Liga Asuransi – Dear readers, how are you? This time we switch our discussion from risk management and insurance which is the mission of this website.
We will be discussing economic development in Batam, Indonesia. What do the business prospects there look like in 2022?
The short answer is, amazing!
The business opportunity here in Batam is very promising. This can be proven from the increasing number of investments invested by foreign companies and national companies in recent years.
One of the triggers for the increase of investment in Batam is due to changes in the policy of the Indonesian government in managing Batam.
Indonesia’s President, Jokowi succeeded in ending the dualism of managing Batam Island as a Free Trade and Free Port area.
The President has signed Government Regulation (PP) Number 62 of 2019 on the Second Amendment to Government Regulation No. 46 of 2007 on the Free Trade Area and Batam Free Port.
With this regulation, the Batam Free Trade Area, and Free Port (BP Batam) Business Agency will be led by the city mayor or double position as head of government as well as head of BP Batam.
Previously BP Batam was led by a special official appointed from Jakarta.
To find out how business prospects in Batam for 2022 and the following years are, we write some interesting snippets from online news for you.
We hope this information is useful for you. If you are interested, please share this with your colleagues so that they also understand you.
- KEK Nongsa Batam Gets Investment Commitment of US $ 950 Million
KONTAN.CO.ID – JAKARTA.
Acting Secretary of the National Council of Special Economic Zones (KEK) Elen Setiadi said, there have been investors who are interested in investing in KEK Nongsa Digital Park located in Batam, Riau Islands.
Elen said one of the talks discussed in the Leaders’ Retreat between President Joko Widodo and Singapore’s Prime Minister Lee Hsien Loong in Riau Islands was the development of the digital economy.
As is known, KEK Nongsa will be developed for data center infrastructure.
KEK Nongsa will be developed for data center infrastructure. And their data center infrastructure is around.
There are already commitments there are 3 investors around US $ 950 million,” Elen told Kontan, Wednesday (26/1).
Elen said several investors were somewhat late in realizing investments because previously there were restrictions due to the Covid-19 pandemic. Because usually investors will make a direct visit to the field.
Throughout 2021, the Export Contribution of Special Economic Zones Reached Rp 9.43 trillion In addition, investors also ensured to meet with managers and meet with the National Council of KEK. Elen said investors usually make legal due diligence related to administration.
As is known, President Jokowi received an investment commitment worth US $ 9.2 billion after a meeting with Singapore’s Prime Minister Lee Hsien Loong. The meeting included discussing strengthening bilateral cooperation in the economic field.
For information, KEK Nongsa is in Batam city of Riau Islands province and inaugurated with Government Regulation number 68 of 2021.
KEK Nongsa Digital Park is expected to be an entry point for international IT companies, set to become INDONESIA’S IT Hub Digital Bridge to Singapore and Aca Negara.
Save the country’s foreign exchange in digital business up to Rp 20 trillion – Rp 30 trillion per year with the largest contribution from the data center sector and international education.
- Batam City’s economic growth in 2021 was recorded at 4.75 percent. This is based on data from the Central Statistics Agency (BPS) of Batam City.
SUDUTBATAM.COM –
Batam’s economy has improved compared to 2020 which was recorded at minus 2.55 percent, due to the impact of the Covid-19 pandemic.
Head of BPS Batam City Rahmat Iswanto said Batam’s economic growth in 2021 was also better than the economic growth of Riau Islands Province (Kepri) and nationally.
Where Kepri economic growth in 2021 was recorded at 3.43 percent. While the national total was 3.69 percent.
“When compared to other districts / cities, the economic growth of Batam City is also much better,” rahmat said on Wednesday, March 1, 2022.
Karimun for example, its economic growth was 2.37 percent, Bintan 0.23 percent, Natuna 0.02 percent, Lingga 1.95 percent, Anambas 2.75 percent and Tanjungpinang 0.59 percent.
- Although constrained by the Covid-19 pandemic, Batam is still one of the investment destinations.
KOMPAS.com –
Although constrained by the Covid-19 pandemic, Batam is still one of the investment destinations.
This indicates the optimism of investors towards the investment climate in Batam. This is evidenced by the development of investment in Batam in 2020 successfully exceeding the target that has been set.
Head of Public Relations, Promotion and Protocol Bureau of BP Batam, Dendi Gustinandar through his statement said that 2020 is a year of challenges for all countries in the world.
During the pandemic period, BP Batam then took several strategic steps to continue to improve Batam’s competitiveness as an international and national investment destination.
“Some infrastructure development priorities, such as Hang Nadim Airport, Batu Ampar Port and road infrastructure, are being rapidly improved. We also continue to improve relations with international investors by enhancing effective marketing activities, through digital platforms and opening an Office of International Economic Relations in Singapore.”
All these efforts bear sweet fruit when BP Batam can exceed the total investment target, from the original target of Rp14.6 trillion can be reached to Rp 22.3 trillion or 152 percent of the 2020 target. “Foreign Investment (PMA) managed to reach Rp 9.3 trillion.
While Domestic Investment (PMDN) managed to excel reaching Rp 13 trillion. It certainly exceeded the expectations of all of us,” Dendi said.
