Malaysian packaging giant invests $7 million in Batang plant

Malaysian plastic packaging giant Thong Guan Industries Berhad has invested US$7 million (Rp114 billion) in a factory in the Batang Special Economic Zone on a 5.04-hectare site that is expected to create 500 jobs.With a history of more than 50 years, the company is a leading global exporter of stretch film and a dominant player in the Japanese plastic bag market. Its 85% products are exported to a number of countries, including South Korea, Mexico, Chile, and Vietnam, with a total annual revenue of 4.2 trillion rupiah. The project focuses on sustainable development, and the factory will adopt environmentally friendly technologies, including energy-saving machines, plastic waste recycling, and an international standard environmental management system, practicing the concept of green industry. The Batang Special Economic Zone was chosen because of its well-developed infrastructure, stable environment, and high operational efficiency to meet the company's supply chain development needs. The Managing Director of Batang Integrated Industrial Zone Co., Ltd. believes that this reflects the global recognition of the Batang SEZ as a highly promising industrial zone in Southeast Asia. The Consul General of Indonesia in Penang said the move is a testament to the strengthening of Indonesia-Malaysia bilateral economic ties and shows investors' confidence in Indonesia's investment environment. The Director of Manufacturing Promotion of the Investment Coordinating Board (ICCB) described the project as an example of a profitable and sustainable investment that is a reflection of a long-term strategic partnership. The investment project not only creates local employment opportunities and contributes to Indonesia's economic development, but also enhances the international status of the Batang Special Economic Zone as an important destination for global manufacturing and exporting industries, and helps Indonesia to emerge as a leader in the international industrial arena.