Technical Assistance II

While many of the key investment decisions both from government and businesses take place in Jakarta and other major cities, the actual investment activities often tend to take place outside of the capital, whether in the industrial clusters of Java, or other business hubs, such at Batam, which is strategically located around 30 kilometres from Singapore.

As part of a visit to Indonesia and Singapore by the European Commission’s Directorate General for International Partnerships (DG INTPA), ARISE+ Indonesia organised a two-day visit to Batam, following a series of meetings with government and private sector stakeholders in Jakarta.

The visit offered an opportunity to see first-hand how investments in strategic, future-oriented areas such as digitalization, automation and renewable energy were progressing in Batam, with companies from the EU playing an increasingly important role in the ecosystem. The mission began with a site visit to Nongsa Digital Park, a new Special Economic Zone (SEZ) where global corporate brands from the EU and elsewhere have set up operations - including the German semiconductor multinational Infineon Technologies and Apple, which has set up a Developer Academy. Nongsa, with its strong data centre and animation offerings, is set to become a sophisticated digital ecosystem, incubating digital talent through its partnership with the private sector and leading universities, and offers significant opportunities for innovative European companies operating in the digital space.

The delegation then had a meeting and factory visit with Schneider Electric, one of Europe’s major corporate investors in Batam and a pioneer in the Internet of Things (IoT) and other digital solutions for a host of industries, including energy, automotive and e-mobility. This visit enabled the delegation to hear and see first-hand how European FDI is supporting Indonesia’s Industrial Development: Schneider Electric is a key partner of the Ministry of Industry and its ‘Making Indonesia 4.0’ programme.

The first day concluded with a visit to BP Batam - the island’s Free Zone Authority - where the delegation learned about the broader development plans across the island, including a number of new zones and key infrastructure projects being prepared by the local government which will offer investment opportunities through PPP schemes. The meeting was also an opportunity for the EU to reaffirm its commitment to supporting the mobilisation of investments in key future-oriented sectors, and in important economic hubs such as Batam.

The visit concluded on the second day with a visit to one of Batam’s newest Industrial Parks - Wiraraja - which has already secured investments in renewable energy (solar panel manufacturing) and semiconductor processing. With plans to significantly extend their coverage to a new site south of Batam island, Wiraraja looks set to offer significant opportunities for European investors, including renewable power generation, data centres and other segments.

All of these meetings and site visits enabled the delegation to inform key stakeholders about the opportunities offered by the EU’s Global Gateway and its associated programmes and financing instruments, as well as the work being undertaken by ARISE+ Indonesia and BKPM on finalising the Indonesia-EU Investment Attraction Plan, a core tenet of which will focus on attracting quality, future-oriented European FDI into key existing and up-and-coming hubs and hotspots across Indonesia.

Commenting on the delegation’s visit to BP Batam, Dr. Kay Parplies, Head of Unit for Investment and Innovative Financing at DG INTPA, noted the following: “We see strong potential and a variety of opportunities in Batam. We also see good progress with Batam’s infrastructure, meaning that Batam can continue to be an important destination for investment.”


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