During the first half of 2023, the Batam Concession Agency (BP Batam) reported that foreign investment (PMA) in Batam reached a substantial US$1.2 billion. This investment was complemented by domestic investment totalling US$168 million, indicating a blend of both local and international interest in the region. Notably, a significant portion of the foreign investment came from Singapore, underlining the attractiveness of Batam to foreign investors.
Steady Investment Growth
In comparison to the same period in the previous year, the total value of foreign investment increased by 1.56 percent. This signals a consistent upward trajectory in investments. Furthermore, the first semester of 2023 witnessed a remarkable increase of 142.39 percent in PMA projects compared to the previous year, highlighting the region’s growing appeal to investors.
Trade and Export Activity
According to Statistics Indonesia (BPS), the export value in Batam City for the first half of 2023 amounted to US$7.5 billion, with imports recorded at US$7.2 billion. This substantial trade volume showcases the significance of Batam’s role in regional and international trade.
Infrastructure Development to Foster Business
To further enhance the business and investment climate in Batam, BP Batam is actively investing in infrastructure projects. These initiatives include the expansion and renovation of the airport, improved road access, modernisation of the Batu Ampar Port, construction of an international hospital, plans for a modern public transportation system (LRT), and the ongoing development of the Rempang area into an eco-tourism destination. These efforts are aimed at improving overall business infrastructure and connectivity in Batam.
Positive Economic Impact
The surge in investments is expected to result in increased employment opportunities and positively influence the local economy. Notably, Batam’s economic growth outpaces that of the broader Riau Islands and even the national level. This remarkable growth is a testament to the collaborative efforts of various stakeholders in Batam City, including BP Batam, in driving the region’s economic success.