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Background

Batam Development Footprint in the History of BP Batam

Geographically, Batam Island has a very strategic location. It lies on the Strait of Malacca international traffic trade route, which is the second busiest shipping route for global trade after Dover Strait in England.

It also has a strategic position. It is 20 km or 12,5 nautical miles from Singapore with a 45-minute only distance by sea, and has easy access to other countries worldwide.

Batam Island on its own is one of the largest islands among a chain of 329 islands surrounding Riau Archipelago, which has an area of 415 km2 or 67% of the size of Singapore. With the aspiration to transform little Batam into the locomotive of national development and the technological center of industrial area development, the 3rd President of the Republic of Indonesia, who also happened to be the 3rd Chairman of Batam Authority, BJ Habibie, conceptualized Barelang (Batam Rempang Galang) connected with 6 Barelang bridges to expand the area to 715 km2 or 13% larger than Singapore, hopeful that Batam will be self sustaining and be able to compete with Singapore.

The development of Batam cannot be separated from the role of President Soeharto. During the reign of General Soeharto’s New Order, he was lastly given the honorary rank of Five Gold Star Great General. Since the beginning, he prioritized the development in economic sector. Even though agriculture was emphasized in the economic development, President Soeharto still paid attention to the industrial sector.

In the latter development, President Soeharto designated a group of islands to be included in Riau Province at that time. Batam was one of them. During his reign, President Soeharto paid close attention to the stage to stage development of Batam. Batam has become an “industrial city” with many appeals.

In 1960, the capital of Riau Province, previously Tanjung Pinang, was moved to Pekanbaru. It was then, Tanjung Pinang officially became the capital of the Riau Islands Regency. It was divided into 17 districts, among them was Batam Island which was located in Buluh Island District.

Batam Island held the status of a village within Buluh Island district, Belakang Padang in 1965. At that time, the development of Batam Island was not prioritized. Its condition was similar to the hinterland islands in Riau Archipelago, far from the the existence of facilities and infrastructure it currently has.

Now, Batam has grown rapidly. With a population of almost 1.3 million people, it is hard to believe that this city was once a cluster of swamps with a population of only about 6,000 living on the coast.

Periodization of Batam Development

  • 1971-1976
    Ibnu Sutowo
  • 1976-1978
    J.B. Sumarlin
  • 1978-1998
    B.J Habibie
  • 1998
    J.E. Habibie
  • 1998-2005
    Ismeth Abdullah
  • 2005-2016
    Mustofa Widjaja
  • 2016-2017
    Hatanto Reksodipoetro
  • 2017-2018
    Lukita Dinarsyah Tuwo
  • 2019
    Edy Putra Irawady
  • 2019-Now
    Muhammad Rudi
  • 1. Ibnu Sutowo (1971 - 1976), Period of Preparation

    The character of Ibnu Sutowo is inseparable from Pertamina. During the reign of President Soeharto, Ibnu Sutowo, who was then the President Director of Pertamina and the Minister of Energy and Mineral Resources (EMR), was appointed the Chief of Batam Island Industrial Area Development Authority.

    Before receiving special attention from President Soeharto, Batam was a dormant island with jungle almost untouched, clustered with swampy thickets, inhibited by around 6,000 people who lived off the coast with fishing as their livelihood. He pioneered Batam Island as an industrial area and the center of transhipment activities and made Batam the Logistical Base of Pertamina.

    During Ibnu Sutowo’s leadership, Presidential Decree (Keppres) No. 41 of 1973 concerning Batam Island Industrial Area, which assigned Batam Island Industrial Area Development Authority as the authority responsible for the development of growth in Batam Island industrial area, with the power in the allocation and use of land for the purpose of implementing the development of Batam as an industrial area, was issued.

    The roles of Ibnu Sutowo in the Period of Preparation:

    President Soeharto issued Presidential Decree (Keppres) No. 74 concerning the Development of Building Batam Island into an Industrial Area on October 26, 1971,
    The issuance of Presidential Decree No. 74 of 1971 marks the birth of Batam Authority, which has been celebrated yearly by Batam Authority staff as an anniversary or commemorated as the momentum of Batam Island Industrial Area Development Service Day since 2008,
    Batam Authority 1972 Master Plan, the Concept of Free Trade Zone was planned
    The location of port infrastructure was set,
    Airport construction (850 m),
    Seaport (Sekupang 140 M, Batu Ampar 1 KM),
    Reservoir construction (Sei Harapan, Baloi, Nongsa),
    Provision of electricity, telecommunication, road construction, housing (for Pertamina at that moment).

    During the leadership of Ibnu Sutowo, the construction project of the airport in Batam Island commenced in 1974. The initial plan was to be located in Tanjung Uncang, it was then moved to Batu Besar due to international flight regulations.

    Meanwhile, to fulfill the demand of clean water in Batam Island, which has no water resource such as a river, reservoirs were needed to catch rain water, which would consequently be processed into clean water. The first reservoir built was Sei Harapan Reservoir, which was built in 1969 by Robin Loh, the Contractor, and was operating in 1979.

    The construction for source of energy also started when Pertamina built power plants in Sekupang and Batu Ampar. In the meantime, to support transportation, the road construction from Sekupang to Batu Besar was pioneered in the period of Ibnu Sutowo.

  • 2. J.B. Sumarlin (1976-1978), Period of Consolidation

    When Pertamina was in the midst of crisis, J.B. Sumarlin, who was then the Minister of Administrative Reform, Deputy Chairman of the National Development Planning Organization (Bappenas) and Chairman of Opstib, was assigned by President Soeharto to be the second Chief of Batam Authority. He held a role in transforming Batam into a Bonded Warehouse Area and giving Batam Authority the authority to manage ports.

    During J.B. Sumarlin's term, the second reservoir, Sei Baloi Reservoir, was built in 1975 by the contractor Kurnia Dwi Putera LLC and was operating in 1978. Then, the development continued with the construction of Nongsa Reservoir by a Japanese contractor in 1975 and was operating in 1980.

