Batam, gokepri – For years Batam was known mainly as Indonesia’s offshore industrial outpost. Now the island city is emerging as something larger: the fastest-growing economy in the Riau Islands province.

Data released by Indonesia’s Central Statistics Agency (BPS) show that Batam’s economy expanded by 6.76 percent year-on-year in 2025 when the oil and gas sector is excluded. The figure is higher than the overall economic growth of the Riau Islands province, which reached 5.88 percent, and above Indonesia’s national growth rate of 5.11 percent.

The performance places Batam firmly at the top among districts and cities in the province. Bintan recorded economic growth of 6.43 percent, followed by Karimun with 5.44 percent. Tanjungpinang grew 3.31 percent, Lingga 3.53 percent, and the Anambas Islands 2.87 percent. Natuna, heavily dependent on certain sectors, experienced a contraction of 1.61 percent.

Batam’s economic dominance is also visible in its scale. In 2025 the city contributed 66.44 percent of the entire Riau Islands economy, making it by far the province’s main economic engine.

Local officials say the expansion reflects a structural shift away from reliance on extractive industries. Batam’s growth is increasingly driven by manufacturing, trade, logistics, construction and foreign investment.

Batam is governed by a dual leadership structure: Amsakar Achmad serves as mayor while also heading BP Batam, the government agency responsible for managing the island’s free trade zone and industrial development. His deputy, Li Claudia Chandra, simultaneously serves as vice mayor and deputy head of BP Batam. Together they oversee policies aimed at strengthening Batam’s role as an industrial and investment hub in western Indonesia.

“Batam’s economic growth of 6.76 percent without oil and gas shows that the city’s economic engine is powered by productive sectors such as manufacturing, trade, logistics and rising investment,” said Fary Djemy Francis, Deputy for Investment and Business Development at the Batam Indonesia Free Zone Authority (BP Batam). “This proves that Batam is developing into a more competitive international industrial and trade center.”

The measurement excluding oil and gas, he added, provides a clearer picture of the local economy. The energy sector is often volatile because it depends on global prices and production levels.

“Oil and gas are strongly influenced by global energy prices and production volumes,” Fary said. “That fluctuation often does not reflect the real activity of the local economy. By looking at growth without oil and gas, we can see more clearly that Batam’s economy grows because of industry, trade and investment.”

Batam’s economic geography explains much of its momentum. Located just 20 kilometers south of Singapore and close to Malaysia, the island sits directly on one of the world’s busiest shipping routes through the Malacca Strait. For decades Indonesia has tried to turn that location into an advantage through special economic policies and industrial estates.

Today those industrial zones host hundreds of electronics, shipbuilding, precision engineering and logistics companies. Expanding ports, warehouses and transportation networks are reinforcing Batam’s role as a regional manufacturing and distribution hub.

Fary said the city’s strategic location, combined with continuing industrial development and investment incentives, helps maintain that momentum. Infrastructure improvements and international logistics connectivity also strengthen Batam’s appeal for investors.

“Batam has geographic advantages and a strong industrial ecosystem,” he said. “With infrastructure support, investment facilitation and international logistics connectivity, Batam is strengthening its role as a globally competitive investment and industrial hub.”

For Indonesia, the island’s rise has broader implications. Batam has long been viewed as a testing ground for export-oriented manufacturing and cross-border trade. Its proximity to Singapore gives companies access to global supply chains while operating within Indonesia’s labour market.

That formula appears to be gaining renewed traction. The surge in manufacturing and logistics activity suggests that Batam is consolidating its position as a gateway for international investment in western Indonesia.

Whether the growth can be sustained will depend on several factors: the stability of global trade, continued infrastructure expansion and the ability of local authorities to keep attracting foreign capital. For now, however, the island’s economy is no longer waiting for the oil market. It is building its own engines of growth. ***

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Capaian tersebut menunjukkan peran pelabuhan sebagai salah satu penopang utama ekonomi Batam, terutama dalam menjaga arus barang, mobilitas orang, dan kepercayaan investor.

