25 Oct

Batam, October 24, 2024 – Tunas Prima Industrial Estate, a part of the Tunas Industrial Estate, was honored with the prestigious “Kawasan Industri Terbaru (Newest Industrial Estate)” award at Anugerah Investasi BP Batam 2024. The event took place on Tuesday, October 22, 2024, at Radisson Golf and Convention Center in Batam. The award was received by Albert, Director of PT Prima Propertindo Utama, in recognition of Tunas Prima’s significant contribution to industrial growth and investment in Batam.

In his remarks, Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, highlighted the vital role of investment in developing international-standard industrial zones and positioning Batam as a modern manufacturing hub in Southeast Asia. In the first half of 2024, Batam recorded an investment increase of IDR 12.31 trillion, growing 55.70% compared to the same period the previous year. This growth was further supported by export values reaching USD 14.6 billion and imports totaling USD 13.8 billion in 2023. These achievements reinforce Batam’s standing as one of Indonesia’s premier investment destinations.

“We are deeply honored to receive this award and proud to be part of Batam’s progressive economic development. We will continue to innovate and offer the best services as a preferred industrial estate for both national and international investors in Batam,” said Albert, Director of Tunas Prima.

Tunas Prima is the latest 100-hectare industrial zone under the Tunas Industrial Estate, offering modern facilities and eco-friendly infrastructure that is GREENMARK certified by the Building and Construction Authority (BCA) Singapore. It is also in the process of GREENSHIP certification from the Green Building Council Indonesia (GBCI). Strategically located in Kabil, Batam, Tunas Prima provides seamless connectivity for various industries, including manufacturing, logistics, and technology, along with one-stop business services to support integrated business expansion. For further information about Tunas Prima, please contact:

Muhammad Andika (Marketing Communication Tunas Group)

Phone Number: 0819-3365-4898

Email: [email protected]

22 Oct

Batam, strategically located near Singapore and Malaysia, is rapidly establishing itself as one of Indonesia’s foremost industrial and investment hubs. For businesses and investors aiming to penetrate Southeast Asian markets, a thorough understanding of Batam’s labor market, competitive wage structures, and regulatory environment is essential. This article explores the key elements that make Batam a compelling destination for business expansion.

A Dynamic Workforce Demographic

Batam’s workforce is youthful, skilled, and growing rapidly, with a labor force participation rate of 70%. Many workers are under 35, bringing energy and adaptability to industries like manufacturing and technology. The city’s industrial growth has developed a labor pool experienced in maintaining global standards, particularly in electronics, shipbuilding, and automotive sectors. This makes Batam an attractive hub for businesses looking to tap into Southeast Asia’s markets.

In addition to local talent, Batam attracts foreign professionals, particularly from Singapore, China, and Europe. These foreign workers bring specialized skills, contributing to high-tech and strategic industries. Their presence complements local talent, filling critical roles and enhancing Batam’s competitive edge in industries such as manufacturing and technology.

Key Industries Driving Employment

Manufacturing is the primary driver of Batam’s economy, employing the largest portion of the workforce. The electronics industry, in particular, has seen significant growth due to the city’s focus on technology-driven production. Other key sectors, like automotive and consumer goods manufacturing, also contribute to job creation and skill development for the local population.

While manufacturing remains dominant, Batam’s economy is diversifying into services, trade, and tourism. The growing hospitality and tourism sectors, fueled by visitors from neighboring countries, are creating new employment opportunities and expanding the city’s economic potential beyond its industrial roots. This diversification opens up new avenues for investors and businesses seeking to tap into Batam’s evolving landscape.

Competitive Wage Structure

One of the key advantages of operating in Batam is its competitive labor cost. In 2024, the minimum wage in Batam was set at Rp 4,685,050 per month for a 40-hour workweek. This wage level strikes a balance between ensuring worker welfare and maintaining business competitiveness, allowing companies to access a productive labor force without the high operational costs often associated with major cities like Jakarta or Surabaya.

The minimum wage policy in Batam is shaped by various economic factors, including inflation, economic growth, and the cost of living. In 2024, the determination of the minimum wage has garnered attention as the government collaborates with labor unions to establish a fair wage that supports both employee welfare and the economic viability of businesses. This cooperative approach aims to foster a stable labor market while encouraging investment in the region.