    Along with the implementation of Batam development according to 1972 Master Plan, supported by designating Batam as an industrial area under Presidential Decree No. 41 of 1973, a number of foreign companies (investors) began to take interest in investing in Batam. According to the record, 9 companies invested and 9 potential companies showed interest in investing in Batam at that time.

    The role of J.B. Sumarlin in the Consolidation Period

    Collected information on obstacles and determined the continuation of Batam project, and it was decided that the development of Batam should proceed using APBN (National Revenue and Expense Budget), whereas formerly Pertamina's budget was used;
    In this era, there was delegation of authority to manage sea ports in Batam Island by Indonesian Department of Transportation to Batam Authority;

  • 3. B.J. Habibie (1978 - 1998), Period of Infrastructure Construction and Investment

    In the next development, President Soeharto saw the need for Batam develop into a technologically advanced industrial area. To actualize it, President Soeharto then assigned B.J. Habibie, who was then the Minister of Research and Technology, to develop Batam according to his hope and aspiration by being the Chief of Batam Island Industrial Area Development Authority in 1978.

    Under his leadership, B.J. Habibie was able to make Batam grow rapidly. B.J. Habibie changed the direction of Batam's development not merely into a logistical base for Pertamina, but also transformed Batam into a national project with high added value for national interest by evolving Batam Island into an area of high-tech industries, trade, transhipment, and tourism.

    Habibie provided quality materials for infrastructure development, promoted marketing and cooperation with entities abroad to invest in Batam Island, built infrastructure and facilities to support and attract investors. He also initiated the establishment of Batam City Administration in an effort to provide better services to the ever expanding communities.

    Finally, President Soeharto's special attention and actions led Batam to its success as a competitive Industrial Zone. Batam became a historical proof of the success of the New Order Government. B.J. Habibie expected export-oriented industries with skilled personnel, low water consumption, intermediate to advanced technology, and are environmentally friendly.

    The development theory of Batam construction was introduced by Habibie, such as Benelux Theory (Belgium, Netherland, Luxemburg) of Europe was assimilated to Sijori (Singapore, Johor, Riau), and B.J. Habibie’s Balloon Theory, a theory which illustrates the economic conditions of an area as a balloon system connected to one another through valves (infrastructure and facilities). Batam being Balloon I , Rempang as Balloon II, and Galang as Balloon III.

    Habibie also formed an agency called BKPM (Investment Coordinating Board). During the leadership of B.J. Habibie, the revenue from UWTO (land lease to Batam Authority) was utilized as wide as possible as the capital of Batam Authority to prepare and to build basic infrastructures.

    The Central Government granted Batam Authority the Land Management Rights (HPL) to manage land in Batam through Presidential Decree (Keppres) No. 41 of Year 1973. This is intended for its planning, designation, and use to be adjusted to the tasks of Batam Authority in developing Batam.

    At that moment, President Soeharto wanted to develop Batam to relief Indonesia from its dependence on Malaysia (Singapore was still part of Malaysia at that time). According to Soeharto, it was felt that the export and import of Indonesia was overdependence on Malaysia / Singapore at that time. This did not suit the ideals of Indonesia nation. Therefore, Batam was not overlooked by him.

    The Government set Batam as an example for the development of other industrial regions in the country. The development of Batam into a high-tech based industrial zone was essential in terms of developing strong national economy supported by a solid agricultural sector.

    Soeharto said, “Batam has a highly significant strategic value. If we don't utilize and prioritize it, it is as if we aren’t grateful of what God has given us."

    In his clarity of thought too, Soeharto as a leader, who was known for possessing sharpness in appointing a team consisting of economists and in governance, was able to advocate government revival which raised Indonesia as one of the “Asian Tigers” in the ‘90s. Soeharto set his choice to act as the guide of the new journey in Indonesia-Singapore relations.

    The crucial decision made by President Soeharto in choosing the right person to resume the development in Batam showed his great concern for Batam, which was appointing Bacharuddin Jusuf Habibie or known as B.J. Habibie, who was born in Pare Pare, South Sulawesi, on June 25, 1936.

    B.J. Habibie had a distinctive style in implementing his leadership. He held a belief that the overall quality of a work is determined by the quality of its every detailed execution. In order to create reliable cadres, he had two principles. First, learn and master the theory. Second, gain expertise through specialization. This was the principle he applied in the construction of the Barelang bridge.

    He provided the opportunity for this nation's sons and daughters to apply their knowledge in building six interisland bridges, which had never been done in Indonesia. One of them was a cable type bridge (cable stayed bridge) connecting Batam Island and Tonton Island. The different bridge type selections were also intended to provide them reference and experience concerning the technology of bridge construction, which at the same time functioned as a laboratory.

    A number of large industrial estates started to be built in Batam. Singapore has invested quite a large sum of capital, with the birth of Batamindo in Muka Kuning and filled with company factories such as Sumitomo, Thomson, Philips, Western Digital, Sony and Toshiba. This industrial development also opened up opportunities for job fields, stimulated investment flows, drove the increase in the export sector and the emergence of similar areas in Batam, such as Kabil Industrial Estate LLC, Kara Primanusa LLC, Seafront Industrial City LLC, Spinindo Mitradaya LLC, and etc.

    ● B.J. Habibie suggested the establishment of local government which handles demography and social administration issues; ● Batam Administrative Municipality was officially established on December 24, 1983 (Government Regulation No. 34 of 1983); ● Presidential Decree No. 7 of 1984 concerning the work relations between Batam Authority and Batam Municipal Government.

    Government Administration Batam Island has brought many changes to local government. Beginning from the 1980s, population growth has increased as the result of the rapid implementation of Batam Island industrial area development, by natural means and by the increase in population from both formal and informal workforce. So is the demand in obtaining government administration service facilities needed by the community. In line with these developments, a special arrangement is needed to regulate government functions.

    "To realize this special arrangement, Batam Authority proposes the existence of an institution that handles government administration through the establishment of Batam Municipality in the form of Regional Government, which holds the status of Administrative Municipality led by the Mayor."

    To carry out government administration as the elaboration of Article 17 of Government Regulation No. 34 of 1983, the Government issued Presidential Decree No. 7 of 1984 concerning the Work Relationship between Batam Municipality and Batam Island Industrial Area Development Authority.

