Eddy Satriya

BATAM INVESTMENT BREAKFAST WORKSHOP

Batam : Renewed Business Opportunities
Jakarta 2 September 2015

Deputy Assistant for ICT and Utility

POLICY TRANSFROMATION
Ranking Ke 18

Ranking ke 12

Ranking ke 8

2045
GDP: ~USD 15 - 17,5
Triliyun
GDP per kapita ~USD
GDP: ~USD 4 - 4,5 Triliyun 44.500 - 49.000
GDP per kapita ~USD
14.250 - 15.500

2025
2010
GDP: USD 700 Juta
GDP per kapita USD
3.000

MP3EI Dipersiapkan untuk

menjawab tantangan global dan
mempersiapkan Indonesia sebagai
negara maju di 2025

Indonesia Economy Growth

GDP
7.00%
6.00%

6.38%

6.17%

6.03%

5.58%

5.00%
4.00%

5.02%
4.10%

3.00%

Indonesia
2.80%
2.20%

2.00%

2.40%

2.50%

1.00%
0.00%
2010

2011

2012

Source : BPS and WorldBank

2013

2014

Global

Efforts to Speed-up Infrastructure Provision (1/2)

On land aquisition (Law 2/2015):
Provides clear procedure and time-line for land acquisition (including bottlenecks
and disputes) for infrastructure projects such as roads, railways, ports, airport,
dams etc;
Establishment of special unit in National Land Agency for land acquisition
acceleration and dedicated team for priority infrastructure projects,
development of SOPs for every BPN activities etc;
Dedicated fundings are allocated larger in related ministries to speed-up pending
government commitments;
To increase the flexibility on funding availability at any certain time, source of
fundings from private sector is permitted. This is subject to an agreement (with
the government) on how to compensate it afterward.
5

Efforts to Speed-up Infrastructure Provision (2/2)

Attracting private sector to invest in infrastructure:
With recently stipulated presidential decree (38/2015) on PPP, tendering process is

simplified (i.e. accelerated), more attractive and intensified govt support as well as
guarantee, wider sectoral coverage (include social sector such as education and health),
establishment of availability payments etc;
Mining and Energy Ministers decree 3/2015 provides a lot of simplified procedure for
electricity investment (IPPs) especially coal fired, gas, and hydro power plants
Simplified procedures on getting licences and permits from National Investment
Coordinating Board with the new establishment of the One Stop Service Center (PTSP in
Indonesian language) on January 26th 2015;
Special national committee is form (presidential decree 75/2014) to enhance the
preparatory stages of strategic/prioritized infrastructure projects (namely, KPPIP). Chaired
by the Coordinating Minister for Economic Affairs. In 2015, around 30 35 infrastructure
projects (new and underway) are set for attention to be accelerated their
6
implementation.

Regional Development Policies

80%

56%

Increase of Indonesias middle income and elite

groups to 2020

Where Would Be The Sensible New Economic

Locations Outside Java ?

Importance & Significance of Batam FTZ

Its strategic location next to South East
Asia economic global hub.
Long span historic experience, has been
proven as one of the center for Indonesia
exports (during its prime contribute around
11 12 percent of Indonesia exports)
With the increasing internal/local problems,
Batams contribution has been reduced to
around 5-6 percent.
Still has competitiveness as national hub for
some economic activities with regionally or
globally importance

Batams
competitiveness is
under pressure due to
development of some
domestic issues as
well as international
changing environment

10

11

Batam In Global Supply Chain

Singapore:
Roles:
Regional HQ
Regional Sales and
Marketing hub
Regional Logistics
hub

Batam

Melaka strait connecting > 200 shiping line

interconnected with more than 600 port in 120
countries globally. Everyday, Singapore port
handling more than 1000 vessel. (BP Batam)

Low Cost Manufacturing Base:

Electronics
12

Industry In Batam, An Example

TYPE OF INDUSTRIES IN BATAM

OEM

13

Industry Development Strategy In Batam

Source : Research by Frost And Sullivan

14

Future Agenda/Policies for FTZ Batam (1)

Need transformation and revitalized program !
Led by the Central government, i.e. Coord Ministry of Economic Affairs
Transformation is to put forth more sensible institutional adjustment or setup that fits with the
current context of a more decentralized government system
Revitalization program would consist of:
Revisit Batams strategy going forward in the context of Indonesia's national plan
Define the operational strategy for the new aspiration:
o Target sectors / sub sectors? (will be more focused)
o What is needed to win these sectors? e.g. location configuration, regulatory support,
governance, etc
o What are some target companies?
Develop the high level business case for Batam
Costs and benefits for key zone stakeholders
High level capital/financing requirements
Layout the implementation plan forward for Batam

15

Future Agenda/Policies for FTZ Batam (2)

Batam required policy and infrastructure to foster high value added
industries
1. Certified Expert/Professional to meet industrial need.
2. Policy and infrastructure for the workforce training;
3. Policy to foster the Start-up and SMEs based innovation and
technology;
4. Supporting environment for innovation and technology
development applicable to industries;
5. Venture capital to support the Start-up and SMEs based
innovation and technology.
16

17

Eddy Satriya
1989 :Graduated from Bandung Institute of Technology (Telecommunication
Engineering)
1997 :Graduated from University of Connecticut (MA in Economics)
1989-90: Program Management Consultancy (PMC-IV) for
Telecommunication Development
1990-2005: Working in Bappenas (The National Development Planning
Agency).
1995 : Secretary to Board of Commissioners of PT.Telkomsel

1997- present: Visiting Lecturer in University of Indonesia, University of Pelita

Harapan, and ITB
2002-present : Actively writes various article and column in national papers
and magazines.

Contact:
satriyaeddy@gmail.com
eddysatriya@ekon.go.id
62.21.3511466 t

2005 (Dec)-present: Working in Coordinating Ministry for Economics

Affairs
2011 - Present: Head of International Cooperation Division, Secretariat
of KP3EI

62.21.3511464 f

Recent publications are

available on:

eddysatriya.wordpress.com
kolom.pacific.net.id