Sepanjang 2025, Direktorat Pengelolaan Kepelabuhanan BP Batam membukukan realisasi penerimaan Rp468,4 miliar. Angka ini melampaui target Rp401,8 miliar atau mencapai 117 persen.

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Kepala BP Batam Amsakar Achmad menilai kinerja pelabuhan menjadi indikator penting kesiapan Batam dalam bersaing sebagai kawasan industri dan perdagangan internasional. Pelabuhan, kata dia, adalah wajah pertama yang dilihat pelaku usaha.

“Kinerja kepelabuhanan yang tumbuh positif menjadi sinyal bahwa Batam semakin siap sebagai tujuan investasi, baik industri, logistik, maupun perdagangan lintas negara,” ujar Amsakar, Kamis (22/1/2026).

Dari sisi operasional, aktivitas pelabuhan juga menunjukkan pertumbuhan signifikan. Arus peti kemas sepanjang 2025 mencapai 797.087 TEUs, naik sekitar 18 persen dibandingkan tahun sebelumnya.

Terminal Peti Kemas Batu Ampar menjadi kontributor terbesar dengan volume 522.941 TEUs atau sekitar dua pertiga dari total arus peti kemas Batam. Volume ini tumbuh 24 persen dibandingkan 2024, menegaskan peran Batu Ampar sebagai hub logistik utama.

Selain peti kemas, volume general kargo tercatat 11,77 juta ton, meningkat 13 persen. Pertumbuhan ini sejalan dengan naiknya aktivitas industri dan perdagangan di Batam dan sekitarnya.

Wakil Kepala BP Batam Li Claudia Chandra menyebut pertumbuhan dua digit tersebut tidak terjadi secara instan. Menurut dia, pembenahan tata kelola dan peningkatan kualitas layanan menjadi kunci.

BP Batam, kata Li Claudia, tidak hanya mengejar volume, tetapi juga efisiensi dan kepastian layanan. “Pelabuhan yang andal akan menurunkan biaya logistik dan meningkatkan daya tarik investasi,” ujarnya.

Sepanjang Januari hingga Desember 2025, tercatat 109.174 kunjungan kapal barang dan penumpang ke pelabuhan-pelabuhan di Batam. Jumlah ini tumbuh 11 persen dibandingkan tahun sebelumnya.

Seiring peningkatan kunjungan kapal, total Gross Tonnage juga naik signifikan. Sepanjang 2025, total GT mencapai 73,18 juta atau meningkat 15 persen secara tahunan, mencerminkan intensitas aktivitas pelayaran yang semakin tinggi.

Dari sisi pergerakan orang, pelabuhan Batam melayani 9,37 juta penumpang domestik dan internasional sepanjang 2025. Angka ini meningkat sekitar 8 persen dibandingkan tahun sebelumnya.

Pertumbuhan terbesar terjadi di Terminal Ferry Internasional. Jumlah penumpang datang dan berangkat mencapai 5,3 juta orang, tumbuh 10 persen, menegaskan peran Batam sebagai simpul perlintasan antarnegara.

Dari sisi trayek, rute Malaysia mencatat pertumbuhan tertinggi, mencapai 32 persen. Angka ini melampaui pertumbuhan rute Singapura yang hanya 5 persen, meski secara jumlah masih mendominasi.

Direktur Pengelolaan Kepelabuhanan BP Batam Benny Syahroni menilai capaian 2025 menjadi fondasi penting bagi transformasi layanan ke depan. Fokus BP Batam, kata dia, adalah modernisasi dan integrasi sistem kepelabuhanan.

“Capaian ini menjadi dasar untuk membangun layanan pelabuhan yang terintegrasi dan berorientasi pada kebutuhan pelaku usaha,” ujar Benny.

Ke depan, BP Batam menargetkan pelabuhan tidak hanya sebagai pintu masuk barang dan orang, tetapi sebagai penggerak utama pertumbuhan ekonomi Batam di tengah persaingan logistik kawasan.

Baca Juga: Arus Peti Kemas Pelabuhan Indonesia Tembus 13,34 Juta TEUs Sepanjang 2025

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“Yesterday it was iPhone 16, which means not yet. iPhone 17 has no submission,” said Industry Minister Agus Gumiwang Kartasasmita in Jakarta on Wednesday.

