Thong Guan to invest US$7 million in Grand Batang City

Malaysia-based Thong Guan Industries Bhd., the largest plastic packaging company in the Asia Pacific, on March 3, 2025, invested in Grand Batang City. The investment was confirmed through the signing of a land order confirmation letter (SKP) by Thong Guan Industries at the Consulate-General of the Republic of Indonesia in George Town, Penang State, Malaysia.

The initial investment value commitment reached around US$ 7 million (about Rp115 billion). The Indonesian Foreign Ministry explained in a statement that the SKP was signed by Thong Guan Managing Director Ang Poon Chuan and the Kawasan Industri Terpadu Batang Marketing & Development Director Indri Septa Respati.

Also witnessing the signing were the Indonesian Consul-General in Penang Wanton Saragih and Indonesia Investment Promotion Centre (IIPC) Singapore Director Andria Buchara, who represented the Investment and Downstream Industry Ministry/Investment Coordinating Board (BKPM).

Grand Batang City is a National Strategic Project (PSN) managed by KITB that is designed in response to global investment needs. It provides infrastructure facilities that support network expansion and connectivity, as well as fiscal facilities that will soon obtain special economic zone (SEZ) status.

Through the various incentives and conveniences it offered, KITB is expected to become a center for export-oriented industries, encourage production efficiency, and strengthen the competitiveness of Indonesian industry in the global market.

Saragih is grateful for the achievement of the investment contract, adding that the Indonesian Consulate-General in Penang had first conducted an exploration and promotion of the Indonesian economy to Thong Guan in April 2024.

"The investment commitment was finally achieved today by continuing to build good relationships and communication with the Thong Guan company as well as collaborating with the Investment and Downstream Industry's IIPC Singapore and KITB," said Wanton.

Since early 2024, the Indonesian Consulate General in Penang has increased promotional efforts regarding Indonesia's economic opportunities and potential in the Indonesian Consulate General in Penang Working Area, hoping that more companies in the Malaysian state will invest in Indonesia. The realized investments is expected to support economic growth and create jobs in line with the hopes of Indonesian President Prabowo Subianto.

Thong Guan, which also has a factory in China, can produce up to 150,000 tons of plastic products per year and recorded around RM1.2 billion (about Rp4.2 trillion) of revenue per year. The company will build a factory on a land area of ​​more than 5 hectares (ha) in Grand Batang City to produce various plastic products such as stretch wrap, garbage bags, and plastic film for domestic and global markets.

Ang said that among the reasons for Thong Guan investing in Indonesia are the potential of the Indonesian market in general and the various facilities, locations, and infrastructure owned by KITB.

"We see KITB 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," he explained.

Indri Septa Respati emphasized that the investment to Grand Batang City further strengthens the area as a center for high-tech and environmentally friendly industries because Thong Guan will bring eco-friendly technology with the concept of zero plastic production waste, which is in line with KITB's commitment to creating a circular economy in a highly competitive industrial ecosystem.

She added that the investment is also in line with Prabowo's 'Asta Cita' (eight goals) in encouraging the downstreaming of the national industry. Currently, KITB is building an integrated industrial ecosystem, where the presence of Thong Guan with stretch plastic products will increase logistics efficiency and support a more sustainable supply chain.

Meanwhile, Andria Buchara emphasized that investment is a journey, starting from introducing Indonesia's potential to facilitating investment pre-conditions. No less important, he added, is maintaining an investment when it is in operation so that it could grow and at the same time convince other companies to also invest in the country. Hence, collaboration, as was done by the Indonesian Consulate-General in Penang and KITB, is crucial.