Batam’s Mayor and BP Batam Chief implements stricter land-use regulations to boost investment growth.
Batam’s Mayor and Head of BP Batam, Amsakar Achmad, has announced a strict evaluation of unused land to accelerate investment and development in the city. He emphasized that landowners who fail to develop their allocated plots within a specific timeframe will have their land repossessed. The move aligns with Batam’s ambition to achieve economic growth of 9.5% to 10%, surpassing Indonesia’s national target of 8% under President Prabowo Subianto.
Batam has long been positioned as one of Indonesia’s key investment hubs, benefiting from its strategic Free Trade Zone (FTZ) status. However, a significant portion of land granted for investment projects remains unused, hampering development. To curb land speculation and ensure productive utilization, BP Batam is implementing stricter policies on land payments and development timelines.
Stricter Land Use Regulations
Following an internal review by BP Batam, Amsakar announced that investors must now make an upfront payment of at least 50% of their land allocation fees to demonstrate serious investment intent. Previously, landowners could secure plots with just a 10% payment, often leading to delays in development.
“I do not want landowners to pay only 10% and leave their land idle. Those serious about investing must commit financially,” said Amsakar during a press briefing on March 14, 2025.
He also instructed BP Batam’s Land Management Division to identify landowners who have only paid 10–15% of their obligations. These individuals will be asked to increase their financial commitment or risk losing their land rights.
Two-Year Deadline for Development
Amsakar stated that landowners will be given a one-to-two-year timeframe to begin development. If no progress is made, BP Batam will revoke land rights and reallocate plots to investors who demonstrate real commitment.
“If a landowner does not start development within two years, the land will be taken back and reassigned to those willing to invest,” he said.
This policy aims to ensure that land in Batam contributes to economic growth, rather than being left dormant.
Boosting Batam’s Economic Growth and Investment Appeal
Batam’s FTZ status provides numerous benefits to investors, including exemptions from Value-Added Tax (VAT), Luxury Goods Tax (LGT), and import duties. Amsakar emphasized that these advantages must be maximized to attract new businesses and maintain Batam’s competitive edge against regional rivals like Singapore, Malaysia, and Vietnam.
“We must use these incentives wisely to draw investors, rather than allowing land to sit idle,” he said.
He added that Batam is expected to achieve a growth rate of 9.5% to 10%, surpassing Indonesia’s national target of 8%, due to its strong infrastructure, trade incentives, and industrial development initiatives.
With land scarcity becoming a growing concern, Batam’s leadership is taking proactive steps to ensure responsible land use. By tightening regulations, enforcing higher initial payments, and setting clear deadlines, BP Batam aims to expedite urban development and attract serious investors.
For foreign investors, particularly from Singapore, the new policies offer greater certainty and opportunities to acquire land previously left undeveloped. With Batam’s economic ambitions closely tied to its land policies, the latest reforms could significantly impact regional investment dynamics.
Sources: Gokepri (2025), Batam Today (2025)
Keywords: Batam Land Evaluation, Investment Acceleration, BP Batam Policies, Unused Land Repossession, Indonesia Economic Growth, Free Trade Zone Regulations, Amsakar Achmad Development Plan
