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Industrial facilities are abundantly available. Investors can choose whether to plug into a commercially ready-to-use factory building with complete infrastructure and facilities or to acquire a lot to custom-build its factory. Erecting a 1,000 sq.-m factory building on a 2,000 sq.-m lot would cost only around US$ 400,000,- including the cost of acquiring land. There are 22 (twenty two) industrial estates offering their facilities ranging from ready-to-build lot parcels to buildings with complete facilities. Some industrial estates also offer a complete package which includes the processing of permits and licenses to relevant authorities and recruitment of labor. Housing for labor in dormitories is also provided within industrial estate.

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Seizing the opportunities laying ahead, more business opportunities are opening up in Batam. Batam is open for any kind of industry. There is practically no restriction for industries to be set up in Batam. However, some industries are more suitable than others. The largest industry operating in Batam is the electronic and computer related industry such as components and parts, audio and video equipment, automotive parts, printed circuit board (PCB) makers, etc. This type of industry is most suitable because the supply of labor is not limited and easily trainable. Other light industries include fabrication of leather goods, shoes, garment, plastics, consumer products, household products, and healthcare products.

There are some companies involved in heavy industry such as steel fabrication, pipe threading, oil exploration equipment, oil rig fabrication, offshore jackets, and heavy equipment. In addition to that, there are also more than 70 shipyard industries for ship repair and shipbuilding in Batam. With adequate hazardous waste control, the chemical industry is also allowed. Among chemical industries that are now operating in Batam are fatty alcohol factory, paint producing factories, pipe coating, and chemical companies.

The industrial companies involved in these industries are spread over 14 (fourteen) industrial estates with a total area of 1,227 Ha. Some of these estates, have modern facilities. They provide complete working environment, including ready-built factories and offices, staff housing, hospital, health services, social and recreational facilities, price-controlled retail outlets, and also offers ongoing management support services.

Batam is also suitable for the production of offshore oil drilling equipment and platforms. In Batam Island, the shipyard construction area is also a major growth area with 41 shipyards now in operation. Numerous well-known multi national companies are already operating in Batam, among others are: ABB, Ballast Nedam, Ciba Vision, Epson, Halliburton, Hydril, Hyundai, Labroi, – Matsushita, McDermott, Nippon Steel, Pan United Shipyard, Philips, Sanyo, Schneider Manufacturing, Seagate Technology, Siemens, Sony, Thomson Television, and Tomy Toys.

Companies are allowed to build factories outside industrial parks, on individual lots obtained directly from Batam Authority. From a total industrial area of 3,400 Ha., +/- 800 Ha is still available for lease. Some well-known multinational companies which are already operating in Batam include: Bredero Shaw, Ciba Vision, Epson, Hydril, Hyundai, Panasonic, McDermott, Philips, Patlite, Sanyo, Schneider Manufacturing, Siemens, Sumitomo, Tomoe Valve and many more

Batam_Nagoya_Hill

The master plan has divided the islands into 5 (five) development areas, as follows:

  1. Sekupang; situated in the western part of Batam Island, covering an area of 11,352.Ha. This is divided into 2 (two) sub-areas, Sekupang and Tanjung Uncang, which has been planned and developed for the following purposes:
    • Industrial area in Sekupang.
    • Shipbuilding and Shipping industry in Tanjung Uncang.
    • Housing
    • Tourism facilities, including golf courses
    • Offices and shopping centres.
    • Passenger and cargo seaport in Sekupang.
    • Terminals servicing ferries for Singapore, in Sekupang and Tanjung Uncang
    • Marina facilities in Tanjung Uncang.
  2. Batu Ampar; located in the Northwest of Batam, covering an area of 10,540 Ha. This area is also divided into 2 (two) sub-areas, Batu Ampar and Muka Kuning, which has been planned and developed for the following purposes:
    • Passenger and cargo seaport.
    • Terminal servicing ferries for Singapore and Johor, in Batu Ampar.
    • Offices and shopping centres
    • Industrial areas in Batu Ampar and Muka Kuning.
    • Housing.
    • Green area containing natural reserve
    • Water reservoir.
  3. Pantai Timur (East Coast); covering an area of 17,141 Ha. This area is divided into 3 (three) sub-areas, Nongsa, Kabil and Duriangkang, which has been planned and developed for the following purposes:
    • Tourism, such as beach resorts.
    • Marina facilities, golf courses and housing.
    • Seaport servicing ships up to 150,000 DWT, at Kabil.
    • Industrial area at Kabil. Airport.
    • Natural reserve, including catchment forest for Duriangkang water reservoir.
  4. Batam Centre; covering an area of 2,567 Ha, having been developed and operates as follows:
    • Industrial area.
    • Business district.
    • Government offices.
    • International ferry seaport.
    • Housing.
  5. Rempang-Galang islands in the Barelang area have been classified together, with a total area of 34,217 Ha, and has been developed and utilised for the following purposes:
    • Agriculture.
    • Housing.
    • Tourism.
    • Industry.
    • Fisheries

Batam’s Economic Indicator Period 2010 ~ 2014

INDICATOR Remarks 2010 2011 2012 2013 2014
TOTAL INVESTMENT CUMULATIVE US $ Billion 14.59 14.92 15.69 16.47 17.71
GOVERNMENT INVESTMENT CUMULATIVE US $ Billion 2.92 3.00 3.09 3.37 3.62
FOREIGN INVESTMENT CUMULATIVE US $ Billion 5.94 6.16 6.78 7.28 8.27
DOMESTIC INVESTMENT CUMULATIVE US $ Billion 5.73 5.75 5.82 5.82 5.82
RATIO OF GOVERNMENT TO PRIVATE INVESTMENT Ratio 1:3.99 1:3.97 1:4.07 1 : 3.89 1:3.89
TAX REVENUE FROM BATAM Billion Rupiah 1,817.39 2,101.75 2,674.84 2,411.39 3,932.35
REGIONAL REVENUE Billion Rupiah 161.84 335.41 409.98 606.34 359.48
NON OIL AND GAS OIL EXORT US $ Billion 8.48 9.35 8.62 9.36 9.15
GROSS DOMESTIC REGIONAL PRODUCT Trillion Rupiah 47.30 52.62 57.65 65.55 65.55
ECONOMIC GROWTH Percent 7.77 7.20 6.78 5.83 5.83
INFLATION Percent 7.40 3.76 2.02 7.81 7.61
ROREIGN COMPANIES CUMULATIVE Companies 1,247 1,349 1,443 1,563 1,699
SMALL & MEDIUM ENTERPRISE CUMULATIVE Companies 9,900 9,900 10,726 10,726 10,726
POPULATION People 1,056,701 1,137,894 1,235,651 1,135,412 1,030,528
INDONESIAN WORK FORCE People 288,318 313,544 330,592 330,592 330,592
FOREIGN WORK FORCE People 5,108 5,510 5,970 5,970 5,970
COMPARISON PERCENTAGE OF WORK Ratio 1:3.60 1:3.57 1:3.67 1:3.67 1:3.67
FOREIGN VISITORS Visitors 1,007,446 1,161,581 1,219,608 1,336,430 1,454,110
FOREIGN VISITOR REVENUE US $ Million 353.76 371.48 438.83 438.83 438.83
TRANSFERRED FUNDS TO WORKER’S FAMILIES Billion Rupiah 376.36 440.31 497.99 497.99 497.99
ELECTRICITY+PRIVATE Mega Watt 372.25 371.66 509.63 509.63 502.42
FRESH WATER Litre/second 2,463.00 2,623.37 2,702.53 2,903.25 2,771.90
PAVED ROADS Kilometers 434.64 437.74 438.46 438.46 438.46
STAR HOTEL Hotels 58 58 64 64 70

*Source : Development Progress of Batam by BP Batam

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