BATAM is a vigorous sprawling island city located just 20 kilometres (less than 13 miles) across the water from Singapore – the crossing takes about an hour by modern fast ferry.
THE MAIN centres on Batam Island are Nagoya and Jodoh (retail, commercial, entertainment and hotels) and Batam Centre (Government administration, retail and education).
Batam is booming and for those who have done their homework and understand Indonesia and how it works this small island (two thirds the size of Singapore) can offer attractive investment opportunities.
Batam is the principal centre (though not the capital) of the new Riau Islands Province (Kepulauan Riau, usually shortened to Kepri) which split off in 2004 from the Riau Province centred on Pakenbaru, Sumatra.
Its proximity to Singapore is the key to Batam’s explosive economic growth, its potential and to its attractiveness as a place to live.
In a little over 40 years Singapore has emerged from colonial domination, the aftermath of Japanese occupation during World War II, and a period of intense political struggle to become an economic and financial powerhouse and the leading transportation and distribution hub of South East Asia.
Today Singapore is recognised as the economic star of South East Asia -
Inevitably Singapore’s success is spilling over to neighbouring Batam. Savvy regional investors are pouring money into Batam’s new commercial, retail, residential and industrial development at a staggering rate – many of them clearly view the future Batam as “Singapore East”.
Incredibly, only about 35 years ago Batam was still a mass of raw uninhabited jungle with a mere 6,000 to 8,000 residents living in traditional fishing villages scattered around the coastline.
Today the island has become a modern centre of industry and trade with around a million people and 17 industrial estates housing acres of heavy fabrication yards and modern factories manufacturing electronic components and consumer goods for export. Go to these links for an indication of the pattern:
www.sembcorp.com/sembcorp/business_parks_batamindo.html
Batam has become a magnet for foreign investment from some hundreds of firms from South East and North Asia, Europe, the Americas and Australasia.
It also has become a base for low-
www.kabilindustrialestate.com/location.htm
According to the Batam Industrial Development Authority, the number of dockyards on Batam increased from 12 in 1998 to 71 in 2008. Several are major enterprises employing between 3,000 and 13,000 workers each.
www.drydocks-
The transformation has made Batam the richest and fastest growing region in Indonesia (measures such as numbers of cars and electricity connections grew at close to 30 per cent annually over the 11 years to 2003 and the island’s Water Supply Authority reported 15,000 new connections over the first five months of 2009). Batam routinely matches or exceeds Jakarta as Indonesia’s second or third biggest visitor port of entry (after only Bali).
Few places in the world have grown so fast for so long (and this despite the interruption of the Asian Economic crisis of the late 90s).
Despite the fall-
As at 2004 Singapore already ranked as Batam’s largest source of foreign investors with some 280 Singaporean companies established on the island with major direct investments.
The world-
The subsequent economic downtown has slowed and delayed some ventures and impacted some industries, particularly electronics manufactures. However, overall Batam continues to record strong growth and is expected to recover quickly as international economic circumstances improve. Perceptive newcomers who see Batam’s acres of new construction and the continuing speed of development quickly recognise it is a place where something special is happening.
RECENT initiatives by the Indonesian and Singapore Governments suggest that Batam’s surge of development over the past two and a half decades is barely a beginning!
The then Indonesian Government first designated Batam and the nearby islands of Rempang and Galang as a Special Development Zone in the 1980s (the three islands have since been linked by bridges and together are known as Barelang).
The Development Zone designation spurred a first wave of rapid development presided over by B J Habibie as the head of a specially created Batam Industrial Development Authority (Habibie was later to briefly succeed General Suharto as Indonesia’s President).
Over the following decade Singaporean, Malaysian, Japanese, Korean, Taiwanese, European, Australasian and American companies as well as Indonesian corporations rapidly established presences on the island.
By the early 1990s Indonesia had entered into an understanding with the Governments
of Singapore and Malaysia to create the SIJORI Growth Triangle with the professed
aim of combining the competitive strengths of Singapore, Johor (in Malaysia) and
the Riau Islands to make the sub-
What it was really about was linking the infrastructure, capital, and expertise of Singapore with the abundance of land and low cost labor resources of Johor and Riau (especially Batam and the nearby island of Bintan).
