Infrastructure accelerated, Batam's investment and economy soar higher
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Infrastruktur digesa, investasi dan ekonomi Batam kian melesat
27 July 2023
Various strategic projects are carried out by Batam Indonesia Free Zone Authority (BP Batam) as a public service entity (BLU) that is tasked to increase investment value and public services in Batam. One of the projects is the widening of the road infrastructure to 5 lanes, which continues to 2023.
Road construction is highlighted by BP Batam Head Muhammad Rudi to improve mobility and transportation to increase economic growth.
Smooth transportation will improve economic growth and increase investment in Batam.
Road construction in Batam is implemented directly and thoroughly based on the plan prepared by BP Batam.
Roads are the lifeline of a region that will always be focused on as they benefit all parties.
Besides that, roads that are continuously built will be a media for the advancement and the development of Batam. All industrial estates, container ports, airports, and special economic zones (SZEs) will be connected. They will offer more investment opportunities in Batam and its surroundings.
BP Batam Head Muhammad Rudi said that road network development and construction would be prioritised by his agency in their construction agenda this year.
According to him, infrastructure needs to be continuously built to drive the public economy and increase the competitiveness of Batam as an investment destination.
“To accelerate the economy, BP Batam and the local government are currently improving its infrastructure, such as the main roads in Batam,” Muhammad Rudi said at Batam Centre.
Infrastructure construction that is continuously carried out by BP Batam is growing the trust of investors.
So, it will increase the flow of capital to Batam. It can be seen from the data released by the Investment Ministry/Investment Coordinating Board (BKPM).
Foreign direct investment (FDI) and domestic investment in Batam from January to March 2023 or in the first quarter of 2023 reached Rp3.986 trillion or US$270.85 with 2,244 projects.
In detail, FDI realisation in the first quarter reached Rp2,559 trillion with 826 projects and domestic investment realisation reached Rp1,423 trillion with 1,418 projects.
With those numbers, Batam is currently the largest contributor with a contribution of 82.9% to the investment realisation in Riau Islands.
“Seeing the investment growth in the first quarter of 2023, I am optimistic about investment in Batam continuing to grow. Investment will continue to significantly contribute to the economic growth. We are also optimistic about the economy in 2023 if we can maintain the momentum,” he stated.
Besides that, infrastructure construction correlates with Batam’s economic growth. Batam’s economic growth in 2022 reached 6.84%, which increased by 2.09% compared to the economic growth in 2021 that reached 4.75%.
With this percentage, Batam’s growth is at its highest level in the last five years, which is higher than the economic growth of Riau Islands Province that reaches around 5.09% and the national economic growth that reaches 5.31%.
