Batam's Working Area Officially Expands from 8 to 22 Islands

Jakarta, CNBC Indonesia - A new regulation supporting the development of the Batam Business Agency (BP Batam), Government Regulation (PP) No. 47 of 2025, has become key to the surge in investment flows into Batam. The regulation, which was enacted and came into effect on 28 October 2025, aims to accelerate investment and strengthen port operations by expanding the Batam Free Trade and Free Port Zone (KPBPB).

Head of BP Batam Amsakar stated that the PP regulates the expansion of Batam’s working area from 8 islands covering 71,500 hectares to 22 islands totalling 152,000 hectares. This expansion is seen as an important foundation for encouraging the integration of trade, industrial, and port activities, as well as strengthening licensing authority through the latest regulations, which is expected to accelerate investment realisation and propel Batam as a locomotive for national economic growth.

Amsakar revealed that the investment value in Batam soared by 72.38% in 2025 compared to 2024. The Head of BP Batam, Amsakar Achmad, described this achievement as the fruit of a ‘gift’ of regulation from Indonesian President Prabowo Subianto, one of which is PP No. 47 of 2025.

‘For investment figures, the growth is also very significant. In 2024, our investment realisation was Rp25.46 trillion, and in 2025 it became Rp44.01 trillion, growing by 72.83%. If we look at the 2025 target, our figure was Rp36.9 trillion, and our realisation was Rp44.01 trillion,’ he told CNBC Indonesia on Friday (17/7/2026).

Other regulations include Government Regulation No. 2 of 2025, and PP No. 25 of 2025 concerning the management of free trade zones, and PP No. 28 of 2025 concerning risk-based business licensing. Then there is PP No. 27 of 2025 regarding the expansion of the working area in Batam. Amsakar said these various regulations provide investment convenience to investors.

‘So, I see now there are three areas, three categories of licensing. They are basic services, business licensing, and business licensing to support business activities,’ he said.

He also stated that he received direction from the President to simplify licensing services, so he and his team overhauled all investment licensing matters in Batam. ‘Previously, to process an environmental impact analysis (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 provides leverage for the investment developments occurring recently,’ he added.