    The Mayor of Batam, along with Batam Island Industrial Area Development Authority, periodically holds coordination meetings with other agencies to synchronize the implementation of Batam construction and development programs.

    Ir. H. Raja Usman Draman was appointed the first Mayor of Batam (1984–1989). Then, in October 1989–1999, Drs. R.A. Aziz was appointed the second Mayor of Batam. The existence of Administrative Municipality does not imply the existence of a different nation within the country. It is merely a task division. This is intended to improve government administration and public services towards the community and to support Batam Authority in smoothing out development.

    President Soeharto: “Having a Mayor does not mean that the development of Batam Island is then transferred to the Mayor. This was impossible, even handing it over to the Governor was impossible. This is clear; therefore, I ask either the Minister of Home Affairs or the Mayor to assist Batam Authority in developing Batam Island Project.”

    The Land Sector Since start, the Government had given BP Batam the authority to manage lands in Batam Island through Presidential Decree No. 41 Year 1973 concerning Batam Island Industrial Area. This was intended for land planning, allocation and use to be in accordance with the implementation of Batam Authority’s duties in Batam development.

    The expansion of Batam Authority's work area to Rempang and Galang Islands, which was marked by the construction of Barelang bridge, was the outcome of B.J. Habibie’s thought which anticipated the limited availability of land in Batam in the future (as is happening now).

    Concerning social community development, B.J. Habibie wanted residents entering Batam to possess expertise in technological fields needed by industries in Batam Island because Batam Island was indeed designated for industry.

    Habibie: “Batam will export high-tech, high value products to help earn foreign exchange. Batam is not for itself, but for the Nation. It is impossible for us to open Batam Island for just any of its residents to clear lands, cut trees, only to plant vegetables. Batam Island is not for vegetable gardens."

    To serve the flow of passengers and goods by air, the construction plan for the airport in Batam took cargo and passenger into account. Batam Authority commenced the construction of Hang Nadim Airport by phase until 1996.

    Barelang Bridge Construction Bridge I (Teungku Fisabilillah): connects Batam Island and Tonton Island with a cable stayed type bridge. It is currently the longest bridge designed and built in Indonesia.

    Bridge II (Nara Singa II): is a Balance Cantilever Box Girder bridge, the longest Single Box bridge in Indonesia connecting Tonton Island and Nipah Island.

    Bridge III (Raja Ali Haji): a Segmental Concrete Box Girder type bridge with Abutment Foundation, connecting Nipah Island and Setokok Island.

    Bridge IV (Sultan Zainal Abidin): is a bridge connecting Setokok Island and Rempang Island. It is the second longest Balance Cantilever bridge built in Indonesia.

    Bridge V (Tuanku Tambusai): connects Rempang Island and Galang Island. It is the first and the longest arch bridge with constructed reinforced concrete built in Indonesia.

    Bridge VI (Raja Kecil): the connecting bridge between Galang Island and Galang Baru with a length of 180 m and a width of 18 m. It uses a system where each 45 m prestressed concrete double boxes segment lays on 2 footings. With Rempang and Galang interconnected, the two islands are expected to be an alternative for new industrial development to accommodate the expansion of investment flow from Batam.

  • 4. J.E. Habibie (B.J. Habibie's younger brother) (March 1998—July 1998), Period of Continuation

    B.J. Habibie renounced his position as the Chief of Batam Authority upon being elected by MPR (People's Consultative Assembly) of the Republic of Indonesia (RI) as the 7th Vice President of RI. J.E. Habibie did not serve for long. He resigned because B.J. Habibie was appointed the 3rd President of RI. The purpose of his resignation was none other than protecting his older brother from the issues of corruption, collusion, and nepotism (KKN).

    Though brief, he still made his mark in KKN eradication, sea sand mining reformation, the discourse of moving the main office of Batam Authority from Jakarta to Batam , to the extent of organizational restructuring.

  • 5. Ismeth Abdullah (1998-2005), Period of Infrastructure and Facilities Development and Continued Investment with Greater Attention to Community Welfare and Improvement of the Investment Climate.

    The challenge he faced in this era was Regional Autonomy, which gave birth to Batam City Government in Batam free trade and free port zone (Law 53/1999). Thanks to his proposition in keeping Batam Authority involved in government administration, the articles of this law also mandate that the working relations between City Government and Batam Authority are further stipulated in Government Regulations which are yet to be put into realization. His tenure prioritized the development of urban facilities, such as religious facilities, sports, housing, government facilities and public facilities.

    Development Priorities and Leadership Orientation:

    Batam Investment Development Cooperative and SME Training One In One Out System Implementation on Car Import Batam FTZ Commitment Formation Effort Community Welfare Social Facilities Construction Batam Intelligent Island Development

  • 6. Mustofa Widjaja (2005—2016), Period of Batam Development with Emphasis on Infrastructure and Facilities Improvement, Investment and Living Environment Quality.

    His accomplishment was obtaining Batam Authority a clear institutional status by the issuance of Batam Free Trade and Free Port Law, as well as Government Regulation No. 5 of 2011. In the hustle and bustle of Batam Authority's conversion to BP Batam, Mustofa Widjaja successfully convinced the public and the communities that the existence of BP Batam remained important and indispensable.

    Development Priorities and Leadership Orientation:

    FTZ Officiation by the issuance of Law 44/2007 Regional Council Formation Conversion of Batam Authority to Batam Indonesia Free Zone Authority (BP Batam)

    (Government Regulation 46/2007 was changed to Government Regulation 5/2011)

    BP Batam as a Public Service Agency (BLU) may look for and manage its own budget (PP 6/2011) Actualized E-Government BP Batam Central Library Mapping of Batam 2011—2015 Development Journey Effort of Batam in Transhipment

  • 7. Hatanto Reksodipoetro (2016—2017), Period of Batam Free Trade and Free Port Zone Performance Enhancement with real work towards an area with international competitiveness.

