WHY INVEST IN BATAM
Up to June 2015 Batam has accumulated a total approximately US$ 19.83 billion in investement comprising of US$ 3.88 billion of government investment and US$ 14.09 bilion of private investment. Government investment is in therm of infrastructure development. Private investment comprises further of US$ 5.8 bilion of domestic investment and US$ 8.27 billion of foreign investment. More than 1,780 forereign companies are operating in Batam while the number of local companies is more than 10.000.
Industrial facilities are abundantly available. Investors can choose whether to plug into a commercially ready-to-use factory building with complete infrastructure and facilities or to acquire a lot to custom-build its factory. Erecting a 1,000 sqm factory building on a 2,000 sqm lot would cost only around US$ 400,000.- including the cost of acquiring land. There are 22 (twenty two) industrial estates offering their buildings with complete facilities. Some industrial estate also offer a complete package which includes the processing of permits and licenses to relevant authorities and recruitment of labor. Housing for labor in dormitories is also provided within industrial estate. There are approximately 1,030,528 people living in batam, coming from allover the Indonesian archipelago with 336,562 people employed in the formal sector. This labor is increasingly bettered skilled as they have years of training and experience. This skilled labor can be sourced directly in batam, without the need of recruiting from other regions, such as java and sumatera. Half of the population in batam are workers, making a very healthy dependency ratio.
Foreign investment application is processed with a one-roof service policy in batam. All permits and licenses required to start development are processed under one roof by the investment service unit at the sumatera promotion center building. This unit is a simplification policy of licenses and permits related of investments which include offices of investment coordinating Board, Immigration and Law, Manpower, Tax, Customs and Excise, Municipality of Batam, and Batam Indonesia Free Zone Authority (BIFZZA). Batam is also the first city in the country to implement e-government project in Indonesia.
Companies operating in Batam are allowed to have foreign ownership. Visa on arrival could be obtained for most foreign nationalties in Batam. Foreigners are also allowed to buy and own houses, wheather or not they work in batam, so, batam could become a second home for foreign nationalities. All of these things reflect the commitment of the Indonesian government to fully support the development of Batam. Private sector involvement with strong support by the government is among the ingredients to have a successful development.