Batam’s Nongsa Digital Park Special Economic Zone (SEZ) is rapidly becoming Indonesia’s most strategic hub for digital innovation and investment. Designed as a digital bridge between Indonesia and Singapore, this 166-hectare development offers unrivaled benefits for tech businesses, data centers, and creative industries. Backed by tax incentives, world-class infrastructure, and seamless regional connectivity, the zone is drawing global attention from startups and multinationals alike.
Also read: Complete Guide to Doing Business in Batam: Advantages, Strategic Locations, Potential Sectors
A Cutting-Edge SEZ Powering Southeast Asia’s Digital Growth
Nongsa Digital Park SEZ represents a forward-looking initiative that integrates innovation, talent development, and tourism. Established in 2020 and officially recognized by Government Regulation No. 68 of 2021, the zone sits on Batam Island, just 40 minutes by ferry from Singapore. This proximity provides strategic access to one of Asia’s most dynamic tech ecosystems.
The SEZ isn’t just about location—it’s about potential. With an investment target of Rp 40 trillion by 2040 and over Rp 3.7 trillion already secured, Nongsa is the future-forward answer to Indonesia’s growing digital needs.
Also read: Incentives for Business and Investment in Batam
Main Industries in the Nongsa SEZ
Nongsa SEZ was established to serve two primary national priorities: expanding Indonesia’s digital economy and enhancing tourism competitiveness. The SEZ now hosts a blend of digital infrastructure, creative hubs, and tourism assets that contribute to both regional employment and foreign investment inflows.
Data Centers and Cloud Infrastructure
Nongsa has rapidly emerged as one of the leading data center hubs in Indonesia beyond Jakarta. Its strategic location—just minutes from Singapore—makes it ideal for hyperscale development. Operators such as GDS Holdings, Princeton Digital Group, and Data Center First are investing in large-scale facilities with planned capacities of up to 96 MW. The SEZ is connected via 13 international submarine fiber optic cables and benefits from being in a low seismic-risk area, making it one of the most secure environments for hosting cloud operations.
Digital Technology and Software Development
The park is home to over 100 technology firms engaged in:
- Web and app development
- Cybersecurity and fintech
- Mobile payment systems
- AI, blockchain, and big data analytics
Companies like WebImp, LiquidPay, and Glints operate here, leveraging regional tech talent and access to Singapore’s capital markets.
Creative Industries and Animation
Nongsa is a rising creative hub, anchored by Infinite Studios, Indonesia’s largest animation and post-production house. The SEZ also features Kinema Studios and future plans for a full-scale “Movie Town”, dedicated to film production, 3D animation, and immersive content. These facilities attract international film projects and enable Indonesia’s creative economy to scale globally.
Education and Digital Talent Development
Nongsa is not just a workplace—it’s a talent engine. Infinite Learning, the park’s educational arm, runs programs on:
- Software engineering and game development
- Data science and AI
- Digital marketing and business innovation
Notable partnerships include the Apple Developer Academy, RMIT University, and Purwadhika Digital Technology School, which deliver world-class curricula to thousands of students preparing for careers in tech.
Tourism and Hospitality
The Nongsa region has long been a premier destination for international visitors. The SEZ enhances this appeal with resorts like Turi Beach Resort, Nongsa Point Marina, and multiple golf and recreational facilities. A VAT refund scheme for foreign tourists, coupled with luxury tax exemptions, makes it attractive for high-end travel and hospitality investments.
Also read: Leading Industries in Batam: A Blueprint for Southeast Asia’s Industrial Future
The SEZ Advantage: Infrastructure and Incentives
The zone is specifically designed to support the needs of digital and creative sector enterprises. Investors gain access to:
- Modern office towers and high-speed internet
- Robust power grids for hyperscale data centers
- 24/7 security, co-working spaces, and logistics support
- Direct links to 13 submarine fiber optic cables
Companies investing in the zone can receive:
- Full tax holidays for up to 20 years
- Exemption from Value-Added Tax (VAT)
- Accelerated depreciation and amortization
- Up to 100% foreign ownership
- VAT refunds for tourism-related businesses
- Loss carryforward of up to 10 years
These fiscal advantages reduce operational costs and increase long-term ROI, especially for businesses in data hosting, cybersecurity, animation, or fintech.
