From a Small Island to an Industrial Island & Investment Paradise

As one of the cities in Indonesia that has a lot of potential,  we will explore more in-depth about Batam, starting with its history, regional development, and explaining why many investors, especially in the property sector, targeting this city.

The city of Batam has undergone a significant transformation from a small island that was initially little known to one of the fastest-growing metropolitan cities. This development cannot be separated from the government’s strategic planning and effective management, especially since Batam was made an industrial area in the 1970s and has been designated by President Jokowi as a Special Economic Zone (KEK) since October 2024.

The Beginning of Batam’s Development

In the 1970s, the Indonesian government saw Batam’s great potential because of its strategic location near the Strait of Malacca, one of the busiest shipping lanes in the world. Batam is also only about 20 kilometres from Singapore, making it an ideal area for industrial and trade development, so the Batam Business Agency (BP Batam) was formed to manage Batam to continuously develop the industrial area to make an attraction for investors, both from within and outside the country.

Infrastructure Development

Batam continues to develop with rapid infrastructure development, for example, Hang Nadim Airport is now one of the largest airports in Indonesia was built to support Batam’s connectivity with various regions in Indonesia and abroad. In addition, international ports and wide highways strengthen Batam’s position as a centre of industry and trade.

In addition to being an industrial centre, Batam grew into an economic centre with many trading areas spread throughout the Batam region while also providing various business incentives.

Property Investment Potential in Batam

Batam’s transformation is now increasingly fascinating and has become one of the main destinations for property investors, both local and international. Here are some of the main factors that make Batam an attractive location for property investment:

• Strategic Location

Batam’s location is very close to Singapore and Malaysia, making it a very strategic trade centre. The number of foreign companies that are based in Batam increases the demand for property, especially residential or commercial properties.

• Special Economic Zone (KEK) Status

As a Special Economic Zone, Batam offers many incentives for investors, such as tax breaks and ease in the licensing process. This encourages investment growth in the property sector, especially in the form of housing and commercial centres such as shophouses, one form of incentive such as free BPHTB all-in-one is one of the benefits at Artha Batam Sanctuary, both for housing units and shophouse units.

• Rapid Infrastructure Growth

Continued development, for example, the construction of the Sei Ladi Fly Over infrastructure and the widening of Gajah Mada road which is located very close to the Artha Batam Sanctuary residential area, further strengthens Batam’s position as a city that is always developing. This certainly has a positive impact on the increase in property values ​​and makes it a profitable long-term investment.

• High Property Demand

Rapid economic growth attracts many workers from various regions, including foreign workers who certainly need a place to live, this has an impact on the increasing demand for houses along with the increasing population and business activities in Batam.

Conclusion

The transformation of Batam from a small island to a modern metropolitan city that holds the status of a Special Economic Zone is one example of successful regional development in Indonesia, in addition to having a strategic location and many business concessions provided, Batam still has very great potential to continue to grow and become an important economic centre in Southeast Asia.