Amidst the vibrant economic landscape, investment opportunity in Batam lies as a strategic economic hub poised for significant growth. 

With streamlined regulations, a skilled workforce, and unparalleled connectivity to Southeast Asia, Batam offers a compelling proposition for investors seeking diverse and lucrative opportunities.

Why Should You Invest in Batam?

The Mayor of Batam, Muhammad Rudi, is optimistic about the city’s economic growth reaching 7% by 2023. This is because Batam has experienced increased investments, with investment realization reaching IDR 12.63 trillion in 2022. 

The realization is mostly dominated by Foreign Direct Investment (FDI), which accounted for 82% of the total amount, equivalent to IDR 11.11 trillion. This was spread across 1,738 projects. Domestic Direct Investment (DDI) reached IDR 2.52 trillion with 2,153 projects.

As of the first quarter of 2023, Batam City is leading investment realization in the Riau Archipelago Province (Kepri). It has contributed 82.9% to the total investment, reaching IDR 3.9 trillion for Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI). 

The tourism sector also plays a significant role in Batam’s economy. In March 2023, foreign tourist visits increased by 32.45% compared to February 2023. Most visitors came from Singapore, accounting for 61.29% of the total 98,268 visitors in March 2023. 

Rudi also highlighted that Batam’s current development is focused on infrastructure, specifically the acceleration of road development and city access until 2024. There are plans for 22 road infrastructure projects to be completed by 2024.

Category	Key Points
Strategic Location	1. Adjacent to key international sea routes: Malacca and Singapore Strait. 2. Proximity to ASEAN countries, totaling 640 million people. 3. Only 20 km from Singapore, reachable in 45 minutes by ferry.
Attractive Incentives	1. Duty exemption on imported machinery/equipment, raw materials, and spare parts for export-oriented production. 2. VAT and Luxury Goods VAT exemption on machinery/equipment, raw materials, and spare parts. 3. Income Tax exemption (Article 22) on imported machinery/equipment, raw materials, and spare parts for production. 4. Generalized System Preferences (GSP) facilities provide import duty deductions on exported products. 5. Agreements with 56 countries to prevent double taxation.
Modern Infrastructure	1. International Airport with Indonesia’s longest runway (4,025 km). 2. Five international passenger ports and four cargo ports. 3. Six connecting bridges for Batam, Rempang, and Galang. 4. Availability of 7 reservoirs meeting industrial and consumer demands (3,535 L/second capacity). 5. Wastewater Treatment Plant (WWTP) separating biological and chemical waste (230 liters/second capacity). 6. Installed electricity capacity of 538.95 MW. 7. 1,670 km of built roads. 8. 111,700 line units for phone communication and a fiber optic internet backbone up to 1Gbps. 9. BP Batam IT service center has disaster recovery center advantages.
Competitive Investment Cost	Particularly advantageous for export-oriented industries.
Clean and Healthy Environment	Balanced division between green areas (environment) and industrial zones.
Safety and Comfort	Batam is Indonesia’s melting pot, ensuring a secure and comfortable environment.