(Shutterstock/Akhmad Dody Firmansyah)
The Wiraraja Industrial Zone in Batam, Riau Islands, marked a significant milestone with the inauguration of eight new companies on August 26, 2024. These eight companies have invested a total of USD 17.63 billion, or approximately IDR 290 trillion, in two strategic areas: Wiraraja Industrial Park 1 in Kabil and the PSN Wiraraja Green Renewable Energy & Smart Eco Industrial Park on Galang Island, creating 36,150 jobs. This development represents a key moment in Batam's industrial transformation toward a green and digital economy.
This inauguration signifies a crucial step in Batam's efforts to drive industrial transformation towards a green and digital economy. With its status as a Special Economic Zone (SEZ) and free trade zone, Batam is expected to compete internationally, particularly with Johor in Malaysia. One of the key factors in the industrial growth of the Riau Islands is the diversity of sectors, which includes heavy industry, renewable energy, and digital services. This area is not only home to major industries but also a hub for innovative projects like Nongsa Digital Park and the smart-eco initiatives in the Wiraraja Industrial Zone.
Furthermore, the government is prioritizing the renewable energy sector, with an investment of USD 17.6 billion over the next five years. The eight companies investing in the Wiraraja Industrial Zone represent various strategic sectors, ranging from manufacturing to renewable energy. PT Atelier Solar Indonesia, a company from Singapore and the United States, is engaged in the manufacturing of solar modules with an investment of USD 30 million, while PT Energy Tech Indonesia from the United States focuses on manufacturing sodium-ion batteries with an investment of USD 250 million. PT Quantum Luminous Indonesia, a joint venture between the United States and Germany, is developing a silica sand manufacturing industry with an investment of USD 300 million.
PT Essence Global Indonesia is also present, focusing on the manufacturing of electric vehicles, investing USD 60 million.In addition, two companies from Taiwan, PT Uwin Resources Regeneration and TUL Taiwan Corp, both operate in the manufacturing of Electronic Grade Lithium Carbonate, each investing USD 60 million. Local companies are also involved, such as PT Galang Bumi Industri, which is developing an industrial area with an investment of USD 14.4 billion, and PT Wiraraja Strategix, which operates in the EPC & IPP sector, with an investment of USD 6 million. The presence of these companies not only strengthens the renewable energy and high-tech sectors but also creates jobs for tens of thousands of people.
The industrial growth in Batam has significantly contributed to the economy of the Riau Islands, which grew steadily by 4.9% in the second quarter of 2024. The processing industry accounted for 41% of the province's Gross Regional Domestic Product (GRDP), highlighting the importance of this sector in the regional economy. Overall, the Wiraraja Industrial Zone has demonstrated its vital role in supporting Batam's industrial advancement. The growing investment, from both Domestic Investment (PMDN) and Foreign Investment (PMA), strengthens Batam's position as an export-oriented industrialization hub in Indonesia and positions it to compete regionally.
The success of investment in the Wiraraja Industrial Zone is largely due to the role of the Indonesia Investment Coordinating Board (BKPM), which facilitates and accelerates the investment process in Indonesia. BKPM acts as a bridge between the central and local governments and foreign and domestic investors. This not only strengthens Batam and the Riau Islands' position as centers for the development of renewable energy and high-tech industries in Indonesia but also creates significant job opportunities for the local community. With support from BKPM and the central government, this industrial zone is expected to continue growing and competing regionally. This success reflects Indonesia's commitment to attracting sustainable investment that will drive national economic growth and position Batam as one of Southeast Asia's premier industrial hubs.
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