Sembcorp and Panbil Group Sign MOU to Pursue Low-Carbon Industrial Park Developments in Batam, Indonesia
August 01, 2024
Singapore, August 1, 2024 – Sembcorp Industries (Sembcorp), through its wholly-owned subsidiary Sembcorp Development, 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.
The first proposed project is a 100-hectare 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-hectare 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.
The proposed projects aim to serve light to medium industries and energy-intensive businesses such as advanced manufacturing customers and data centres, with the provision of renewable energy and sustainable circular solutions.
Lee Ark Boon, CEO of Sembcorp Development, said, “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.”
Johannes Kennedy Aritonang, Chairman of Panbil Group, said, “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.”
The signing of these MOUs is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2024.
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