Singapore recognised that it needed to relocate some of its land and labor intensive industries (and its “dirty” heavy industries). Johor and Riau were the logical locations.
The Asian economic crisis of the late 90s hit Indonesia particularly hard and issues also emerged between Singapore and Malaysia. For a time the rise of Batam slowed and the earlier Growth Triangle ideas went on a backburner.
The slowdown continued throughout the political upheaval of Indonesia’s remarkable, though at times stumbling, transition to a new democratic constitution and government structure to succeed the authoritarian Suharto “New Order” regime after 1998.
Batam also found itself facing increasing competition for investment dollars from China, Vietnam, India and Malaysia. Pressure began to build on the National government and legislature to match investment incentives being offered by other locations in the region.
The election of President Susilo Bambang Yudhoyono’s (SBY) in 2004 as Indonesia’s
first popular vote President and the ascension of Lee Hsien Loong as the new Prime
Minister of Singapore sparked initiatives to get Batam and regional co-
In June 2006 President SBY made a symbolic journey to Batam to meet Prime Minister Lee and together they witnessed the signing of a new Framework Agreement on Economic Cooperation between Singapore, Batam and the two other immediately neighbouring Indonesian Islands of Bintan and Karimun (this time Malaysia NOT included).
This Agreement cements a Singapore-
It identifies seven key areas in which Indonesia and Singapore will pool resources to ensure that business, regulatory and labour conditions are favourable to investors, namely investment, finance and banking, taxation, customs and excise, immigration, manpower, and capability development.
The new Agreement once more implicitly recognises the reality that tiny Singapore
is running out of land and facing rising costs for the key inputs that historically
have contributed to its prosperity -
As a further incentive, in 2007 the Indonesian Government formally decreed (and the National Parliament subsequently ratified) the designation of Batam and the nearby Riau islands of Bintan and Karimun as fully fledged Free Trade Zones (FTZs) which will bring the abolition of Customs Duties, Value Added Taxes, Luxury Goods taxes and Excise Duties.
A Presidential Regulation establishing a National Council to oversee the Free Trade Zones was promulgated in May 2008 together with Presidential Decrees appointing Zone Councils to implement and administer new taxation, immigration and other arrangements.
The SEZ initiatives bring with them less obvious benefits. For example many Batam
industries operated by or supplying Singapore manufacturers have become de facto
beneficiaries of the Singapore-
The process of implementing the SEZ and FTZ changes is moving slowly but the announcements of what is coming have already prompted more investment and spurred activity in property and the commercial sector.
Batam’s rapid and consistent economic and population growth, its already strong and diverse industrial base plus the current commitments to growth and development from both the Indonesian and Singapore Governments would appear to assure the island’s future.
BATAM is only about 120 kilometres north of the Equator and therefore is warm all year round.
But, surprisingly, being a small island surrounded by sea means that usually it is neither oppressively humid nor hot. Average daily temperatures range from a minimum of 25 degrees to a maximum of 34 degrees Celsius (77 to 95 Fahrenheit) and humidity ranges from around 65% to 96%.
Hotels, bars, restaurants, shops and offices and most cars and taxis are air conditioned.
Westerners are likely to feel some discomfort if outside in the sun during the hours of late morning and early afternoon and may find the days are hot in the months of May/June. They usually will need air conditioning at night for sleeping, but the balmy tropical evenings are wonderfully inviting for outdoor dining and socialising.
Being near the equator also means that Batam is NOT subject to tropical cyclones, hurricanes or typhoons and that the “wet” and “dry” seasons are not as well defined as in other regions. The annual average rainfall is 2,600 mm (about 105 inches).
Like Singapore, Batam is not within a recognised earthquake zone and was unaffected by the 2004 Boxing Day tsunami or the subsequent earthquakes which struck northwest Sumatra.
BY INDONESIAN standards the utilities and services infrastructure in Batam (water, electricity, communications, health, education, transport services etc) generally is well developed and efficient.
It’s not so long since electricity black-
The completion of an undersea natural gas pipeline from Jambi in Sumatra to provide
cheap energy for electricity generation and the recent commissioning of a new gas-
New pumping and water treatment stations and a progressive upgrading of aging and inadequate mains are bringing greater reliability to water supplies. The water quality is good and the supply authorities claim it exceeds World Health Organisation standards. However, prudent householders are still installing storage tanks as an insurance against supply failures.
