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Batam Free Zone: Your Gateway to Global Trade

Incorporate your company in Indonesia’s most strategic Freezone. Fast, easy and simple requirements, and designed for international trades and manufacturing for international growth. Work Permit, Business Address, Opening Bank Account, Business Permit/licenses.

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Batam Free Trade Zone

A Regional Base for Manufacturing, Trade, and Cross-Border Operations

This section adds context available on the InvestinAsia.com Batam page without replacing the original InvestinAsia.id hero copy.

Close Access to Singapore

Batam is positioned about 12 km from Singapore, giving manufacturing, trading, and supply-chain businesses direct access to a major regional commercial hub.

One Coordinated Setup Path

Company formation can be coordinated alongside work-permit support, a business address, company bank-account preparation, and the business permits required for the planned activity.

Limited Liability Company (PMA) + Virtual Office

A combined incorporation and Batam free-zone readiness package for international businesses that need a legal entity together with an operating address and core setup support.

PT PMA incorporation and core company registrations

Virtual Office and business-address support

Preparation for Batam FTZ licensing and operating requirements

What you'll get

Company Name Check
Drafting of Article of Association by Public Notary (AKTA Notaris)
Submission of AKTA to Ministry of Law and Human Rights (SK Menkumham)
Approval and collection of your Company Incorporation documents from SK Menkumham
Register your Company with the Tax Office
Collection of NPWP (Company Tax Number)
Registration and Collection of your OSS License Izin Usaha
Registration and Collection of your OSS-NIB (Nomor Induk Berusaha)

you'll also get

Tax-Free Business License (IUBP)
Verified PKKPR
Prestigious Business Address
Receive Mails & Parcels
SMS or Email Notification
Reception Service
Free Building Domicile
5 Hours Meeting Room / year

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Why Batam Free Zone?

Developed Infrastructure

Batam offers well-established infrastructure tailored for both trading and manufacturing. Industrial parks, reliable utilities, and advanced connectivity support diverse industries including electronics, logistics, and shipbuilding.

Ease of Business

Quick licensing and setup processes allow companies to establish operations faster and more efficiently.

Ideal for Global Trade & Expansion

Free trade policies and incentives make Batam a strategic hub for international businesses aiming to grow across Asia.

Competitive Business Costs

Operational costs—including utilities, rent, and services—are relatively low, allowing businesses to allocate more resources toward growth.

Affordable Labor

Access to a skilled yet cost-efficient workforce helps businesses maintain productivity without high wages.

Efficient Logistics & Location

With an international seaport and airport, plus just 40 minutes from Singapore, Batam is a prime gateway to Asian markets.

Supportive Financial Systems

Easy access to Indonesia’s domestic and international financial services ensures businesses can scale with confidence.

Key Tax Advantages of Operating in Batam FTZ

Batam’s free-trade-zone framework can reduce border-related costs for qualifying activities, especially businesses that depend on imported equipment, production inputs, and cross-border movement of goods.

Import-Duty Relief

Eligible raw materials, machinery, and capital goods entering the free-trade zone may receive import-duty treatment that differs from standard customs entry elsewhere in Indonesia.

VAT Treatment in the Zone

Qualifying goods brought into Batam FTZ can benefit from special VAT treatment, which can materially affect landed cost for trading and manufacturing operations.

Manufacturing and Customs Efficiency

Certain manufacturing activities can access investment incentives and simplified customs handling, depending on the business model, goods flow, and approvals obtained.

