Batam: Logistics Hub and International Port on the Border
As a strategic island city on international trade routes, Batam is an important node between Indonesia, Singapore, and Malaysia.
Every day, thousands of tons of goods enter and leave ports such as Batu Ampar, Sekupang, and Kabil, including export-import commodities, industrial materials, and consumer goods.
Batam is not only a distribution center for Sumatra and Kalimantan, but also a major logistics hub for the manufacturing, energy, and shipping sectors.
However, behind this busyness, the risk of loss or damage to goods during sea, land or warehousing journeys is very high.
From shipwrecks, extreme weather, collisions, theft at ports, to loading and unloading errors — all can cause major losses for exporters, importers, and logistics owners.
Therefore, marine cargo insurance is an absolute necessity for all logistics business actors in Batam.
And to ensure protection according to actual risks, professional insurance brokers such as L&G Insurance Broker play a vital role in designing an insurance program that is efficient, comprehensive, and easy to claim.
Contact L&G Insurance Broker now at Phone number 08118507773 for a free consultation before the risks haunt your business.
Why Does Batam Need Marine Cargo Insurance Protection?
Batam has unique risk characteristics because it is a port city with a combination of sea, land, and air transportation.
Some of the main factors that make transportation risks in Batam high include:
- Uncertain Sea Weather
The westerly wind season and high waves often cause container damage, water entering the cargo hold, or ships rolling over.
- Condensed Unloading-Loading Activities
Batu Ampar and Kabil ports handle thousands of containers daily. In busy conditions, mishandling of forklifts or cranes can result in damaged or dropped goods.
- Theft and Manipulation of Goods
Cases of partial loss of cargo, broken seals, or fake shipping documents still occur, especially in domestic inter-island shipping.
- Advanced Land Transportation
After arriving at the port, goods are often transported by truck to a warehouse or factory.
Risks such as overturning, vehicle fire, or street robbery remain lurking.
- Difficult Claims Without Evidence
Many owners of goods fail to claim compensation because they do not have insurance or proof of complete shipping documents.
Types of Marine Cargo Insurance Available
- Sea Cargo Insurance
Covers damage or loss of goods during sea voyages.
There are three main types of protection under the Institute Cargo Clauses (ICC):
- ICC (A): The broadest protection (all risks).
- ICC (B): Medium risk (only major hazards such as fire, ship sinking).
- ICC (C): Basic protection, suitable for low value goods.
- Inland Transit Insurance
Protecting goods when transported by truck, train, or other land vehicle.
It is very important for shipping from port to factory or vice versa.
- Air Cargo Insurance
For export of perishable goods, electronics, or high-value components shipped by air.
- Domestic and Export-Import Shipping Insurance
Domestic: from Batam to Medan, Pekanbaru, Surabaya, Makassar, and Kalimantan.
Export-Import: from Batam to Singapore, Malaysia, China, and Japan.
- Marine Open Policy (MOP)
Suitable for companies that regularly send goods.
All shipments during a period (usually 1 year) are covered automatically without the need for a new policy each time a shipment is made.
Real Case Examples in Batam
Case 1 – Export Goods Damaged by Sea Water
An electronics company in Batam Center exports computer components to Singapore.
The ship sprang a leak during a storm, seawater entered the containers, and the goods were completely damaged.
The loss reached Rp. 1.2 billion.
As the company had Marine Cargo Insurance ICC (A) through broker L&G, the claim was paid in full within 45 days.
Case 2 – Transport Truck Overturned on Kabil Road
Imported goods from Kabil port to the factory in Batu Aji experienced a land accident.
The item is broken and cannot be used.
Fortunately, the shipment is protected by Inland Transit Insurance — the owner of the goods is reimbursed 90% of the value of the goods.
These two cases prove that insurance is not just a formality, but a real protector of assets and cash flow.