Agus insisted Apple’s commitment to Indonesia has not shifted. Investment projects agreed between the government and the American tech giant are moving ahead. Recent milestones include the launch of Apple Developer Academy BINUS Bali last week, alongside Apple Software Indonesia and Technology Institute, and the Apple Professional Developer Academy.

“For investment, everything remains on the right track,” he said.

One of the largest projects is underway in Batam, Riau Islands. An Apple supplier is building a facility to manufacture up to 65 percent of global AirTag demand. Valued at $1 billion, or roughly Rp16 trillion, the plant is set to be completed by early 2026 and is expected to employ up to 2,000 workers.

The government and Apple are targeting as much as $10 billion in long-term investment. Apple’s supply chain spans hundreds of vendors across the globe, from Thailand and Malaysia to Vietnam. Indonesia hopes to carve out a place in that global network by attracting Apple’s partners.

Agus added Apple’s move could serve as a magnet for other U.S. tech companies. “This could open doors for more investors,” he said. ANTARA

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PT BIC, a major Independent Power Producer (IPP) in Indonesia’s Riau Islands, operates the sprawling 320-hectare Batamindo Industrial Park (BIP). The choice of Batam is strategic: its free-trade zone status and investor-friendly policies have spurred rapid industrial growth. However, this progress has strained existing power infrastructure. Choo Kok Kiong, Executive Director and Company Secretary of Gallant Venture Ltd., highlights that the surge in energy-intensive sectors, particularly AI-driven digital industries and data centres, has outstripped current supply, leading to delays for new investors.

Gallant anticipates Batam’s electricity consumption will rise substantially by 2029, driven by regional economic expansion and the group’s own growth plans, including the expansion of the Bintan Industrial Estate and Bintan Resorts.

Gallant Venture’s existing energy mix relies heavily on natural gas, supplemented by diesel and solar. However, volatile gas prices and limited supply have prompted a strategic shift. The group notes that after evaluating various options, a coal-fired power plant emerged as the most cost-effective solution for large-scale, reliable power.

The proposed 2-gigawatt (GW) coal-fired power plant and a 400-megawatt (MW) solar photovoltaic (PV) farm will be developed in two phases on Pulau Setokok, Bulang, approximately 15 km south of the BIP. Phase one includes three 350 MW supercritical coal-fired units. Phase two will add two 600 MW supercritical coal units and the 400 MW solar farm, alongside submarine transmission cables linking to the group’s other power assets in Batam, Bintan, and Bulan. This gargantuan project, with an estimated cost ranging from $2.7 billion to $3 billion, aims to support the group’s ongoing industrial and resort expansions while reducing dependency on volatile gas prices.

Navigating environmental concerns

Recognising the environmental implications of coal-fired power, particularly greenhouse gas emissions, Gallant Venture states its commitment to mitigation. This includes using supercritical coal-fired technology for improved efficiency and lower emissions, and exploring carbon capture and storage solutions. The solar farm will serve as a supplementary energy source to offset environmental impact, and the group will continue expanding its solar PV capacity across its assets. The company underscores its commitment to regulatory compliance and engagement with local communities and environmental organisations.

The project will be financed through a mix of internal funds, bank borrowings, and potentially the issuance of securities. Gallant Venture expresses confidence that this investment will generate long-term value for shareholders and contribute positively to the group’s sustainable growth.

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The appointment, made by Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, consolidates power in Amsakar’s hands and underscores the government’s push to revitalize the region.

Amsakar will be joined by Li Claudia Chandra, Batam’s deputy mayor, who will serve as the free trade zone authority’s deputy head. The appointments, formalized through a decree issued by the Batam Free Trade Zone and Free Port Council, are effective immediately.

“This morning, President Prabowo Subianto swore in Mr. Amsakar Achmad as the Mayor of Batam and Mrs. Li Claudia as the Deputy Mayor,” Mr. Hartarto said at the ceremony. He expressed optimism that the new leadership would usher in an era of progress for Batam, transforming it into a hub for both industry and services.