Most householders, restaurants and hotels purchase bulk bottled water for drinking.
There is no reticulated gas supply but bottled LPG gas is widely used for cooking and instant hot water systems.
INTERNATIONAL dial-
Several telephone providers have introduced CDMA wireless phone systems which interface with the landline backbone (at landline prices) in an effort to overcome the landline infrastructure strains. These systems also link with the more widely established GSM networks and provide for sms and data transmission services.
There is wide and generally efficient cellphone coverage but call charges are relatively expensive, particularly for long distance or international calls. (National Authorities have taken some Indonesian cellphone providers to court accusing them of price gouging.)
Recently (2007 to 2009) crowded networks and insufficient channels have disrupted the cellphone service offered by some of the major providers in Batam. It can be difficult to make or receive calls at busy times of the day.
Internet services have improved greatly with higher speed ADSL and wireless connections
progressively taking over from basic dial-
Providers are recognising the market opportunities and wireless Internet access at higher speeds is gradually becoming available.
Satellite television services provide access to English language international channels
and are inexpensive. Most parts of the island also have good signals from around
15 free-
No English language newspaper is published in Batam but The Jakarta Post is available in Batam daily.
GETTING around on Batam can be challenging, interesting, frustrating, educational, frightening, and a lot of FUN – often all at the same time. It is very inexpensive compared with transportation costs in developed Western countries but more expensive than some other Indonesian cities, including Jakarta.
There is no fully developed public transport system. The main modes of travel are
taxis (“official” and “unofficial”), ojeks (motor cycle taxis which you can hire
to take you to your destination as a pillion passenger), privately operated mini-
If you are little crazy, there's also driving yourself but this is not recommended for visitors or newcomers who have not had time to see how the chaotic and confusing traffic works or learn the decidedly unusual road systems.
Thankfully most Indonesian drivers and motor cycle riders are patient and courteous.
The exceptions are a few crazies, usually young males on motor cycles, and mini-
Poor quality and crowded roads mean traffic moves relatively slowly and this reduces the potential for serious accidents though there are regular deaths and injuries, mainly involving motor cycle riders.
A few taxi and mini bus drivers and ojek operators speak reasonable to good English and some others have very basic English language skills. But most of them speak very little or no English at all.
YOU will never have trouble finding a taxi in the main business districts – they are everywhere! Step out your hotel door, exit any shop or walk down any street and you will be offered taxis, taxis and more taxis.
Wait on any kerb to cross the street and you will have a car glide up, perhaps beeping the horn and flashing its lights with the driver asking where you would like to go.
As you alight from a taxi at your destination and begin to walk inside there is every chance you will be offered yet another taxi!!
While it can become irksome, this intense competition means that prices remain relatively competitive. Fares are by negotiation – there are no meters. There usually is a difference between the price offered to Indonesian locals and the visiting Bule (Westerner).
Sadly, as at late 2009, there is nothing in Batam like the excellent metered taxi services in Jakarta and some other Indonesian cities. Many of the cars offering taxi services are unlicensed opportunist privateers looking to pick up some petrol money.
STAND by any major street or road and within a couple of minutes a private Mini bus will roll up beeping the horn or flashing its lights. Signal and they will pick you up.
The local authorities have undertaken a program of building bus stops and shelters
over recent years but there are still relatively few designated bus stops and the
mini-
You need to determine if the bus is going where you want to go (sometimes not easy if you speak no Indonesian) and settle on the fare. Many mini buses have no indication on the outside of the vehicle as to their destination.
The mini buses are probably the main mode of transport for the local people because they are so exceedingly cheap, very convenient and very plentiful. Against this they are quite likely to be somewhat dilapidated, crowded and probably hot and uncomfortable.
Drivers and their offsiders are generally courteous and helpful (though they may drive like lunatics and very few speak much English). Fares are likely to be in the range of 3,000 to 5,000 rupiah.
The mini buses are not a recommended transport option for the short-
A variation on the mini-
Usually this is offered by some of the privateers in older model cars but often a liveried taxi returning from a destination in an outer area will offer the service to obtain fares on the return journey.
