During the recent Batam, Bintan and Karimun (BBK) Seminar on 24th March 2026 at SMF, Manufacturers are urged to expand into BBK as Indonesia continues their industrial growth. With the Riau Islands expected to attract US$5.7 billion in investment by 2025, exceeding the Indonesian government’s goal of US$5.03 billion and Singaporean companies’ investments reaching around 69% of BBK’s total investments last year, BBK becomes more and more attractive for companies to expand into.
The Singapore-Johor-Riau Islands Growth Triangle further creates an advantageous situation for Singapore firms to expand to the BBK region.
Advantages:
✅ Cost Advantages: The land and labour costs are lower than in Singapore, allowing for cheaper expenses.
✅ Strategic Location: BKK is only a 40-90 minute ferry from Singapore. Alongside BBK’s large labour, land and natural resources, BKK becomes a strategic area for Singapore companies to further grow their industries.
✅ Trade Opportunities: Indonesia has signed trade agreements with 37 countries with more underway. This allows for lower tariffs and further support to companies to export and store products through BKK.
✅ Special Economic Zones (SEZ): Similar to the recent Johor-Singapore SEZ, there are minimally 5 SEZ’s in the BKK region focused on key industries that offer tax incentives, expedited permits, licensing and even dedicated infrastructure to attract foreign investors. Allowing for many benefits in industrial growth in the BKK region.
✅ Twinning Strategy: Keeping company headquarters and research and development facilities in Singapore for its focus on supporting such works while having larger-scale manufacturing and digital operations in BBK for the cost-efficiency. This allows companies to use both location’s strengths.
With these advantages, many companies already have their sites on expanding their reach into BKK. However, as advised by vice-president and honorary secretary Melvin Tan, the grid reliability varies across areas and manufacturers must understand their limitations and consider accordingly.
A slight concern between the competitiveness between BBK and the Johor-Singapore SEZ has been raised. However, it is stated that it would be more appropriate to interpret them as a complementary regional whole, jointly forming an ASEAN integrated production hub.
Media Coverages
https://www.zaobao.com.sg/finance/singapore/story20260326-8795861
https://www.channelnewsasia.com/singapore/manufacturers-investments-indonesia-batam-bintan-karimun-industrial-trade-businesses-6017596
https://www.channelnewsasia.com/watch/singapore-manufacturing-federation-issues-call-firms-explore-batam-bintan-and-karimun-region-6014061