    Hatanto Reksodipoetro, who received the baton, with the spirit of transformation, revitalized a number of systems that were previously done manually, face to face, which potentially caused moral hazard. He converted this whole system online. He was also optimistic about a number of breakthroughs made by BP Batam and the system improvement in all services used by investors from manual to online; such as i23J and KILK, which in fact are still popular among investors, in addition to other facilities and services, such as Host to Host Online Port Licensing System and Geographical Information System (GIS) application for land management using drone mapping, like in Singapore.

  • 8. Lukita Dinarsyah Tuwo (2017—2018), Period of Reformation and BP Batam Performance Enhancement to Actualize the Development of An Advanced, Just, and Sustainable Batam for the Unitary State of the Republic of Indonesia.

    Under the leadership of Lukita Dinarsyah Tuwo, BP Batam Unitedly Served with Integrity, Transparency and Humility, BP Batam was closer and was present amidst the community.

    Through priority programs of Investment Increase, Tourism, Industrial and Digital Economy Improvement, Logistics Center Development, cooperation with Batam City Government and other organizations, the economic growth chart of Batam continued to increase by 4.51% in the second quarter of 2018 after plunging at the lowest figure of 1.06% in the second quarter of 2017.

    The priority programs were quickly initiated by Lukita and his staff to actualize Forward Batam in which its economy grows 7% in 2 years. Under the leadership of Lukita Dinarsyah Tuwo, in a short time, BP Batam was able to achieve the 2nd place in the National Public Information Disclosure for Non-Structural Institutions Category from the Central Information Commission (KIP) in December 2017.

    The priority programs to increase foreign tourism were created, among them were BP Batam holding 2017 Barelang Marathon, 2017 BP Batam International Culture Carnival, BP Batam Car Free Day and Car Free Night at the end of 2017.

    Right at the end of January 2018, together with all SKPD (Local Government Work Units) and stakeholders and community leaders of Batam, the Head of BP Batam explained the 100 days of work achievements by BP Batam.

    On this occasion, the Head of BP Batam conveyed the work program of BP Batam called Batam Forward United 2 Years 7% Economic Growth (BBM27).

    With the spirit of motivating tourism, investment and improving services in Batam City, BP Batam held 2018 Car Free Night and the BP Batam Ambassador Award Night, as well as 2018 Batam Economic Forum Car Free Night which was packaged with Zumba Color Night and Culinary Markets, along with Batam Menari (Batam Dancing) which broke Indonesia World Records Museum (MURI) record with the most participants of Batam Rampai Dance, amounting to 22,000 dancers.

    On the other hand, in order to actualize Kampung Tua Tanjung Uma area, the Head of BP Batam was also present in the Announcement and First Painting activities of Rainbow Colored Tanjung Uma at 200 local residents' houses.

    BP Batam made remarkable achievements, to name a few were One Stop Integrated Service (PTSP) of BP Batam achieved ISO 9001: 2015 Certification and reception of an award as the Best Video Profile for non-structural institutions at the Awarding Night of The 3rd Public Relations Indonesia Awards (PRIA), Surabaya; The 2018 Top BUMD (Municipally Owned Corporation) Builder Award held by Business News Indonesia Magazine and Asia Business Research Center.

    In addition, PTSP (One Stop Integrated Service) of BP Batam was successful in being nominated as Top 10 2018 BKPM (Investment Coordinating Board) Investment Assessment Award and receiving the Unqualified (WTP) Assessment Opinion Award for the second time from the Audit Board of the Republic of Indonesia.

    Positive synergy with stakeholders continues to be built in Batam development. The Head of BP Batam implemented the MoU by handing over 5 BP Batam assets to Batam City Government, collaborated in drug trafficking prevention by signing a Memorandum of Understanding between BP Batam and National Narcotics Agency of the Republic of Indonesia. Collaborated with Kepri (Riau Islands) Provincial Prosecutor Office in the implementation of Civil Law and signed a MoU with the Republic of Indonesia Coast Guard.

    In July, BP Batam held a special forum with businesspeople and analyzed and responded to the economic growth Batam in Quarter I / 2018. The Head of BP Batam gave an explanation of the y-o-y increase in Quarter I / 2018 which reached 4.47% after previously being at 1.04% in the same quarter of 2017.

    In August 2018, Indonesia Funtastic Diversity - Batam for Indonesia broke the second MURI (Indonesia World Records Museum) record by making the 73-meter longest Jala (Net) Bread in conjunction with the 73rd Anniversary of the Republic of Indonesia.

  • 9. Edy Putra Irawady (2019), Reformation Transition Period and BP Batam Performance Enhancement, to Actualize the Development of an Advanced, Just, and Sustainable Batam for the Unitary State of the Republic of Indonesia.

    Edy Putra Irawady was appointed by the Coordinating Minister for Economic Affairs as the Head of BP Batam in the Transition Period to carry out three major duties, to Merge Business Processes into PTSP (One Stop Integrated Service), to Analyze the Job Description of the Head of BP Batam when concurrently served by the Mayor in the future, and to Report the Investment Development in Batam City.

    To fulfill his duties, Edy immediately renewed the integrated business licensing system, which was Online Single Submission (OSS), which was then referred as Indonesia Batam Online Single Submission (IBOSS). The synchronization of licensing services was implemented based on the coordination between PTSP BP Batam (BP Batam One Stop Integrated Service), DPMPTSP Pemko Batam (Batam City Government Investment and One Stop Integrated Service Agency) and other related agencies.

    Edy also strengthened frontliners to improve the ease of investment licensing services by forming Business Clinic, which was tasked to provide investment-related consultation and case settlement services. In addition, Edy also formed the Investment Guard and Blink, a mobile investment services unit.

    Under the leadership of Edy Putra Irawady, BP Batam has requested support from the Regional Council and BKPM (Investment Coordinating Board) to integrate licensing services into OSS (Online Single Submission) system to accelerate investment in Batam City.

    In the first semester of 2019, foreign investment increased by 53% in comparison to the same period in 2018, and the planned investment speed in Batam City during January-December 2019 reached 73% compared to the average national investment speed of merely 32% in the last 5 years.

  • 10. Muhammad Rudi (2019—now).

