Nongsa Digital Park Batam: Foreign Investors Attraction

Nongsa Digital Park (NDP), part of the Nongsa Special Economic Zone (SEZ), is a dedicated digital business area located in Nongsa, Batam, in the Riau Islands Province.

Nestled in the elevated and seismically stable eastern region of Batam, NDP offers a safer location for data centers, making it highly attractive to foreign investors.

Spanning 166 hectares, NDP focuses on three core business sectors: Digital Economy, Creative Economy, and Tourism. The area includes key facilities like Turi Beach Resort, Nongsa Point Marina, Nongsa Village, Nongsapura Ferry Terminal, Data Center Hub, offices, Kinema Movie & Animation Studio, and a golf course.

Nongsa Digital Park SEZ Captures Attention from Domestic and Foreign Investors

According to Bpbatam.go.id, Batam is making strides across various sectors, including infrastructure improvements, industrial growth, airport and port development, and service upgrades for businesses and residents alike.

A key area of focus is Batam’s digital industry, now advancing through the Nongsa Digital Park SEZ, officially designated as Indonesia’s gateway for digital industry development under Government Regulation No. 68 of 2021.

“Nongsa Digital Park SEZ enables greater investment flexibility in digital industries, enhancing Batam’s investment climate and attracting foreign investors,” said Muhammad Rudi, Head of BP Batam. Neighboring Singapore has welcomed the development of the Nongsa Digital Park SEZ with enthusiasm.

Nongsa Digital Park’s investment continues to grow, reaching IDR 2.49 trillion by June 2023 and successfully attracting major international investors like Apple, IBM, and the Melbourne Institute of Technology (RMIT).

Expanding Nongsa Digital Park to Accommodate New Investors

Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, reported that ten companies have already invested in the Nongsa Digital Park SEZ, with six others expressing interest but currently unable to enter due to capacity limits, quoting kontan.co.id.

Each data center generally requires around five hectares of land, so the government anticipates needing an additional 20-30 hectares to accommodate future demand.

“Nongsa Digital Park has limited land, enough for 10 companies currently, including the essential supply of electricity and water, which are critical for data centers,” Susiwijono stated during the launch of the One Map Policy Geoportal 2.0 event.

Economic Growth and Local Employment

The digital industry is emerging as a leading sector worldwide, with nations competing to foster digital advancements. In Indonesia, the digital economy has been growing at an annual rate of up to 40%, according to the Ministry of Finance. In 2019, the digital economy in Indonesia was valued at IDR 560 trillion, with growth expected to reach IDR 1,820 trillion by 2025.

BP Batam Head Muhammad Rudi hopes that the Nongsa SEZ will achieve the central government’s investment target of IDR 16 trillion and generate 16,500 jobs.

“As of June 2023, the Nongsa SEZ has employed 2,618 people from 17 investing companies,” Rudi noted, as reported by batam.tribunnews.com.

Nongsa Digital Park’s Commitment to Digital Economy Growth

Nongsa Digital Park plays a crucial role in advancing Batam’s creative digital economy and aims to become a digital hub driving economic growth with a strong focus on innovation and technology.

Ultimately, Nongsa Digital Park SEZ underscores Batam’s forward-looking development trajectory and has the potential to serve as a digital bridge between Indonesia, Singapore, and beyond.

“We are optimistic that the Nongsa Digital Park SEZ will positively impact the regional economy,” Rudi concluded.

 

Source: batam.tribunnew.com, Bpbatam.go.id, bisnis.com, kontan.co.id.

Special image source: nongsadigital.com

Latest Article
Indonesia Growth Strategies Focus on 3 Sectors to Attract Investment
JAKARTA – Deputy Minister of Investment and Downstream Industry, Todotua Pasaribu, acknowledged that...
Apple Proposes Investing USD 100 million in Indonesia
Apple has committed to investing USD 100 million (approximately IDR 1.57 trillion) in Indonesia to address...
Bank Indonesia Keeps Benchmark Rate at 6 percent
Tempo is reporting that Bank Indonesia’s (BI) Governor, Perry Warjiyo said in a press briefing...
Indonesia Combats Digital Fraud with Integrated Anti-Scam Center
Digital financial fraud and crimes are becoming increasingly sophisticated, prompting urgent action from...
Indonesia May Revive Tax Amnesty in 2025
Bloomberg is reporting that Indonesia will discuss reviving its tax amnesty program next year as President...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.