Malaysian plastic packaging manufacturers, Thong Guan Industries Bhd., has confirmed its US$ 7 million (Rp115 billion) commitment to invest in the Batang Integrated Industrial Estate (KIT Batang) in Central Java, Indonesia. 

The investment commitment in the form of Land Reservation Confirmation Letter (SKP) was signed by Thong Guan Industries Bhd.’s Managing Director, Dato’ Ang Poon Chuan, and KIT Batang’s Director of Marketing & Development, Indri Septa Respati, in an event held at Wisma Indonesia in Penang, Malaysia, on March 3, 2025.

Present at the event were Indonesian Consul General in Penang, Wanton Saragih, and Director of Indonesia Investment Promotion Center (IIPC) Singapore, Andria Buchara, representing the Indonesian Ministry of Investment/Invesment Coordinating Board (BKPM).

Consul General Saragih expressed his gratitude for securing the investment, highlighting the diplomatic and economic promotion efforts undertaken by the Indonesian Consulate General in Penang since April 2024.

“By maintaining honest, trustworthy, and prudent communication with Thong Guan, alongside collaboration with IIPC Singapore and KIT Batang, today’s investment commitment has been realized,” Saragih said as quoted in a statement on Tuesday, March 4, 2025.

Thong Guan Industries Bhd. operates one of the largest plastic packaging plants in the Asia-Pacific region, with production capabilities reaching 150,000 tons per year and an annual revenue of approximately RM 1.2 billion (Rp4.2 trillion). The company plans to construct a facility covering over five hectares at KIT Batang to manufacture various plastic products, including wrapping plastic, garbage bags, and plastic films for both domestic and global markets.

“We see KIT Batang as a strategic partner in expanding our business globally, particularly in Indonesia, one of the world’s largest markets. The high-quality infrastructure and strong government support make KIT Batang a highly attractive investment destination,” Dato’ Ang Poon Chuan said.

KIT Batang’s Director of Marketing and Development, Indri Septa Respati, emphasized that this investment strengthens the estate’s position as a high-tech and environmentally friendly industrial hub.

“Thong Guan brings eco-friendly technology with a zero plastic production waste concept, aligning with our commitment to fostering a circular economy within a competitive industrial ecosystem,” she noted.

She said further that this investment aligns with President Prabowo Subianto’s industrial downstreaming initiatives under the Asta Cita vision.

“KIT Batang is developing an integrated industrial ecosystem, and Thong Guan’s presence will enhance logistics efficiency and create a more sustainable supply chain. Their trust in KIT Batang reinforces our role as an export-oriented industrial hub,” she added.

Director of IIPC Singapore, Andria Buchara, underscored that investment is a long-term journey, involving promotion, facilitation, and sustaining operations post-establishment.