Indonesian Political, Business & Finance News

Batam's Economy Grows 6.76 Per Cent in 2025, Highest in Riau Islands

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Batam's Economy Grows 6.76 Per Cent in 2025, Highest in Riau Islands
Image: MEDIA_INDONESIA

Batam recorded an annual economic growth rate of 6.76 per cent in 2025, making it the highest in Riau Islands Province (Kepri) and exceeding both provincial and national economic growth averages.

The Deputy for Investment and Business at the Batam Authority (BP) Batam, Fary Djemy Francis, stated that this achievement demonstrates that Batam’s economic structure is increasingly supported by the industrial and investment sectors. According to him, economic performance has been driven by productive sector activities such as manufacturing, trade, logistics, and increasing investment.

“Batam’s economic growth in 2025 reached 6.76 per cent. This shows that the main drivers of Batam’s economy come from productive sectors such as manufacturing, trade, logistics, and investment that continue to increase. This figure is also higher compared to provincial and national growth,” Fary said in an official statement in Batam on Monday, 9 March.

Data from the Central Statistics Agency (BPS) recorded economic growth in Riau Islands Province in 2025 at 5.88 per cent, whilst national economic growth was recorded at 5.11 per cent.

When compared with other areas in Kepri, Batam ranks highest in economic growth without support from the oil and gas (migas) sector as found in Anambas Islands and Natuna regencies. Bintan Regency recorded economic growth of 6.43 per cent, followed by Karimun 5.44 per cent, Tanjungpinang 3.31 per cent, Lingga 3.53 per cent, and Anambas Islands 2.87 per cent. Meanwhile, Natuna experienced an economic contraction of -1.61 per cent.

Fary valued this achievement as proof that Batam’s economy is developing without relying on the oil and gas sector.

“Batam’s growth that does not depend on the migas sector shows that this city is developing as an increasingly competitive centre for international industry and trade,” he said.

He added that calculating economic growth without migas is important for depicting regional economic strength more accurately and sustainably. The migas sector, he continued, is greatly influenced by fluctuations in global energy prices and production volumes, and therefore often does not reflect real local economic activity.

“By looking at growth without migas, we can understand more clearly that Batam’s economy is growing because of the strength of industry, trade, and investment,” he added.

Fary also emphasised that Batam’s strategic position on international trade routes, its proximity to Singapore and Malaysia, and the development of industrial zones are important factors that maintain the region’s economic growth momentum.

“Batam has geographic advantages and a strong industrial ecosystem. With support for infrastructure, ease of investment, and international logistics connectivity, Batam increasingly strengthens its role as a competitive investment and industrial hub with global competitiveness,” he concluded.

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