Asian-Pacific Manufacturing Leader, Thong Guan Industries Expansion To Indonesia At KITB

Photo: Doc. PT Batang Integrated Industrial Estate (KITB)

JAKARTA - Thong Guan Industries Berhad (TG), a packaging industry from Malaysia, is investing in the Batang Integrated Industrial Zone (KITB). This investment further strengthens the role of KITB as an investment destination in Southeast Asia.

This commitment was officially confirmed through the signing of the Confirmation Letter between Dato 'Ang Poon Chuan, Managing Director of Thong Guan Industries Berhad, and Indri Septa Respati, Marketing and Development Director of PT Batang Integrated Industrial Estate. This event took place at Wisma Indonesia Penang, Malaysia and was also witnessed by the Consul General of the Republic of Indonesia in Penang, Wanton Saragih, and the Director of IIPC Singapore, Andria Buchara.

Wanton Saragih expressed his gratitude for the success of this investment contract, stating that Indonesia's economic exploration and promotion was first carried out by the Indonesian Consulate General in Penang to Thong Guan Industries Bhd. in April 2024.

"By continuing to build good relations and communication (honest, trustworthy and prudent) with the company Thong Guan and collaborating with the Ministry of Investment and Downstreaming/Indonesian Investment Promotion Center (IIPC) Singapore, and the Batang Integrated Industrial Zone (KITB) Central Java, the investment commitment was finally achieved today," said Wanton Saragih, in his statement, Thursday, March 6.

Consul General Wanton Saragih emphasized the importance of Thong Guan's expansion, considering that this company is one of the 10 high performance stretch films in the world and the main exporter of food packaging made from PVC in Southeast Asia. He added that this investment is in line with Indonesia's economic goals, especially in achieving the national economic growth target of 8 percent.

Thong Guan Industries Berhad has more than 50 years of experience in production of high-quality packaging with an export capacity of 85 percent of its production to major markets around the world, including South Korea, Mexico, Chile, Vietnam, the United States, Europe, East Asia, South Africa, Australia, and New Zealand.

The company is also known as the largest waste bag exporter to Japan. With an annual production capacity of 150,000 tons, Thong Guan generated revenue of around IDR 4.2 trillion.

In its expansion to Indonesia, Thong Guan has chosen KITB as the location for its newest Environmentally Friendly Production Facility. This 7 million US dollars investment will build a 5 hectare factory dedicated to producing plastic wrapping, garbage plastic, and plastic films for both domestic and international markets.

Dato 'Ang Poon Chuan, Managing Director of Thong Guan Industries Berhad, revealed that the broad potential of the Indonesian market and KITB's strategic advantage are the main factors in this investment decision.

"We see KIT Batang as a strategic partner who 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 KIT Batang a very attractive choice for us," explained Dato. 'Ang Poon Chuan.

Meanwhile, Andria Buchara, Director of IIPC Singapore, highlighted the role of KITB as an investment magnet.

"Indonesia continues to attract significant foreign investment, with KITB playing a central role in this growth. More and more companies from Singapore, Malaysia, and other countries are aware of KITB's strategic advantages, well-developed infrastructure, and investor-friendly policies," he said.

KITB's commitment to smart, green & sustainable industrial development is the main choice for investors. Greenship's certification from the Green Building Council Indonesia proves that KITB prioritizes environmentally responsible business practices. Thong Guan's investment reflects this vision by adopting zero plastic production waste technology and supporting the circular economy.

Indri Septa Respati, Director of Marketing and Development of KITB, emphasized the synergy between Thong Guan's sustainability initiative and the vision of the KITB industry.

"Thong Guan's environmentally friendly technology adoption is in line with our goal to create a competitive and environmentally friendly industrial ecosystem. We welcome their commitment to sustainable development and hope to establish long-term partnerships," he said.

This investment also supports the vision of Indonesia's national economy, Asta Cita, which is put forward by President Prabowo Subianto, with a focus on downstreaming of industry and economic resilience.

"The presence of Thong Guan at KITB will increase logistics efficiency, optimize supply chains, and contribute to Indonesia's role as a global export center," added Indri.

PT Kawasan Industri Terpadu Batang (KITB) is the largest state-owned industrial area in Indonesia, covering an area of 4,300 hectares in Central Java. Developed as a National Strategic Project, KITB offers competitive excellence, strong infrastructure, and investor-friendly policies.

To date, KITB has attracted 28 multinational and domestic investors from the United States, South Korea, the Netherlands, China, Taiwan, Singapore and India, with total investments reaching IDR 18 trillion, and creating more than 18,900 jobs.