An image provided by the Siak district government showing the master plan of the Tanjung Buton industrial area in Riau.

Malaysia's BGMC Corp to Invest $1b in Port, Industrial Development in Riau


OCTOBER 27, 2019

Jakarta. The BGMC Corporation, a Malaysian construction services company, will invest $1 billion in a port and industrial complex in Siak district, Riau, the neighboring country's ambassador said at the weekend.

The Indonesian government is developing the Tanjung Buton industrial area in Siak to accommodate various industries, including crude oil shipment, fertilizer and palm oil.

Malaysian Ambassador Zainal Abidin Bakar visited the industrial complex on Saturday afternoon to get the latest update on the project. Tanjung Buton Port is located on a narrow waterway between Sumatra and three small islands, with direct access to the Malaysian and Singaporean maritime borders in the Strait of Malacca.

"The purpose of my visit is to get a firsthand look at the development in Siak district, and also to monitor the investment by the BGMC Corporation," Zainal was quoted as saying by state-run news agency Antara.

He said the investment involved massive projects that would bring many economic benefits, not only to Siak district, but also to Indonesia.

He added that the investment would need support from the local government to provide basic infrastructure, such as roads, clean water and electricity.

"The investment budget, if I'm allowed to announce, is more than $1 billion. It's a very huge number, one of the biggest investments in Indonesia by a Malaysian company," Zainal said.

Siak district head Alfedri said the BGMC Corporation had established a joint venture with local government-owned companies KITB and Samudera Siak for the development of the port and industrial park.

He added that the Tanjung Buton industrial area had been declared a national strategic project, so it received attention from the central government. The project for the construction of a power plant in the area is being offered to the private sector, he said.

"We hope the new industrial area will be materialized in Siak and Riau to boost the economy," Alfedri said.

BGMC Corporation vice chairman Mohd Arifin said the port and industrial area would each occupy about 300 hectares.