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Partnering with China, Batam is Ready to Compete with Malaysia, Singapore and Vietnam

by Editor Asiatoday
March 15, 2025
in Business
Reading Time: 2 mins read
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Indonesia is Ready to Become a Factory Relocation Destination from China

Bintan Industrial Estate, one of the industrial areas in Batam which is ready to become a factory relocation destination from China. Special

ASIATODAY.ID, JAKARTA – The Batam Free Trade Zone and Free Port Authority (BP Batam) continues to transform institutionally in an effort to attract investment and increase economic growth.

As part of the implementation of the institutional transformation of BP Batam, the Coordinating Minister for the Economy of Indonesia, Airlangga Hartarto, as Chairman of the Batam Free Trade Zone and Free Port Council, inaugurated the Members/Deputies of BP Batam in Jakarta, on Thursday, March 13, 2025. The institutional transformation also optimizes the governance of BP Batam which is expected to be more effective, efficient, and advanced with the application of technology and information, as well as modern management.

Airlangga is optimistic that Batam will be able to move and compete with other regions such as areas in Malaysia, Singapore, or Vietnam.

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“We encourage all stakeholders to work together to support Batam to become an industrial and tourism development area, as well as an investment destination both domestically and abroad,” said Airlangga.

The Indonesian government is also targeting the development of Batam as a leading investment center, including developing cooperation with China through the Two Countries Twin Park (TCTP) scheme, which will begin with cooperation in developing the Batang Special Economic Zone and then Batam. In addition, Airlangga also revealed that Batam can be developed as a very strategic semiconductor industrial area in developing the national industry whose ecosystem is already owned by Batam, such as the development of a digital area with a data center base. This will certainly strengthen Batam’s position in the global technology industry.

“Batam already has a digital area based on a data center. We hope that the development of the Nongsa area can be filled by one of the investors who has planned an investment of more than two billion dollars,” said Airlangga.

Furthermore, Batam has also experienced significant progress in the tourism sector. Therefore, the Government is making efforts to expand international flight routes not only to attract tourists from Singapore and Malaysia, but also from South Korea. In the future, Hang Nadim Airport is expected to become an alternative hub for international flights besides Singapore and Kuala Lumpur.

“Of course, Hang Nadim Airport is expected to be able to open other flight routes, not only for humans or for tourism, but also for cargo. So one of the things that can drive the economy and logistics,” concluded Airlangga. (AT Network)

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