Indonesian Political, Business & Finance News

Investment Ministry Signs MoU with Batam to Boost Free Trade Zone Investment

| Source: GALERT
Jakarta - The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has signed a memorandum of understanding (MoU) with the Batam City Government and the Management Authority (BP) of the Batam Free Trade and Free Port Zone (KPBPB). The MoU aims to drive investment in free trade and free port activities in Batam, which serves as an international trading zone. The cooperation encompasses data synchronisation and business licensing facilitation.

Minister of Investment and Downstreaming/BKPM Chairman Rosan Roeslani said the agreement is expected to increase investment in Batam in a more open and transparent manner. Going forward, Rosan added that his ministry would station officials at BP KPBPB Batam.

"We share a common understanding with BP Batam and the Batam City Government on how to facilitate this. As part of our commitment, we will station Ministry of Investment and Downstreaming officials at KPBPB Batam on a permanent basis. There will be an investment relations enhancement desk at BP KPBPB Batam," Rosan said during the MoU signing ceremony at the Ministry of Investment and Downstreaming/BKPM office in Jakarta on Tuesday (24/6/2025).

The move is intended to accelerate investment in Batam, as prospective investors in the area must process their permits through the Ministry of Investment and Downstreaming/BKPM.

Additionally, Rosan opened the door for the Investment Management Agency (BPI) Daya Anagata Nusantara (Danantara) to become an investment partner in Batam's industrial zones.

"In my capacity as Minister of Investment and Downstreaming and also Head of BP Danantara, we are very open should incoming investments in Batam require a government partner. In that regard, Danantara is ready to collaborate and partner with potential investors," he added.

At the same event, Batam Mayor and BP KPBPB Batam Chairman Amsakar Achmad explained that his region serves as a locomotive for national investment and trade. However, he stressed the need for a solid ecosystem to strengthen the zone.

He noted that Batam is a free trade and free port zone housing 31 industrial estates, 135 shipyard industries, a special economic zone (KEK), and two national strategic projects (PSN).

"It is simply a matter of how we organise regulations, improve governance, and build synergy. It is in this context that we view the MoU we have signed today as an opening for further investment growth in the City of Batam," he explained.
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