INDONESIA: Batam City Gains Two New Special Economic Zones

The city of Batam has gained two new Special Economic Zones (SEZ). Set in Riau Islands province, immediately across the Strait from Singapore, the Nongsa Digital Park and Batam Aero Technic’s Aircraft Maintenance Plant are the two facilities to have their status upgraded. 

The first, Nongsa Digital Park, is an existing technological park with a focus on digital technology and tourism activities, which will now extend its remit to R&D, education and the creative industries. The park is already home to more than 100 technology firms from Singapore and now aims to become an entry point for global IT companies, while also functioning as a hub for the development of a young IT-literate workforce. Following the grant od SEZ status, the park is hoping for investment of some IDR16 trillion (US$1.1 billion), which will create about 16,500 new jobs. 

In addition, the Lion Air Group-owned Batam Aero Technic currently focuses on the maintenance, repair and overhaul of passenger aircraft. In line with its upgraded status, it is now hoping to secure sufficient investment to expand into the logistics and distribution; production and processing; and technology development sectors. It is currently targeting investment of some IDR7.2 trillion (US$0.5 billion) and hopes to create up to 10,000 new jobs.