The ceremony, held in Jakarta, was attended by high-ranking officials, including Susiwijono, the Secretary of the Coordinating Ministry for Economic Affairs, and Elen Setiadi, a Deputy Minister.

Hartarto emphasized the need for Batam to sharpen its competitive edge and address the challenge of limited land availability. He suggested that the nearby islands of Rempang, Galang, and Galang Baru could hold potential for future development.

“Land governance is essential for investment certainty,” Mr. Hartarto said, adding that investment services must be streamlined. He voiced confidence in Mr. Achmad and Ms. Chandra’s ability to coordinate with stakeholders and government agencies.

Batam has experienced robust economic growth in recent years, outpacing both the Riau Islands Province and the national average. In 2023, the city’s economy grew by 7.04 percent, according to Statistics Indonesia, while the province expanded by 5.20 percent and the nation by 5.05 percent. Growth continued into 2024, with a 7.50 percent increase in the third quarter. Batam’s labor market is also strong, with 656,000 workers, representing 70 percent of the working-age population, employed.

The island city’s unique status as the only location in Indonesia with three Special Economic Zones – focused on aerospace, digital technology, and health tourism – further positions it for growth. Mr. Hartarto said that both domestic and foreign investment were crucial for Batam’s future and expressed hope that the new leadership would attract significantly more capital.

A recent government regulation (PP Number 4 of 2025) formalized the changes to the Batam Free Trade Zone and Free Port Authority’s structure, placing the mayor and deputy mayor in charge.

Mr. Hartarto also acknowledged the contributions of the outgoing leadership, Muhammad Rudi and Purwiyanto, praising their work in developing Batam’s infrastructure.

Mr. Achmad, in his remarks, called for unity and collaboration within the free trade zone authority to maximize its potential and attract greater investment.

The ceremony underscored the importance of Batam to Indonesia’s economic strategy and the government’s commitment to fostering growth in the region.

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The program, offered by the Singapore Ministry of Education (MoE), provides scholarships for secondary school studies with a fully funded education at some of Singapore’s top schools.

This prestigious program provides access to top-tier education while fostering cross-cultural understanding and leadership skills in a global environment. The scholarships also aim to foster stronger ties and understanding between young people from different countries, including Singapore.

The scholarship targets academically talented students with a strong command of English and active involvement in extracurricular activities. Recipients will pursue studies culminating in the Singapore-Cambridge GCE A-Level, a qualification recognized globally for university admissions.

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Eligibility is split into two categories. The Secondary 1 Scholarship is available to students born between January 2, 2011, and January 1, 2014, who are currently in sixth or seventh grade. This track provides six years of education. The Secondary 3 Scholarship is for students born between January 2, 2009, and January 1, 2012, currently in eighth or ninth grade, and spans four years.

In addition to a waiver of school and examination fees, the scholarship covers an annual stipend, accommodation in dormitories, round-trip airfare, subsidized healthcare, and accident insurance. These benefits aim to ensure a seamless transition for students embarking on their educational journey in Singapore.

Applications open on January 6 and close on March 14, 2025. Prospective students must apply through an online portal. The selection process includes written tests in cities like Jakarta, Bandung, Medan, and Surabaya in April, followed by interviews in May. Successful candidates will be notified in June and are scheduled to depart for Singapore in November.

First introduced as a tool for strengthening regional ties, the ASEAN Scholarship has grown into a gateway for young Indonesians to gain world-class education and international exposure. Singapore’s commitment to cultivating future leaders through this initiative continues to bolster its reputation as a hub for academic excellence in Southeast Asia.

For detailed application guidelines, visit the Ministry of Education’s website:  https://www.moe.gov.sg/financial-matters/awards-scholarships/asean-scholarship/indonesia. ***

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At the provincial level, officials are confident the hike strikes a fair balance. Mangara Simarmata, head of the local manpower office, said the proposal will soon be forwarded to the governor for formal approval. “This increase aligns with careful studies conducted by the Ministry of Manpower,” he noted, adding that the wage will serve as a floor for provincial labor rates. District-level wages, meanwhile, will be discussed separately.

