President Prabowo Subianto has outlined plans to accelerate Batam's transformation into a global maritime, logistics, and investment hub, placing the island at the center of Indonesia's efforts to strengthen industrial competitiveness and attract strategic investment.

During a meeting with the leadership of the Batam Development Authority (BP Batam) on July 7, the President said Batam should serve as a national model for downstream industrialization, industrial development, deregulation, investment acceleration, and logistics efficiency. According to BP Batam, he emphasized that the island's competitiveness must be supported by legal certainty, efficient public services, and globally competitive infrastructure.

A key focus of the government's strategy is the modernization of Batam's port system, including the planned development of Batam International Port. The project is intended to integrate logistics facilities with industrial estates, advanced manufacturing, data centers, and global shipping networks, with the aim of reducing logistics costs, improving export competitiveness, and strengthening Batam's role in global supply chains.

BP Batam Head Amsakar Achmad said regulatory reforms introduced through Government Regulation No. 25/2025 have improved the investment climate by streamlining investment services and providing greater certainty for investors.

"Through these reforms, BP Batam aims to develop Batam into a more productive, well-organized, and competitive region while strengthening its role as an investment, industrial, and trade center that contributes significantly to the national economy," Amsakar said, as quoted by BP Batam.

The authority is also strengthening governance through the digitalization of its Land Management System (LMS), which is designed to improve transparency, accountability, and the efficiency of land administration.

"BP Batam believes these governance improvements will enhance legal certainty, accelerate investment services, and strengthen investor confidence in Batam as an investment destination," Deputy Head Li Claudia Chandra said, as quoted by BP Batam.

BP Batam reported that realized investment reached IDR 69.3 trillion (USD 4.2 billion) in 2025. In the first quarter of 2026, investment totaled IDR 17.48 trillion (USD 1.07 billion), up 102.85% year-on-year. Investment continued to be concentrated in higher value-added sectors, including electronics, machinery, energy, industrial estates, data centers, and other digital infrastructure.

Deputy for Investment Fary Djemy Francis said President Prabowo also directed Batam to become a pilot project for Indonesia's investment reform agenda through the digitalization of public services, risk-based supervision, and strengthened governance.

"The President also directed Batam to become a pilot project for national investment reform through service digitalization, risk-based supervision, and strengthening the integrity of the region," Fary said, as quoted by BP Batam.

As reported by The Jakarta Post, the government's strategy seeks to position Batam not only as Indonesia's leading free trade zone but also as one of Southeast Asia's emerging manufacturing, maritime logistics, and investment gateways. The meeting concluded with the President instructing ministries and government agencies to coordinate the acceleration of strategic projects, including regulatory harmonization and the development of Batam International Port.