Indonesia is opening two special economic zones in Batam, focusing on developing high-tech, digital economy, data center, logistics, tourism, and aviation industries.
According to ASEAN Briefing, Batam has the potential to attract more foreign investment because of its location. Located near Singapore and the important trade route, the Strait of Malacca, Batam could be particularly attractive to Singapore-based enterprises.
Batam, Bintan, and Karimun are already known as the BKK free trade zone, but the economic zones provide tax exemptions, special investment incentives, and higher-quality infrastructures.
Originally as a digital park, the Nongsa digital park is leveling up to a special economic zone that will focus on digital technologies, tourism, innovation, education, and the creative. There are more than 100 technology companies in Nongsa, most of which are from Singapore, with around 1,200 employees.
Nongsa economic zone is expected to attract IDR16 trillion (US$1.1 billion) in investment and to create 16,500 new job openings.
The other economic zone, Batam Aero Technic, will expand from maintaining passenger airliners to logistics, manufacturing and processing. It is expected to attract IDR7.3 trillion (US$500 million) and create nearly 10,000 jobs.