The brother of Indonesia’s President-elect Prabowo Subianto, Mr. Hashim Djojohadikusumo, is establishing a tin-processing facility in Batam with a strategy to compete globally in the solder market, currently dominated by Malaysia and India. By leveraging Indonesia’s rich tin resources, Mr. Hashim aims to carve out a significant market share and operate with enhanced competitiveness.
At 69 years old, Mr. Hashim aligns this project with President Joko Widodo’s policy, which focuses on processing Indonesia’s natural resources domestically to elevate the country’s position in the industrial value chain.
During a press briefing in Batam on May 10, he highlighted that the newly elected President Prabowo has committed to continue this downstreaming initiative, with the establishment of the plant as a keystone in this commitment.
Defense Minister Prabowo, soon to be sworn in as Indonesia’s eighth president, is renowned for his former military leadership. The incoming president, often simply referred to by his first name since his military days, follows a family legacy of significant influence in Indonesia. Their late father, Mr. Sumitro Djojohadikusumo, served as an influential economist under former Presidents Sukarno and Suharto.
Scheduled for completion in five months, the Solder Tin Andalan plant will be located in the Tunas Kabil industrial park, a key industrial hub in Batam south of Singapore. The plant will employ 320 individuals and initially produce 2,000 tonnes of processed tin annually, with potential expansion given the sizeable export market which is estimated to reach 16,000 tonnes per year from Batam.
With an initial investment of 100 billion rupiah for construction and an additional 300 billion rupiah for operational capital, Solder Tin Andalan intends to procure its tin from the nearby Bangka Belitung islands.
Aryo Djojohadikusumo, chairman of Solder Tin Andalan and Mr. Hashim’s son, emphasized the strategic significance of the Batam location, not only as a production site but also as a bustling hub for existing electronics manufacturers, with anticipated growth. He also pointed out that while many Indonesians might not be aware, Batam serves as an assembly point for various mobile brands, including iPhones, Poco, and Xiaomi, marking it as a burgeoning market for the electronics industry.
During the initial ceremony for the construction of the plant, Mr. Hashim shared his optimism about capturing the market demand coming from electronics manufacturers, which have been moving their operations from China to countries in Southeast Asia.
The facility is expected to produce solder paste and solder wire, which are key components in the manufacturing of printed circuit boards.
Mr. Hashim sees a significant advantage in the shift of electronics manufacturing to Southeast Asia, including countries like Vietnam, Malaysia, and Thailand. He is confident that these manufacturing hubs will become major customers for the products made by Solder Tin Andalan, capitalizing on the strategic relocation of these industries.