Yet, the proposed hike has triggered mixed reactions. While the increase of Rp221,161, from the 2024 UMP of Rp3,402,492, represents an improvement, it falls short of expectations, especially from labor unions.

Workers’ unions are less optimistic. The Federation of Indonesian Metal Workers (FSPMI) criticized the 6.5% adjustment as insufficient to counter rising living costs. They are demanding a 9.92% increase, which would set the minimum wage at Rp3.74 million. “Prices for basic goods have surged, and this adjustment does little to help,” argued Yafet Ramon, the union’s local chairperson, citing examples like food costs that now rival those in major cities.

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Businesses, however, welcome the restrained hike. Employers’ associations have pushed back against the union’s demands, warning of potential risks to small and medium enterprises already grappling with sluggish economic growth.

The debate mirrors broader tensions nationally. President Prabowo Subianto’s recent decision to raise Indonesia’s average minimum wage by 6.5% aims to offer a safety net for the country’s lowest-paid workers, particularly those with less than a year of employment. While slightly above the labor minister’s recommendation of 6%, the measure is seen as a calibrated response to competing pressures: appeasing workers without overburdening businesses.

At the provincial level, the wage proposal also seeks to bridge economic disparities. Districts such as Lingga and Tanjungpinang, where living costs and wage calculations remain below provincial norms, will adopt the new provincial minimum. This ensures no region falls behind, albeit at the cost of diluting the wage hike’s local purchasing power in high-cost areas.

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The governor of the Riau Islands is expected to finalize the new wage policy by December 11, 2024, with district-specific rates following a week later. Both will take effect on January 1, 2025. Yet the gap between labor and employer expectations signals that wage debates in the region are far from settled.

For now, the 6.5% increase represents an attempt to walk a tightrope—offering incremental relief for workers while ensuring businesses remain afloat. Whether this is enough to satisfy either side remains to be seen. As the cost of living creeps up and economic pressures mount, it is clear that neither unions nor employers are entirely happy.

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Susiwijono Moegiarso, Secretary of the ministry, acknowledges the challenge. “Johor has set a high bar, offering investors a range of advantages. Batam must rise to the occasion,” he said during a meeting at the Indonesian Parliament on December 3rd.

Batam has natural advantages. Its location near vital shipping routes makes it geographically strategic—arguably more so than Johor. Yet, these benefits are undermined by infrastructure deficits and bureaucratic hurdles that have historically hampered its potential. Recent government efforts aim to change that narrative.

The ministry has rolled out an array of fiscal and non-fiscal incentives to lure investors. These include corporate tax reductions, exemptions from value-added tax, and significant cuts in local levies. Investors in tourism-focused zones are offered even greater perks, while non-fiscal measures promise streamlined licensing and extended land ownership rights, lasting up to 80 years.

But incentives alone may not suffice. Batam must contend with the stark reality of its regional competitors. Johor, bolstered by its proximity to Singapore, offers a level of political stability, infrastructure quality, and connectivity that Batam has yet to replicate. The challenge is steep, yet not insurmountable.

Geopolitics, however, might lend Batam an unexpected boost. Rising tensions between the United States and China have triggered a search among multinationals for alternative production hubs. Indonesia, with its growing consumer market and relatively stable political landscape, could emerge as a beneficiary. “Geopolitical shifts could be a blessing for us,” Susiwijono remarked, referring to past examples where companies relocated to Indonesia amid global trade disruptions.

Batam’s success will ultimately hinge on execution. Infrastructure development must keep pace with investor expectations, and reforms must address the red tape that has long plagued the region.

Achmad Makruf Maulana, Chairman of the Chamber of Commerce and Industry (Kadin) of Riau Islands (Kepri), has raised concerns about the competitive risks posed by the Johor-Singapore Special Economic Zone (JS-SEZ), a joint project developed by Malaysia and Singapore. According to Makruf, the policy incentives offered by JS-SEZ are attractive to businesses, particularly the 5% income tax rate for 20 years and a 10% incentive for Industrial Building Allowance.