Also read: The Benefits of Investing in Indonesia’s Special Economic Zones (SEZs)
Businesses Currently Located in Nongsa Digital Park
NDP currently hosts:
- 100+ multinational companies
- Home to 9 key data center projects, including those by GDS Holdings and Princeton Digital Group
- Southeast Asia’s leading animation studio, Infinite Studios
- Apple Developer Academy, RMIT Cybersecurity courses, and Purwadhika Tech School
With 4,952 jobs already created and a target of 16,500 digital professionals by 2040, NDP is not just a location—it’s a launchpad for digital transformation.
Government Support and Strategic Importance
The Indonesian government views NDP as crucial for national digital transformation, with support from multiple ministries including:
- Ministry of Communication and Information Technology
- Coordinating Ministry for Economic Affairs
- Ministry of Research, Technology and Higher Education
The park aligns with Indonesia’s broader digital economy goals, projected to reach $146 billion by 2025 and $315 billion by 2030.
Also read: Batam’s Economic Growth: A Strategic Guide for Businesses and Investors
Future Expansion Plans
Nongsa D-Town Development
The Nongsa D-Town expansion, designed by Surbana Jurong, will add 62 hectares of development with capacity for 8,000 digital talents. This expansion includes:
- Eco-digital office complexes
- Tech campus facilities
- Co-working and co-living spaces
- Retail and entertainment facilities
Infrastructure Expansion
To accommodate growing demand, NDP requires 20-30 additional hectares of land to support 16 data centers in total, with current ready-to-use land limited to 5 hectares.
Regional Impact and Significance
Nongsa Digital Park represents a pioneering model for digital economic zones in Southeast Asia, demonstrating successful bilateral cooperation between Indonesia and Singapore. The park’s success has positioned it as a template for digital economy development that could be replicated in other regions of Indonesia.
Also read: Batam Special Economic Zone: Indonesia’s Investment Gateway to Southeast Asia
Your Business Can Join the Movement—Here’s How
Setting up in a SEZ might sound complex. That’s where InvestinAsia’s Batam Business Registration Service comes in. Whether you’re establishing a PMA company, securing SEZ eligibility, or navigating the BKPM approval process, our local experts bridge the gap between ambition and execution.
Their service includes:
- Entity registration and licensing
- Business address setup in Batam
- SEZ incentive application support
- Local compliance and due diligence
- Visa and permit facilitation for foreign staff
Why choose InvestinAsia? Because SEZ success depends on local insight. We work closely with Batam authorities and understand the regional ecosystem—so your business gets it right from day one.
If you are interested in starting a business in Batam’s Nongsa Digital Park, you can start by contacting us for FREE consultation.
Nongsa Digital Park SEZ serves not just as a development area, but as a vital digital connector linking Southeast Asia to the global economy. For startups, investors, and multinationals seeking a high-growth environment with government-backed incentives, Nongsa offers the perfect springboard.
Ready to expand into Batam?
Let InvestinAsia handle your company setup in Nongsa SEZ—so you can focus on building your business, not battling bureaucracy.
Frequently Asked Questions (FAQs)
What are the tax benefits of setting up in Nongsa Digital Park SEZ?
Companies can enjoy 100% corporate income tax exemption for up to 20 years, VAT exemptions, accelerated depreciation, and dividend tax reductions.
Can foreign companies fully own a business in the SEZ?
Yes. Through the PT PMA structure, foreign investors can have up to 100% ownership in most digital and creative sectors.
How close is Nongsa SEZ to Singapore?
Just a 40-minute ferry ride from Singapore’s Tanah Merah Ferry Terminal to Nongsapura Ferry Terminal in Batam.
What sectors are prioritized in this SEZ?
Primary focus areas include data centers, digital technology, film and animation, tourism, and education.
What kind of businesses already operate in NDP?
Over 100 companies are active in web development, fintech, mobile payments, digital marketing, and animation. Major players include GDS Holdings, WebImp, and Infinite Studios.
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