You simply tell the driver you want to travel “tidak langsung” (it means not direct and implies that he is welcome to pick up other passengers). The driver will divert to nearby shopping centres and pick up and drop off passengers along the way until you reach your destination. The fare will be about the same as for a mini bus and sometimes you might become part of a sizeable and interesting crowd!
BATAM is very accessible from just about anywhere in the world. Visitors and expat residents use Singapore’s Changi Airport and cross to and from Batam by modern fast ferry. (Crossing instructions & timetable)
Changi is the major regional air hub for South East Asia and is one of the most convenient and efficient airports in the world with more than 35 million passenger movements a year.
The proximity to Changi and its access to the region’s many (and excellent) budget
airlines makes Batam a cost-
Batam has its own modern and well appointed Hang Nadim airport with some 60 aircraft
movements a day to domestic destinations throughout Indonesia. These services use
modern jet aircraft and apart from holiday peaks, fares are usually very affordable.
As at mid-
SOME Governments have issued travel advisories saying it is unsafe to go to Indonesia following the terrorist bombings in Bali in 2002 and 2005 and bombings in Jakarta in 2003, 2004 and 2009.
Many Batam residents and other Indonesians are mystified at the attitude of the foreign
governments -
But nobody is warning travellers to stay away from the UK, the US or Spain. Guess the Indonesians just don’t understand that Western bureaucrats and politicians can be much more concerned with protecting their backsides than with logic, reason or reality.
In fact you can reasonably put aside thoughts of bombings and extremist attacks by fanatics … on Batam you will experience an easy and ready acceptance from the overwhelming majority of the local population.
Some are shy and few speak much if any English. But a smile and a hello usually will bring a beaming response from men, women and children alike. If you can manage a few words of Indonesian then the response will be even warmer.
Unlike other more remote areas of Indonesia there generally is a friendly familiarity with or a curious interest in Bules (Western foreigners) and some acceptance that they are important contributors to the local economy.
Very occasionally you will hear a rude comment from young local men (usually in Indonesian so that you cannot understand it anyway). They, not unnaturally, can be jealous of your perceived affluence and your ability to attract members of the opposite sex – just smile and be gracious and otherwise ignore them.
Should you ever have a problem you typically will find local people going out of their way to help and guide you, though there are times when you need to exercise your judgment and commonsense.
That said, a Western visitor should follow the standard rules for any foreign destination:
· Ensure your passport and valuables are placed in a safe or safety box at your hotel or apartment. Carry a photocopy of your passport identification pages and your entry/departure card in case you are asked for ID by the police or some other authority. Keep a record of your passport number in a safe place.
· Avoid carrying or displaying large sums of cash and be a little wary when using and leaving ATM machines (take a look at who might be watching and waiting – if suspicious consider going elsewhere).
· Secure your wallet and mobile phone, especially in crowds, pubs, nightclubs, karaoke’s, discos and the like. Consider placing reserve credit or debit cards in the hotel safety box with your passport or carry cards in pockets other than where you keep your wallet. Consider a money belt or some other secure way of carrying cards or cash that you can wear under your clothing.
· Avoid walking around by yourself at night in areas other than the immediate inner
shopping district unless you have first checked with hotel staff, resident ex-
· Be a little selective about taxis and transport and if alone generally stick to hotel or Port taxis or recommended drivers or operators. Avoid using unofficial taxis (the official taxis have yellow number plates and generally are painted in fleet colours).
· Mind your own business, don’t talk too much or too loudly and don’t get involved under any circumstances in any altercation with a local. Be polite, smile, say thank you and walk away if necessary.
· Be very careful about people who want to take you to venues or places you do not know for alleged shopping bargains or personal services, especially if they are away from the mainstream. NEVER take up such an invitation alone.
· Be careful with your valuables if you invite a girl from a disco, bar or from a chance meeting to visit you in your hotel room or home. Remember that all you know about her is whatever she has chosen to tell you.
HEALTH risks to residents and travellers visiting Batam are comparable to other countries in the region. If you would feel safe enough travelling to Singapore or Kuala Lumpur then you can also be comfortable about travelling to Batam. (For example, the SARS outbreak of 2003, which claimed lives in Singapore, actually did not reach Batam.)