    Muhammad Rudi, who is the Mayor of Batam, also serves as the Head of BP Batam since being assigned and inaugurated by the Coordinating Minister for Economic Affairs in September 2019. During Muhammad Rudi's leadership, BP Batam focuses on ease of licensing for the public and investors and increasing investment in Batam City. One of the ease of licensing offered is by cutting the lengthy bureaucracy.

    The development of Special Economic Zones (SEZ) in Batam City such as SEZ Maintenance, Repair, and Overhaul (MRO), a collaboration between Lion Group and Garuda Indonesia, and Digital SEZ in Nongsa Digital Park are the tasks of BP Batam under the leadership of Muhammad Rudi. Infrastructure developments, such as airports and ports have also become Muhammad Rudi's main focuses in leading BP Batam.

    Furthermore, Muhammad Rudi also targets revenue optimalization through assets owned by BP Batam by forming four Business Entities, Airport and ICT Business Entities, Port Business Entity, Hospital Business Entity, and Facility and Environment Business Entities. With the formation of these four Business Entities, the focus of BP Batam would expectantly be increased in infrastructure development to increase investment and provide various facilities for the people of Batam City.

  • 1. Ibnu Sutowo (1971 - 1976), Period of Preparation

    The character of Ibnu Sutowo is inseparable from Pertamina. During the reign of President Soeharto, Ibnu Sutowo, who was then the President Director of Pertamina and the Minister of Energy and Mineral Resources (EMR), was appointed the Chief of Batam Island Industrial Area Development Authority.

    Before receiving special attention from President Soeharto, Batam was a dormant island with jungle almost untouched, clustered with swampy thickets, inhibited by around 6,000 people who lived off the coast with fishing as their livelihood. He pioneered Batam Island as an industrial area and the center of transhipment activities and made Batam the Logistical Base of Pertamina.

    During Ibnu Sutowo’s leadership, Presidential Decree (Keppres) No. 41 of 1973 concerning Batam Island Industrial Area, which assigned Batam Island Industrial Area Development Authority as the authority responsible for the development of growth in Batam Island industrial area, with the power in the allocation and use of land for the purpose of implementing the development of Batam as an industrial area, was issued.

    The roles of Ibnu Sutowo in the Period of Preparation:

    President Soeharto issued Presidential Decree (Keppres) No. 74 concerning the Development of Building Batam Island into an Industrial Area on October 26, 1971,
    The issuance of Presidential Decree No. 74 of 1971 marks the birth of Batam Authority, which has been celebrated yearly by Batam Authority staff as an anniversary or commemorated as the momentum of Batam Island Industrial Area Development Service Day since 2008,
    Batam Authority 1972 Master Plan, the Concept of Free Trade Zone was planned
    The location of port infrastructure was set,
    Airport construction (850 m),
    Seaport (Sekupang 140 M, Batu Ampar 1 KM),
    Reservoir construction (Sei Harapan, Baloi, Nongsa),
    Provision of electricity, telecommunication, road construction, housing (for Pertamina at that moment).

    During the leadership of Ibnu Sutowo, the construction project of the airport in Batam Island commenced in 1974. The initial plan was to be located in Tanjung Uncang, it was then moved to Batu Besar due to international flight regulations.

    Meanwhile, to fulfill the demand of clean water in Batam Island, which has no water resource such as a river, reservoirs were needed to catch rain water, which would consequently be processed into clean water. The first reservoir built was Sei Harapan Reservoir, which was built in 1969 by Robin Loh, the Contractor, and was operating in 1979.

    The construction for source of energy also started when Pertamina built power plants in Sekupang and Batu Ampar. In the meantime, to support transportation, the road construction from Sekupang to Batu Besar was pioneered in the period of Ibnu Sutowo.

  • 2. J.B. Sumarlin (1976-1978), Period of Consolidation

    When Pertamina was in the midst of crisis, J.B. Sumarlin, who was then the Minister of Administrative Reform, Deputy Chairman of the National Development Planning Organization (Bappenas) and Chairman of Opstib, was assigned by President Soeharto to be the second Chief of Batam Authority. He held a role in transforming Batam into a Bonded Warehouse Area and giving Batam Authority the authority to manage ports.

    During J.B. Sumarlin's term, the second reservoir, Sei Baloi Reservoir, was built in 1975 by the contractor Kurnia Dwi Putera LLC and was operating in 1978. Then, the development continued with the construction of Nongsa Reservoir by a Japanese contractor in 1975 and was operating in 1980.

    Along with the implementation of Batam development according to 1972 Master Plan, supported by designating Batam as an industrial area under Presidential Decree No. 41 of 1973, a number of foreign companies (investors) began to take interest in investing in Batam. According to the record, 9 companies invested and 9 potential companies showed interest in investing in Batam at that time.

    The role of J.B. Sumarlin in the Consolidation Period

    Collected information on obstacles and determined the continuation of Batam project, and it was decided that the development of Batam should proceed using APBN (National Revenue and Expense Budget), whereas formerly Pertamina's budget was used;
    In this era, there was delegation of authority to manage sea ports in Batam Island by Indonesian Department of Transportation to Batam Authority;

  • 3. B.J. Habibie (1978 - 1998), Period of Infrastructure Construction and Investment

    In the next development, President Soeharto saw the need for Batam develop into a technologically advanced industrial area. To actualize it, President Soeharto then assigned B.J. Habibie, who was then the Minister of Research and Technology, to develop Batam according to his hope and aspiration by being the Chief of Batam Island Industrial Area Development Authority in 1978.

    Under his leadership, B.J. Habibie was able to make Batam grow rapidly. B.J. Habibie changed the direction of Batam's development not merely into a logistical base for Pertamina, but also transformed Batam into a national project with high added value for national interest by evolving Batam Island into an area of high-tech industries, trade, transhipment, and tourism.

    Habibie provided quality materials for infrastructure development, promoted marketing and cooperation with entities abroad to invest in Batam Island, built infrastructure and facilities to support and attract investors. He also initiated the establishment of Batam City Administration in an effort to provide better services to the ever expanding communities.

