Development of Rempang Island as a High-Competitive Industrial, Tourism, and Service Area to Boost Economic Growth in Batam and Riau Islands Province

INTI,- Batam, a city in Indonesia, recorded an economic growth rate of 6.84% in 2022, higher than the national growth rate of 5.31%. This indicates that the economic recovery in Batam and the Riau Islands is on the rise.

The economic growth of Batam is expected to continue to increase in line with efforts to optimize development in the Batam and Riau Islands Free Trade and Free Port Area (KPBPB), both through additional incentives provided through the Special Economic Zone (KEK), ease of doing business, provision of skilled labor, and development of several areas that have not yet been developed, such as Rempang and Galang and Galang Baru.

To support the development of the Batam KPBPB area, the Coordinating Ministry for Economic Affairs held the Launching Program for the Development of Rempang KPBPB Batam in the Riau Islands Province in Jakarta on April 12th. The launching event is expected to be the beginning of the development of Rempang as an area with high competitiveness in the development of industry, tourism, and services, by providing various facilities and incentives, both fiscal and non-fiscal. Rempang is expected to become an investment destination, especially for foreign investors, thus creating job opportunities for the community and encouraging regional and economic growth.

The development of Rempang is an integral part of the policy direction and strategic steps for the development of the Batam, Bintan, and Karimun (BBK) areas, which have been outlined in the BBK KPBPB Master Plan, the Presidential Regulation for which is expected to be issued soon. In the Master Plan, the direction for the development of Rempang for industry, services, and tourism has been determined.

"With this master plan, it is hoped that Rempang can be developed for industry, services, and tourism, and it is hoped that the effect can grow. Of course, Batam, Bintan, Karimun, including Rempang, is close to Singapore and Malaysia, so we hope that we can provide high competitiveness in the area," said Coordinating Minister for Economic Affairs, Airlangga Hartarto.

Airlangga hopes that the development of Rempang will have a spillover effect on other areas around it. The location of Rempang Island, which is not far from Singapore and Malaysia, will increase Indonesia's competitiveness in the Southeast Asian region. This is further supported by Indonesia's role as ASEAN Chairmanship in 2023, which will demonstrate Indonesia's competitiveness and support the economic productivity of other ASEAN countries.

PT Makmur Elok Graha plans to invest a total of approximately Rp381 trillion until 2080, which can absorb direct employment of around 306,000 people. The investments will include medium-sized industries, manufacturing and logistics industries, integrated tourism areas, as well as integrated housing and trade and services areas. For Phase I until 2040, investment of around Rp29 trillion will be realized with the absorption of employment of around 186,000 people through the development of manufacturing and logistics industries, MICE tourism, and housing activities supported by trade and services.

Closing his remarks, Airlangga expressed appreciation to all relevant parties and hoped that the development planning could proceed smoothly. "I am delighted because this is a very long journey, and it is hoped that this can change the horizon around Singapore and Batam. If we are in Batam now, we can see that Singapore is shining. Well, I hope that if we are in Singapore, Batam is shining," concluded Airlangga. ***. Hans