British company Volex has announced a significant $40 million (SGD 54 million) investment in Batam, Indonesia, enhancing the region’s capabilities in semiconductor and cable manufacturing. This move is part of a broader push by Batam to attract international investment and diversify its industrial base.
Volex, a UK-based electronics manufacturer, has chosen Batam as its newest hub for producing advanced electronic components. This decision aligns with Batam’s strategic goals to become a key player in the high-tech manufacturing sector within Southeast Asia.
Volex is injecting $40 million into Batam to establish facilities for the production of semiconductors and various types of cables, which is expected to significantly bolster local economic growth and technological advancement.
The company plans to collaborate with Indonesia’s National Research and Innovation Agency (BRIN) to produce essential components for the burgeoning electric vehicle market, particularly focusing on two-wheeler charging cables.
Volex is set to expand its workforce, leveraging the local talent pool. Currently employing around 3,000 people, the company aims to significantly increase this number as it scales up operations.
The investment will not only expand Batam’s manufacturing capacity but also aims to reduce imports by meeting domestic component standards (TKDN), which enhances the competitiveness of Indonesian products internationally.
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Volex is dedicated to advancing the technological skills of its workforce and has committed to implementing automation to increase efficiency and production quality.
This investment signifies an important development in regional economic and technological collaboration. The expansion of high-tech manufacturing in Batam could provide new opportunities for cross-border partnerships and enhance the technological landscape of Southeast Asia.
The British electronics firm Volex is set to invest $40 million in Batam, Indonesia, enhancing the local semiconductor and electronic cable production capabilities. This investment is expected to create significant employment opportunities, advance technological expertise, and support the regional economy.
Source: Antara News, Koran Jakarta (2024)
