Indonesian Political, Business & Finance News

HKI confident Indonesia-US business partnership in Batam will strengthen semiconductor industry

| Source: ANTARA_ID Translated from Indonesian | Investment
HKI confident Indonesia-US business partnership in Batam will strengthen semiconductor industry
Image: ANTARA_ID

Jakarta (ANTARA) - The Indonesian Industrial Estate Association (HKI) considers that the signing of business agreements between the Wiraraja Green Renewable Energy & Smart Eco-Industrial Park (GESEIP) National Strategic Project (PSN) in Galang, Batam, and United States companies can strengthen the development of the national semiconductor industry.

HKI Chairman Ahmad Ma’ruf Maulana said in a statement received in Jakarta on Thursday that the partnership represents a concrete step in strengthening high-technology industrial downstream processing, whilst simultaneously bolstering green energy development in Indonesia.

“The ecosystem being built within the Wiraraja GESEIP PSN encompasses the downstream processing of silica quartz into high value-added products, from glass raw material purification through to polysilicon production for semiconductor and solar cell needs,” he said.

Through Tynergy Group of Companies (PT Tynergy Technology Group Indonesia), the downstream ecosystem development will include silica quartz purification for the glass industry via PT Quantum Luminous Indonesia, as well as polysilicon purification through PT Essence Global Indonesia. In the first phase, investment of US$4.9 billion will be deployed.

He said that if the first phase proves successful, additional investment of up to US$26.7 billion will be realised to produce ingot wafers, wafer slicing, and fabrication, thereby forming an integrated semiconductor production cycle in Indonesia.

The partnership also encompasses the construction of manufacturing infrastructure in Galang, expansion of renewable energy projects, workforce development, and cutting-edge technology research and development.

Tynergy Technology Corp’s initial investment is targeted at US$250 million for the construction of manufacturing facilities, with a projected creation of approximately 2,500 skilled jobs.

To ensure energy supply, Tynergy Group will establish PT Energy Tech Indonesia to build sodium-ion energy storage facilities with a capacity of up to 150 megawatts (MW) to support industrial estate operations.

Additionally, Ma’ruf, who also serves as President Director of PT Galang Bumi Industri, said that semiconductor and solar cell technology transfer will be strengthened through development cooperation between two free economic zones, namely the Wiraraja GESEIP PSN in Galang, Batam, and Solanna Akimel 7 Technopark in the Phoenix metropolitan area, Arizona, United States.

This commitment was affirmed through a Transnational Special Economic Zone Friendship Pact between the two zones.

HKI believes this collaboration can strengthen Indonesia’s position in the global semiconductor and renewable energy supply chain, whilst supporting the development of artificial intelligence (AI)-based data centres and sustainable energy transition in both countries.

Ma’ruf stated that President of the Republic of Indonesia Prabowo Subianto personally witnessed the signing of several strategic agreements, conducted between PT Galang Bumi Industri as the manager of the Wiraraja GESEIP PSN and partners from the United States, including Essence Global Group and Tynergy Technology Corporation USA.

The Joint Development Agreement was officially signed on 18 February 2026, followed by a subsequent agreement with Tynergy Technology Corp.

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