16 Indonesia
SPECIAL ADVERTISING SECTIONThe Indonesian island offers key advantages to companies looking to grow in the region.BATA M
FREE TRADE ZONE:
AN OPPORTUNITY FOR BUSINESS
From its strategic location and tax-exempt
status to its modern facilities and infra-
structure, Batam offers a host of benefits
to companies that wish to set up opera-
tions within its free trade zone.
These incentives have been effective in
attracting investment to the Indonesian
island, which is located 20 kilometers
southeast of Singapore. About US$765
million in foreign direct investment flowed
into Batam in the first nine months of
2017, up 78% from the year-earlier period.
Thirteen new companies have also set up
in the zone this year.
The Batam Free Trade Zone is at the
crossroads of business and trade in
Southeast Asia. Batam is part of the Riau
archipelago, which lies south of Vietnam
and Cambodia, to the east of Malaysia and
Singapore and to the west of Borneo.
Companies operating on Batam can
take advantage of the world-class Port of
Singapore, enabling connections to the
international shipping lane along the Strait
of Malacca that connects the Indian and
the Pacific oceans.
Batam is easily accessible from around
the region. It takes less than an hour to
get there by ferry from Singapore or
Johor Bahru in Malaysia, and there are a
number of flights from across Indonesia to
Hang Nadim International Airport, which
features the country’s longest runway.Tax Exemptions
In 2007, the government des-
ignated Batam a free trade
zone for 70 years. It covers
the islands of Batam, Tonton,
Nipah, Rempang, Galang and
Galang Baru. Companies with
manufacturing operations on
Batam are exempt from import
and export taxes, as well as
value-added tax.
Raw materials may also be
imported, processed and re-
exported without being sub-
ject to custom duties. In the
first half of 2017, more than US$5 million
in goods were exported from Batam, a
22% increase over the year-earlier period.
The 24 industrial parks in Batam are
equipped with a comprehensive range of
facilities and amenities. The larger ones
provide clean water supply and wastewa-
ter treatment, workers’ dormitories and
executive housing, and even their own
electricity power supply system. Workers
can also access services such as banks,
restaurants and food courts, as well as
retail, sports and medical facilities.
Outside the industrial parks, Batam’s
infrastructure is highly developed, and
includes fresh water from seven man-
made reservoirs, waste water treatment
plants, a surplus capacity of 540MWelectricity supply, as well as four cargo
ports, five international ferry terminals and
an international airport. With extensive
paved roads and bridges, getting around
the island is easy and convenient.
The free trade zone is designed for ease
of doing business. Companies can now
obtain the eight licenses that they need
to operate on Batam in just three hours.
Meanwhile, licensing for the transport
of goods can be processed in just four
working days online, compared with the
14 working days needed previously under
a manual system.
With so much on offer, the Batam Free
Trade Zone should be at the top of the list of
potential locations for manufacturers look-
ing to grow their presence in the region.A skilled workforce is available for companies
who set up factories in Batam.There are 24 industrial parks located on the Indonesian island.Phone: (+62) 778 462047-48
ext 2124, 2123, 2180
[email protected]
http://www.bpbatam.go.id