Friday, April 19, 2024

Batam contributes to foreign direct investment in Riau Islands

Reading Time: 2 minutes
Audina Nur

Journalist

Editor

Interview

Batam has emerged as the primary contributor of foreign investment in the Riau Islands Province.

According to data from the Ministry of Investment/Investment Coordinating Board (BKPM) of Indonesia, Batam accounted for 83.6 percent of foreign investment in the Riau Islands during the first semester of 2023 (January-June).

The actual investment realization amounted to USD 348.09 million or approximately IDR 5.15 trillion, out of the total investment value in the Riau Islands of USD 416.4 million.

“I hope that this surge in investment value will have a favorable impact on Batam’s future economic growth,” stated M Rudi, the Head of BP Batam.

Rudi is also confident that the increased investment value can boost Batam’s economic growth to 7 percent, compared to the 6.84 percent growth in 2022. This figure is an encouraging sign for future economic progress, given Batam’s pivotal role in the Riau Islands’ economy.

“BP Batam expresses its appreciation and wholehearted support for companies interested in investing in Batam. I trust that this will be a positive contribution to Batam’s economic advancement,” Rudi emphasized.

In the near future, Batam is set to receive a substantial investment of USD 11.5 billion or approximately IDR 172.5 trillion (at a conversion rate of IDR 15,000), earmarked for establishing the largest glass factory in Indonesia, second only to China.

The Rempang Eco-City will be transformed into a multifaceted zone encompassing industry, tourism, trade and services, transportation, housing, and renewable energy.

Upon fruition, the entry of China’s Xinyi Group into Batam will mark its status as the largest company of its kind in Indonesia. The official launch of the Rempang Investment Zone’s development took place on April 12, 2023. PT Makmur Elok Graha (MEG) is the driving force behind the development of the Rempang area, with a total investment of IDR 381 trillion, and is anticipated to generate job opportunities for up to 308,000 individuals.

Audina Nur

Journalist

 

Editor

 

Interview

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