Ministry of Investment Signs MoU with Batam Free Trade Zone Authority to Boost Investment
JAKARTA — The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) has signed a memorandum of understanding (MoU) with the Batam Free Trade Zone and Free Port Authority (BP KPBPB) to boost investment activity in Batam.
Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, said that under the agreement, the ministry would establish a dedicated service desk to facilitate increased investment in Batam.
"We recognise Batam's highly important and strategic role, both geographically and economically. We see that there is much we can collaborate on," Rosan affirmed at the MoU signing ceremony at the Ministry of Investment and Downstreaming/BKPM office on Tuesday (24/6/2025).
The placement of the ministry's desk at BP KPBPB Batam is expected to streamline the permit processing procedure. The resulting domino effect would be increased investment realisation and job creation.
"Our primary homework is ensuring that incoming investment is not solely about economics, but also about job creation. This will produce a multiplier effect in terms of the economy, employment and improvement of human resource quality," Rosan said.
At the same event, Batam Mayor and Ex Officio Head of BP KPBPB Batam, Amsakar Achmad, noted that many foreign investors frequently encounter obstacles when commencing investment in Batam. Several stages of the investment initiation process are time-consuming, which reduces Batam's attractiveness as an investment destination.
"If their investment plans are urgent but the process takes two years to complete, they will look to alternative locations," Amsakar stressed.
He explained that the most prominent investments currently involve digitalisation, electricity and the healthcare sector. In the digitalisation sector, a digital data centre is under construction at Nongsa Digital Park.
"Within Nongsa Digital Park, there are tenants whose business scale has already reached an international level," Amsakar said.
On the healthcare front, the government is completing the construction of a Special Economic Zone for the health sector in Sekupang. The expectation is that many investors will participate in this SEZ.
"We believe that if business operators see the government is serious about improving governance, more investors will come to Batam in the future," Amsakar affirmed.
Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, said that under the agreement, the ministry would establish a dedicated service desk to facilitate increased investment in Batam.
"We recognise Batam's highly important and strategic role, both geographically and economically. We see that there is much we can collaborate on," Rosan affirmed at the MoU signing ceremony at the Ministry of Investment and Downstreaming/BKPM office on Tuesday (24/6/2025).
The placement of the ministry's desk at BP KPBPB Batam is expected to streamline the permit processing procedure. The resulting domino effect would be increased investment realisation and job creation.
"Our primary homework is ensuring that incoming investment is not solely about economics, but also about job creation. This will produce a multiplier effect in terms of the economy, employment and improvement of human resource quality," Rosan said.
At the same event, Batam Mayor and Ex Officio Head of BP KPBPB Batam, Amsakar Achmad, noted that many foreign investors frequently encounter obstacles when commencing investment in Batam. Several stages of the investment initiation process are time-consuming, which reduces Batam's attractiveness as an investment destination.
"If their investment plans are urgent but the process takes two years to complete, they will look to alternative locations," Amsakar stressed.
He explained that the most prominent investments currently involve digitalisation, electricity and the healthcare sector. In the digitalisation sector, a digital data centre is under construction at Nongsa Digital Park.
"Within Nongsa Digital Park, there are tenants whose business scale has already reached an international level," Amsakar said.
On the healthcare front, the government is completing the construction of a Special Economic Zone for the health sector in Sekupang. The expectation is that many investors will participate in this SEZ.
"We believe that if business operators see the government is serious about improving governance, more investors will come to Batam in the future," Amsakar affirmed.