TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
52 years of BP Batam: Toward a New Batam City
Change Size
I
n its journey spanning over half a century, the Batam Authority, now known as BP Batam, has continuously improved and developed. Its vital role and commitment to building Batam have propelled the region toward becoming a significant industrial city in Indonesia today.
In addition to the Free Trade Zone (FTZ), Batam also has Special Economic Zones (SEZs) aimed at accelerating development, boosting economic growth and enhancing competitiveness. Coordinating Economic Affairs Minister Airlangga Hartarto believes that the development of these zones can promote downstream activities that create added value, attract investments, create job opportunities and open up business prospects, particularly in Batam.
The first SEZ is the Nongsa Digital Park (NDP), which is expected to absorb investments of up to Rp 26 trillion and provide employment for 16,500 people by 2040. This area is already equipped with supporting infrastructure such as resorts, offices, academies, international ferry ports and a golf course.
The second SEZ is Batam Aero Technic (BAT), which focuses on aircraft maintenance, repair, overhaul (MRO) and handling. This development will enable national aircraft maintenance, repair and overhaul work to be conducted locally.
Currently, Batam Aero Technic can perform various types of aircraft maintenance, including A Check, C Check, weekly services, specific services and transit services for aircraft such as the Airbus 320 series, Boeing 737 series, Airbus 330 series, Hawker 800/900 XP, ATR 72 500/600 and other aircraft types. Its strategic location in the Asia-Pacific market is expected to attract 12,000 aircraft units and generate a business value of US$100 billion by 2025, along with an investment of Rp 7.29 trillion by 2030.
BP Batam is also preparing to develop a Health SEZ in Sekupang, with an investment value of Rp 3.3 trillion, which is currently in the process of obtaining permits from the National SEZ Council, acting under the Coordinating Economic Ministry. With this Health SEZ, BP Batam will establish an international-standard hospital equipped with various supporting facilities. With the FTZ and SEZ, along with fiscal and non-fiscal incentives, Batam offers ease of investment with potential in fitness tourism, health tourism and integrated health management.
On another note, BP Batam is planning to construct a Light Rapid Transit (LRT) system to reduce traffic congestion and modernize Batam. The LRT will also contribute to improving the city's economy and the well-being of its residents.
The construction of the LRT is expected to bring many benefits to Batam's residents and tourists. Apart from alleviating traffic congestion, the LRT will offer a more convenient and efficient transportation option.
Batam is also building a Wastewater Treatment Plant (WWTP), projected to be completed by 2024, to recycle household wastewater due to Batam's lack of natural water sources. This will ensure sustainable clean water management and city cleanliness.
Other infrastructure developments include the expansion of Hang Nadim Airport with Terminal 2 (T2) and cargo terminals. Road expansion is also ongoing, with the main roads in Batam now featuring five lanes each for smoother cargo distribution.
With these ongoing developments, Batam is optimistic about becoming a New City by 2029, featuring modern infrastructure. Its initial goal of becoming a primary investment zone in western Indonesia and competing with neighboring Southeast Asian countries is well within reach.
