BATAM OVERVIEW

Batam confidently is a best place as leading business hub in South East Asian. The city has close proximity to Singapore and Malaysia (20-45 km) with same distance from Jakarta to Bekasi and acting as a cheaper manufacturing hub for neighbouring countries. From 2010 to 2020, Batam’s trade balance has been a steady surplus. Singapore accounted for 42% of total FDI in Batam from 2015 to 2020.

With its RGDP growth number around 4.7% (5 years average from 2015-2010), more than 75% Batam’s RGDP is greatly driven by manufacturing and construction output. This indicated that Batam has a higher focus on the industrial manufacturing sector compared to other regions in Indonesia.

As a business hub, Batam firmly holds one main benefit: Free Trade Zone area which only a limited number of cities in Indonesia have (Batam-Bintan-Karimun FTZ). Batam has the specialty of getting a free trade area because of its diverse industrial base and high economic value.

Commonly abbreviated as KPBPB, Batam has the flexibility to regulate investment affairs and is given a delegation of authority by the central government regarding the issuance of investment permits. All these benefits combined with the city’s excellent infrastructure, indeed increases the enthusiasm for investment opportunities in Batam.

JAKARTA OVERVIEW

Jakarta is the capital and the most populated metropolitan city in Indonesia, being home to more than 31 million people. Jakarta plays an outsized role in Indonesia national economy, accounting for approximately 24% of national GDP.

The city is also located in Java Island, which contributes close to 60% of Indonesia’s GDP and population. Based on population density and GDP per capita, Jakarta has the highest concetration of consumers with the highest disposable income respectively. Thus, an attractive market to focus on.

The Digital and E-Commerce ecosystem is starting to take-off with an outsized presence in Jakarta. Key Success Factors are: more SME”s joining online marketplaces, access to digital payment and reliables last mile logistics.

With the esponential growth of Digital and E-Commerce industry, we expect demand for modern logistic warehousing in Jakarta to expand accordingly. While ndonesia’s supply of modern logistic warehousing is still very limited now – most supply are concentrated only around East Greater Jakarta.

Tunas Group sees an opportunity to address this need by providing modern logictic warehousing in Jakarta along prime areas with low supply but high demand.