Jakarta highlights new incentives, faster permits, and digital–manufacturing hubs to attract Singaporean investors.
Indonesia is intensifying efforts to bring more Singaporean investors into the Batam–Bintan–Karimun (BBK) corridor, now being developed as a strategic hub for advanced manufacturing and the regional digital economy.
Strengthening BBK as a Strategic Investment Hub
Coordinating Minister for Economic Affairs Airlangga Hartarto led an investment promotion event in Singapore on 18 November 2025, inviting companies to explore new opportunities across BBK. He emphasized that the momentum surrounding the corridor is growing rapidly, backed by expanded incentives in five Special Economic Zones (SEZs) and accelerated permit processes.
Sectors highlighted for investment include green manufacturing, digital economy, healthcare services, renewable energy, and logistics.
Attractive Incentives and New Regulations
The Indonesian government showcased a series of fiscal and non-fiscal incentives across the BBK SEZs, such as tax reductions, duty exemptions, simplified licensing, and one-stop administrative services.
To improve ease of doing business, Jakarta issued PP 28/2025 and PP 25/2025, which streamline permits through a Service Level Agreement mechanism. These are further supported by Perpres 1/2024 on the BBK Masterplan and Perpres 21/2025 on land allocation in Batam—providing clear legal certainty for industrial expansion and infrastructure development.
Deepening Bilateral Coordination Through 6WG
Airlangga noted that the BBK promotion event forms part of the Working Group Batam, Bintan, Karimun (WG BBK) agenda. Collaboration has been strengthened through six Bilateral Economic Working Groups (6WG), focusing on industrial infrastructure, green economy, healthcare, and supply chain resilience.
The 15th Ministerial Meeting of the 6WG in June 2025 reaffirmed both governments’ commitment to improving business regulations and attracting high-quality investment.
Concrete Progress Through Joint Report to Leader
Airlangga also briefed investors on the developments highlighted in the Joint Report to Leader (June 2025), which outlines key measures such as:
- Enhanced visa facilitation for foreign talent
- Sustainable investment promotion initiatives
- Development of Nongsa Digital Park as a regional digital hub
- Infrastructure upgrades to accelerate BBK project implementation
These steps aim to deepen BBK–Singapore integration and enhance regional competitiveness.
Singapore Remains Indonesia’s Leading Investor
For more than a decade, Singapore has been Indonesia’s top foreign investor. In 2024, Singapore’s foreign direct investment into Indonesia exceeded USD 20 billion, while bilateral trade reached USD 57.6 billion.
Indonesian Ambassador to Singapore Suryopratomo assured investors of strong protection and security for foreign companies, while Singapore Economic Development Board Chairman Png Cheong Boo reaffirmed Indonesia’s long-term strategic value due to geographic proximity and economic potential.
The BBK corridor is emerging as a powerful engine of regional growth, driven by regulatory reforms, cross-border cooperation, and strong investor interest from Singapore. As Indonesia sharpens its investment incentives and accelerates project implementation, the BBK–Singapore partnership is positioned to strengthen supply chains, deepen digital integration, and support sustainable economic growth for both nations.
Sources: Gokepri (2025) , Pantau.com (2025)
Keywords: BBK Investment, Airlangga Hartarto, Singapore Indonesia Ties, Nongsa Digital Park, Special Economic Zones
