment is the result of our consistent efforts in promoting Indonesia’s investment potential to Malaysian businesses,” stated Wanton Saragih. “We hope this step will trigger a domino effect, generating employment and supporting the transformation of the national economy through downstreaming and industrialization.”
Ngurah Wirawan welcomed Thong Guan Industries with enthusiasm, stating, “Thong Guan is no ordinary company. It is an industry giant that has chosen Batang as its regional expansion base. This is a global validation of Batang SEZ’s positioning as the most promising industrial zone in Southeast Asia.”
Dato’ Ang Poon Chuan emphasized that the investment is part of Thong Guan Industries’ strategy to expand its production network across Southeast Asia and strengthen its global position in the plastic packaging industry.
Thong Guan Industries, which also operates a branch in China, is recognized as an innovative leader in the plastic packaging sector. The company specializes in stretch film, eco-friendly bags, and a variety of flexible packaging solutions for both industrial and consumer markets. With a production capacity of up to 150,000 tons annually and an annual turnover of approximately IDR 4.2 trillion, Thong Guan Industries is committed to sustainable industrial practices.
The investment in Batang SEZ marks a significant turning point for the zone, which is expected to generate employment opportunities and support the national economy through downstreaming and industrialization. As President Prabowo Subianto’s vision for Indonesia’s economic transformation comes into focus, this milestone underscores the strategic importance of Indonesia’s industrial zones.
Conclusion
Thong Guan Industries’ commitment to invest USD 7 million in Batang SEZ signals growing global confidence in Indonesia’s strategic industrial zones. The upcoming factory is expected to adopt green technologies and produce a range of plastic products, further solidifying Batang SEZ’s position as the most promising industrial zone in Southeast Asia.