Batam Urged to Become Export-Focused Special Economic Zone for MSMEs

Batam, Indonesia, is being urged to establish a Special Economic Zone (KEK) specifically for Micro, Small, and Medium Enterprises (MSMEs) to bolster export activities and strengthen local economic engagement.

The proposal, put forth by Billy Mambrasar, Executive Committee member for Indonesian President Prabowo Subianto, emphasizes the need to complement Batam's significant foreign investment with robust local economic development. Mambrasar suggested creating a dedicated zone equipped with facilities to support businesses in international trade.

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Remember that MSMEs are from and by the community. So I ask the Provincial Government, BP Batam and the Central Government, such as the Ministry of Cooperatives and SMEs, and the Ministry of Trade, to accommodate MSME actors in one special area with all the existing facilities to prepare them to become exporters.

"Remember that MSMEs are from and by the community. So I ask the Provincial Government, BP Batam, and the Central Government, such as the Ministry of Cooperatives and SMEs, and the Ministry of Trade, to accommodate MSME actors in one special area with all the existing facilities to prepare them to become exporters," Mambrasar stated on Wednesday (August 26, 2026).

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KEK UMKM this can be a center for foreign tourist visits, for culinary and hospitality tourism, as long as we manage it very professionally and world-class.

Mambrasar highlighted that Batam's economy currently relies heavily on investment and exports, with household consumption making up only 20-30% of its regional gross domestic product. He believes that strengthening MSMEs, which are primarily community-based, is crucial for boosting domestic consumption and creating employment opportunities.

Beyond trade, the KEK UMKM could also serve as a hub for tourism, particularly in culinary and hospitality sectors, offering a professional and world-class experience for foreign visitors. Riki Rionaldi, Head of the Cooperatives and SMEs Office of the Riau Islands Province, welcomed the idea, noting that local authorities have been seeking effective strategies to promote MSME growth in the region.

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We have been trying to find the best formulation to encourage the progress of MSMEs in the Riau Islands Province and Batam City, and in my opinion, this can be the best idea to answer it.