Estimated Marine Cargo Premium Costs in Batam
| Shipping Type | Types of goods | Insurance Value | Kind of Police | Premium Estimate |
| Batam–Singapore Exports | Electronic | Rp. 5 billion | ICC (A) | Rp. 2,000,000 – Rp. 3,000,000 |
| Malaysia–Batam Imports | Automotive spare parts | Rp. 2 billion | ICC (B) | Rp. 800,000 – Rp. 1,200,000 |
| Domestic Batam–Surabaya | Packaged food | Rp. 1 billion | ICC (A) | Rp. 600,000 – Rp. 900,000 |
| Local delivery between islands | Industrial equipment | Rp. 500 million | Inland Transit | Rp. 200,000 – Rp. 400,000 |
💡Premiums can be lower when consolidated through an annual Marine Open Policy (MOP) designed by the broker.
The Vital Role of Insurance Brokers in Marine Cargo
Many companies in Batam still manage insurance manually, or even have no coverage at all because it is considered complicated.
In fact, insurance brokers like L&G Insurance Broker can handle the entire process from start to claim:
- Logistics Chain Analysis
Brokers map the entire shipping path: origin, transit, destination, and mode of transportation, then assess each risk point.
- Marine Open Policy Program Design
Brokers combine all shipments into one flexible policy, lowering costs and simplifying administration.
- Negotiating Premiums and Additional Clauses
Like:
- “Warehouse to Warehouse Clause”
- “Automatic Coverage for All Shipments”
- “Institute War and Strike Clauses”
This clause ensures that protection remains in place even in the event of disruption by war, strikes or port delays.
- Fast and Transparent Claims Management
The broker acts as the insured’s representative in the claims process — ensuring the loss adjuster’s assessment is fair, documentation is complete, and payment is prompt.
- Training & Education for Clients
L&G also frequently provides training to logistics staff to understand documentation such as packing lists, bills of lading, survey reports, and claims procedures.
L&G Insurance Broker’s Advantages in the Marine Sector in Batam
⚓30 years of experience in handling Marine Cargo and Marine Hull insurance.
🌍Global network with major underwriters in London and Singapore.
📊Actual data-driven risk analysis of thousands of shipments.
🧾100% claim support until payment is complete.
💡The LIGASYS digital system makes it easy to report monthly deliveries and premiums.
With L&G’s support, export-import and logistics companies in Batam can more confidently manage risk — without fear of losing shipment value due to accidents, bad weather, or human error.
The Real Benefits of Marine Cargo Insurance
- Maintain cash flow and business stability.
- Shipping losses can be immediately covered by insurance without disrupting operations.
- Increase company credibility.
- Insured exporters are more trusted by foreign buyers.
- Reduce legal risks.
- If a dispute arises due to damage to goods, insurance helps resolve liability to third parties.
- Improve logistics cost efficiency.
- Premiums can be calculated per shipment or bundled annually (MOP).
- Providing peace of mind for management and clients.
- All parties know that goods are protected from risks at sea and on land.
Tips for Business Owners and Exporters in Batam
- Use an OJK-licensed broker who is experienced in the marine sector.
- Don’t just choose a cheap premium, but look at the risk coverage and clauses.
- Make sure the policy covers “warehouse-to-warehouse”.
- Report shipments regularly to keep protection active.
- Learn the claims procedure from the start, so you are prepared if disaster strikes.
Conclusion: Protect Your Shipments, Maintain Business Trust in Batam
In the world of trade and logistics, trust is the main capital.
Once a shipment fails or the goods are damaged without insurance, reputation and business relationships can be destroyed.
With Marine Cargo Insurance designed and managed by L&G Insurance Broker, businesses in Batam can ensure that every shipment—both local and international—is safe, efficient, and fully protected from all risks.
🚢Batam is a port city, and ports never sleep. Ensure your business is protected at all times—at sea, on land, and in the right hands.
DON’T WASTE YOUR TIME AND SECURE YOUR FINANCES AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM:0811-8507-773(PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
