The establishment of the Singapore-Johor Special Economic Zone (SEZ) in the Malacca Strait has created opportunities for Batam SEZs in the Riau Islands, according to the Batam Authority (BP Batam). BP Batam’s public relations bureau head, Ariastuty Sirait, described the development as a “strategic opportunity” to foster new economic potentials, enhancing regional growth.
The binational SEZ, formalised through an agreement between Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lawrence Wong earlier this month, aims to spur economic growth and attract global investments. The two leaders expressed confidence in the zone’s capacity to benefit both nations’ economies.
Sirait noted that Batam’s advantageous proximity to Singapore positions it as a low-cost investment alternative for multinational companies. “We also push industry diversification through SEZs in Batam to focus on strategic potentials with high growth, such as animation, health, the creative economy, technology, logistics, and renewable energy,” she added.
The Batam Authority currently manages three SEZs: Nongsa SEZ, Batam Aero Technic SEZ (launched in 2021), and the Batam International Health Tourism SEZ, inaugurated last year. These zones strengthen Batam’s role as a key player in Southeast Asia’s trade and industrial landscape, linking Indonesia to global trade centres.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto commented on the Johor-Singapore SEZ’s resemblance to Indonesia’s SEZ initiatives. “We cannot bar other countries from copying us. What we can do is compete against them,” he said on Jan 13.
The Batam Authority is working to enhance investment competitiveness through infrastructure upgrades, policy advancements, and collaboration. This strategic move comes as the Singapore-Johor SEZ sets a new benchmark for regional economic partnerships.
As Batam looks to build on its existing strengths, the binational SEZ provides a framework for collaboration and competition in the region, pushing Southeast Asia’s economic integration further.
