Harso Kurniawan, Jakarta – A consortium of Indonesian, German and US companies on Tuesday announced a $26.7 billion investment commitment to develop semiconductor, silica sand and advanced glass manufacturing industries on Galang Island in Batam, Riau Islands.
The foreign investors have set up PT Quantum Luminous Indonesia and PT Terra Mineral Nusantara to collaborate with the Indonesian Tynergy Group, which consists of PT Energy Tech Indonesia and PT Essence Global Indonesia.
Construction of the industrial facilities will soon begin in the Wiraraja Green Renewable Energy and Smart-Eco Industrial Park, one of Indonesia's designated National Strategic Projects.
"This marks a strong commitment to accelerate large-scale investment in semiconductor-based industries and high-tech glass manufacturing in Indonesia," said Quantum Luminous President Director Walter William Grieves in Jakarta.
Tynergy Group's investment journey began during the 2022 G20 Summit in Bali, following discussions with then-Industry Minister Agus Gumiwang Kartasasmita and engagements facilitated by the Indonesian Embassy in Washington, DC, under Ambassador Rosan Roeslani Perkasa, now Indonesia's Investment Minister.
Stakeholders at the time expressed a shared interest in supporting the strengthening of the global semiconductor supply chain.
The consortium later deepened its commitment during the 2023 Hannover Messe in Germany, where Indonesia served as an official partner country. This was followed by the signing of an investment commitment on 12 November 2023, and a subsequent cooperation agreement between Tynergy Group and PT Galang Bumi Industri, operator of the industrial park.
Tynergy Group and Quantum Luminous have since held a series of meetings with the Batam Authority, focusing on land availability, utilities and infrastructure readiness for semiconductor, solar-cell and wafer manufacturing as well as silica-sand downstream processing. The investment package is valued at $26.7 billion.
To accelerate project realization, the consortium has urged the government to expedite the completion of all required permits so that the first phase of construction can begin immediately.
Expedited licensing is essential to secure the investment, prepare industrial supply-chain logistics, create local employment opportunities and support knowledge and technology transfer through vocational programs linked to the consortium's German parent company – ultimately boosting Indonesia's competitiveness in the global high-tech manufacturing supply chain.
"We have submitted letters requesting investment acceleration to the Minister of Investment twice," Walter said.