Business tycoon Hashim Djojohadikusumo recently launched two environmentally friendly factories under Arsari Group, marking a significant step in sustainable industrial development in Sumatra.
The first one is a crumb rubber processing plant operated by PT Potensi Bumi Sakti, located in Glee Siblah Village, Woyla District, West Aceh. The second is Indonesia's first eco-friendly solder manufacturing facility, run by PT Solder Tin Andalan Indonesia (STANIA), situated in the Tunas Industrial Estate in Batam, Riau Islands.
Hashim, CEO of Arsari Group, noted that the Aceh rubber plant was a long-awaited project that began construction back in 2013 but only became operational in 2025 − nearly 12 years later.
“This might be the slowest-built factory in Indonesia,” Hashim said to laughter from the audience, as quoted by Antara, on Tuesday, July 8, 2025.
He attributed the delay to difficulties accessing bank credit during his time in political opposition, which made securing financing nearly impossible − even from local institutions like Bank Aceh. However, he expressed renewed optimism for future financing to support Indonesia’s economic growth.
The Aceh facility currently employs 200 workers, with the potential to scale up to two shifts, creating jobs for 400 to 600 people. The installed machinery can process 10 tons of wet rubber per hour or 5 tons of dry rubber daily. Once fully operational, it’s expected to process 100 tons of dry rubber per day, or roughly 30,000 tons annually, with operating costs reaching Rp4 billion (US$246,314) per day.
Meanwhile, the Batam-based solder plant under STANIA is built on a 6,500 square meter site and is capable of producing 2,000 tons of solder bars annually. Future expansion targets a capacity of 16,000 tons per year, including solder wire, powder, and paste products, with revenue projections of up to Rp1 trillion (US$61.6 million).
Currently, one production line employs 80 people, and expansion to four lines is planned as demand grows. “This is just one line for both leaded and lead-free solder. If demand increases, we’ll expand to four lines,” Hashim said.
The Batam factory emphasizes sustainability by using 100 percent renewable energy, certified by PLN’s Renewable Energy Certificate (REC), making it a zero-emission facility. The building is also designed to reduce electricity use through optimal natural lighting.
“Through eco-friendly technologies and strategic collaborations, we aim to show that the mining industry can also lead in sustainability,” Aryo Djojohadikusumo, President Director of Arsari Tambang, said.
On the supply chain side, STANIA has signed a Head of Agreement (HoA) with PT Freeport Indonesia to source lead and silver − two key components in high-quality solder production. Additionally, STANIA has partnered with Volex, a global connectivity solutions provider, to export solder product internationally.
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