US–Germany–Indonesia Consortium to Build IDR 444 Trillion Semiconductor, Silica and Glass Facilities in Batam
03 Dec 2025
A consortium of companies from Indonesia, the United States and Germany has announced plans to develop semiconductor, silica-sand and advanced glass manufacturing facilities valued at USD 26.7 billion, or approximately IDR 444 trillion, on Galang Island in Batam, Riau Islands. The project will be located within the Wiraraja Green Renewable Energy and Smart-Eco Industrial Park (GESEIP), which has been designated as part of Indonesia’s National Strategic Projects.
The investment is being carried out by three consortiums: PT Quantum Luminous Indonesia, PT Terra Mineral Nusantara and Tynergy Group, consisting of PT Energy Tech Indonesia and PT Essence Global Indonesia. The companies plan to establish facilities for semiconductor production, solar-cell and silicon-wafer manufacturing, and downstream silica and quartz processing.
Quantum Luminous Indonesia President Director Walter William Grieves said in Jakarta that the consortium had held a series of meetings with the Batam Free Trade Zone Authority (BP Batam) on land availability, utilities and infrastructure readiness. He stated that construction was targeted to begin in early 2026, pending approval from BP Batam. According to him, the consortium has twice submitted letters to Minister of Investment and Downstream Rosan Roeslani requesting the acceleration of permit issuance.
The companies said they were expediting efforts to complete all required licensing so that the first phase of construction could begin immediately. Because the project holds National Strategic Project status, the consortium views accelerated permit processing as necessary to ensure investment certainty, supply-chain preparation, local workforce absorption and technology transfer.
Minister Rosan said that Indonesia’s permit process “will not take long and won’t be difficult,” citing a regulation that allows his office to take over stalled licensing from other agencies. He noted, however, that the central government does not have authority over the process in Batam, which operates under its own free-trade-zone administration. BP Batam has not issued a public statement regarding the permit status.
Tynergy Group’s early engagement with Indonesian authorities began during the 2022 G20 Summit in Bali, where representatives met with then-Industry Minister Agus Gumiwang Kartasasmita and Rosan, who at the time served as Indonesia’s ambassador to the United States. Discussions were supported by the Indonesian Embassy in Washington, DC. Stakeholders expressed interest in strengthening the global semiconductor supply chain.
The consortium expanded its commitment during the 2023 Hannover Messe in Germany, when Indonesia served as partner country. On 12 November 2023, Tynergy Group and PT Galang Bumi Industri, operator of the Wiraraja industrial park, signed an investment commitment followed by a cooperation agreement. The companies stated that the planned facilities would support semiconductor and electronics needs, as well as high-tech glass manufacturing.
BP Batam also met in May with Horn Glass Industries, a German firm under the Quantum Luminous consortium. The companies have invited stakeholders to observe production processes at their parent facilities in the United States and Germany.
Coordinating Economic Affairs Minister Airlangga Hartarto said in August that the United States had expressed interest in participating in Indonesia’s semiconductor-sector development. He previously stated that the government aimed for an average annual investment-growth rate of 10% over the next five years, including through the establishment of chipmaking industries.
The consortium’s commitment was formalized in a memorandum of understanding signed in November 2023. The companies stated that construction would begin once all technical and administrative permits were completed.