The Batam water supply is operated by a British-
However, it probably is prudent to not drink tap water, even in 5-
Generally you can safely enjoy ice in your drinks. Restaurants, bars and pujaseras
(open air food courts), vendors and others involved in the Batam food and drink industry
usually buy in their ice from specialist ice-
Food offered in most restaurants and from food market vendors usually is properly prepared and generally quite safe. You would be most unlucky to contract a case of “Delhi belly”. The risk is probably about the same as eating out in your home country.
However, be a little careful of offerings from street vendors. They usually are OK and operators do take the best care they can in preparation. But unfortunately even the best intentions can fall short if facilities are inadequate.
THE ONLY mandatory vaccination requirement for visitors to Batam is a Yellow Fever vaccination certificate (to protect the Indonesian community) if you are travelling direct from Africa or some areas of South America.
Otherwise, think in terms of Singapore to judge what’s appropriate. Most travellers to Singapore and Batam dispense with shots completely.
General country advisories for Indonesia will often recommend Hepatitis A and Typhoid inoculations but reputable Travel Health clinics only sometimes recommend them for Singapore or Malaysia.
The point of this distinction is that Indonesia is a vast country of many regions (the world’s longest archipelago) and country advisories must take into account the WHOLE country. Batam is further from West Irian than London is from Moscow – the conditions in one region may be very different from those in the other.
Malaria does occur in Indonesia and general country advisories again recommend precautionary medication plus the usual care in using insect screens and repellents. Again there usually is NO Malaria recommendation for Singapore or Malaysia.
Occasional Malaria cases are reported from Batam and the Riau Islands. If you feel you should take precautions then consult with your nearest Travel Health Clinic about a precautionary course of Malarone. They will be happy to accept your money.
LOCAL authorities strongly advise visitors to Batam to always practice safe sex. However, the temptation to not use condoms can be very great on Batam and the surrounding islands as many Indonesian residents and expatriate visitors reportedly do so routinely.
Medical practitioners say there is a low incidence of HIV Aids in Batam and the risk to men from uncovered vaginal or oral sex is low.
However, there are periodic cases of gonorrhoea (Clap) and it turns up fairly regularly when working girls from the Karaoke bars go for medical screenings. There also are reports of genital herpes cases from time to time but there is no authoritative information readily available.
In the event that visitors contract an STD local medical clinics offer efficient testing and treatment facilities with access to modern antibiotics .
Toilet Facilities
THE TOILET facilities in Batam’s better hotels and bars or restaurants typically will be clean and well maintained with Western style pans and plumbing.
However, in many locally operated restaurants, karaokes, food courts and food markets (pujaseras) they are likely to be smelly, possibly dirty and have only Asian style squat pans. It is unlikely there will be toilet paper provided but rather a dipper and a container of water for cleaning yourself. This can represent a hygiene challenge for Western visitors.
However, most food courts, pujaseras and many restaurants have separate hand wash basins away from the toilets with liquid soap supplied. Look for them.
IN THE EVENT that the worst happens and you do need medical attention, Batam has
health facilities superior to most regional areas of Indonesia with medical clinics,
capable general practice doctors, diagnostic laboratories and state-
In the event of a truly serious medical problem there is also the assurance that all the facilities of modern Singapore are just an hour or so across the water.
The range of hospital and associated specialist medical services available on Batam
took a quantum leap in 2003 with the opening of a modern new private hospital, the
Rumah Sakit Awahl Bros to serve the well-
A first class semi-
The hospital operates an ambulance service for trauma and medical emergency transportation and there is a helicopter pad for emergency evacuations to Singapore for specialist attention. A full range of modern diagnostic equipment is available to the panel of specialist and general practice doctors who work out of the hospital.
Medicines
BATAM and Nagoya in particular has plenty of well-
The supermarkets also are well stocked with sunscreens, insect repellents, lotions, elastic bandages, condoms and other likely needs. They are not expensive.
Apart from regular prescription medicines, medical items worth bringing with you might include:
· Over-
· A broad-
· A good heartburn and antacid preparation like Zantac in case you awake in the night with a stomach aflame after enjoying some of the excellent curries or other spicy Indonesian foods.
However, all of these items are readily available over the counter from Batam Apoteks (pharmacies) and often in very inexpensive generic forms. A recommended outlet is Budi Farma in Nagoya (not far from Lusy’s bar). The Pharmacist there speaks some English and is very helpful.
