A wholly-owned subsidiary of Sembcorp Industries U96 has signed memoranda of understanding (MOUs) with two subsidiaries of Panbil Group (Panbil) to jointly develop low-carbon industrial parks in Batam, Indonesia.
Panbil Group is a developer based in Batam with businesses spanning construction, industrial real estate, utilities services and hospitality.
According to an Aug 1 announcement, the first proposed project is a 100 ha industrial park in Tembesi, located within the Muka Kuning area, an established industrial zone on mainland Batam with a diverse mix of electronics, electrical, precision engineering and pharmaceutical industries.
The second proposed project is the development of a 500 ha industrial park on Tanjung Sauh, one of the smaller islands of Batam. Tanjung Sauh was recently granted a special economic zone (SEZ) status for industrial development.
According to Sembcorp, the proposed projects aim to serve light to medium industries and energy-intensive businesses, such as advanced manufacturing customers and data centres. They will also run on renewable energy and employ “sustainable circular solutions”.
Lee Ark Boon, CEO of Sembcorp Development, says: “Our proposed collaboration with Panbil synergises their strong development track record in Batam with Sembcorp’s proven capabilities in energy and integrated urban solutions. Our envisaged low-carbon industrial parks will serve a new generation of businesses seeking green solutions, and promote the Singapore-Batam twinning model.”
See also: Sembcorp adds three industrial parks to its Vietnam portfolio through subsidiary
Johannes Kennedy Aritonang, chairman of Panbil Group, says: “Panbil’s potential partnership with Sembcorp comes at an opportune time. In 2023, Batam’s economic growth of 7% outpaced the national average. With its expanding infrastructure, Batam is well equipped to drive the synergies of advanced manufacturing between Singapore and Indonesia. This collaboration to develop low-carbon industrial parks will support the new economy industries.”
Sembcorp does not expect this to have a material impact on its earnings per share and net tangible assets per share for FY2024 ending Dec 31.
As at 1.36pm, shares in Sembcorp are trading 2 cents lower, or 0.42% down, at $4.75.
