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Batam still has potential to grow
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An aerial view of Batu Ampar seaport, Batam, Riau Islands. Batam still has potential to grow, officials and economists said on Aug. 11. (Courtesy of BPK FTZ Batam/-)
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atam, a free-trade zone island close to Singapore in the Riau Islands, still has the potential to grow if it can accommodate the needs of its neighbors, officials and economists have stated.
Bank Indonesia (BI) Riau Islands representative office head Gusti Raizal Eka Putra said the Riau Islands province’s industrial sector still relied on Batam, although currently its economy was slowing down.
“But we have seen some improvements lately, the province posted 5.4 percent year-on-year regional GDP growth in the second quarter, compared to 4.54 percent in the first quarter,” he said during a press briefing at BI’s regional economy and finance evaluation meeting in Batam on Thursday.
The region faced industrial relocation in 2015, but after some improvement, including the restructuring of the Batam Free-Trade Zone Authority (BPK-FTZ) in April, things have been getting better. According to Institute for Development of Economics and Finance (INDEF) economist Bhima Yudhistira, the shipyard industry still had potential for development.
“Singapore, as the biggest port in Southeast Asia, is starting to face difficulties in expanding its shipyard due to land availability, then the ships will need to come to Batam,” he said, adding that tourism could also make a good contribution because a lot of Singaporeans visited Batam.
