Indonesia to Introduce Two New Special Economic Zones in Batam

Aug 2021

Indonesia has announced plans to establish two new special economic zones (SEZs) in Batam. The new SEZs, Nongsa Digital Park and Batam Aero Technic, are being developed to support a number of industries in the island city. While the Nongsa Digital Park places emphasis on digital technology and tourism, the Batam Aero Technic focuses on the maintenance, repair and overhaul of passenger aircraft.

The Nongsa Digital Park was initially set up in 2018 as a technological park, resulting from bilateral discussions between Indonesia and Singapore. With the upgrade to SEZ status, the 155.43-hectare park will expand on research and development, education and creative industries. By establishing itself as a hub for data centers, it plans to attract USD 1.1 billion in investments.

Batam Aero Technic, on the other hand, stretches over a 30-hectare facility owned by Lion Air Group, Indonesia’s largest private airline. With the upgrade to SEZ status, Batam Aero Technic will also provide logistics and distribution, production and processing and technology development. The new SEZ’s goal is to receive USD 500 million in investments. According to statistics firm Statista, before the Covid-19 pandemic, Indonesia was the second-fastest-growing aviation market in the world.

(Sources: ASEAN Briefing; Statista)

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