Global Investors Begin to Eye Transmigration Areas, Says Minister
Indonesia’s transmigration areas are beginning to attract the attention of global investors. New investment opportunities being developed by the government in these areas cover various strategic sectors, from data centres to the shipbuilding industry and natural resource potential.
Minister of Transmigration Iftitah Sulaiman Suryanagara stated that each transmigration area possesses different characteristics and comparative advantages. Therefore, the development strategy must be tailored to the unique potential of each region.
“The era when transmigration areas were seen merely as agricultural zones has changed. Today, investors are beginning to view transmigration areas as competitive locations for investment in various strategic sectors,” Minister Iftitah said in a written statement on Tuesday (7/7/2026).
One area considered highly potential is the transmigration area in Barelang, Batam. The area is deemed ideal for the development of a data centre because it is supported by an adequate electricity supply, a strategic location, and strong connectivity with regional industrial and trade centres.
“There is a transmigration area in Batam that is very potential for a data centre. NVIDIA has even entered the area. Why? Because the electricity supply is available and the location is very strategic,” he explained.
Beyond the digital sector, investment opportunities in Barelang are also wide open for the maritime sector, such as the shipbuilding industry, which is a mainstay of the Riau Islands. Furthermore, Iftitah mentioned that investment interest has also been coming from Australia.
“We received a prospective investor from Australia who came to see the potential of the transmigration area firsthand. This shows that transmigration areas are beginning to be taken into account on the international investment map, no longer just as settlement areas,” he revealed.
To accelerate incoming investment, the Ministry of Transmigration is collaborating with various universities to compile academic studies and feasibility studies. This step is taken so that each area has a mature, measurable investment project ready to be offered to investors.
“Investors do not come to places that are unclear. Therefore, every area must be supported by scientific studies and feasibility studies that provide certainty as well as a basis for investment decision-making,” said Minister Iftitah.
According to him, the current transmigration transformation does not stop at providing land and building settlements. The government is actively building an investment ecosystem that connects the potential of the areas with the needs of the business world.
“We actually already have the basic capital, namely land, areas, and human resources. What we must build is the ecosystem, bringing in technology, capital, industry, and offtakers so that all this potential generates maximum added value,” he stressed.
“Each transmigration area has different advantages. Some are strong in the digital sector, some are potential for the maritime industry, energy, agriculture, or other sectors. Its development must follow the advantages of each area,” he said.
Through this approach, the Ministry of Transmigration is optimistic that these areas will develop into new centres of economic growth. This ecosystem is expected to attract investment, strengthen industrialisation, create quality jobs, and accelerate equitable development throughout Indonesia.