“The 5% income tax is a stark contrast to Indonesia’s rate, where corporate income tax can reach up to 21%,” he said in Batam on Thursday, September 26, 2024. This significant difference, he argues, could undermine the investment climate in Indonesia, especially in Batam, as both Batam and JS-SEZ are targeting foreign investors and are strategically located in the Malacca Strait. Moreover, JS-SEZ has the added advantage of more available land.

Makruf warns that if the situation is ignored, it could erode foreign investor confidence in Riau Islands, particularly in Batam. He has formally reached out to Indonesia’s Coordinating Minister for Economic Affairs, the Minister of Investment, and the Minister of Finance, requesting tax policies that would level the playing field with JS-SEZ.

Rafki Rasyid, Chairman of the Indonesian Employers Association (Apindo) Batam, echoed these concerns, stressing the need for the central government to support Batam’s Special Economic Zones (KEK) and Free Trade Zones (FTZ). “Licensing authority should be transferred to FTZ managers and local governments, without sectoral egos,” he said.

Rasyid also acknowledged the growing challenge posed by the development of KEK in Johor, given Singapore’s significant investment footprint in Batam. “If many investors shift to Johor, Batam’s investments will dwindle,” he explained.

Rasyid further called for improvements in infrastructure, including better roads and port facilities, particularly smaller roads leading to industrial zones, as well as more efficient logistics tariffs. “With these improvements, Batam could compete with Johor and other regional SEZs,” he added.

Johor-Singapore SEZ: A New Economic Hub

A long-anticipated agreement between Malaysia and Singapore to develop a Special Economic Zone (SEZ) in Johor, initially slated for September 2024, is now expected to be signed in December 2024. This new zone is poised to become a key alternative to Indonesia’s Special Economic Zones (KEK), which have long attracted Singaporean investors, particularly in Batam, in the Riau Islands.

Johor’s Chief Minister, Onn Hafiz Ghazi, confirmed the delay during a conference in Singapore on August 29, 2024, attributing it to high-level discussions between the two countries. Despite this, Hafiz remains optimistic that the agreement will be finalized soon, with the details being ironed out by officials from both nations.

“Hopefully, the agreement will be signed in November,” said Hafiz, emphasizing that both sides are working to ensure the project proceeds on schedule. Malaysia and Singapore had signed a memorandum of understanding (MoU) in January 2024 to develop the SEZ. The initiative aims to facilitate the free movement of goods and people between resource-rich Johor and land-scarce Singapore.

In July 2024, Malaysia’s Economic Minister, Rafizi Ramli, confirmed that the agreement, originally scheduled for September 2024, had been delayed. Nevertheless, the Johor-Singapore SEZ is seen as a major catalyst for both countries’ economies. It is expected to create around 100,000 new jobs in Johor and boost Malaysia’s economy by USD 26 billion annually by 2030. BLOOMBERG, BISNIS INDONESIA

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Batam’s industrial zones are expanding thanks to the Sembcorp and Panbil Group partnership. In a strategic move that underscores the growing economic ties between Singapore and Indonesia, Sembcorp Industries and Panbil Group have announced a new partnership aimed at developing industrial zones in Batam. The collaboration focuses on the expansion of industrial areas in Tembesi and Tanjung Sauh, promising a surge of Singaporean investment into the region.

The partnership was highlighted during an official visit by Singapore’s Second Minister for Foreign Affairs and Education, Maliki Osman, to the Panbil Industrial Estate in Tembesi on August 22, 2024. This visit marks the first official engagement by Singaporean officials at the 100-hectare industrial park, emphasizing the commitment to strengthening economic relations between the two nations.

Minister Maliki’s visit was accompanied by Weiming Tan, Deputy Director-General of the Southeast Asia I Directorate at Singapore’s Ministry of Foreign Affairs, and Gavin Ang, Singapore’s Consul-General in Batam. Panbil Group was represented by Chairman Johanes Kennedy, CFO Mahdian, and COO Patrick Aritonang.

Minister Maliki highlighted Batam’s rapid economic growth, noting that the establishment of Panbil Group’s industrial zones in Tembesi and Tanjung Sauh presents a significant opportunity for international collaboration between Singapore and Indonesia. He expressed optimism that these developments would bolster Batam’s economic and social progress, while enhancing its global market appeal.

