Indonesia launches first eco-friendly solder factory to boost tin downstreaming, exports

  • Published on 14/07/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Deputy Minister of Investment and Downstreaming, Todotua Pasaribu, inaugurated Indonesia’s first eco-friendly solder factory, PT Solder Tin Andalan Indonesia (Stania), on Thursday, July 10, 2025. 

The facility, located in Tunas Industrial Estate, Batam, Riau Islands, is owned by Hashim S. Djojohadikusumo, the younger brother of President Prabowo Subianto.

“This factory is not just a realization of investment but a strong commitment to downstreaming. We’re not only talking about the volume of investment, but also about value creation. Among the 28 commodities we’re focusing on for downstreaming, tin is one of the most strategic,” Todotua said as quoted by Antara on Friday, July 11, 2025.

Riau Islands Governor Ansar Ahmad and Vice Governor Nyanyang Haris Pratamura praised the factory as a milestone in the province’s push toward becoming a high-income industrial hub.

“The presence of PT Solder Tin Andalan Indonesia brings fresh momentum to our mission of elevating Kepri into a high-income province,” Ansar said in a statement released on Friday.

According to the Ministry of Trade, Stania is expected to start with a production capacity of 2,000 tons per year, generating an estimated revenue of Rp1.2 trillion (US$73.5 million). The facility, which spans 6,500 square meters, is managed by Arsari Tambang, a mining arm of Arsari Group.

n the long run, the factory aims to expand its production capacity to 16,000 tons annually, including solder bars, wire, powder, and paste, with revenue projections of around Rp1 trillion. Currently, one production line employs 80 workers, with plans to scale up to four lines as demand increases.

“This is just the beginning. If demand rises, we will expand to four production lines,” Hashim S. Djojohadikusumo, Chairman of Arsari Group, said.

The factory operates using renewable energy certified by State electricity company PLN’s Renewable Energy Certificate (REC), making it a zero-emission production facility. Its design maximizes natural lighting to cut electricity use, aligning with the group’s broader sustainability goals.

“Through eco-friendly technologies and strategic collaboration, we want to prove that mining can lead the way in sustainability,” Aryo Djojohadikusumo, President Director of Arsari Tambang, said.

Supply chain integration

From a supply chain perspective, Stania has signed a Head of Agreement (HoA) with PT Freeport Indonesia for sourcing lead and silver, two key components for high-quality solder. Additionally, Stania has formed a partnership with global connectivity firm Volex to export solder products internationally.

Stania’s investment is valued at Rp400 billion, including Rp100 billion for construction and Rp300 billion in working capital. The company currently employs 80 permanent staff and 200 contract workers.

Stania’s tin-based solder products are tailored for the electronics industry and will be exported to markets including the United States, India, China, Taiwan, and Europe.

Hashim cited that the expansion is timely, as Chinese electronics manufacturers are relocating to Southeast Asia and increasingly require reliable solder supplies.

“We’re aware that many Chinese electronics factories are moving operations to Southeast Asia. These companies need solder tin, which we will now produce in large volumes in Batam,” he said.

Currently, Malaysia and India dominate the solder tin manufacturing space in Asia. With Stania’s launch, Indonesia aims to join that league as a key player in high-value tin downstreaming and sustainable industrial growth.

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