BP Batam States Tin Downstreaming Expanding into Electronics Industry
Batam, Riau Islands — The Batam Free Trade Zone Authority (BP Batam) has stated that the downstreaming of the tin industry in the city is beginning to expand into various derivative products, one of which is to support the needs of the electronics industry, namely solder paste.
Ariastuty Sirait, Deputy for Public Services at BP Batam, said that the collaboration between PT Solder Team Andalan Indonesia (STANIA) and Asahi Solder in developing tin-based products is a significant step in expanding commodity downstreaming.
“This is an extraordinary step for investment in Batam. We see that tin downstreaming is no longer limited to raw materials, but has entered the stage of processing into products required by industry,” Ariastuna said in Batam on Friday.
For context, solder paste is used in the assembly process of electronic components.
According to her, this partnership also demonstrates the increasing diversity of industrial products that can be developed in Batam.
“This could potentially lead to exports of more than 100 tonnes by 2027. We expect that with economic growth, we will advance further and higher, alongside the diversity of products produced in Batam,” she added.
BP Batam believes that the diversification of industrial products will help strengthen Batam’s economic structure as investment and manufacturing activities increase.
“Regarding tin industry downstreaming in Batam, the materials are brought in from outside, enter Batam, are processed, and then exported abroad; therefore, we see that downstreaming is indeed occurring,” she said.
Meanwhile, the President Director of Arsari Tambang and Vice President Director of Arsari Group, Aryo P. S. Djojohadikusumo, stated that the development of solder products is part of an effort to build the domestic electronics industry supply chain, especially alongside the growing demand for Artificial Intelligence (AI) technology.
STANIA is part of Arsari Tambang, which focuses on the development of the solder industry and supporting electronic materials.
“This year, we are also building Indonesia’s first factory for GPU (Graphics Processing Unit) assembly, to assemble GPUs from our partners such as Nvidia and AMD. Building an AI ecosystem requires not only computing and connectivity but also the supporting industry and supply chain,” said Aryo.
According to him, the partnership with Asahi Solder is necessary to accelerate the development of this supply chain because the company possesses international experience and capability in soldering and electronic interconnect materials.
“It is time for Indonesia to no longer depend on global prices, but to build its own ecosystem so that the added value from all of Indonesia’s mining results can be realised. That is what we mean by moving from upstream to downstream,” he concluded.