Indonesian Political, Business & Finance News

Batam Receives 'Gift' of 5 Regulations from Prabowo, Investment Soars 73%

| Source: CNBC Translated from Indonesian | Investment
Batam Receives 'Gift' of 5 Regulations from Prabowo, Investment Soars 73%
Image: CNBC

The value of investment in Batam soared 72.38% to Rp44.01 trillion in 2025 compared to 2024. The Head of the Batam Authority (BP Batam), Amsakar Achmad, described this achievement as the fruit of a regulatory ‘gift’ from Indonesian President Prabowo Subianto. “For the investment figures, the growth is also very significant. In 2024, our investment realisation was Rp25.46 trillion; in 2025 it became Rp44.01 trillion, growing 72.83%. When compared to the 2025 target of Rp36.9 trillion, our realisation reached Rp44.01 trillion,” he told CNBC Indonesia on Friday (17/7/2026). Amsakar stated that five government regulations have driven investment growth in Batam. “That is Jakarta, Mr Prabowo gifted Batam five regulations,” he said. The first is Government Regulation (PP) No. 2 of 2025. Then PP No. 25 of 2025 concerning the implementation of free trade zones and PP No. 28 of 2025 concerning risk-based business licensing. Additionally, PP No. 27 of 2025 concerns the expansion of the working area in Batam. Amsakar said these various regulations provide ease of investment for investors. “So, I see now there are three fields, three licensing categories. They are called basic services, business licensing, and business licensing to support business activities,” he stated. Further investment ease in terms of regulation was demonstrated by Amsakar across 16 sectors, totalling 1,416 types of licensing and non-licensing services that were previously handled by Ministries/Agencies (K/L) and can now be fully processed in Batam. “This is what we call extraordinary support from the Central Government for Batam,” he said. Another rule driving investment to Batam, according to Amsakar, is PP No. 47/2025, which forms the basis for developing the working area that now encompasses 22 islands around Batam. He said that after receiving direction from the President to simplify licensing services, he and his staff overhauled all investment licensing matters in Batam. “Previously, to process an environmental impact assessment (Amdal), it took 6 months to 2 years, but now it is completed within 38 days. The PKKPRL for marine areas is completed within 2 months. I think this is what has provided leverage for the recent investment developments,” he added.

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