Malaysia’s Thong Guan Industries Bhd. committed to investing in Indonesia’s Batang city

A Malaysian company, Thong Guan Industries Bhd., which is one of the largest plastic packaging companies in Asia Pacific, has confirmed and committed to investing in Indonesia’s Batang Integrated Industrial Estate, Central Java province.

 

Jakarta (Indonesia Window) – A Malaysian company, Thong Guan Industries Bhd., which one of the largest plastic packaging companies in Asia Pacific, has confirmed and committed to investing in Indonesia’s Batang Integrated Industrial Estate, Central Java province.

The confirmation and investment commitment was marked by the signing of the Land Order Confirmation Letter by a Malaysian company, Thong Guan Industries Bhd. at Indonesia’s Consulate General in Penang, Malaysia (March 3).

The initial investment value commitment reached around seven million US dollars or around 115 billion rupiahs.

The Land Order Confirmation Letter was signed by the Managing Director of Thong Guan Industries Bhd., Dato’ Ang Poon Chuan, and the Director of Marketing & Development of Batang Integrated Industrial Estate, Indri Septa Respati, and witnessed by the Indonesian Consul General in Penang, Wanton Saragih and the Director of IIPC Singapore, Andria Buchara, representing the Ministry of Investment and Downstream.

Wanton Saragih expressed his gratitude for the achievement of the investment contract, saying that the exploration and promotion efforts of the Indonesian economy were first carried out by the Indonesian Consulate General Penang to Thong Guan Industries Bhd. in April 2024.

“By continuing to build good relations and communication (honest, trustworthy and prudent) with the Thong Guan company and working together with the Ministry of Investment and Downstream/Indonesian Investment Promotion Center (IIPC) Singapore, and the Batang Integrated Industrial Estate, Central Java, finally the investment commitment was achieved today,” Wanton Saragih said.

Since early 2024, the Indonesian Consulate General in Penang has continued to increase promotional efforts regarding Indonesia’s economic opportunities and potential in the Indonesian Consulate General’s Working Area in Penang.

“We expect that more companies from the Indonesian Consulate General’s Working Area will realize investments in Indonesia. This effort is expected to support economic growth and open up employment opportunities, in accordance with the expectations of the President of the Republic of Indonesia,” Wanton added.

Thong Guan Industries Bhd., is one of the largest plastic packaging companies in the Asia Pacific, which also has a factory in China.

This company can produce up to 150,000 tons per year and has a turnover of around 1.2 billion Malaysian ringgits (around 4.2 trillion rupiahs) per year.

This company will build a factory on an area of ​​more than five hectares to produce various plastic products such as wrapping plastic, garbage plastic, and plastic film for domestic and global markets.

Managing Director of Thong Guan Industries Bhd., Dato’ Ang Poon Chuan expressed his company’s interest in investing in Indonesia, among others, because of the potential of the Indonesian market in general and the various facilities, locations and infrastructure owned by the Batang Integrated Industrial Estate.

“We see the Batang Integrated Industrial Estate as a strategic partner that can support our vision of expanding our business globally, especially in Indonesia, which is one of the largest markets in the world. World-class facilities and government support make the estate a very attractive choice for us,” Dato’ Ang Poon Chuan explained.

Meanwhile, the Batang Integrated Industrial Estate’s Marketing and Development Director, Indri Septa Respati, emphasized that the achievement of this investment in the estate further strengthens the position of this area as a center for high-tech and environmentally friendly industries.

“Thong Guan brings eco-friendly technology with the concept of zero plastic production waste, which is in line with our commitment to creating a circular economy in a highly competitive industrial ecosystem,” she said.

She added that this investment is also in line with Asta Cita (a national development vision) carried out by Indonesia’s President Prabowo Subianto in encouraging the national down-stream industry.

“Currently, the estate is building an integrated industrial ecosystem, where the presence of Thong Guan with high-quality stretch plastic products will increase logistics efficiency and support a more sustainable supply chain,” she said.

“Thong Guan’s trust in investing in the estate further strengthens the role of this area as an export-oriented industrial center,” she remarked.

Meanwhile, Director of IIPC Singapore, Andria Buchara emphasized that investment is a journey, starting from introducing Indonesia’s potential, to facilitating investment pre-conditions.

“What is no less important is maintaining investment when it is operating so that it can grow and ultimately expand and can also convince other companies. For this reason, collaboration is very important, as is done with the Indonesian Consulate General in Penang and the Batang Integrated Industrial Estate,” he said.

The Batang Integrated Industrial Estate is a National Strategic Project designed as a strategic step by the government in responding to global investment needs.

The estate provides infrastructure facilities that support network expansion and connectivity, as well as fiscal facilities that will soon obtain Special Economic Zone status.

With various incentives and facilities offered, the estate becomes a center for export-oriented industries, encouraging production efficiency, and strengthening the competitiveness of Indonesian industries in the global market.

Reporting by Indonesia Window