Batam begins US$500 million semiconductor and high-tech industrial development

Indonesia has commenced the initial phase of a US$500 million (approximately Rp9 trillion) investment to develop a semiconductor and high-tech industrial hub in Batam, Riau Islands. The project, located in the Wiraraja I Industrial Estate in Kabil, involves US-based companies Tynergy Technology Group and Essence Global.

The groundbreaking ceremony for the three-hectare site is scheduled for October 28, 2026, and is expected to create 1,000 jobs. This development follows a Joint Venture Agreement signed in Washington, D.C., on February 18, 2026, which was witnessed by President Prabowo Subianto. While the initial phase is valued at US$500 million, the broader cooperation agreement is reportedly valued at up to US$31.6 billion.

The industrial complex aims for an integrated end-to-end approach, encompassing semiconductor manufacturing, silica sand downstreaming, the construction of AI smart factories, and sodium-ion battery assembly. Future expansions are planned for the Wiraraja Geseip Industrial Estate and the National Strategic Project on Galang Island.