Batam strengthened its regional competitiveness as 20 multinational companies committed over US$10 billion in future investments during the second Islands of Growth forum in Singapore
Batam’s emergence as a key investment destination in Southeast Asia was reinforced this week after its investment authority announced US$10.35 billion in commitments secured during the Second Edition of the “Islands of Growth” forum held in Singapore. The event brought together global industry leaders seeking strategic expansion opportunities across Indonesia’s rapidly developing economic corridors.
According to Fary Djemy Francis, Deputy for Investment and Business at Batam Authority (BP Batam), a total of 20 multinational companies pledged preliminary investment plans spanning energy, advanced manufacturing, maritime, and logistics. “BP Batam recorded $10.35 billion in investment commitments from 20 global companies in energy, advanced manufacturing, maritime, and logistics sectors,” Fary said in a statement received in Batam.
He emphasised that the commitments represent early-stage agreements and will be executed in phases following further feasibility studies, licensing processes, and project structuring. Even so, he noted that the scale of pledges reflects a renewed sense of confidence among investors. “Investors are now showing long-term confidence in Batam. They see clearer development directions and more reliable services,” he said.
Batam, together with Bintan and Karimun (known collectively as BBK), continues to grow in strategic importance as multinational companies recalibrate global supply chains. The region’s geographic advantage—located just 20 kilometres from Singapore—provides a competitive edge few Southeast Asian locations can match. As global industries diversify production bases, BBK is increasingly positioned as a natural extension of Singapore’s economic ecosystem.
At the forum, Fary also introduced a new initiative titled “Batam – Your Best Friend to Invest,” designed to further strengthen the region’s investment climate. The programme includes an upgraded Investment Dashboard providing real-time development data, one-stop communication services, and standardised service times across key agencies. Mobile Investment Clinics will also be deployed to address technical or on-site challenges more quickly, improving the ease of doing business in Batam.
In addition to the new investor support mechanisms, Fary outlined two recently issued government regulations intended to streamline the investment process and expand Batam’s capacity for economic growth. Government Regulation (PP) 25/2025 grants BP Batam the authority to issue essential permits directly from Batam, including environmental approvals, marine spatial usage, and forest area utilisation. This regulatory shift is expected to significantly reduce administrative bottlenecks and increase investors’ certainty.
Complementing this is PP 47/2025, which expands the area of the Batam Free Trade Zone (FTZ), opening new industrial and logistics zones to accommodate rising investor interest. Fary noted: “With regulatory certainty and expanded area capacity, Batam is becoming increasingly competitive in Southeast Asia.”
Another key priority highlighted during the forum was Batam’s development as a green industrial zone. Fary referenced major initiatives such as the Tembesi floating solar power project—one of the region’s most significant renewable energy developments—as well as plans to expand low-carbon industrial clusters. These initiatives reflect Batam’s ambition to attract environmentally conscious industries and support Indonesia’s broader energy transition goals.
“Batam is open, trusted, and moves fast. Invest in Batam – where proximity meets possibility,” Fary stated, underscoring the city’s commitment to sustainable and investor-friendly development.
The forum was attended by several high-level figures, including Coordinating Minister for Economic Affairs Airlangga Hartarto, Indonesian Ambassador to Singapore Suryo Pratomo, Chairman of the Singapore Economic Development Board (EDB) Png Cheong Boon, and Riau Islands Governor Ansar Ahmad. Their presence signalled strong bilateral cooperation between Indonesia and Singapore in fostering growth across regional economic zones.
With strengthened policies, expanded industrial capacity, and growing green initiatives, Batam is positioning itself as one of Southeast Asia’s most promising investment hubs—where global ambition meets strategic proximity.
Source: Antaranews
