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Batam accounts for 79.16 percent of foreign direct investment in the Riau Islands
The Riau Islands’ investment realization is recorded at IDR 6.462 trillion (US$435 million), placing the province in the 14th rank out of 34.
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T
he Riau Islands’ investment realization is recorded at IDR 6.462 trillion (US$435 million), placing the province in the 14th rank out of 34. Despite Riau Island’s overall decline, foreign direct investment (PMA) in Batam accounted for 79.16 percent of the figure, making it the main contributor to the growing foreign investment in the region.
The Batam Free Zone Authority Badan Pengusahaan (BP Batam) under the leadership of Muhammad Rudi is optimistic that it could continue to drive investment from local and foreign investors. This year, investment throughout the January-June 2022 period (first semester) is dominated by the chemicals and pharmaceuticals sector by 40.36 percent, influenced by the growth of the Sekupang International Healthcare Special Economic Zone.
Throughout 2021 alone, BP Batam carried out 38 infrastructure projects from road constructions to harbor revitalization. The region recorded significant growth from the previous year at 4.75 percent, above the national economic growth (3.69 percent) and the Riau Islands’ economic growth (3.43 percent).
BP Batam, under the leadership of Muhammad Rudi, is optimistic that the economic situation will make a speedy recovery. As the zone continues to develop its infrastructure, the Riau Islands is similarly expected to experience positive growth.
The Investment Ministry/ Investment Coordinating Board (BKPM) reported that the PMA and domestic direct investment (PMDN) in Batam throughout the first semester reached IDR 6.17 trillion. In total, there are over 1,529 projects contributing to the number, with 696 foreign investment projects (accumulatively worth IDR 5.11 trillion) and 833 domestic investment projects (accumulatively worth IDR 1.05 trillion).
Furthermore, the first quarter of 2022 (January-March period) generated IDR 3.46 trillion from 411 PMA projects and IDR 609.8 billion from 472 PMDN projects. The second quarter (April-June 2022) yielded IDR 1.65 trillion from 285 PMA projects and IDR 448.5 billion projects from 361 PMDN projects.
