Pulau Batam

Introducing Pulau Batam

Nowhere in Sumatra is the pace of development more rapid than on Batam. With the island’s proximity to Singapore, Batam is the labour-intensive production leg of the Singapore–Johor Baru industrial triangle. Land and labour are cheaper here than in Singapore and many electronics companies have established production plants in the industrial park of Mukakuning. Much like the factory towns outside of Hong Kong, Mukakuning employs and houses mainly young women from impoverished areas of Indonesia. Hardly anyone living in Batam is a native and half the population is under 30 years old.

Higher up the economic food chain are the Western managers and executives who oversee the factories, as well as engineers employed by one of the island’s largest multi­nationals, J Ray McDermott, which makes offshore oil rigs and pipelines.

In addition to industry, the island has made several unsuccessful bids at diversifying into a tourist destination. Because its miles of coastline are too close to Singapore’s harbour to be swimmable, resorts have tried to distract tourists with golfing and gambling, a promising combination until the Indonesian government unplugged the casinos.

The next jackpot scheme is to develop the island as a retirement community for East Asians, Singaporeans and Jakarta-based Chinese. New housing complexes are going up faster than new factories.

Besides using Batam as a transit point for boats from Singapore to Sumatra, it is unlikely that a tourist would purposely come to Batam. The majority of foreigners here arrive on corporate assignments and find that the island has cultivated a bit of a boys club ambience. The main town of Nagoya has plenty of girlie bars to make the buttoned-down execs feel like studs.

Last updated: Feb 17, 2009