When compared to other regions in Indonesia, Batam’s minimum wage positions it in the middle tier. For example, while DKI Jakarta’s minimum wage is higher at Rp 5,067,381 per month, regions like Bekasi City and Karawang lead the country with minimum wages reaching Rp 5,343,430. This ranking illustrates that while Batam offers competitive wages, it remains manageable for businesses, ensuring that the region continues to attract investment.

Workforce Regulations and Labor Protections

Indonesia’s labor laws are designed to protect workers while facilitating efficient business operations. Overtime work is regulated with specific calculations to ensure fair compensation, where overtime wages are based on an employee’s base salary divided by 173 hours for a standard work month. This clarity helps maintain worker satisfaction and productivity, providing stability for businesses.

In Batam, industries like electronics manufacturing and logistics often operate on a three-shift system to maximize productivity, typically consisting of three 8-hour shifts for 24/7 operations. Some companies may also use a two-shift system with 12-hour shifts over a 6-day workweek. To support night shift workers, businesses often provide incentives like snacks and drinks to help maintain their energy levels.

A crucial aspect of Batam’s labor environment is the comprehensive social security system managed by BPJS, which includes BPJS Kesehatan for health insurance and BPJS Ketenagakerjaan for employment protection. This system ensures workers have access to healthcare and support in case of workplace accidents, contributing to workforce stability.

Recruitment Trends and Talent Availability

Batam’s labor market is dynamic, with diverse recruitment channels for both blue-collar and white-collar job roles. For blue-collar positions, companies primarily utilize local job portals, social media, and HR outreach to attract skilled workers, reflecting the high demand in sectors like manufacturing, construction, and assembly. In contrast, white-collar recruitment, especially for managerial roles, often involves professional platforms like LinkedIn and headhunters, ensuring access to top-tier talent. For critical positions, companies may even recruit expatriates from their head offices to bring in specialized expertise.

A unique aspect of Batam’s workforce is its multilingual capabilities, particularly in Mandarin. Many locals possess basic Mandarin skills, which is advantageous for businesses engaged in trade with Mandarin-speaking markets, such as China. The presence of a sizable Chinese community and Mandarin language programs in schools enhance this linguistic skill among the population. This capability not only fosters smooth international business relationships but also positions Batam as a multicultural city ready to connect local workers with the global job market.

02 Oct

Batam continues to solidify its reputation as a prime investment destination with a recent visit from CNGR Advanced Material Co., Ltd., a leading Chinese company in the energy sector and a global supplier of lithium batteries. The visit on Friday, September 27, 2024, highlights the growing interest of international companies in Batam, particularly in the tin downstream industry.

As one of the world’s largest producers of tin, Indonesia holds significant potential to enhance its economic value through downstream processing. Tin-based products, such as electronic components, batteries, and other industrial materials, offer much higher export value. Batam, with its well-established and integrated industrial infrastructure, is perfectly positioned to become a key hub for such downstream industries. The city’s status as a Free Trade Zone (FTZ) also provides numerous incentives for companies looking to expand their operations in Indonesia. Its robust infrastructure, ease of import-export processes, and strategic location make Batam an ideal choice for multinational companies like CNGR.

CNGR Advanced Material has successfully expanded into markets across Europe, the United States, Japan, and South Korea. Following this success, CNGR is now considering Batam as its next strategic move. According to Zhu Jiangang, Vice President of CNGR Advanced Material, the company’s investment in Indonesia has already reached USD 7 billion and employed 8,000 workers. They are optimistic that this expansion will continue, with Batam’s downstream industry offering strong potential as the next investment destination.

During the meeting, Zhu Jiangang expressed his confidence in Batam’s promising market potential, noting the one-stop business solutions provided by Tunas Industrial Estate, led by Chrispin Andereas, which enhances the prospects for business growth. Zhu emphasized that Batam’s strategic location, streamlined import-export processes, and solid infrastructure were key factors driving CNGR’s interest in investing in the city. This aligns with CNGR’s ambition to continue its growth in the energy and downstream sectors, with plans to expand operations in countries such as Finland, Morocco, and Indonesia. Batam’s readiness to accommodate large-scale investments underscores its position as a leading industrial hub in Southeast Asia.

17 Sep

The dynamic partnership between Batam and Singapore is transforming the regional business landscape. Leveraging its status as a Free Trade Zone and proximity to Singapore, Batam has transformed into Indonesia’s leading industrial and tourism hub in Southeast Asia. This proves how seamless connectivity and strategic investments can drive the economic prosperity of both countries. Check out our new insight to learn more how Batam and Singapore drive the regional business!

