The government continues to accelerate efforts to restore the national economy. One of them is by improving the investment and business climate in Indonesia, including in the Special Economic Zones (SEZ). Together with the Canadian Ambassador to Indonesia Nadia Burger and the United States Ambassador to Indonesia Sung Y. Kim, the Coordinating Minister for Economic Affairs Airlangga Hartarto directly observed the development of the Batam Aero Technic (BAT) SEZ and Nongsa Digital Park (NDP) SEZ in Batam. Airlangga said the visit was a form of Indonesia's readiness to accept investment for the development of the semiconductor industry, digital talent, as well as various project proposals that were discussed during a working visit in Washington DC some time ago. "First his visit to the Batam Aero Technic Special Economic Zone. We reviewed the existing facilities. And added that in the future cooperation is needed for engine maintenance, currently we are talking with General Electric and we are directing it to BAT. This engine maintenance is very necessary, Moreover, Batam Aero Technic has 600 engines. So it is already a captive market itself," said Airlangga in a written statement, Friday (4/11/2022).
On this occasion, Airlangga and his entourage also saw firsthand the developments in SEZ BAT in the form of several new hangars and component shops. As is known, based on Government Regulation No. 67 of 2021, BAT operates as a SEZ and focuses on industrial activities based on Aircraft Maintenance, Repair, and Overhaul (MRO) and logistics. SEZ BAT has been integrated with Hang Nadim Airport and has made SEZ BAT connected to various facilities such as aircraft runways, supply of aircraft fuel, to water and electricity which encourage MRO industrial activities. With a land area of 30 hectares of SEZ BAT, said Airlangga, 60% of the total land area has been used. From the total investment commitment of IDR 7.29 trillion until 2023, currently IDR 567 billion has been realized and absorbed 1,404 workers from the target of 9,976 workers in 2030. In the medium term, Airlangga hopes that SEZ BAT can capture various opportunities from the Asia Pacific market, which has around 12,000 aircraft units and a business value of USD 100 billion by 2025. The construction of this BAT is estimated to save 65% to 70% of foreign exchange needs from MRO needs. national airlines or IDR 26 trillion per year. Meanwhile, in the MRO sector, there is potential for strategic partnerships with several companies from the US and Canada. Some of these include Goodrich, Rockwell Collins, Proponent, Collins Aerospace, Boeing, Teledyne Technologies, Meggitt, Honeywell, and Hamilton Sundstrand. For information, during the visit, Airlangga was accompanied by the Indonesian Ambassador to Singapore, the Governor of the Riau Islands Province, the Mayor of Batam, the Head of the Batam Business Board, the Secretary of the Coordinating Ministry for Economic Affairs, the Deputy for Regional Development and Spatial Planning, and the Deputy for Work Coordination. International Sama, and Expert Staff of the Coordinating Ministry for the Economy.
