Doing Business

Business in Batam, Indonesia’s Free Trade Zone area

Trường Lăng

September 24, 2019


Batam is Indonesia’s first Special Economic Zone (SEZ). It locates on Straits of Melaka, the second busiest sea traffic in the world after the Strait of Hormuz in the Persian Gulf. Here are key benefits of doing business in Batam:

  1. Physical infrastructure in Batam is better than in the rest of Indonesia. It is easy to move materials, equipment and finished product into or from Batam’s port and airport compared to other parts of Indonesia.
  2. Basic infrastructure like electric power and water is the same as what is available in Jakarta.
  3. Batam is very close to Singapore, only 20 km away. Investors can go to Singapore if the facilities are lacking in Batam only by ferry.
  4. Batam is bordered by Malaysia and Singapore.
  5. Batam has a one-stop policy for investment procedures. Investors can do all its business transactions through a single office. The process will not take longer than 20 working days.
  6. Tax incentives offered in Batam. Most of the transaction to goods and services are free from VAT and LST but investors need to follow several administrative requirements, such as Business License from BPK, Goods need to relate to business activities and approve by the BPK, etc.
  7. Batam has been a promising place for the electronics manufacturing industry. Batam has attracted many electronic industry giants, namely Sanyo, Panasonic, Siemens, Sony, and Phillips.

Interested in doing business in Batam? Contact us! 

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