Proximity to Singaporeīatam is only 20km away from Singapore and can be passed by ferry. All permits and licenses required to start development are also processed “under one roof” by the Batam Industrial Development Authority (BIDA). An example here is medical facilities.įoreign investment application is processed with a one-stop policy and it takes usually 20 working days to get approval.
Batam benefits from its proximity to Singapore, which gives investors the ability to use infrastructure in Singapore when facilities are lacking in Batam.The basic infrastructure like electric power and water is comparable to what is available in Jakarta and superior to most other parts of the country, where investors frequently need to put in this type of infrastructure themselves.It is also easier to export finished product out of Batam’s port and airport than it is to other parts of Indonesia, again including Jakarta.It is much easier to move materials and equipment into Batam through its port and airport from foreign supply sources than it is to other parts of Indonesia, including Jakarta.Main reasons why Batam infrastructure is better according to the study participants: Key benefits InfrastructureĪccording to study conducted by Political and Economic Risk Consultancy, physical infrastructure in Batam is significantly better than in the rest of Indonesia. In this article we are looking at the benefits and concerns of running business in Batam and legal framework governing it. In 2009 Free Trade Zone was finally legislated in the Riau islands of Batam, Bintan and Karimun, which ended most of the legal uncertainty concerning customs and tax exemptions. Prioritized industries according to the regulation (Article 2/1) are trade, maritime, industry, transportation, banking and tourism.
This stipulates the area as Free Port and Free Trade Zone for 70 years as of the enforcement of the regulation. Last government regulation about Batam Free Port And Free Trade Zone was released in 2007 (Number 46). Special economic zones may be specified and developed for accelerating economic development in certain regions whose nature is strategic for national economic development, as well as maintaining balance of regional progress. Investment Law (article 31/1) specifies the role of special economic zones as following:
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