at a Glance Investment
Batam at a Glance
Batam is strategically located within an international shipping
route between the Indian and the Pacific Ocean. It lies only 20
kilometers to the Southeast of Singapore which has one of the busiest
seaports in the world. A ferry ride to Singapore takes only 40 minutes.
The area of Batam Island is 415 sq.-km. However,
due to the progress of investments and demand of space, the Batam
industrial area was expanded in 1992 with the inclusion of two other
surrounding islands, hence, giving a new name: Batam-Rempang-Galang
or Barelang. The total area became 715 sq.-km. All the main islands
are linked with the Trans-Barelang road, which include six beautiful
Although dubbed as an industrial area, Batam is
developed to serve four main functions, namely: industrial, trade,
tourism, and transshipment area. The whole area of Batam, Rempang
and Galang is also declared as bonded area. All imported goods for
production purposes, such as capital goods and raw material, are
exempted from import tax. Batam is build to be an export oriented
industrial area, so as not to compete with other industrial areas
in Indonesia which market their products within the country.
Why invest in Batam
As at the end of December 2010, Batam has accumulated a total of
approximately US$ 14.41 billion in investment comprising of US $
2.77 billion (20.68%) of government investment and US$ 9.55 billion
(80.32%) of private investment. Government investment is in terms
of infrastructure development. Private investment comprises further
of 57.28% or US$ 5.76 billion of domestic investment and 42.72%
or US$ 5.98 billion of foreign investment. More than 813 foreign
companies are operating in Batam while the number of local companies
is nearly 10,000.
There are approximately 1,200,000 people living in Batam, coming
from all over the Indonesian archipelago with 225,915 people employed
in the formal sector, and 76,000 more in the informal sector. This
labor is increasingly bettered skilled as they have years of training
and experience. This skilled labor can be sourced directly in Batam,
without the need of recruiting from other regions, such Java and
Sumatra. Half of the population in Batam are workers, making a very
healthy dependency ratio.
Foreign investment application is processed with a one-stop policy
in Batam. All permits
and licenses required to start development are also processed “under
one roof” by the Batam Industrial Development Authority with
streamlined procedures. Companies are allowed to have 100% foreign
ownership. Staying permit for foreigners working in Batam is easy
to obtain from the local Immigration Office. Foreign visitors to
Batam will be given Visa on Arrival for most nationalities. Foreign
nationals are allowed to buy and own houses, whether or not they
work in Batam. So, Batam could become a second home for foreigners.
More than 1,600 km of paved roads and highways are there to link
all centers of activities. These roads are continuously being improved
with the addition of lanes to anticipate the rapid growth of traffic.
are four locations of seaport to serve cargo vessels and six locations
of passenger ferry terminals around the island to minimize travel
times to destinations with more than 100 trips daily serving Singapore
and Malaysia. The biggest seaport in Kabil has berthing capacity
of 35,000 DWT (Dead Weight Ton) and is being improved to accommodate
ships up to 150,000 DWT. In its ultimate phase, it will have a total
wharf length of 5.5 km with an 18 meter draft.
The Hang Nadim International Airport has a 4,000-m runway, the
longest in Indonesia, to serve wide body passenger and cargo aircraft
with 20 flights daily to Jakarta, and 252 flights weekly to other
major cities in Indonesia. The terminal building has a total floor
area of 31,500 sq.-m and will gradually be expanded to its ultimate
design of 88,000 sq.-m.
Telecommunication facilities are also of the highest standard with
state-of-the-art technology which has used only 90% of the available
capacity. One does not feel isolated in Batam since communication
to all parts of the world is only one button away. Electricity is
supplied by PLN, the state-owned electric company, and additional
power is also supplied by private power plants.
Fresh water is abundantly available from six man-made water reservoirs
built around the island with the total capacity of 3,960 liters/second.
Supply of clean water is sufficient to support a population of 700,000
people and industry and has conformed to the standards of the World
Health Organization and currently runs at a capacity of 2,185 liters
of clean water per second.