Nongsa Digital Park (NDP), part of the Nongsa Special Economic Zone (SEZ), is a dedicated digital business area located in Nongsa, Batam, in the Riau Islands Province.
Nestled in the elevated and seismically stable eastern region of Batam, NDP offers a safer location for data centers, making it highly attractive to foreign investors.
Spanning 166 hectares, NDP focuses on three core business sectors: Digital Economy, Creative Economy, and Tourism. The area includes key facilities like Turi Beach Resort, Nongsa Point Marina, Nongsa Village, Nongsapura Ferry Terminal, Data Center Hub, offices, Kinema Movie & Animation Studio, and a golf course.
Nongsa Digital Park SEZ Captures Attention from Domestic and Foreign Investors
According to Bpbatam.go.id, Batam is making strides across various sectors, including infrastructure improvements, industrial growth, airport and port development, and service upgrades for businesses and residents alike.
A key area of focus is Batam’s digital industry, now advancing through the Nongsa Digital Park SEZ, officially designated as Indonesia’s gateway for digital industry development under Government Regulation No. 68 of 2021.
“Nongsa Digital Park SEZ enables greater investment flexibility in digital industries, enhancing Batam’s investment climate and attracting foreign investors,” said Muhammad Rudi, Head of BP Batam. Neighboring Singapore has welcomed the development of the Nongsa Digital Park SEZ with enthusiasm.
Nongsa Digital Park’s investment continues to grow, reaching IDR 2.49 trillion by June 2023 and successfully attracting major international investors like Apple, IBM, and the Melbourne Institute of Technology (RMIT).
Expanding Nongsa Digital Park to Accommodate New Investors
Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, reported that ten companies have already invested in the Nongsa Digital Park SEZ, with six others expressing interest but currently unable to enter due to capacity limits, quoting kontan.co.id.
Each data center generally requires around five hectares of land, so the government anticipates needing an additional 20-30 hectares to accommodate future demand.
“Nongsa Digital Park has limited land, enough for 10 companies currently, including the essential supply of electricity and water, which are critical for data centers,” Susiwijono stated during the launch of the One Map Policy Geoportal 2.0 event.
Economic Growth and Local Employment
The digital industry is emerging as a leading sector worldwide, with nations competing to foster digital advancements. In Indonesia, the digital economy has been growing at an annual rate of up to 40%, according to the Ministry of Finance. In 2019, the digital economy in Indonesia was valued at IDR 560 trillion, with growth expected to reach IDR 1,820 trillion by 2025.
BP Batam Head Muhammad Rudi hopes that the Nongsa SEZ will achieve the central government’s investment target of IDR 16 trillion and generate 16,500 jobs.
“As of June 2023, the Nongsa SEZ has employed 2,618 people from 17 investing companies,” Rudi noted, as reported by batam.tribunnews.com.
Nongsa Digital Park’s Commitment to Digital Economy Growth
Nongsa Digital Park plays a crucial role in advancing Batam’s creative digital economy and aims to become a digital hub driving economic growth with a strong focus on innovation and technology.
Ultimately, Nongsa Digital Park SEZ underscores Batam’s forward-looking development trajectory and has the potential to serve as a digital bridge between Indonesia, Singapore, and beyond.
“We are optimistic that the Nongsa Digital Park SEZ will positively impact the regional economy,” Rudi concluded.
Source: batam.tribunnew.com, Bpbatam.go.id, bisnis.com, kontan.co.id.
Special image source: nongsadigital.com
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