Batam: A strategic hub for business and tourism

Batam, located 20 kilometers from Singapore, is a fast-growing industrial and tourism hub in Southeast Asia. As a Free Trade Zone, Batam offers tax incentives and a streamlined investment process, highly attractive to foreign businesses, especially from Singapore. With modern infrastructure, industrial zones, and beautiful nature, Batam is a prime spot for manufacturing and tourism.

Seamless Accessibility and Connectivity

The close proximity of Batam-Singapore is easily accessible with a 45-minute ferry ride. Frequent and affordable services are available connecting SG’s HarbourFront and Tanah Merah terminals to four terminals in Batam (Sekupang, Batam Center, Harbour Bay, Nongsapura), with more than 180 trips daily. Enhancing seamless connectivity to support regional businesses.

Tourism-Driven Opportunities

Beyond industry, Batam is a top destination for Singaporeans looking for a weekend getaway or a long vacation. Batam offers attractions like golf courses, outdoor activities, a variety of culinary delights, wellness spas, and many shopping centers. Travelers from Singapore account for 85% of all foreign visitors each year. This influx of tourists drives demand in hospitality, retail and services, providing additional business opportunities.

Foreign Investment and Future Growth

The partnership between Batam and Singapore has played a key role in Batam’s development. Since 2018, Singapore has consistently been the top FDI contributor, focusing on industries like manufacturing, electronics, logistics, and real estate. In Q1 2024, Singapore invested Rp 3.6 trillion out of Batam’s total Rp 5.73 trillion FDI, along with contributions from China and Japan. Batam continues to attract global investors, driven by its favorable investment environment and expanding infrastructure. Singapore’s ongoing investments reflect its confidence in Batam’s growth potential and regional importance.

As Batam continues to develop as a prime business hub, Tunas Industrial emerges as a top industrial estate, offering an ideal platform for business expansion in Batam. Tunas Industrial offers strategic advantages, including access to modern facilities, excellent connectivity, and comprehensive support for companies looking to grow in this thriving market. Contact us for more information.

15 May

BATAM, (10/5/2024) – PT Solder Tin Andalan Indonesia (PT STANIA), a subsidiary of PT Arsari Tambang, just held a groundbreaking ceremony for their new factory in Tunas Prima Industrial Estate. This milestone marks a significant step towards enhancing Indonesia’s tin mining sector and boosting domestic industry. Hashim Djojohadikusumo, President Commissioner of PT Arsari Tambang, stated that the investment aims to add value to the commodity, strengthen domestic industrial infrastructure, and create new job opportunities in Indonesia, particularly in Batam City. The factory targets an initial production of around 2000 tons of solder per year, with an expected revenue of Rp 1.2 trillion.

PT STANIA Supports for Indonesia’s Mineral Industry Downstream with Green  Commitment

The selection of Batam City as the factory location is based on its strategic position in international trade routes, as well as the support and incentives provided by the Riau Islands Provincial Government and BP Batam in promoting Batam City as a promising investment destination. With an investment value of Rp 400 billion, PT STANIA is confident in expanding its production capacity easily and competing with competitors, while aiming to compete in the markets of Malaysia and India, two of the largest solder-producing countries currently.

As a subsidiary of PT Arsari Tambang, PT STANIA will focus its production on tin-based solder, used in various electronic applications such as electric vehicles, mobile phones, and household appliances. The factory will produce solder in various forms, from solder wire to solder paste, using low-carbon emission production processes, systems, and raw materials. Additionally, PT STANIA will adhere to international standards ISO 9001, 14001, 50001, and 45001 in quality control, environmental protection, energy management, and occupational safety.

Tunas Prima Industrial Estate as a Location for Green Manufacturing of PT STANIA

The selection of the Tunas Prima Industrial Estate as the operational site for PT STANIA’s factory is highly strategic. The Tunas Prima Industrial Estate not only provides infrastructure that supports industrial growth but also offers green industry services. These green industry services include the use of clean electricity supplied by PT PLN Batam, accompanied by Renewable Energy Certificates (REC) ensuring the use of renewable energy sources. Additionally, it involves the development of green infrastructure with Green Mark For District certificates issued by BCA International from Singapore and Greenship Neighborhood certificates issued by the Green Building Council Indonesia (GBCI).

By selecting the Tunas Prima Industrial Estate as its operational location, PT STANIA not only demonstrates its commitment to producing high-quality products but also to fulfilling social and environmental responsibilities as part of a sustainable green industry. These collective initiatives will help support the downstreaming of tin minerals, local economic growth, and make a positive contribution to the environment and the surrounding community.

