Mayor: Batam transforming into high-tech industrial sector

Batam (ANTARA) - The investment structure in Batam City, Riau Islands, is beginning to transform from assembly manufacturing towards the information technology and high-tech industry sectors, driven by growing investor interest in data centre development, according to Batam Mayor Amsakar Achmad. Amsakar Achmad, who also serves as Head of the Batam Concession Agency (BP Batam), stated on Wednesday that this shift is an indicator of the improving quality of investment in Batam. He noted that while investment was previously dominated by infrastructure and assembly manufacturing, the direction is now moving towards industries with higher added value. “High-tech manufacturing industries are now among the most attractive sectors for investors, followed by the chemical and pharmaceutical industries, housing and industrial estates, as well as transportation, warehousing, and telecommunications,” Amsakar said. He added that the information technology sector has become a new engine for investment growth, particularly with the development of the data centre industry in Batam. “With this, we are committed to ensuring the readiness of supporting infrastructure, especially the availability of electricity and clean water, which are the main requirements for technology-based industries,” he said. He cited PT Altiva Identity Data Center, which has invested in a data centre in Batam, and also highlighted the planned partnership between Australia’s Firmus Technologies and Nvidia to build a Graphics Processing Unit (GPU) production facility in Batam, targeted to begin operations in the first quarter of 2027. “This transformation of the investment structure towards technology is in line with increasing investor confidence in Batam. We have also recorded an annual increase in investment realisation,” he said. In the first half of 2026, investment realisation in Batam reached IDR 29.89 trillion, a growth of 62.75 percent compared to IDR 18.37 trillion in the same period the previous year. “This surge reflects a more conducive business climate and is the result of synergy between the Batam City Government, BP Batam, the central government, and all stakeholders in providing business certainty for investors,” he said. Investment growth was also reflected in the increasing number of projects. Up to the first half of 2026, the number of investment projects reached 15,826, an increase of 32.82 percent compared to 11,915 projects in the same period last year. “In addition to the increase in the number of projects, the average investment value per project has also grown. The average investment per project rose 22.53 percent, from IDR 1.54 billion to IDR 1.89 billion, indicating the entry of larger-scale and higher-value-added investments,” Amsakar said. Based on data for the first half of 2026, the five largest investment sectors in Batam were other services at IDR 6.09 trillion; machinery, electronics, medical instruments, electrical equipment, precision, optical, and watch industries at IDR 6.07 trillion; chemical and pharmaceutical industries at IDR 3.97 trillion; housing, industrial estates, and offices at IDR 3.52 trillion; and transportation, warehousing, and telecommunications at IDR 2.55 trillion. In terms of investor origin, Singapore remained the largest contributor with IDR 10.89 trillion, followed by Hong Kong at IDR 1.39 trillion, South Korea at IDR 1.18 trillion, the People’s Republic of China at IDR 1.11 trillion, and the United States at IDR 1.02 trillion.