Logistics flow: New hope from Batu Ampar

  • 21 May 2024

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 - Arus logistik: Harapan baru dari Batu Ampar

21 May 2024

The enhancement of service quality at Batu Ampar Port in Batam, Riau Islands, is anticipated to bolster the competitiveness of national logistics with the arrival of new cranes next year. Additionally, the change in Singapore's prime minister is expected to have a positive impact on Batam's economy.

Following the positive impact of the Rp120 billion ship-to-shore (STS) crane that arrived last year, the Batam Authority (BP Batam) plans to increase the number of cranes operating at Batu Ampar Port in Batam.

“In 2025, four additional container cranes will be added, bringing the total to five. This expansion aligns with the development of the container yard, which will be expanded from two to ten hectares,” he said in Batam on Monday (20/5).

He emphasised that the additional cranes were crucial for reducing berthing time at Batu Ampar Port. This said, the current berthing time has been previously shortened to only around 27-30 hours. The four cranes are currently being assembled in China.

“The container yard development aims to boost stevedoring activities with the goal of accommodating millions of TEUs. Thus, Persero Batam needs to only focus on securing customers to establish Batu Ampar Port in Batam as a logistics hub,” he explained.

Meanwhile, Persero Batam President Director Arham S. Thoriq said that, in line with its contract with BP Batam, his company would manage Batu Ampar Port for 37 years.

He added that the first stage was to develop Batu Ampar Port with infrastructure development.

“Batu Ampar [Port] development will be carried out from 2023 to 2028. Infrastructure and suprastructure will be developed in the second stage as key aspects of the development. Then, it will enter the third stage that is aimed at enhancing productivity and connectivity,” he stated.

Overall, the infrastructure development plan at Batu Ampar Port is estimated to require Rp3.8 trillion in funding. The first stage began in November 2023, while the second stage, with a total investment of Rp1.2 trillion, will commence in July 2023.

The investment is intended to fund the construction of a 12-hectare container yard, expanding its capacity to 770,000 TEUs and extending the pier to 1 kilometre.

The second stage of Batu Ampar Port development will focus on increasing international trade.

The third stage, scheduled to be implemented in July 2028, will focus on transshipment. During this phase, a reclamation project covering 20 hectares will be carried out to increase the capacity to 1.6 million TEUs.

Additionally, Persero Batam will further expand the container yard to 20 hectares and extend the pier by 650 metres. The total investment for this stage is forecasted to reach Rp2.6 trillion.

Rudi reckoned that the container yard construction could support Batam development, especially in the port sector. “Batu Ampar Port can be a competitive infrastructure, making Batam more modern.”

New optimism

On the other hand, the change in Singapore's prime minister from Lee Hsien Loong to Lawrence Wong has brought renewed optimism for businesses in Batam.

Batam Indonesian Employer Association (Apindo) Chairperson Rafki Rasyid reckoned that the leadership transition in Singapore would affect Batam due to their close geographical and economic ties. 

“Singapore is Batam's largest investor and its primary export destination,” he said on Monday (20/5).

Rafki believes that Singapore Prime Minister Lawrence Wong will continue to foster annual economic growth in Singapore. Moreover, Wong is a former energy market executive, board member of the monetary authority of Singapore Central Bank, and head of the Covid-19 handling task force in Singapore.

“With a background in economics and finance, Singapore Prime Minister Wong brings a wealth of experience to his role. His extensive track record has earned him trust and confidence as the prime minister of Singapore,” he explained.

According to him, if Singapore's economy remains stable, Batam will experience positive effects since the city's economy is closely tied to Singapore's economic conditions.

“We hope the new government of Singapore can see Batam as a strategic partner in future investment developments. So, investors from Singapore can continue investing in Batam,” he stated.

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