Batam has become one of Southeast Asia’s most strategic hubs for oil and gas and its support industries. With direct maritime access, free trade incentives, advanced infrastructure, and proximity to Singapore, it offers unmatched value for offshore services, fabrication, and logistics.
If you’re considering entering the oil and gas supply chain or starting a service company in Indonesia, Batam is your launchpad.
Also read: Leading Industries in Batam: A Blueprint for Southeast Asia’s Industrial Future
Strategic Advantages of Batam’s Oil and Gas Sector
Location and Connectivity
Batam is just 20 km from Singapore and sits between the South China Sea and Java Sea. Its position along major trade routes allows companies to cut logistics costs and expedite offshore deployment.
Integrated Industrial Ecosystem
Batam’s network of industrial parks—like Kabil and Batamindo—host top-tier support companies in engineering, fabrication, subsea, and marine services. This ecosystem significantly reduces downtime and overhead for oil majors and service providers.
Access to Skilled Labor
The island employs over 169,000 workers across industrial sectors. Vocational institutions and training centers are partnered with ALMI and Disnaker Batam to certify welders, crane operators, divers, and rigging professionals.
Also read: Incentives for Business and Investment in Batam
Key Players and Services in the Value Chain
Upstream and Midstream Companies
Chevron, TotalEnergies, ExxonMobil, and Pertamina are among the major global players involved in upstream and midstream operations. Many of them operate facilities in Batam to handle equipment storage, routine maintenance, and operational support.
Offshore & Fabrication Services
Firms like TechnipFMC, Schlumberger, and Advanced Offshore Services provide subsea engineering, platform construction, ROV operations, and diving services. Companies like PT Batam Citra International support both offshore and onshore fabrication needs.
Shipbuilding and Maritime Logistics
With over 70 shipyards—PaxOcean, Citra Shipyard, Sembcorp Marine—Batam is a shipbuilding powerhouse. These facilities handle rig maintenance, tanker construction, and platform module building. STS (ship-to-ship) activity has surged, increasing over 750% in 2022 alone.
Also read: Why Batam Is a Smart Choice for Doing Business
Government Support and Incentives
Tax Holidays and FTZ Benefits
Companies operating in the Batam Free Trade Zone enjoy 0% import/export duties and VAT exemptions on machinery and materials. Super deduction tax and double taxation agreements enhance profitability.
Regulatory Ease and Investment Targets
The government has set a target of IDR 60 trillion in industrial investments by 2025. Recent policies streamline permits and offer fast-track licensing—especially for energy sector projects.
Infrastructure and Energy Policy Alignment
A US$12.5B refinery is planned on Pemping Island. Renewable energy pilots and carbon capture storage (CCS) regulations are positioning Batam for long-term sustainability alongside oil and gas.
How Foreigners Can Start an Oil and Gas Support Business in Batam
- Choose Your Sector: Fabrication, subsea, marine logistics, or offshore engineering.
- Secure a Business Address: Industrial zones like Kabil and Tanjung Uncang are optimal.
- Register Your Company: Foreign-owned companies (PMA) need a local license and registration under Indonesian law.
- Obtain Sector Permits: Specific business activities may require sectoral permits issued by the Ministry of Energy and Mineral Resources (MEMR) and the Investment Coordinating Board (BKPM).
- Recruit or Outsource Workforce: Use local hiring firms familiar with visa and training requirements.
- Ensure Compliance: Environmental and tax regulations must be met from the outset.
Also read: Complete Requirements for Company Registration in Batam
Bridging the Gap: Why Choose InvestinAsia
Starting an oil and gas support company in Batam requires navigating a complex regulatory landscape. That’s where InvestinAsia’s Batam Business Registration Service makes a difference. We provide:
- Complete company registration services
- Strategic address selection in top industrial estates
- Support is available for securing licenses that align with the regulatory requirements of the oil and gas industry.
- Local legal and tax compliance support
- Bilingual support for foreign investors
InvestinAsia simplifies the process so you can focus on building and scaling operations in one of Asia’s most promising energy hubs.
Contact us now for FREE consultation!
Batam isn’t just another Indonesian island—it’s a cornerstone of Southeast Asia’s energy future. With its integrated infrastructure, skilled labor, strategic geography, and strong government support, it’s no surprise global oil and gas firms are expanding here. For foreign investors looking to enter this lucrative space, the key is moving quickly, compliantly, and strategically—and that’s where InvestinAsia’s Batam Business Registration Service comes in.
Start your Batam Oil and Gas venture with InvestinAsia
FAQs
What makes Batam ideal for oil and gas businesses?
Its strategic location near Singapore, advanced shipyards, and tax-free zones make it a regional energy hub.
Can foreign companies own 100% of a business in Batam?
Yes, through a PT PMA (foreign-owned company), provided proper licensing is completed.
Are there incentives for setting up in Batam?
Yes. Companies may receive tax holidays, import duty exemptions, and free trade zone benefits.
Which industrial areas are best for oil and gas support companies?
Top locations for oil and gas support businesses in Batam include Kabil Industrial Estate, Tanjung Uncang, and the Batu Ampar Industrial Zone.
How long does it take to register a company in Batam?
With professional help like InvestinAsia, the process typically takes 2–4 weeks.
References:
Balancia. Batam Evolution into an Oil and Gas Hub: A Thriving Energy Epicenter. https://balancia.co.id/batam-evolution-into-an-oil-and-gas-hub-a-thriving-energy-epicenter/.
Apindo. Gas Price Hike Threatens Batam Industry, Apindo Urges Swift Government Action. https://apindo.or.id/apindo-region/news/gas-price-hike-threatens-batam-industry-apindo-urges-swift-government-action.
BPH Migas. Pantau Pemanfaatan Gas Bumi di Batam, BPH Migas Dorong Optimalisasi Gas Bumi sebagai Penopang Transisi Energi. https://www.bphmigas.go.id/pantau-pemanfaatan-gas-bumi-di-batam-bph-migas-dorong-optimalisasi-gas-bumi-sebagai-penopang-transisi-energi/.
