Following the signing of the Memorandum of Understanding (MOU) and Joint Venture Agreement on 11th January 1990, PT Batamindo Investment Corporation and Batamindo Industrial Management were formed to develop and market the 500 hectare Batam Industrial Park.
Land clearing began in January 1990 and the ground breaking ceremony on 28th February 1990 was attended by Brig-Gen (Res) Lee Hsien Loong, Deputy Prime Minister and Minister for Trade and Industry; Drs Radius Prawiro, Coordinating Minister for Economy, Finance, Industry and Development; Professor BJ Habibie, State Minister for Research and Technology; Tungki Ariwibowo, Junior Minister for Industry and Philip Yeo, Chairman of Singapore’s Economic Development Board.
The Official signing ceremony for BIP’s first tenant took place on 30th April 1990, Signalling an investment of S$30 million by Sumitomo Electric Industries and Sumitomo Wiring System. Mah Bow Tan, Minister for Communications and Tungky Ariwibowo officiated.
Former Prime Minister Lee Kuan Yew and President Suharto officiated at the first toppingg-up ceremony at Block 8 on 28th August 1990. A large number of ministers and high-level officials were among the four hundred guests.
On the same day the Indonesian and Singapore government signed two agreements: Economic Cooperation in The Framework Of The Development of The Riau Province and The Promotion and Protection Of Investment. BG Lee Hsien Loong and Drs Radius Prawiro, Coordinating Minister for Economy, Finance Industry and Development Supervision represented their respective governments.
PT Thomson Television Indonesia on 28th January 1991 become the first tenant in BIP to begin Operations.
PT Sumitomo Wiring System Batam Indonesia’s first consigment of automotive wiring harnesses rolled of the production line on 8th April 1991