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 sector and high-tech industries, in line with growing investor interest in data centre development, according to Batam Mayor Amsakar Achmad.

Amsakar Achmad, who also serves as Head of the Batam Entrepreneurship Board (BP Batam), said on Wednesday in Batam that this change is one indicator of improving investment quality in the city.

According to him, whereas investment was previously dominated by infrastructure and assembly manufacturing, it is now shifting towards industries with higher added value.

“High-tech manufacturing is now one of the sectors most sought after by investors, followed by the chemical and pharmaceutical industries, housing and industrial estates, as well as transport, warehousing and telecommunications,” said Amsakar.

He added that the information technology sector has become a new engine of 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 primary needs of technology-based industries,” he said.

He cited PT Altiva Identity Data Center, which has invested in a data centre in Batam, and also highlighted a planned partnership between Australia’s Firmus Technologies and Nvidia to build Graphics Processing Unit (GPU) production facilities in Batam, targeted to begin operations in the first quarter of 2027.

“This transformation of the investment structure towards technology goes hand in hand with growing investor confidence in Batam. We have also recorded an increase in annual investment realisation,” he said.

In the first half of 2026, investment realisation in Batam reached Rp29.89 trillion, growing 62.75 percent compared with the same period last year at Rp18.37 trillion.

“This surge reflects an increasingly conducive business climate and is the result of synergy between the Batam City Government, BP Batam, the central government and all stakeholders in providing certainty for investors,” he said.

Investment growth is also reflected in the rising number of projects. As of the first half of 2026, the number of investment projects reached 15,826, up 32.82 percent from 11,915 projects in the same period last year.

“In addition to the increasing number of projects, the investment value per project is also growing. Average investment per project rose 22.53 percent, from Rp1.54 billion to Rp1.89 billion, indicating the entry of investments with a higher scale and added value,” said Amsakar.

Based on first-half 2026 data, the five largest investment-contributing sectors in Batam comprise other services at Rp6.09 trillion; the machinery, electronics, medical instruments, electrical equipment, precision, optics and watches industry at Rp6.07 trillion; the chemical and pharmaceutical industry at Rp3.97 trillion; housing, industrial estates and offices at Rp3.52 trillion; and transport, warehousing and telecommunications at Rp2.55 trillion.

Meanwhile, in terms of investor countries of origin, Singapore remains the largest contributor with Rp10.89 trillion, followed by Hong Kong at Rp1.39 trillion, South Korea at Rp1.18 trillion, the People’s Republic of China at Rp1.11 trillion, and the United States at Rp1.02 trillion.