Batam supports technology investment with new data center agreement

Batam City is actively fostering technology-based investments, with local leaders demonstrating strong support for the sector. Mayor Amsakar Achmad and Deputy Mayor Li Claudia Chandra attended the signing of an Electricity Purchase Agreement (PJBTL) between PT PLN Batam and PT Altiva Identity Data Center. This event underscores the city's commitment to attracting and facilitating such ventures.

Mayor Achmad emphasized Batam's strategic advantages, including its prime location along the Malacca Strait international shipping lane and its proximity to Singapore. Coupled with supportive central government regulations, these factors make Batam an increasingly attractive destination for investors. He noted Batam's ongoing transformation from a traditional manufacturing hub to a center for information technology and data center investments.

"What is done today proves that synergy among stakeholders can increase investment competitiveness. Collaboration like this is important so that Batam becomes even stronger as an investment locomotive and a driver of national economic growth," Achmad stated. He highlighted a significant shift in investment trends, moving from infrastructure and assembly manufacturing towards the rapidly growing information technology sector, particularly data centers.

To support this burgeoning industry, the Batam City government and the Batam Development Authority (BP Batam) are prioritizing infrastructure readiness. Ensuring a stable supply of electricity and clean water is paramount for data center operations. The recent PJBTL signing signals the readiness of the electricity supply, while the city government pledges to expedite and simplify the permitting process for investors.

Batam's appeal as a technology investment destination is gaining global attention. Plans are underway for a partnership between Australia's Firmus Technologies and Nvidia to develop a GPU production facility, targeted for operation in early 2027. Mayor Achmad urged all community members and stakeholders to maintain a positive investment climate, promoting Batam as a safe, conducive, and investment-friendly region. Macroeconomic indicators show Batam's strengthening performance, with its Human Development Index (HDI) at 83.8, the highest in the Riau Islands Province and among the top five in Sumatra, reflecting improvements in education, health, and public welfare.

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What is done today proves that synergy among stakeholders can increase investment competitiveness. Collaboration like this is important so that Batam becomes even stronger as an investment locomotive and a driver of national economic growth.