Riau Islands have emerged as a strategic investment hub in Indonesia, boasting the highest number of Special Economic Zones and contributing significantly to regional and national economic growth.
The Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, remarked that Riau Islands Province is the region with the highest number of Special Economic Zones (KEK) in Indonesia to date.
“The Riau Islands are the region with the most Special Economic Zones in Indonesia; these include Galang Batam, Airo Teknik, Nongsa, the Health Special Economic Zone—which will open an international-class hospital—and finally, Tanjung Sauh. No other region has as many Special Economic Zones as the Riau Islands,” said Hartanto while attending the opening of eight new companies in the Wiraraja Indonesia industrial area in Nongsa, Batam City, on Monday, the 26th of August.
Moreover, the Executive Director of the Centre for Strategic and International Studies (CSIS), Yose Rizal Damuri, opined that transforming the Riau Islands into an investment gateway and a driver of Indonesia’s economic growth has been deemed successful and appropriate. This is reflected in the financial performance of the Riau Islands, which grew by 4.9% in the second quarter of 2024, alongside the low inflation rate of 2.13% as recorded last July.
“The Special Economic Zones operating in the Riau Islands region have contributed significant regional income, serving as a new economic source at both regional and national levels,” Damuri told the press on Wednesday, the 28th of August.
On top of that, according to Damuri, the Riau Islands are geographically well-positioned to serve as an investment gateway, particularly once complemented by the various privileges granted by the central government. Damuri also expressed hope that regional governments would continue to provide the best possible service for investors looking to invest in Special Economic Zones.
“There are several Free Trade Areas and Free Ports, now known as Free Trade Zones, as well as a number of Special Economic Zones that form the main pillars of accelerated development. These various facilities are expected to attract investors to the Special Economic Zones. It is also anticipated that this may begin to have an impact in not only the Riau Islands but also other regions,” he added.