8 Biggest Industrial Parks to Start Business in Batam

Before discussing the specifics of investing in Batam, it’s essential to understand what the Indonesian government defines as an industrial park. Under Government Regulation No. 24 of 2009, industrial parks—also known as industrial estates or investment parks—are designated zones developed for manufacturing, equipped with infrastructure, and managed by industrial estate companies.

Major domestic or multinational developers typically develop these industrial parks. According to the Indonesian Industrial Estates Association (HKI), 73 such estates across Indonesia support various sectors, including food and beverage, automotive components, and consumer goods.

Regulatory Framework & Licensing for Setting Up in Batam’s Industrial Parks

Understanding the current legal landscape is crucial before setting up in any of Indonesia’s industrial parks, including Batam. In 2025, major reforms have transformed how permits, licenses, and compliance are handled—making the process more efficient but also more structured. Here’s what you need to know:

Risk-Based Licensing (GR 28/2025) & OSS-RBA Integration

Implementing Government Regulation No. 28 of 2025 introduces a risk-based licensing system via the OSS-RBA platform. This simplifies the investment process in industrial parks through:

• Unified permits for land use, environment, construction, and operations
• Automatic approval (“Fiktif Positif”) if authorities do not respond in time

• Stricter yet streamlined environmental documentation

Accreditation Process for Industrial Parks

According to the Ministry of Industry Regulation No. 26/2025, industrial parks must now go through a three-phase accreditation:

• Self-Declaration
• Verification by authorities

• Formal Accreditation Status

This improves industrial zone standards and boosts investor confidence.

Mandatory Industry Reporting (Permenperin No. 13/2025)

Industrial estates must regularly report to the National Industrial Information System to ensure transparency, traceability, and compliance. Industrial parks that maintain accurate and timely reports may also receive prioritization in government programs or future incentives.

Bonded Zones

Bonded Zones (Kawasan Berikat) are designated areas within industrial parks where businesses can store, process, or manufacture goods without immediate import duties or taxes. These zones offer:

• Duty exemption for imported capital goods and raw materials
• VAT suspension for transactions inside the bonded zone

• Simplified customs procedures for export-oriented industries

To operate within a bonded zone, companies must obtain:

• Bonded Zone Operator Permit (PKB)

• Entrepreneur Permit in Bonded Zone (PDKB)

Applications are processed through the Ministry of Finance and the local Customs Office (KPBC).

Why Batam is a Top Destination for Industrial Park Investment

Batam is one of Indonesia’s most competitive industrial park locations in the Batam–Bintan–Karimun (BBK) Free Trade and Free Port Zone. The region supports:

• Manufacturing
• IT & data centers
• Aerospace (MRO)

• Maritime and logistics

The Bintan International Airport, currently under development, is expected to enhance logistics capabilities, solidify Batam’s role as a logistics and industrial gateway, and attract even more foreign investors.

Biggest Industrial Parks in Batam

Each of these industrial zones offers strategic advantages for foreign direct investment. Here are key industrial parks in Batam worth considering:

Batamindo Industrial Park

A pioneer in Batam’s industrial landscape since 1990, Batamindo is a 320-hectare ready-to-use investment park designed for operational efficiency. Key Features:

• Ready-built factories and separate office spaces
• Dedicated loading and unloading zones
• Dormitories and housing options for workers
• Recreational amenities including a country club

• Long-standing presence of international brands

Kabil Integrated Industrial Estate (KIIE)

Strategically located on Batam’s coastal line, KIIE spans 540 hectares and is ideal for energy and heavy industries. Why KIIE stands out:

• Specializes in oil & gas operations
• Offers large, coastal land plots for oversized cargo movement
• Includes an International Cargo Port
• Part of Batam’s Free Trade Zone (FTZ)

• Exemptions on import duties, VAT, and excise

Citra Buana Industrial Park I, II, III

Citra Buana is a pioneer of clean and light industrial development in Batam, supporting local and foreign investors. Key highlights include:

• Blocks of modern workshops
• Targets clean and light industries (like F&B)
• Trusted by Singaporean companies

• Affordable facilities and labor

Bintang Industrial Park I, II

Located in the hub of Batam’s shipbuilding and fabrication industry, this park spans 75 hectares. Main offerings include:

• Ready-built factories for automotive, electronics, and machinery
• Backed by Indonesia’s Ministry of Industry and Trade

• Ideal for workshops and heavy industry

Kawasan Industri Wiraraja

A government-owned, flood-free industrial park with premium infrastructure—designed to attract international investment. Key advantages such as:

• No location permit needed
• 24/7 security and complete support services
• Clean water, natural gas, and stable electricity

• KLIK feature allows immediate construction after permit approval

Panbil Industrial Estate

Established in 2001 by the Panbil Group, this integrated estate blends industrial, residential, and commercial facilities. This park ideal for:

• Electronics, automotive, and telecommunications industries
• Investors needing reliable utilities: electricity, water, gas, fiber optics

• Businesses seeking a modern, multi-functional zone

Sarana Industrial Point

Located at the heart of Batam and near government offices, this park is perfect for SMEs and foreign investors. These perks include:

• Proximity to the ferry terminal and over 1,000 nearby homes/factories
• Ready-to-use factory spaces for lease or sale

• Reliable utilities from PLN (power), Telkom (internet), and WHO-standard water systems

Tunas Industrial Estate

The largest industrial estate in Batam Center, covering over 64 hectares, is expanding rapidly. This park has several benefits, such as: 

• Now has four distinct industrial zones
• Offers flexible warehouse and factory options
• Highly competitive pricing for foreign businesses

• Close to seaports—ideal for exporters

Each industrial zone offers strategic advantages for foreign direct investment. Based on your industry and logistics needs, InCorp Indonesia can match your business with the best park.

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Start Investing in Industrial Parks in Batam with InCorp

With regulatory reforms like GR 28/2025, industrial park accreditation, and new sustainability initiatives, industrial parks in Batam are more investor-ready than ever. For businesses looking to enter Southeast Asia, Indonesia offers a strategic, compliant, and scalable environment for manufacturing and logistics operations.

Let InCorp Indonesia (an Ascsentium Company) help you make smart, compliant, and profitable decisions when entering the Indonesian market. Our local experts will assist with:

• Risk-Based Licensing (OSS-RBA)
• Land acquisition in industrial zones
• Bonded zone permit applications
• Environmental permitting

• Long-term tax and legal compliance

Fill out the form below and confidently make your next industrial move in Batam.

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