Sembcorp inks MOUs with Panbil to pursue low-carbon industrial park projects in Batam 

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.”

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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.