Additional Services

Enhance your Batam Business Registration Service with extra support

BONUS Consultation

15 mins with Tax Consultant

FREE

Tax Compliance

Start From

IDR 3,500,000

Work Permit Document

Preparation & Application (per person)

IDR 15,000,000

KITAS Application

Per person

IDR 20,000,000

Deed Amendment

Company document changes

IDR 15,000,000

Top 5 Most Prominent Industries in Batam

Batam is one of Indonesia’s fastest-growing industrial hubs, strategically located near Singapore and Malaysia. Here are the five key industries that dominate the Batam economy:

Manufacturing & Electronics

Shipbuilding & Marine Industry

Information Technology & Digital Services

Tourism & Hospitality

Logistics & Warehousing

Operating Base Comparison

Batam FTZ vs Jakarta

The two locations serve different operating models. Batam is structured around free-zone trade, manufacturing, maritime activity, and regional logistics, while Jakarta operates under the standard national framework and is a broader services and headquarters market.

Factor	Batam FTZ	Jakarta
Import Duty	FTZ exemption can apply to qualifying imports.	Standard import-duty treatment applies.
VAT on Imports	Qualifying goods entering the zone can receive VAT-exempt treatment.	The source reference lists the standard rate as 11%.
Proximity to Singapore	Approximately 12 km away with direct ferry access.	Approximately 1,400 km from Singapore.
Industry Focus	Manufacturing, trading, logistics, and maritime activities are core strengths.	Services, finance, technology, and headquarters functions are more typical.
Labor Costs	The reference page positions Batam as the lower-cost option.	The reference page positions Jakarta as the higher-cost option.
Export Setup	Eligible exporters can use streamlined FTZ customs procedures.	Standard customs procedures apply.

Your Launchpad into Indonesia 7 Easy Steps To Start Your Business in Indonesia

Step 01

FREE CONSULTATION WITH BUSINESS SETUP ADVISOR

Arrange a face-to-face meeting or a Zoom call with one of our advisors. This is where we will build a profile of your expectations, interest, budget and timeline.

Batam setup note: For a Batam project, the first discussion should also map expected goods flows, whether the business will import or export, and whether FTZ-specific approvals may be relevant.

Step 02

SELECTING THE RIGHT COMPANY STRUCTURE

We will assist you in selecting the best company structure for your company, tailored to your unique needs and target market. This is where our experts will give you our recommendations of the best company structure and its pros and cons.

Batam setup note: The legal structure should match the ownership profile, business classification, and the activities the company expects to conduct in Batam.

Step 03

SETTING UP THE LEGAL ENTITY AND COMPANY BANK ACCOUNT

Our team will prepare and submit the application forms to set up your legal entity in Indonesia. Once your Company is set up, we will assist you with your Company Bank Account opening.

Batam setup note: Entity formation and bank-account preparation create the legal and financial base needed before the business moves into operational licensing.

Step 04

VISA, WORK PERMIT AND LICENSING REQUIREMENTS

It's important to hold the correct Visa and Permit and possess the necessary licenses for your business. Our Visa team will advise you on the best course of action as well as assisting you with the compliances and applications.

Batam setup note: Foreign personnel and regulated activities can add immigration, work-permit, and sector-specific licensing requirements to the setup plan.

Step 05

LOOKING FOR SUITABLE PLACE OF BUSINESS

Based on your requirements, we have 35 location over in Indonesia with the business area for Virtual Office and Serviced Office.

Batam setup note: The physical or virtual business location should be selected with the planned Batam activity, address eligibility, and operating model in mind.

Step 06

TAX & ACCOUNTING

Once your company is registered and running, there will be tax and accounting report you need to do, both monthly and annually. These responsibilities are not only to the internal board of shareholders but will also need to be reported to the tax office

Batam setup note: Free-zone treatment does not remove the need to plan recurring tax, accounting, and corporate reporting obligations.

Step 07

LEGAL ASSISTANCE

Batam setup note: Ongoing legal support becomes relevant when the company changes shareholders, directors, licenses, activities, or other corporate records.

