The proposed ventures aim to provide renewable energy solutions to light to medium industries and energy-intensive businesses

 

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. 

 

In a bourse filing on Thursday (Aug 1), the company announced two proposed projects with Panbil &ndash a developer based in Batam with businesses that span 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. The zone hosts a mix of electronics, electrical, precision engineering and pharmaceutical industries. 

 

A second proposed project is the development of a 500-hectare industrial park on Tanjung Sauh, one of the smaller islands of Batam. It was recently granted a special economic zone status for industrial development.  

 

The proposed ventures aim to provide renewable energy and sustainable circular solutions to light to medium industries and energy-intensive businesses, such as advanced manufacturing customers and data centres.

 

Chief executive officer of Sembcorp Development Lee Ark Boon said: &ldquo Our envisaged low-carbon industrial parks will serve a new generation of businesses seeking green solutions, and promote the Singapore-Batam twinning model.&rdquo

This comes as Batam&rsquo s economic growth of 7 per cent outpaced the national average in 2023, the chairman of Panbil Johannes Kennedy Aritonang noted. 

 

Sembcorp said that the MOUs are not expected to have a material impact on the earnings per share and net tangible assets per share of the company for the financial year ending Dec 31, 2024.