JAKARTA - Batam is getting serious about wooing Chinese investors. BP Batam even prepared a special promotion on social media, complete with an investment ambassador who speaks Mandarin.
As reported by The Straits Times, Thursday, May 21, BP Batam said that Chinese investors' interest in the island continued to increase. Talks with Chinese companies were also said to be more focused than a year ago.
BP Batam noted an increase in interest from companies with strong industry footprints, especially in advanced manufacturing, precision electronics, maritime fabrication, and green industries.
Chinese investment in Batam jumped from less than 1 million US dollars in 2013 to 253 million US dollars in 2024. In 2025, the value fell to 74.6 million US dollars.
Aniello Iannone, lecturer in Indonesian and Southeast Asian politics at Diponegoro University, assessed that Batam now has a special position for Chinese capital. Chinese companies face high costs, a weakening domestic demand, and the threat of US tariffs.
According to Iannone, Chinese investment in Batam is not just a normal diversification, but a repositioning of production capital amid geopolitical pressures.
The sectors that are included are also strategic. There are solar panels, electric bicycle batteries, data centers, aluminum smelting, and advanced manufacturing.
China is currently Batam's largest supplier, especially for machinery and electronic components. Meanwhile, the United States is Batam's main export destination.
In the solar industry, some of Indonesia's exports to the US come from Batam-based companies that are ultimately controlled by Chinese executives. A Bloomberg report in July 2025 named six such companies in the top 10 list of Indonesian exporters of solar cells and panels to the US.
Previously, products assembled in Indonesia could enter the US market without tariffs because they were not made directly in China. However, according to a report by The Straits Times, the space has begun to narrow after the US Department of Commerce in April announced initial tariffs on imports of solar products from Indonesia, India, and Laos.
Amid China's increasing interest, Singapore remains the largest foreign investor in Batam. This position has been held since the 1990s. In 2025, Singapore investors invested 16.6 trillion rupiah in Batam, far ahead of Taiwan and China.
However, the investment map is not always as simple as the country of origin in official reports. A number of investors based in Singapore are said to have ties to mainland China.
One of them is DayOne Data Centers, an infrastructure developer in Nongsa Digital Park and Kabil Industrial Tech Park. The Singapore-based company was previously the international arm of Chinese data center giant GDS. GDS still holds a 35.6 percent non-controlling stake in DayOne.
A spokesman for Nongsa Digital Park said Singapore remains an important partner due to bilateral relations and geographical proximity. However, the investment base is now more diverse, with increased interest from other regional players.
Interest in Batam and Bintan was also seen in the business visit of the Singapore Manufacturing Federation and Gallant Venture. During the visit, China received great attention.
Jeremy Chen, senior manager at Gallant Venture, said the interest of companies that want to diversify operations from China has grown since the US-China trade war in 2018. This strategy is known as China-plus-one, which is adding a production base outside China without completely leaving China.
In Bintan, Gallant Venture has prepared nearly 2,000 hectares of land in Bintan Industrial Estate for Chinese investors. The land includes infrastructure, resources, and power plants.
This interest is starting to become a real number. In the first quarter of 2026, Batam recorded investment realization of 17.4 trillion rupiah, more than double the same period last year.
The Batam, Bintan, and Karimun area, or BBK, is also attractive to Singaporean companies that implement the "twin operation" model. This means that some activities remain in Singapore, while the lower-cost production base is located in Indonesia.
The attractiveness of BBK is strengthened by the status of a free trade area. Imports and exports can be done duty-free. There is also an Integrated Sourcing Initiative scheme in the US-Singapore free trade agreement, which allows electronic components and medical devices from BBK to enter the Singapore customs area to be sent to the US.
Economist Intelligence Unit analyst Tay Qi Hang assessed Indonesia's non-bloc position as an added value for multinational companies that want to reduce their dependence on China without appearing to choose a camp. "The point is, if Washington expands tariff pressure on goods shipped through Indonesia, some of China's direct foreign investment in the manufacturing sector may be temporary," said Tay, quoted by The Straits Times.
BP Batam stated that it continued to reach out to more Chinese business actors through industry events, company associations, and cooperation with Indonesian diplomatic missions in China. The agency also provides information on incentives and licensing channels for prospective investors.
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