“Every visit to Batam reveals new developments. Now, with the Tembesi and Tanjung Sauh industrial areas, there is a substantial opportunity for collaboration between Singapore and the Riau Archipelago,” Minister Maliki said during a press briefing at Oakwood Hotel & Apartments on August 23.

Johanes Kennedy, Chairman of Panbil Group, welcomed the minister’s visit as a catalyst for strengthening cooperation across various sectors, including manufacturing, technology, and human resources development. He affirmed Panbil Group’s dedication to creating a business-friendly environment conducive to investment.

Panbil Group also has ambitious plans for the industrial zones, including a focus on green energy and achieving Net Zero Emissions (NZE) by 2060. The Panbil development area, situated in the heart of Batam, spans 300 hectares and includes industrial, commercial, and residential zones. Currently, it houses over 25 multinational manufacturing companies, 700 residential units, and a vibrant commercial area.

The industrial zone in Tembesi, which is in development, is strategically located and equipped with modern infrastructure and a skilled workforce. It is expected to drive Batam’s competitiveness as a key industrial and trade hub in Southeast Asia.

The collaboration between Panbil and Sembcorp marks a return to Batam for Sembcorp, a Singaporean corporation with a long history in the region dating back to the 1990s. The partnership will see the development of two green industrial zones, one of which will be situated in the Special Economic Zone (SEZ) of Tanjung Sauh. Both companies signed a memorandum of understanding (MoU) on August 1, 2024.

Sembcorp, through its subsidiary Sembcorp Development, will invest significantly in these projects. Lee Ark Boon, CEO of Sembcorp Development, emphasized the company’s track record in energy and integrated urban solutions, expressing confidence that the low-carbon industrial zones will promote environmentally friendly business practices and strengthen Singapore-Batam partnerships.

The Tembesi industrial zone will span 100 hectares and cater to various industries including electronics, electrical engineering, precision engineering, and pharmaceuticals. Meanwhile, the Tanjung Sauh zone will cover 500 hectares within an SEZ designated for industrial development. This zone aims to support light to medium industries and energy-intensive businesses such as advanced manufacturing and data centers, with a focus on sustainable energy solutions.

Initial investments in the Tanjung Sauh SEZ are projected to reach IDR 30-35 trillion, with a cumulative total investment estimated between IDR 180-190 trillion over 10-20 years. Early-stage investments will include IDR 10 trillion for infrastructure such as reservoirs, ports, and roads.

The Tanjung Sauh SEZ will feature a transshipment port capable of handling up to 5 million TEUs, positioning it as a logistics hub in the Malacca Strait. It will also serve as a research and development center for energy, producing alternative, renewable, and primary energy to meet the needs of Batam and Bintan.

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The initiative to plant these trees along the pedestrian pathways was launched in late 2022 by Muhammad Rudi, Head of the Batam Indonesia Free Zone Authority (BP Batam). The Tabebuya, native to Latin America, is often likened to Japan’s sakura due to its striking resemblance. The trees’ presence in Batam Center is part of a broader effort to beautify the city and enhance the green spaces in an area that serves as the administrative, commercial, and residential hub of Batam.

Rudi emphasized that the planting of Tabebuya trees is a key component of his urban planning strategy aimed at improving public amenities for both Batam residents and visitors. The trees were selected not only for their visual appeal but also for their resilience and adaptability to diverse environmental conditions.

“Tabebuya trees are also effective in purifying the air by filtering out harmful pollutants. We hope this initiative will bring tangible benefits to the city of Batam,” Rudi said.

He also called on the community to take an active role in maintaining the newly established greenery. “It’s essential that we all work together to care for these facilities, ensuring they remain beneficial for generations to come,” he added.

The blossoming of the Tabebuya trees has become a unique attraction for locals and visitors alike. Many people are drawn to the colorful display, using the picturesque setting as a backdrop for photographs.

Abdul Muthallib, a resident of Bengkong, expressed his delight at the transformation. “The blooming Tabebuya trees certainly add to the beauty of Batam Center. With their white and pink hues, it feels like being in Japan, surrounded by sakura,” he said enthusiastically.

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