    Finally, President Soeharto's special attention and actions led Batam to its success as a competitive Industrial Zone. Batam became a historical proof of the success of the New Order Government. B.J. Habibie expected export-oriented industries with skilled personnel, low water consumption, intermediate to advanced technology, and are environmentally friendly.

    The development theory of Batam construction was introduced by Habibie, such as Benelux Theory (Belgium, Netherland, Luxemburg) of Europe was assimilated to Sijori (Singapore, Johor, Riau), and B.J. Habibie’s Balloon Theory, a theory which illustrates the economic conditions of an area as a balloon system connected to one another through valves (infrastructure and facilities). Batam being Balloon I , Rempang as Balloon II, and Galang as Balloon III.

    Habibie also formed an agency called BKPM (Investment Coordinating Board). During the leadership of B.J. Habibie, the revenue from UWTO (land lease to Batam Authority) was utilized as wide as possible as the capital of Batam Authority to prepare and to build basic infrastructures.

    The Central Government granted Batam Authority the Land Management Rights (HPL) to manage land in Batam through Presidential Decree (Keppres) No. 41 of Year 1973. This is intended for its planning, designation, and use to be adjusted to the tasks of Batam Authority in developing Batam.

    At that moment, President Soeharto wanted to develop Batam to relief Indonesia from its dependence on Malaysia (Singapore was still part of Malaysia at that time). According to Soeharto, it was felt that the export and import of Indonesia was overdependence on Malaysia / Singapore at that time. This did not suit the ideals of Indonesia nation. Therefore, Batam was not overlooked by him.

    The Government set Batam as an example for the development of other industrial regions in the country. The development of Batam into a high-tech based industrial zone was essential in terms of developing strong national economy supported by a solid agricultural sector.

    Soeharto said, “Batam has a highly significant strategic value. If we don't utilize and prioritize it, it is as if we aren’t grateful of what God has given us."

    In his clarity of thought too, Soeharto as a leader, who was known for possessing sharpness in appointing a team consisting of economists and in governance, was able to advocate government revival which raised Indonesia as one of the “Asian Tigers” in the ‘90s. Soeharto set his choice to act as the guide of the new journey in Indonesia-Singapore relations.

    The crucial decision made by President Soeharto in choosing the right person to resume the development in Batam showed his great concern for Batam, which was appointing Bacharuddin Jusuf Habibie or known as B.J. Habibie, who was born in Pare Pare, South Sulawesi, on June 25, 1936.

    B.J. Habibie had a distinctive style in implementing his leadership. He held a belief that the overall quality of a work is determined by the quality of its every detailed execution. In order to create reliable cadres, he had two principles. First, learn and master the theory. Second, gain expertise through specialization. This was the principle he applied in the construction of the Barelang bridge.

    He provided the opportunity for this nation's sons and daughters to apply their knowledge in building six interisland bridges, which had never been done in Indonesia. One of them was a cable type bridge (cable stayed bridge) connecting Batam Island and Tonton Island. The different bridge type selections were also intended to provide them reference and experience concerning the technology of bridge construction, which at the same time functioned as a laboratory.

    A number of large industrial estates started to be built in Batam. Singapore has invested quite a large sum of capital, with the birth of Batamindo in Muka Kuning and filled with company factories such as Sumitomo, Thomson, Philips, Western Digital, Sony and Toshiba. This industrial development also opened up opportunities for job fields, stimulated investment flows, drove the increase in the export sector and the emergence of similar areas in Batam, such as Kabil Industrial Estate LLC, Kara Primanusa LLC, Seafront Industrial City LLC, Spinindo Mitradaya LLC, and etc.

    ● B.J. Habibie suggested the establishment of local government which handles demography and social administration issues; ● Batam Administrative Municipality was officially established on December 24, 1983 (Government Regulation No. 34 of 1983); ● Presidential Decree No. 7 of 1984 concerning the work relations between Batam Authority and Batam Municipal Government.

    Government Administration Batam Island has brought many changes to local government. Beginning from the 1980s, population growth has increased as the result of the rapid implementation of Batam Island industrial area development, by natural means and by the increase in population from both formal and informal workforce. So is the demand in obtaining government administration service facilities needed by the community. In line with these developments, a special arrangement is needed to regulate government functions.

    "To realize this special arrangement, Batam Authority proposes the existence of an institution that handles government administration through the establishment of Batam Municipality in the form of Regional Government, which holds the status of Administrative Municipality led by the Mayor."

    To carry out government administration as the elaboration of Article 17 of Government Regulation No. 34 of 1983, the Government issued Presidential Decree No. 7 of 1984 concerning the Work Relationship between Batam Municipality and Batam Island Industrial Area Development Authority.

    The Mayor of Batam, along with Batam Island Industrial Area Development Authority, periodically holds coordination meetings with other agencies to synchronize the implementation of Batam construction and development programs.

    Ir. H. Raja Usman Draman was appointed the first Mayor of Batam (1984–1989). Then, in October 1989–1999, Drs. R.A. Aziz was appointed the second Mayor of Batam. The existence of Administrative Municipality does not imply the existence of a different nation within the country. It is merely a task division. This is intended to improve government administration and public services towards the community and to support Batam Authority in smoothing out development.

    President Soeharto: “Having a Mayor does not mean that the development of Batam Island is then transferred to the Mayor. This was impossible, even handing it over to the Governor was impossible. This is clear; therefore, I ask either the Minister of Home Affairs or the Mayor to assist Batam Authority in developing Batam Island Project.”

    The Land Sector Since start, the Government had given BP Batam the authority to manage lands in Batam Island through Presidential Decree No. 41 Year 1973 concerning Batam Island Industrial Area. This was intended for land planning, allocation and use to be in accordance with the implementation of Batam Authority’s duties in Batam development.

    The expansion of Batam Authority's work area to Rempang and Galang Islands, which was marked by the construction of Barelang bridge, was the outcome of B.J. Habibie’s thought which anticipated the limited availability of land in Batam in the future (as is happening now).

    Concerning social community development, B.J. Habibie wanted residents entering Batam to possess expertise in technological fields needed by industries in Batam Island because Batam Island was indeed designated for industry.

