Batam Becomes Backbone of Riau Islands Investment in 2026

The Batam Industrial Development Authority (BP Batam) recorded an investment realisation of Rp17.4 trillion in the first quarter of 2026. This figure grew by 102.85% year-on-year and increased by 68.92% compared to the previous quarter. This achievement demonstrates strong acceleration in Batam at the start of 2026, while affirming its position as one of Indonesia’s most dynamic investment growth centres. In terms of composition, the investment structure is increasingly solid, with foreign direct investment (PMA) at Rp8.8 trillion and domestic investment (PMDN) at Rp8.5 trillion. The 216% year-on-year rise in PMDN reflects growing confidence among domestic investors, while PMA remains at a strong level. Sectorally, the investment realisation is supported by the machinery and electronics industry at 23.65%, followed by the chemicals and pharmaceuticals sector at 21.18%, other services at 17.70%, and housing, industrial areas, and office spaces at 13.09%. This composition indicates that Batam’s growth relies on high-value-added sectors and the strengthening of the industrial ecosystem. Regionally, Batam contributes around 73.5% of the total investment realisation in Riau Islands Province, which reached approximately Rp23.8 trillion in the same period. This affirms Batam’s role as the main driver of the regional economy. Head of BP Batam, Amsakar Achmad, stated that this achievement reflects increasing investor confidence in Batam. “This surge shows that Batam is not only capable of attracting investment but also executing it more quickly, certainly, and productively,” he said. Deputy Head of BP Batam, Li Claudia Chandra, added that Batam’s dominance in Riau Islands investments has strategic significance. “Batam plays a central role in driving the regional economy. This growth provides a multiplier effect on the industrial, logistics, trade, and services sectors,” she said. Meanwhile, Deputy for Investment at BP Batam, Fary Djemy Francis, emphasised the importance of the quality of investment growth. “This is not just a surge in numbers, but it shows a healthy investment structure. PMA remains strong and PMDN is growing aggressively, indicating that Batam is increasingly perceived as a feasible, bankable, and executable area,” he said. Based on the country of origin, Singapore is the largest contributor with an investment value of Rp4.82 trillion, followed by Hong Kong, the United States, China, and Japan. This distribution reflects Batam’s strategic position in regional and global investment networks. BP Batam stated that it will maintain this growth momentum through strengthening investment services, accelerating the provision of land and utilities, and improving business certainty. Looking ahead, Batam not only targets an increase in investment value but also the development of a competitive and sustainable industrial ecosystem.