Investment Ministry and Batam Authority Sign MoU to Boost Investment in Free Trade Zone
Jakarta — Investment and Downstreaming Minister/BKPM Head Rosan Perkasa Roeslani and Batam Mayor cum Batam Development Authority (BP Batam) Head Amsakar Achmad signed a Memorandum of Understanding (MoU) on Investment Development in the Batam Free Trade and Free Port Zone (KPBPB).
The MoU covers agreements on data exchange, planning synchronisation, permit acceleration, investment opportunity development, and the establishment of an Investment Realisation Enhancement Desk as a rapid response channel to address obstacles on the ground.
Rosan said investment is a crucial aspect and one of the main pillars in achieving the national economic growth target of 8 per cent by 2029, in line with President Prabowo Subianto's directives.
"Investment contribution is the second largest (29-30 per cent) after domestic consumption, which currently stands at around 53-55 per cent. Therefore, the role of investment cannot be underestimated," Rosan said in a written statement on Friday (27/6/2025).
Rosan said the MoU aims to improve the investment climate, particularly in Batam, to make it better, faster, more transparent, and more open. One concrete step outlined in the MoU is the re-establishment of the Investment Realisation Enhancement Desk in KPBPB Batam.
Going forward, he will station a team from the Investment and Downstreaming Ministry/BKPM in KPBPB Batam to strengthen investment services for incoming investment and accelerate the synchronisation of central and Batam investment policies.
"With the Investment and Downstreaming Ministry/BKPM Desk to be stationed in Batam, this will certainly speed up the investment facilitation process," he said.
BP Batam holds its own authority regarding business permits. Rosan said his ministry would facilitate BP Batam's authority through the Online Single Submission (OSS) system managed by the Investment and Downstreaming Ministry/BKPM, enabling faster permit processing and issuance.
Batam Mayor and BP Batam Head Amsakar Achmad said the move was a response to the aspirations of business operators who have long faced lengthy bureaucratic challenges. Amsakar also expressed gratitude for the central government's support in permanently stationing Investment and Downstreaming Ministry officials in Batam.
"Through the signing of this MoU between the Investment and Downstreaming Ministry/BKPM, the Batam city government and BP Batam, we are strengthening the foundation of cooperation. All these steps are a manifestation of our shared commitment to not only create an investment-friendly zone, but also one that is adaptive and responsive to global developments," Amsakar said.
Amsakar also outlined several projects currently attracting investor attention, including Nongsa Digital Park in the artificial intelligence and digital sector, the Solar Home System project, and the Sekupang Health Special Economic Zone in partnership with Mayapada.
"The Solar Home System has attracted enormous interest, and at present at least two companies are planning to invest there. If these two strategic projects alone come in, the impact will be extraordinary," he said.
According to Investment and Downstreaming Ministry/BKPM data, during the period from 2020 to the first quarter of 2025, investment realisation in Batam reached Rp100.5 trillion. The five largest sectors were: (1) Machinery and Electronics Industry at Rp23.93 trillion; (2) Housing, Industrial Estates and Office Buildings at Rp15.78 trillion; (3) Chemical and Pharmaceutical Industry at Rp9.33 trillion; (4) Food Industry at Rp8.33 trillion; and (5) Other Services at Rp6.92 trillion.
Meanwhile, Singapore was the largest source of foreign direct investment in Batam, with total investment of Rp33.78 trillion over the same period.
The MoU covers agreements on data exchange, planning synchronisation, permit acceleration, investment opportunity development, and the establishment of an Investment Realisation Enhancement Desk as a rapid response channel to address obstacles on the ground.
Rosan said investment is a crucial aspect and one of the main pillars in achieving the national economic growth target of 8 per cent by 2029, in line with President Prabowo Subianto's directives.
"Investment contribution is the second largest (29-30 per cent) after domestic consumption, which currently stands at around 53-55 per cent. Therefore, the role of investment cannot be underestimated," Rosan said in a written statement on Friday (27/6/2025).
Rosan said the MoU aims to improve the investment climate, particularly in Batam, to make it better, faster, more transparent, and more open. One concrete step outlined in the MoU is the re-establishment of the Investment Realisation Enhancement Desk in KPBPB Batam.
Going forward, he will station a team from the Investment and Downstreaming Ministry/BKPM in KPBPB Batam to strengthen investment services for incoming investment and accelerate the synchronisation of central and Batam investment policies.
"With the Investment and Downstreaming Ministry/BKPM Desk to be stationed in Batam, this will certainly speed up the investment facilitation process," he said.
BP Batam holds its own authority regarding business permits. Rosan said his ministry would facilitate BP Batam's authority through the Online Single Submission (OSS) system managed by the Investment and Downstreaming Ministry/BKPM, enabling faster permit processing and issuance.
Batam Mayor and BP Batam Head Amsakar Achmad said the move was a response to the aspirations of business operators who have long faced lengthy bureaucratic challenges. Amsakar also expressed gratitude for the central government's support in permanently stationing Investment and Downstreaming Ministry officials in Batam.
"Through the signing of this MoU between the Investment and Downstreaming Ministry/BKPM, the Batam city government and BP Batam, we are strengthening the foundation of cooperation. All these steps are a manifestation of our shared commitment to not only create an investment-friendly zone, but also one that is adaptive and responsive to global developments," Amsakar said.
Amsakar also outlined several projects currently attracting investor attention, including Nongsa Digital Park in the artificial intelligence and digital sector, the Solar Home System project, and the Sekupang Health Special Economic Zone in partnership with Mayapada.
"The Solar Home System has attracted enormous interest, and at present at least two companies are planning to invest there. If these two strategic projects alone come in, the impact will be extraordinary," he said.
According to Investment and Downstreaming Ministry/BKPM data, during the period from 2020 to the first quarter of 2025, investment realisation in Batam reached Rp100.5 trillion. The five largest sectors were: (1) Machinery and Electronics Industry at Rp23.93 trillion; (2) Housing, Industrial Estates and Office Buildings at Rp15.78 trillion; (3) Chemical and Pharmaceutical Industry at Rp9.33 trillion; (4) Food Industry at Rp8.33 trillion; and (5) Other Services at Rp6.92 trillion.
Meanwhile, Singapore was the largest source of foreign direct investment in Batam, with total investment of Rp33.78 trillion over the same period.