BP Batam shifts focus to modern agribusiness for optimized land use and state income boost

Batam Indonesia Free Zone Authority (BP Batam) is restructuring its agribusiness assets to increase non-tax state revenue (PNBP). A recent workshop unveiled a strategy to optimize 112.7 hectares of land through sustainable agriculture and integrated development.

Agribusiness Restructuring for National Gain

On Friday, July 11, 2025, BP Batam held a consignment workshop titled Agribusiness Structuring and Development for PNBP Enhancement. Led by BP Batam Deputy for Public Services Ariastuty Sirait, the initiative emphasizes that agribusiness, if managed modernly and sustainably, can significantly support Indonesia’s non-tax state revenue.

“Through a green and innovative approach, agribusiness holds vast potential not only economically but also environmentally,” Ariastuty stated, highlighting the alignment of development and sustainability.

Reallocation of the Former MBS Mosque Site

A key highlight from the workshop was the cancellation of the Masjid Mohammed bin Salman (MBS) construction. The 112.7-hectare site, divided into three zones, will now be repurposed for agricultural and livestock activities. This shift is expected to generate Rp6.4 billion annually, approximately SGD512,000.

Iyus Rusmana, Director of SPAM Facilities and Environment, confirmed that the third zone—formerly allocated for the mosque—will now serve as an integrated agribusiness hub, increasing land productivity and long-term economic returns.

Detailed Zoning Strategy

• Zone One hosts 26 ornamental plant farmers. BP Batam plans to reverify their tenancy and enforce compliance with rental regulations under the agency’s latest decree.
• Zone Two includes livestock, government buildings, official housing, and other public infrastructure. This zone will undergo contract reviews and administrative tightening.
• Zone Three, once planned for the mosque, is being transformed into a comprehensive farming and livestock cluster.

Data Collection and Monitoring Are Priorities

BP Batam officials stressed the need for data-driven asset management. “Re-verification, evaluation of agreements, and enforcement—ranging from warning letters to contract termination—are crucial to increasing compliance and revenue,” said Iyus Rusmana.

The initiative also involves consultations with agricultural experts, including Wishnu Dewahjana and Batam’s Head of Food Security and Agriculture, Mardanis, to ensure policies are grounded in practical, field-tested approaches.

Building Toward Sustainable Growt

Beyond immediate revenue goals, the program is a blueprint for nationwide asset management reform. By applying an integrated, transparent model of agribusiness governance, BP Batam seeks to set a precedent for other government bodies managing land-based assets.

BP Batam’s agribusiness overhaul is more than just a financial strategy—it represents a shift toward sustainable land management, institutional accountability, and smart public asset use. With an ambitious Rp6.4 billion target and strong cross-agency coordination, this model could reshape how Indonesia approaches economic development and land utilization—impacting stakeholders both domestically and across neighboring Singapore.

Sources: BP Batam (2025) , Batam Pos (2025)

Keywords: BP Batam, Agribusiness Optimization, State Revenue, Asset Management, PNBP Target, Land Reform