Tunas Group Successfully Held Groundbreaking Ceremony Of Tunas Prima Industrial Estate

Tuesday, September 19th 2023, Tunas Group has successfully held the Groundbreaking Ceremony for their latest project, Tunas Prima Industrial Estate. The project is developed on 100 hectares of land strategically located in Kabil, Batam City, Indonesia. The event was also attended by strategic partners from GreenA Consultants and PT PLN Batam. In this Groundbreaking Ceremony, Tunas Group also signed MOUs with two large-scale international companies that will soon build factories and operate in the Tunas Prima Industrial Estate: Haitai Solar – solar panel production company and Professional Testing Services Pte Ltd – a company specializing in metallurgical laboratory testing based on modern technology.

Tunas Prima Industrial Estate is the latest project and breakthrough from Tunas Group that carries the concept of ‘Sustainable Future’. A concept of modern industrial estate development while still paying attention to sustainable environmental aspects. In implementing the concept, Tunas Prima Industrial Estate will be developed into the first green industrial estate in Indonesia that is Green Mark certified and supported by 100% clean electricity supply from Renewable Energy sources (EBT).

Realizing a Carbon-Free Industrial Estate

Green Infrastructure Development with Green Mark Standard

Water Security Management 

02 Oct

Tunas Industrial Presents The First Eco-Friendly Industrial Estate Powered By 100% Clean Energy in Batam

The escalating competition across every business sector, coupled with the global challenges post the Covid-19 pandemic, has significantly impacted the Supply Chain faced by many companies. Addressing this issue is imperative to ensure smooth operational business activities. Therefore, prudent considerations are required before embarking on any strategic business expansion.

Moreover, another critical issue that demands attention is the global phenomenon of climate change occurring worldwide. Many countries, including Indonesia, have actively implemented policies aimed at combating the impacts of extreme climate changes. Carbon emissions resulting from industrial activities stand as one of the contributing factors. Ensuring that business growth and environmental sustainability coexist has become a focal point for numerous business players.

In response to this need, the Tunas Group has pioneered an innovative breakthrough through its latest industrial estate project, the Tunas Prima Industrial Estate. The Tunas Group is a renowned property developer in Batam, having successfully developed industrial estates in Batam and Jabodetabek with a total land area of 250 hectares. The construction of Tunas Prima Industrial Estate officially commenced at the Groundbreaking Ceremony on Tuesday, September 19, 2023. The event will take place at the project location situated on Hasanuddin Street, Kabil, Batam, Riau Islands.

Spanning an expansive 100 hectares, Tunas Prima Industrial Estate marks a groundbreaking achievement as the first industrial estate in Indonesia aiming to achieve certification under the Green Mark For District, issued by the Building and Construction Authority (BCA) of Singapore, and the Greenship Neighborhood certificate issued by the Green Building Council Indonesia (GBCI). This new project offers modern industrial spaces adopting a ‘Sustainable Future’ approach. Its aim is to mitigate environmental impacts through a strategic partnership with PLN Batam, ensuring a 100% Clean Energy supply to Tunas Prima Industrial Estate derived from Renewable Energy sources, complemented by Renewable Energy Certificates (RECs). Furthermore, it entails the establishment of integrated green infrastructure, optimizing resource usage efficiency, and implementing water security management.

This industrial estate development is anticipated to attract foreign investments of up to 20 trillion Indonesian Rupiah and generate employment for up to 15,000 people. Through the introduction of the Tunas Prima Industrial Estate project, the Tunas Group endeavors to promote sustainable and environmentally-friendly business growth, as well as attract a greater number of international investors to Batam, positioning it as a leading industrial hub in Southeast Asia.

About Tunas Group:

Established in 2000, the Tunas Group is an Indonesian company headquartered in Batam City, focusing on real estate, industrial, and commercial development. The Tunas Batam Centre Industrial Estate was the inaugural project launched to meet the high demand for industrial land and buildings from both local and international investors, including neighboring countries like Singapore and Malaysia. The Tunas Group continues to seek opportunities to expand its portfolio in Batam City and Greater Jakarta. Currently, its extensive portfolio encompasses industrial property projects covering nearly 200 hectares in Batam and Greater Jakarta, along with commercial real estate spanning 100 hectares in Batam, and the largest shopping center in Batam.