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THE establishment of the Singapore-Johor Special Economic Zone (SEZ) in the Malacca Strait presents new opportunities for the development of Batam SEZs in the Riau Islands, according to the Batam Authority (BP Batam).
“BP Batam viewed (Johor-Singapore SEZ) as a strategic opportunity to foster new economic potentials to bolster regional development optimally,” BP Batam’s public relations bureau head, Ariastuty Sirait, stated in her written remarks on Friday.
Sirait noted that the binational SEZ is pushing the Batam Authority to enhance its investment competitiveness through infrastructure development, policies, and strategic collaboration with all parties.
The agency official stated that as an economic powerhouse in western Indonesia, Batam SEZ plays a crucial role in linking Indonesia with global trade centres and holds a key position in Southeast Asia’s industrial and trade landscape.
Sirait noted that Batam, with its advantageous proximity to Singapore, is also a viable alternative for multinational companies seeking low-cost investment opportunities.
“We also push industry diversification through SEZs in Batam to ensure (economic development) in the region focused on strategic potentials with high growth, such as animation, health, the creative economy, technology, logistics, and renewable energy,” Sirait remarked.
The Batam Authority is managing three SEZs in the region: Nongsa SEZ, Batam Aero Technic SEZ, launched in 2021, and Batam International Health Tourism SEZ, inaugurated last year.
The Johor-Singapore SEZ was established earlier this month following a joint agreement signed by Malaysian Prime Minister Anwar Ibrahim and Singaporean Prime Minister Lawrence Wong in Putrajaya, Malaysia’s administrative capital.
The two leaders expressed confidence that the binational SEZ will spur regional economic growth, benefit national economies, and attract global innovation and investments.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto remarked that the Johor-Singapore SEZ is modeled after Indonesia’s “success” in developing its SEZs.
“We cannot bar other countries from copying us. What we can do is compete against them,” Hartarto concluded. [antaranews]