Based on data compiled by bp Batam’s Directorate of Goods Traffic and Investment Services, from foreign (PMA) investment realization data by country in 2020 is still led by Singapore with an investment value of USD 360.4 million and 867 projects.
Luxembourg with an investment value of USD 140.7 million and 15 projects, and in third place is Germany with an investment value of USD 26.6 million and 25 projects.
“In total, of the 34 countries that invested in Batam, the investment value was USD 643 million and 1,714 projects.
While the realization of PMDN investment based on the sector in 2020, the Chemical and Pharmaceutical Industry sector is the main contributor to the achievement of investment realization and in the first position with an investment value of Rp 4.2 trillion and 33 projects. “Then followed by the Housing sector, Industrial Estate and Office. The investment value is Rp 3.4 trillion and 124 projects, then in the third position of the Mining sector with an investment value of Rp 2.6 trillion and 20 projects.
The largest number of projects is the Trade and Reparations sector with a total of 1,119 projects,” Dendi continued.
He also added, with the increasing realization of PMA investment, showing the optimism of foreign countries to invest in Indonesia, especially Batam. This is also a sign of the conductivity of the good investment climate in Batam. “Based on the Investment Activity Report (LKPM) from the Indonesian Investment Coordinating Board (BKPM), the realization of foreign investment in Batam City starting from 2016-2020 reached USD 2.78 billion and 4,369 projects.
- Foreign Investment in Batam Increased 122.8 Percent
Gatra.com
Head of BP Batam, Muhammad Rudi, revealed that foreign investment in Batam is believed to still experience positive development, although the Covid-19 pandemic still hit the world and did not escape also experienced by Batam.
According to Rudi, the trend of positive investment development can be seen from the comparison of foreign investment value (PMA) in Batam in the first quarter of 2020 and the first quarter of 2021 (YoY).
Based on data compiled from the Investment Activity Report (LKPM) of the Indonesian Investment Coordinating Board (BKPM), the value of PMA investment in Batam increased 122.8 percent in the first quarter year on year (yoy), which was USD 76 million in 2020 and USD 171 million in 2021.
In addition, in terms of the number of projects, Batam experienced a 23 percent increase in the first quarter (yoy), which was 438 projects in 2020 and 541 projects in 2021.
Head of BP Batam Muhammad Rudi, who is also the Mayor of Batam, revealed that from the data Singapore dominates the realization of investment in 2020, but in the last three years several European countries also dominate foreign investment in Batam.
- BP Batam Targets Rp 25 trillion Investment in 2021
CNBC Indonesia-
Batam targets economic recovery and investment can return to double digits after the pandemic. Throughout 2021, Batam Investment is targeted at Rp 25 trillion and is expected to be achieved by encouraging increased industrial production based on hi-tech while improving licensing efficiency and costs.
In addition, the development and fulfillment of infrastructure to cooperation between stakeholders and investors is also the focus of Batam to encourage the quality and quantity of Batam investment.
- Indonesia and Singapore Agree to Make Batam the Entrance to International IT Enterprise Investment
TRIBUNNEWS.COM, JAKARTA –
This was revealed by Indonesian Foreign Minister Retno Marsudi after a meeting with Singapore’s Foreign Minister Vivian Balakrishnan in Jakarta, Thursday (03/25/2021).
“I am pleased to note that Nongsa Digital Park in Batam has been granted Special Economic Area status on March 2, 2021,” Retno Marsudi told a national news conference on Thursday afternoon.
The two foreign ministries issued an agreement on digital economy cooperation.
To Vivian, Retno said that Indonesia has a promising digital ecosystem, as the largest digital economy in Southeast Asia.
On the other hand, Singapore has the knowledge and network to develop the digital sector.
Indonesia chose Batam as a digital bridge and data hub center and digital industry development in Indonesia.
With the establishment of Nongsa Digital Park as a Special Economic Area, Batam will be the entrance for international IT companies investing in Indonesia.
Meanwhile, Singapore’s foreign minister sees great prospects from the bridge, which could connect the potential of Indonesian and Singaporean youth to advance the two countries.
Why do corporations in Batam need the services of an insurance broker?
Although the infrastructure in Batam is much better, so is the use of advanced technology and supported by a more skilled workforce, risks can still occur.
The best way to manage risk and insurance is to utilize the services of an insurance brokerage company.
An insurance broker is an insurance consultant who is on your side. Insurance brokers design insurance guarantees according to your risk.
Insurance brokers are also looking for backup of insurance to the insurance market in Indonesia. Please note that the acceptance capacity and risk understanding capabilities by local insurance companies in Batam are currently limited.
Sometimes if the risk you face is large and the amount is high, then the placement of insurance must be done abroad. This can only be done by insurance brokerage companies in collaboration with reinsurance brokerage companies.
You need to know that in accordance with Indonesian government law, as an insured you should only use insurance companies registered in Indonesia.
You cannot buy insurance coverage directly abroad, even to Singapore which is close to Batam.
One of the insurance broker companies that has a lot of experience and clients in Batam is L&G Insurance Broker.
L&G’s clients in Batam, are among others, engaged in Shipbuilding (Shipyard), construction, property, power plant and others.
For all your insurance needs contact L&G right now!
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