Global manufacturers are setting up twinned bases in Singapore and Indonesia

Discover how companies across the globe have launched synergistic business and manufacturing bases in Singapore and the Indonesian islands of Batam and Bintan.

08 Oct 2021 7 min read

Finding a business location that meets diverse needs can be challenging.

However, three companies across different industries have found their answer in Batamindo Industrial Park (BIP) and Bintan Industrial Estate (BIE), the products of a SG+ twinning model by Singapore and its neighbouring Indonesian islands, Batam and Bintan.

Developed by integrated commercial and industrial developer Gallant Venture, BIP and BIE offer companies attractive value propositions and one-stop business solutions in free trade zones.

We speak to leaders at Qube International, Bionesia, and SIIX to learn how BIP and BIE’s twinned advantages led to business growth.

Ready access to regional markets and strong operational support

For Qube International, Singapore and BIE were the ideal strategic bases to unlock opportunities in Asia’s offshore oil well decommissioning industry, estimated by the company to be worth S$135 billion (US$100 billion).

The Australian logistics and infrastructure giant is “actively investing in SEA for expansion,” shares Director and General Manager Mr Mort Daly.

In 2015, Qube established operations in Singapore following a two-year hunt for a regional headquarters. Mr Daly explains that Singapore emerged as the top choice for its “global hub status, trade agreements, legal background based in British law, and ethical reputation.”

To complement its Singapore base, in 2018, Qube chose BIE for the development of the Bintan Offshore Marine Centre (BOMC). Proximity was a key consideration, and the 270-hectare, self-contained sea-fronting development is only an hour by ferry from Singapore.

BIE’s other advantages include access to regional trade networks, as well as deep water and land availability. On an operational and regulatory level, Qube enjoys support from local liaisons in certifications and licencing, manpower recruitment, and more.

With BIE’s support, BOMC recently completed the world’s largest-diameter pipe for subsea spooling in partnership with Subsea 7, and did so in the middle of a global pandemic.

“To execute our patented technology, we needed to bring in 80 foreign experts to the facility amidst COVID-19 travel restrictions. BIE undertook the monumental task of securing visas for personnel from Australia, the UK, and Holland, ensuring our project’s success,” Mr Daly says.

These advantages have made BOMC the preferred regional base for MNCs such as McDermott, Boskalis, and Intermoor.

Bintan Industrial Estate: The perfect home base

Proximity to raw material supplies and world-class laboratories

BIE is also home to Bionesia, an organic coconut product manufacturer that exports to the USA, Europe, and China. Bionesia is a joint venture between a German company and Salim Group, one of the largest conglomerates in Indonesia.

To meet growing worldwide demand for coconut products, including burgeoning sales within Indonesia and the rest of SEA, Bionesia leverages BIE’s “closeness to Riau’s plantations, as well as trade connectivity and ASEAN’s network of free trade agreements”, explains Chief Marketing Officer Mr Gerd Waldkircher.

Chief Operating Officer Mr Susanto Kusnadi adds that “Bintan’s low tectonic activity compared to other parts of Indonesia and links to Singapore’s logistics capabilities ensure supply chain reliability and competitive prices.”

Once again, proximity to Singapore proves a key asset.

The country’s port is a critical junction in exporting Bionesia’s finished goods to foreign markets, such as China, Germany, India and the USA, and is also where quality control takes place. To ensure consumer trust, Singapore-based laboratories including SGS and Eurofins certify that Bionesia’s organic products are free from pesticides and plastic phthalates.

“Sending samples to Germany could take us a month. Working with Singapore laboratories that are recognised in the USA and Europe helps us to reach our customers faster,” explains Chief Executive Officer Mr Olaf Tobin.

Singapore also serves as a R&D location, bringing Bionesia together with partners to explore future consumer demand for specialty coconut products, such as dairy, animal fat, and wheat protein substitutes.

Image Bionesia staff checking doing QC on their products

With a solid base to grow upon, Bionesia has launched a five-year masterplan to establish 12 factories and expand its operations by 75 per cent, to capture more overseas markets, including emerging regions such as the Middle East.

It’s far from all work and no play, however. “BIE is close to Singapore’s great infrastructure and medical facilities, as well as Bintan’s plantations and resorts. After work, I can go to the beach and relax. I don’t know where else this quality of life is possible,” says Mr Waldkircher.

R&D advantages in Singapore, aligned with sustainable objectives

In its search for a regional base, Japanese electronics manufacturer SIIX discovered that the benefits of Singapore and Batamindo Industrial Park (BIP) were twofold.

The company found that they could plug into SEA's emerging markets from its Singapore and BIP hubs, even while continuing to service its core markets in Europe, USA, and Japan.

In 2016, SIIX established its regional headquarters in Singapore, from which the company designs and develops battery packages and modules for electric bicycles and electric vehicles (EVs).

“Singapore’s strong intellectual property protection and clean energy pivot make it ideal for our research and development in EV electronics,” shares Mr Tadanori Kawanishi, SIIX’s Executive Officer (Indonesia and Philippines Area) and President Director of SIIX Electronics Indonesia.

Amidst a global shortage of electronic components, Singapore also offers procurement advantages as a producer of components for automotive, medical, and information technology use.

Meanwhile, SIIX leverages BIP’s manpower and land advantages for mass production.

According to Mr Kawanishi, who has been based in Batam for over 20 years, BIP’s quality manpower and reliable electricity infrastructure make it an ideal manufacturing location.

BIP also offers timely information on import and export policy changes, which are especially valuable in the context of regulatory changes created by COVID-19.

Mr Kawanishi adds that amidst global supply chain disruptions, Singapore and Batam’s smooth customs clearance processes give the company’s operations a logistical edge in exporting to 14 destination countries.

Batamindo Industrial Park: One location for global markets

Quality products and services, from Southeast Asia to the world

With the unique range of opportunities and business advantages offered by Singapore’s twinning model with Bintan and Batam, there is something for every business at BIE and BIP.

Since February 2021, Gallant Venture has been a Strategic Partner of the Southeast Asia Manufacturing Alliance (SMA). Scroll down to read more about the SMA’s benefits for new manufacturers and tenants of Gallant Venture’s developments.

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Tap on a SG+ model and twin to win in Southeast Asia, by combining the complementary advantages of Singapore and Batam and Bintan. Contact us today to create your ideal production base at the heart of Southeast Asia:

EDB: client_services@edb.gov.sg
Gallant Venture: industrialparks@gallantventure.com

This article was updated on 30 April 2024.