Data from Statistics Indonesia (BPS) indicate that Batam remains the main driver of the provincial economy, supported by expanding industrial activity, trade flows and logistics services linked to regional and international markets.

At the provincial level, the non-oil and gas economy of the Riau Islands grew 5.88 percent, outperforming the national economic growth rate of 5.11 percent. Batam also remains the largest contributor to the provincial economy, accounting for 66.44 percent of total regional economic output.

Under the leadership of Amsakar Achmad, mayor of Batam and chairman of BP Batam, together with Li Claudia Chandra, deputy mayor of Batam and vice chairperson of BP Batam, the city continues to strengthen its role as a major growth center in western Indonesia.

Among districts and cities in the province, Batam recorded the strongest expansion in the non-oil and gas sector. Bintan regency followed with growth of 6.43 percent, while Karimun regency recorded 5.44 percent. Other regions posted lower growth rates, including Tanjungpinang city at 3.31 percent, Lingga regency at 3.53 percent and Anambas Islands regency at 2.87 percent, while Natuna regency experienced a contraction due to sectoral economic dynamics.

The city’s economic performance was driven by increasing activity in the manufacturing, construction, trade, transportation and logistics sectors, alongside continued investment inflows.

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According to Fary Djemy Francis, deputy chairman for investment and business at BP Batam, Batam’s economic structure increasingly reflects the strength of productive sectors rather than extractive industries.

“Batam’s economic growth shows that the city’s development is supported by industrial activity, trade, logistics and investment, which continue to expand and strengthen its competitiveness as an international industrial and trade hub,” he said.

He noted that measuring economic growth without oil and gas provides a clearer picture of the real dynamics of the regional economy, as the oil and gas sector is highly influenced by global energy prices and production fluctuations.

“In this context, Batam’s economy recorded growth of 6.76 percent in 2025 without oil and gas, reflecting a strong performance driven by industrial production, trade activity and investment,” he said.

He also highlighted Batam’s strategic advantages, including its location along major international shipping routes and its proximity to Singapore and Malaysia, which continue to support the expansion of industrial estates and logistics connectivity.

“With strong infrastructure development, improving investment facilitation and its strategic position near Singapore, Batam is further strengthening its role as a globally competitive investment and industrial hub,” Fary said.

Batam’s strong growth performance in 2025 reinforces its position as the main economic growth center in the Riau Islands, supported by a manufacturing-based economy, international trade connectivity and sustained investment activity.

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