Batam Investor Column

BATAM FULL OF POTENTIAL IN ATTRACTING INVESTORS TO CONTRIBUTE FOR INDONESIA NATIONAL ECONOMY GROWTH.

Batam is an island that is strategically located near to Singapore and Malaysia (Johor Bahru). It is also surrounded by Selat Malaka Street, the world busiest international maritime traffics. In addition, Indonesia central government also put a lot of efforts and regulations to make Batam island is an attractive and competitive investment destination from all over the world.

This column is mainly to provide fair and fully disclosure Batam investment landscape especially for his special Land Right Status, which we called “Land Management Right” under the authority and holder, BP Batam.

Land Management Right or Right-to-Manage (“Sertifikat Hak Pengelolaan” or “SHPL”)

This title gives right to operate state-owned land for a specific purpose as approved by the authorities. It is given exclusively to government institutions or state-owned companies for an unspecified period.

Developers or investors can usually cooperate with the authority to obtain a SHGB over SHPL for a certain set of period.

Besides the Batam full opportunity for investment, investors and potential investors need to be fully informed that there are some land disputes in the court faced by BP Batam need to be taken into considerations and  risk assessments to be included in investor long term and exit planning.

Batam Legal Status