Businesses fear investor migration to Johor SEZ due to surging electricity costs.
Batam industries are grappling with rising gas and electricity prices, threatening competitiveness. Business leaders warn that investors may shift to Malaysia’s Johor SEZ, where operational costs are lower. Meanwhile, Indonesia’s renewable energy efforts gain traction, with PLN’s Green Electricity service witnessing a 117% growth in 2024.
Batam, an industrial hub in Indonesia, is struggling with rising gas and electricity prices, creating concerns about losing investors to Malaysia’s Johor SEZ, which offers more competitive energy costs. Simultaneously, PLN’s Renewable Energy Certificate (REC) has gained momentum, showcasing a growing demand for sustainable energy solutions in Southeast Asia.
Batam Industrial Leaders Sound Alarm Over Electricity Prices
Rising gas prices have led to a 40-50% increase in electricity costs, according to Mook Soi Wah of BatamIndo Industrial Estate. Industrialists warn that expensive energy costs could drive investors toward cheaper alternatives in Johor SEZ.
Johor SEZ Gaining Traction Amid Batam’s Challenges
Malaysia’s Johor SEZ, in partnership with Singapore, is attracting investors due to lower operational costs. Johanes Kennedy Aritonang of Panbil Group emphasized the need for domestic gas allocation to prevent Batam’s industries from becoming uncompetitive.
Renewable Energy Gains Momentum With PLN’s REC Growth
PLN’s Renewable Energy Certificate (REC) program grew by 117% in 2024, with companies like Nike and Hyundai leveraging the service for sustainable operations. The program ensures electricity sourced from renewable energy is certified and meets international standards.
Electricity Costs Impact Key Sectors in Batam
Sectors such as electronics manufacturing and data centers, which require consistent energy supply, are particularly affected by rising costs. Industrialists warn of a potential reduction in investment scale if Batam fails to address these challenges.
Government Urged to Prioritize Domestic Gas for Industrial Use
Industrial leaders are calling on the Indonesian Ministry of Energy to ensure domestic natural gas allocation, preventing reliance on expensive imports and safeguarding Batam’s economic growth and investor appeal.
Renewable Energy Certificates Drive Sustainability in 2024
PLN’s REC Sees Exponential Growth
PLN’s REC service has expanded significantly, with 7,354 customers by 2024, a 117% increase from 2023. REC ensures businesses receive certified renewable energy, fostering sustainable operations and competitive advantages.
REC Adoption Among Global Giants
Prominent companies such as Nike, Hyundai, and PT Asahimas Chemical have adopted REC to meet sustainability standards. These businesses account for 2.81 TWh of green energy usage, representing 52% of total REC consumption in 2024.
PLN’s Renewable Power Plants
PLN operates eight renewable energy plants, including geothermal and hydropower stations like PLTP Kamojang and PLTA Cirata, to supply REC customers with verified green electricity.
Johor SEZ offers strategic opportunities amid Batam’s challenges. The rising adoption of renewable energy services like PLN’s REC also signals a shift towards sustainability-driven investments in Southeast Asia. Tourists and visitors may benefit indirectly from the economic adjustments that shape the region’s growth trajectory.
Sources: Tempo, Batam Click (2025)
Keywords: Batam energy crisis, Johor SEZ investors, renewable energy Indonesia, industrial competitiveness Southeast Asia, green electricity growth
