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ELECTRICITY - Supporting your investment in Batam
Batam has become an increasingly friendly investment destination as the Batam Indonesia Free Zone Authority (BP Batam), which manages a 415 sq. km-free zone, and free port of Batam continue to make improvements.
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Photo courtesy of BP Batam (-/-)
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atam has become an increasingly friendly investment destination as the Batam Indonesia Free Zone Authority (BP Batam), which manages a 415 sq. km-free zone, and free port of Batam continue to make improvements. Currently Batam is home to 24 industrial estates already in operation and more than 1,000 foreign companies from 34 countries. Tough competition from neighboring countries and even within Indonesia has prompted BP Batam to continue to make new breakthrough efforts to attract investors.
On Sept. 1, BP Batam launched a new application system to ease investment in the region of i23J (three hours processing eight investment permits) and KILK (direct construction investment permit). This enables new investors with Rp 50 billion worth of investment and/or employs 300 workers to utilize this system.
Electricity is, indeed, one of the crucial elements in an industrial estate, where investors are highly needed.
Electricity supply was managed by state oil and gas company PT Pertamina in 1971 through the operation of diesel power generators with the capacity of 2 x 188 kVa. In 1976 when Batam evolved into an industrial area, the electricity was managed by BP Batam, which operated two diesel power generators with a capacity of 45.5 MW. Based on an agreement between the central government and BP Batam, state-owned electricity company Perusahaan Listrik Negara (PLN) was in charge of managing the electricity supply in 1993 before the authority to manage the electricity in the region was given to an independent unit under PLN, namely PT Pelayanan Listrik Nasional, on Oct. 3, 2000. BP Batam also took part in commissioning the company. Finally, on Jan, 1, 2008, PT Pelayanan Listrik Nasional Batam or the Batam National Electricity Services changed its name to Bright PLN Batam.
Some of the electricity services for investment include the operation of mobile power plants (MPP) with the capacity of 500 MW, the use of gas power, the implementation of the grand max program for industrial and business customers for excellent services and portable medium voltage with the capacity of 400 kVa for electricity demand on a project basis. BP Batam reported an abundant electricity supply of 422 MW, with only 347 MW consumed in peak periods.
Ensuring the reliability of electricity supply is essential to support investment in Batam. Since early development in the 70s, BP Batam was authorized to manage power availability before the authority was transferred to PLN.
However, due to the vastly growing city in Indonesia, the authority to manage electricity was given to an independent unit under PLN called Bright PLN Batam on March 1, 2008. Today, electricity is pretty much sufficient to meet industry, business and household demands. Batam has also become a role model for electricity management in Indonesia. There is approximately a power surplus of 200 MW during peak hours in Batam. The power surplus is now being transferred to Bintan to support industrial development in the region. Abundant electricity supply will certainly assure the power availability, which you need for your new investments and business expansions in Batam.
