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Malaysian plastic maker to build factory in Batang industrial estate
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The first phase of development of the Batang integrated industrial zone (KIT) in Central Java is pictured in an undated photograph. (Batang Industrial Park/-)
M
alaysian plastic producer Thong Guan Industries Bhd. has announced plans to build a production plant in the Batang Integrated Industrial Estate (KIT Batang) in Central Java.
The two parties signed an agreement on the plan, which involves an initial investment of US$7 million, in Penang, Malaysia, on Monday, according to a press statement released by the Indonesian Foreign Ministry on the same day.
Representing Indonesia in the deal, Wanton Saragih, chief diplomat at the Indonesian Consulate General (KJRI) in Penang, said: “We hope that more companies from [Penang] will realize investment in Indonesia. This endeavor is hoped to support economic growth and open up job opportunities”.
Wanton revealed that his office had been engaged in the deal since April last year under a program launched at the beginning of 2024 to promote direct investment in Indonesia.
Thong Guan Industries is one of the largest plastic packaging producers in the Asia Pacific region with an annual production of 150,000 tonnes and revenue of 1.2 billion Malaysian ringgit (US$2.5 billion), according to the statement.
It has established a factory in China and the plan for Indonesia was to build a plant for the production of wrapping plastic, garbage plastic and plastic film designated for both the domestic market and for export.
Representing the company, Thong Guan Industries managing director Ang Poon Chuan said the investment was made with Indonesia’s market potential in mind, alongside other factors.
