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 – 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: “Our envisaged low-carbon industrial parks will serve a new generation of businesses seeking green solutions, and promote the Singapore-Batam twinning model.”
This comes as Batam’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.
Shares of the mainboard-listed company were trading 0.4 per cent or S$0.02 lower at S$4.75, as at 12.54 pm on Thursday.