    Habibie: “Batam will export high-tech, high value products to help earn foreign exchange. Batam is not for itself, but for the Nation. It is impossible for us to open Batam Island for just any of its residents to clear lands, cut trees, only to plant vegetables. Batam Island is not for vegetable gardens."

    To serve the flow of passengers and goods by air, the construction plan for the airport in Batam took cargo and passenger into account. Batam Authority commenced the construction of Hang Nadim Airport by phase until 1996.

    Barelang Bridge Construction Bridge I (Teungku Fisabilillah): connects Batam Island and Tonton Island with a cable stayed type bridge. It is currently the longest bridge designed and built in Indonesia.

    Bridge II (Nara Singa II): is a Balance Cantilever Box Girder bridge, the longest Single Box bridge in Indonesia connecting Tonton Island and Nipah Island.

    Bridge III (Raja Ali Haji): a Segmental Concrete Box Girder type bridge with Abutment Foundation, connecting Nipah Island and Setokok Island.

    Bridge IV (Sultan Zainal Abidin): is a bridge connecting Setokok Island and Rempang Island. It is the second longest Balance Cantilever bridge built in Indonesia.

    Bridge V (Tuanku Tambusai): connects Rempang Island and Galang Island. It is the first and the longest arch bridge with constructed reinforced concrete built in Indonesia.

    Bridge VI (Raja Kecil): the connecting bridge between Galang Island and Galang Baru with a length of 180 m and a width of 18 m. It uses a system where each 45 m prestressed concrete double boxes segment lays on 2 footings. With Rempang and Galang interconnected, the two islands are expected to be an alternative for new industrial development to accommodate the expansion of investment flow from Batam.

  • 4. J.E. Habibie (B.J. Habibie's younger brother) (March 1998—July 1998), Period of Continuation

    B.J. Habibie renounced his position as the Chief of Batam Authority upon being elected by MPR (People's Consultative Assembly) of the Republic of Indonesia (RI) as the 7th Vice President of RI. J.E. Habibie did not serve for long. He resigned because B.J. Habibie was appointed the 3rd President of RI. The purpose of his resignation was none other than protecting his older brother from the issues of corruption, collusion, and nepotism (KKN).

    Though brief, he still made his mark in KKN eradication, sea sand mining reformation, the discourse of moving the main office of Batam Authority from Jakarta to Batam , to the extent of organizational restructuring.

  • 5. Ismeth Abdullah (1998-2005), Period of Infrastructure and Facilities Development and Continued Investment with Greater Attention to Community Welfare and Improvement of the Investment Climate.

    The challenge he faced in this era was Regional Autonomy, which gave birth to Batam City Government in Batam free trade and free port zone (Law 53/1999). Thanks to his proposition in keeping Batam Authority involved in government administration, the articles of this law also mandate that the working relations between City Government and Batam Authority are further stipulated in Government Regulations which are yet to be put into realization. His tenure prioritized the development of urban facilities, such as religious facilities, sports, housing, government facilities and public facilities.

    Development Priorities and Leadership Orientation:

    Batam Investment Development Cooperative and SME Training One In One Out System Implementation on Car Import Batam FTZ Commitment Formation Effort Community Welfare Social Facilities Construction Batam Intelligent Island Development

  • 6. Mustofa Widjaja (2005—2016), Period of Batam Development with Emphasis on Infrastructure and Facilities Improvement, Investment and Living Environment Quality.

    His accomplishment was obtaining Batam Authority a clear institutional status by the issuance of Batam Free Trade and Free Port Law, as well as Government Regulation No. 5 of 2011. In the hustle and bustle of Batam Authority's conversion to BP Batam, Mustofa Widjaja successfully convinced the public and the communities that the existence of BP Batam remained important and indispensable.

    Development Priorities and Leadership Orientation:

    FTZ Officiation by the issuance of Law 44/2007 Regional Council Formation Conversion of Batam Authority to Batam Indonesia Free Zone Authority (BP Batam)

    (Government Regulation 46/2007 was changed to Government Regulation 5/2011)

    BP Batam as a Public Service Agency (BLU) may look for and manage its own budget (PP 6/2011) Actualized E-Government BP Batam Central Library Mapping of Batam 2011—2015 Development Journey Effort of Batam in Transhipment

  • 7. Hatanto Reksodipoetro (2016—2017), Period of Batam Free Trade and Free Port Zone Performance Enhancement with real work towards an area with international competitiveness.

    Hatanto Reksodipoetro, who received the baton, with the spirit of transformation, revitalized a number of systems that were previously done manually, face to face, which potentially caused moral hazard. He converted this whole system online. He was also optimistic about a number of breakthroughs made by BP Batam and the system improvement in all services used by investors from manual to online; such as i23J and KILK, which in fact are still popular among investors, in addition to other facilities and services, such as Host to Host Online Port Licensing System and Geographical Information System (GIS) application for land management using drone mapping, like in Singapore.

  • 8. Lukita Dinarsyah Tuwo (2017—2018), Period of Reformation and BP Batam Performance Enhancement to Actualize the Development of An Advanced, Just, and Sustainable Batam for the Unitary State of the Republic of Indonesia.

    Under the leadership of Lukita Dinarsyah Tuwo, BP Batam Unitedly Served with Integrity, Transparency and Humility, BP Batam was closer and was present amidst the community.

    Through priority programs of Investment Increase, Tourism, Industrial and Digital Economy Improvement, Logistics Center Development, cooperation with Batam City Government and other organizations, the economic growth chart of Batam continued to increase by 4.51% in the second quarter of 2018 after plunging at the lowest figure of 1.06% in the second quarter of 2017.

    The priority programs were quickly initiated by Lukita and his staff to actualize Forward Batam in which its economy grows 7% in 2 years. Under the leadership of Lukita Dinarsyah Tuwo, in a short time, BP Batam was able to achieve the 2nd place in the National Public Information Disclosure for Non-Structural Institutions Category from the Central Information Commission (KIP) in December 2017.

    The priority programs to increase foreign tourism were created, among them were BP Batam holding 2017 Barelang Marathon, 2017 BP Batam International Culture Carnival, BP Batam Car Free Day and Car Free Night at the end of 2017.