Overseas Expansion Made Easy

Hear directly from some of our clients

“Investinasia has been incredibly helpful in assisting with company formation as well as offering a range of tax and compliance advisory services. Thanks to the excellent support from Investinasia, the company has been able to focus on growing its business with confidence.“

Larissa

PT Enerfusion Technology Indonesia

“We would like to take this opportunity to express our sincere appreciation for the exceptional support from the InvestInAsia team. Their guidance made our business setup in Jakarta smooth and stress-free, and we truly value their continued support for our company.“

Stacey Wong

PT Ultralux Jaya Indonesia

“The InvestInAsia team have been instrumental in helping us set up our PT. During the initial consultation, key information was delivered promptly and clearly. I’d highly recommend Investinasia for business incorporation support. Thank you Investinasia team, please keep up the good work!“

Nicholas

PT Oma Bumi Hijau

“The Investinasia team is professional, communicative, and transparent. As a client, we only needed to provide the required documents. We're very satisfied and highly recommend this company to assist foreigners in running their business. “

Go Suzuki

PT Terra Charge Indonesia

“Hello, I recently worked with the InvestinAsia Team for my business travel needs, and I must commend the efficiency and seamless process from start to finish. I highly recommend their services to frequent business travellers and extend my appreciation to the team for making everything so smooth!”

Danang Kurniawan

APEC Card

“The InvestinAsia team’s response was fast and reliable. Their arrangements were clear and well-organized, exactly as explained to me beforehand. Truly professional support for my business travel.”

Diana

APEC Card

“I worked with the team at InvestinAsia to launch my business in Indonesia, and I couldn’t be happier. They were proactive, clear, and delivered everything on time with no surprises. The journey was smooth thanks to their consistent communication and valuable local insights.”

Dr. Richard Satur

PT HUMB Peduli Indonesia

Our Clients

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Press and Business Media Visibility

InvestinAsia.com notes that the business has been featured in Indonesian business media and is working toward broader regional coverage as its Southeast Asian practices continue to develop.

Frequently Asked Questions

Batam is strategically located near Singapore and along major international sea routes.

Batam focuses mainly on manufacturing and service industries. Key manufacturing sectors include electronics, electrical equipment, industrial machinery, shipbuilding, oil & gas equipment, ICT, semiconductors, and motor vehicles. The service sector in Batam encompasses tourism, healthcare, logistics, offshore banking, and education. Its close proximity to Singapore and Malaysia enhances its appeal as a strategic center for commerce and investment.

As a Free Trade Zone, Batam offers tax incentives, including exemptions from import duties, value-added tax (VAT), and luxury taxes on equipment and raw materials used in export-oriented manufacturing. It also benefits from streamlined investment permit processes managed locally by BP Batam, competitive investment costs, a clean and secure environment, and excellent connectivity to ASEAN markets and global shipping lanes.

Batam offers a balanced environment with green spaces alongside industrial zones, ensuring a clean and healthy living atmosphere. It is culturally diverse and secure, providing comfort for both local residents and expatriates. The city’s proximity to Singapore also allows easy access to international amenities and travel, enhancing quality of life for business professionals.

Businesses operating under the appropriate Batam FTZ framework may qualify for special treatment on import duty, VAT for certain goods entering the zone, and customs procedures. The exact treatment depends on the activity, goods flow, approvals, and how the company operates within the free-trade-zone rules.

Foreign investors can establish a PT PMA in Batam, subject to the foreign-ownership rules that apply to the chosen business classification. For activities that allow full foreign ownership, a PT PMA can generally be structured without an Indonesian shareholder.

Batam is commonly considered for electronics and industrial manufacturing, precision engineering, ship repair and marine services, logistics and warehousing, technology assembly, and other export-oriented operations that benefit from regional supply-chain access.

The company-incorporation stage generally follows the normal PT PMA registration path. Extra time may be needed when the project also requires Batam-specific operational approvals, free-zone facilities, customs arrangements, or sector permits.

For Batam projects, our team can coordinate the registration path with free-zone considerations, business-address needs, licensing, and related immigration or work-permit support where applicable.

Start Your Indonesia Expansion — The Right Way.

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