Investment Ministry and Batam Authority Sign MoU to Boost Investment in Free Trade Zone
Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani and Batam Mayor cum Head of the Batam Authority (BP Batam) Amsakar Achmad have signed a memorandum of understanding (MoU) on Investment Development in the Batam Free Trade and Free Port Zone (KPBPB).
The MoU encompasses agreements on data exchange, planning synchronisation, licensing acceleration, investment opportunity development, and the establishment of an Investment Realisation Improvement Desk to address obstacles on the ground.
Rosan said investment is 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. He noted that investment's contribution to economic growth is the second largest at 29–30 per cent, whilst domestic consumption ranks first at approximately 53–55 per cent.
"Therefore, the role of investment cannot be underestimated," Rosan said in a written statement quoted on Saturday, 28 June 2025.
Rosan said the MoU aims to improve the investment climate to be better, faster, more transparent, and more open, particularly in Batam. One key element of the agreement is the re-establishment of the Investment Realisation Improvement Desk in KPBPB Batam. Rosan will station a team from his ministry in KPBPB Batam to strengthen investment services for those seeking to invest in Batam, as well as to accelerate the synchronisation of investment policies between the central government and Batam.
"With the Ministry of Investment and Downstreaming/BKPM Desk to be stationed in Batam, this will certainly accelerate the investment facilitation process," he said.
Although Batam has its own authority, Rosan noted that certain powers held by the ministry would also be distributed to Batam. "Consequently, the licensing process and permit issuance can proceed more quickly," he said.
On the same occasion, Amsakar Achmad described the move as a response to the aspirations of business operators who have long been hampered by lengthy bureaucracy. Amsakar expressed gratitude for the central government's support in permanently stationing Ministry of Investment and Downstreaming officials in Batam.
"All these steps are a manifestation of our shared commitment not only to create an investment-friendly zone, but also one that is adaptive and responsive to global developments," he said.
Amsakar highlighted several projects currently attracting investor attention, ranging from Nongsa Digital Park in the artificial intelligence and digital sector, solar home system projects, to the Sekupang Health Special Economic Zone (KEK) in partnership with Mayapada Hospital.
He said the solar home system project has attracted considerable interest in Batam. "At present, at least two companies are planning to invest there. If these two strategic projects alone come through, the impact will be tremendous," Amsakar said.
According to data from the Ministry of Investment and Downstreaming, investment realisation in Batam from 2020 to the first quarter of 2025 reached Rp 100.5 trillion. Of this total, the five largest sectors were the machinery and electronics industry at Rp 23.93 trillion, followed by housing, industrial estates, and offices at Rp 15.78 trillion, the chemical and pharmaceutical industry at Rp 9.33 trillion, the food industry at Rp 8.33 trillion, and other services at Rp 6.92 trillion.
Singapore was the largest source of foreign direct investment (FDI) in Batam, with total investment of Rp 33.78 trillion over the same period.
The MoU encompasses agreements on data exchange, planning synchronisation, licensing acceleration, investment opportunity development, and the establishment of an Investment Realisation Improvement Desk to address obstacles on the ground.
Rosan said investment is 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. He noted that investment's contribution to economic growth is the second largest at 29–30 per cent, whilst domestic consumption ranks first at approximately 53–55 per cent.
"Therefore, the role of investment cannot be underestimated," Rosan said in a written statement quoted on Saturday, 28 June 2025.
Rosan said the MoU aims to improve the investment climate to be better, faster, more transparent, and more open, particularly in Batam. One key element of the agreement is the re-establishment of the Investment Realisation Improvement Desk in KPBPB Batam. Rosan will station a team from his ministry in KPBPB Batam to strengthen investment services for those seeking to invest in Batam, as well as to accelerate the synchronisation of investment policies between the central government and Batam.
"With the Ministry of Investment and Downstreaming/BKPM Desk to be stationed in Batam, this will certainly accelerate the investment facilitation process," he said.
Although Batam has its own authority, Rosan noted that certain powers held by the ministry would also be distributed to Batam. "Consequently, the licensing process and permit issuance can proceed more quickly," he said.
On the same occasion, Amsakar Achmad described the move as a response to the aspirations of business operators who have long been hampered by lengthy bureaucracy. Amsakar expressed gratitude for the central government's support in permanently stationing Ministry of Investment and Downstreaming officials in Batam.
"All these steps are a manifestation of our shared commitment not only to create an investment-friendly zone, but also one that is adaptive and responsive to global developments," he said.
Amsakar highlighted several projects currently attracting investor attention, ranging from Nongsa Digital Park in the artificial intelligence and digital sector, solar home system projects, to the Sekupang Health Special Economic Zone (KEK) in partnership with Mayapada Hospital.
He said the solar home system project has attracted considerable interest in Batam. "At present, at least two companies are planning to invest there. If these two strategic projects alone come through, the impact will be tremendous," Amsakar said.
According to data from the Ministry of Investment and Downstreaming, investment realisation in Batam from 2020 to the first quarter of 2025 reached Rp 100.5 trillion. Of this total, the five largest sectors were the machinery and electronics industry at Rp 23.93 trillion, followed by housing, industrial estates, and offices at Rp 15.78 trillion, the chemical and pharmaceutical industry at Rp 9.33 trillion, the food industry at Rp 8.33 trillion, and other services at Rp 6.92 trillion.
Singapore was the largest source of foreign direct investment (FDI) in Batam, with total investment of Rp 33.78 trillion over the same period.