    Right at the end of January 2018, together with all SKPD (Local Government Work Units) and stakeholders and community leaders of Batam, the Head of BP Batam explained the 100 days of work achievements by BP Batam.

    On this occasion, the Head of BP Batam conveyed the work program of BP Batam called Batam Forward United 2 Years 7% Economic Growth (BBM27).

    With the spirit of motivating tourism, investment and improving services in Batam City, BP Batam held 2018 Car Free Night and the BP Batam Ambassador Award Night, as well as 2018 Batam Economic Forum Car Free Night which was packaged with Zumba Color Night and Culinary Markets, along with Batam Menari (Batam Dancing) which broke Indonesia World Records Museum (MURI) record with the most participants of Batam Rampai Dance, amounting to 22,000 dancers.

    On the other hand, in order to actualize Kampung Tua Tanjung Uma area, the Head of BP Batam was also present in the Announcement and First Painting activities of Rainbow Colored Tanjung Uma at 200 local residents' houses.

    BP Batam made remarkable achievements, to name a few were One Stop Integrated Service (PTSP) of BP Batam achieved ISO 9001: 2015 Certification and reception of an award as the Best Video Profile for non-structural institutions at the Awarding Night of The 3rd Public Relations Indonesia Awards (PRIA), Surabaya; The 2018 Top BUMD (Municipally Owned Corporation) Builder Award held by Business News Indonesia Magazine and Asia Business Research Center.

    In addition, PTSP (One Stop Integrated Service) of BP Batam was successful in being nominated as Top 10 2018 BKPM (Investment Coordinating Board) Investment Assessment Award and receiving the Unqualified (WTP) Assessment Opinion Award for the second time from the Audit Board of the Republic of Indonesia.

    Positive synergy with stakeholders continues to be built in Batam development. The Head of BP Batam implemented the MoU by handing over 5 BP Batam assets to Batam City Government, collaborated in drug trafficking prevention by signing a Memorandum of Understanding between BP Batam and National Narcotics Agency of the Republic of Indonesia. Collaborated with Kepri (Riau Islands) Provincial Prosecutor Office in the implementation of Civil Law and signed a MoU with the Republic of Indonesia Coast Guard.

    In July, BP Batam held a special forum with businesspeople and analyzed and responded to the economic growth Batam in Quarter I / 2018. The Head of BP Batam gave an explanation of the y-o-y increase in Quarter I / 2018 which reached 4.47% after previously being at 1.04% in the same quarter of 2017.

    In August 2018, Indonesia Funtastic Diversity - Batam for Indonesia broke the second MURI (Indonesia World Records Museum) record by making the 73-meter longest Jala (Net) Bread in conjunction with the 73rd Anniversary of the Republic of Indonesia.

  • 9. Edy Putra Irawady (2019), Reformation Transition Period and BP Batam Performance Enhancement, to Actualize the Development of an Advanced, Just, and Sustainable Batam for the Unitary State of the Republic of Indonesia.

    Edy Putra Irawady was appointed by the Coordinating Minister for Economic Affairs as the Head of BP Batam in the Transition Period to carry out three major duties, to Merge Business Processes into PTSP (One Stop Integrated Service), to Analyze the Job Description of the Head of BP Batam when concurrently served by the Mayor in the future, and to Report the Investment Development in Batam City.

    To fulfill his duties, Edy immediately renewed the integrated business licensing system, which was Online Single Submission (OSS), which was then referred as Indonesia Batam Online Single Submission (IBOSS). The synchronization of licensing services was implemented based on the coordination between PTSP BP Batam (BP Batam One Stop Integrated Service), DPMPTSP Pemko Batam (Batam City Government Investment and One Stop Integrated Service Agency) and other related agencies.

    Edy also strengthened frontliners to improve the ease of investment licensing services by forming Business Clinic, which was tasked to provide investment-related consultation and case settlement services. In addition, Edy also formed the Investment Guard and Blink, a mobile investment services unit.

    Under the leadership of Edy Putra Irawady, BP Batam has requested support from the Regional Council and BKPM (Investment Coordinating Board) to integrate licensing services into OSS (Online Single Submission) system to accelerate investment in Batam City.

    In the first semester of 2019, foreign investment increased by 53% in comparison to the same period in 2018, and the planned investment speed in Batam City during January-December 2019 reached 73% compared to the average national investment speed of merely 32% in the last 5 years.

  • 10. Muhammad Rudi (2019—now).

    Muhammad Rudi, who is the Mayor of Batam, also serves as the Head of BP Batam since being assigned and inaugurated by the Coordinating Minister for Economic Affairs in September 2019. During Muhammad Rudi's leadership, BP Batam focuses on ease of licensing for the public and investors and increasing investment in Batam City. One of the ease of licensing offered is by cutting the lengthy bureaucracy.

    The development of Special Economic Zones (SEZ) in Batam City such as SEZ Maintenance, Repair, and Overhaul (MRO), a collaboration between Lion Group and Garuda Indonesia, and Digital SEZ in Nongsa Digital Park are the tasks of BP Batam under the leadership of Muhammad Rudi. Infrastructure developments, such as airports and ports have also become Muhammad Rudi's main focuses in leading BP Batam.

    Furthermore, Muhammad Rudi also targets revenue optimalization through assets owned by BP Batam by forming four Business Entities, Airport and ICT Business Entities, Port Business Entity, Hospital Business Entity, and Facility and Environment Business Entities. With the formation of these four Business Entities, the focus of BP Batam would expectantly be increased in infrastructure development to increase investment and provide various facilities for the people of Batam City.

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Emergency Numbers

Nomor telepon Pemadam Kebakaran

PBK Batu Ampar

PBK Duriangkang

PBK Sekupang

PBK Sagulung

PBK Sei Panas

Nomor Telepon RS BP Batam

Fire Department phone number

Batu Ampar Fire Prevention Center

Duriangkang Fire Prevention Center

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Sagulung Fire Prevention Center

Sei Panas Fire Prevention Center

BP Batam Hospital Phone Number