In encouraging Batam's economic growth and improving the performance of supporting industries, and industrial focus (manufacturing industry and service industry)
BP Batam continues to carry out various strategic steps as an effort to increase value exports, including through increasing competitiveness and preparing superior products.
Since the establishment of Batam as a Free Trade Zone (FTZ) in accordance with PP no 44 of 2007, the central government has provided 4 advantages listed in the Law regarding Free Ports and Free Trade, including exemptions from Value-Added Tax (VAT) , Value-Added Tax on Luxury Goods (PPn-BM), import and export duties.
While the Special Economic Zone (SEZ) is determined based on PP. 96/2015, there are 14 benefits in investing including: investment allowance, accelerated amortization, dividend tax, longer loss compensation, tax holiday, exemption from Article 22 Import Income Tax, free import VAT, free VAT for domestic purchase, exemption PPN and/or PPnBM, delivery of goods to the recipients of other facilities is free from charge, return of VAT to individuals holding foreign passports, suspension of import duties, exemption of import duty and exemption of excise.
There are areas stipulated as SEZ area in Batam, namely the Nongsa Digital Park which focuses on digital industry and tourism, while Batam Aero Technic focuses on aircraft maintenance, repair, overhaul (MRO) industry. And in the near future, there will be 2 other SEZ developments, namely in Aerocity Hang Nadim and the Sekupang Health Sector.
Batam as both free trade area and special economic zone, is expected to become more competitive in Southeast Asia in attracting foreign investment.
