12-5-2024 (JAKARTA) In a move set to fortify Indonesia’s position in the global electronics supply chain, a massive tin-processing plant worth a staggering 100 billion rupiah (S$8.4 million) is taking shape on the industrial island of Batam. The ambitious project is spearheaded by Hashim Djojohadikusumo, the younger brother of Indonesia’s President-elect, Prabowo Subianto.
The Solder Tin Andalan plant, expected to be operational within five months, aims to capitalize on the growing demand for crucial raw materials from electronics manufacturers that have relocated from China to Southeast Asia. With an initial annual production capacity of 2,000 tonnes of processed tin, the facility is poised to become a major supplier of solder paste and solder wire – indispensable components in the production of printed circuit boards.
Hashim Djojohadikusumo, a prominent businessman, has revealed that the plant will source its raw tin from a mine operated by his company, Arsari Tambang, located in the tin-rich Bangka Belitung islands off Sumatra. This strategic move not only taps into Indonesia’s abundant natural resources but also aligns with President Joko Widodo’s “downstreaming” policy, which prioritizes the processing of natural commodities within the country, propelling it higher up the industrial value chain.
“President-elect Prabowo Subianto has affirmed… and has vowed that the downstreaming programme will continue. The establishment of this plant is one of his commitments,” Hashim, 69, stated during a press briefing in Batam on May 10.
As electronics manufacturers continue their exodus from China, seeking new bases in Southeast Asian nations like Vietnam, Malaysia, and Thailand, Hashim expressed confidence that Solder Tin Andalan’s products will find a ready market among these relocated plants.
“Among the main sources of solders (for global supply) are Malaysia and India. Our target is to get some of their market share, relying on the tin resources in Indonesia. We can operate more competitively,” he asserted.
The Solder Tin Andalan plant, located in the Tunas Kabil industrial park in Batam, is strategically positioned to cater to the thriving electronics manufacturing hub on the island. Aryo Djojohadikusumo, Hashim’s son and the chairman of Solder Tin Andalan, highlighted the plant’s potential to serve the booming mobile phone assembly industry in Batam, where global giants like Apple and Xiaomi have established production facilities.
With an initial investment of 100 billion rupiah for construction and an additional 300 billion rupiah earmarked for working capital and raw material sourcing, the plant is poised for expansion. The potential export market that Batam can serve is estimated to be a staggering 16,000 tonnes per year, offering ample room for growth in the years to come.