AS FOR most of South East Asia, anyone who even considers becoming involved with illegal drugs in Indonesia is crazy!
There was a time when people who were arrested on drugs charges were able to bribe their way out of jail, but a Presidential crackdown on police corruption and directives from Jakarta to the judiciary on sentencing mean those days are long gone.
If you now plan to do drugs in Indonesia then you had best also plan to also do serious
time in appalling jail conditions. You also had better plan to have a lot of spare
cash available to pay police, lawyers, court and jail officials so as to minimise
your sentence and obtain the favours you will need to make your jail conditions at
least bearable. Plan on around $SGD40,000 minimum in support cash for a one-
The discos are a favourite haunt of Batam’s drug dealers. The main trade is in Ecstasy,
Methamphetamine or Ice (known locally as Shabu-
No matter what the circumstances DON’T BE TEMPTED!!!
A favourite ploy is for the pusher or the local (usually a girl) to alert an undercover police associate who happens to waiting in a convenient location nearby immediately after you buy … guess what happens next!
The consequences if arrested and charged with possession, using or dealing are too horrendous to contemplate. Some offences carry the death penalty or life imprisonment. In a 2006 case two Australians were sentenced to execution by firing squad and seven others to life for their involvement in shipping heroin via Bali.
Unlike Western countries Marihuana (like Heroin) is considered a Category 1 drug in Indonesia and offences carry prison sentences of four to 20 years plus heavy fines. Typical sentences for locals for possession or dealing range from three to eight years. A recent Batam case involving a Westerner saw a sentence of 9 months plus a fine of Rp100 million ($SGD17,650 at the then prevailing exchange rate) for possession of 2.9 grams of marihuana. Possession of as few as four ecstasy tablets is grounds for a charge of trafficking.
If all of the above isn’t enough then keep in mind also that the quality of some
manufactured drugs is likely to be dubious and may be highly dangerous to your health.
There have been deaths of visitors from overdoses and there are vacant shells of
local people wandering around Nagoya who experimented with Shabu-
Clear day view from Smiling Hill just 20 kilometres across the Strait to Singapore
THE MAP of Batam Island below is based on a section of a map produced by the former Batam Industrial Development Authority and is reasonably up to date. We have modified it to show the main ferry terminal locations now operating at Batam Centre and Harbour Bay (near the Nagoya CBD) and the location of Smiling Hill. You can Click on the map to open a larger and printable version as a PDF file. To see the complete original map including all of the Barelang Islands go to:
www.batam-
Offices of the Mayor and Batam City Administration at Batam Centre. The island was
granted city status and directly elected local government in 1999. Previously administration
was in the hands of the Batam Industrial Development Auth-
Cranes crowd the McDermott fabrication yard at Batu Ampar (TOP). The Topside (ABOVE ) was completed in 2008 and towed to a field off Vietnam.
Many of the world’s major electronics companies have a presence in Batam, mainly for the manufacture of components. These premises are located at Batamindo Industrial Estate at Muka Kuning.
Row upon row of worker dormitories. Some 80,000 are employed in the factories at Batamindo, most of them young women who come from towns and kampungs all over Indonesia to work under contracts of six months or a year.
The Sumatra promotions office at Batam Centre. It houses offices and display areas
to be used by Sumatra’s provincial governments to promote regional investment and
visitation in a central location close to Singapore. It now also houses a special
Immigration office to facilitate work permits and visas for foreign investors and
their non-
SIGN OF THE TIMES -
Architectural model of the very impressive Harbour Bay Bayerina Apartment Towers
complex. The towers will rise to 26 storeys and 2-
Contrasts around every corner -
Downtown Nagoya and this lady and her grandson deliver the preserved and pickled fruits prepared in her home kitchen at Bengkong to the street vendor who will sell them. There is no social security here and local people display energy and entrepreneurial spirit to develop small enterprises and earn the daily rice for them and their families.
This complex of traditional thatched and timber buildings is located on the Tembesi River about half an hour from Batam’s main CBD. Behind the anchorage and house are more traditional structures housing work areas, and the local version of poultry sheds. There are also extensive gardens.
Click on photo to enlarge
Click on photos to enlarge