Why Invest KTB in Batam?
BATAM IS FREE TRADE ZONE
Offer huge economic advantage for extensive import and export of paper manufacturing that especially produce high grade papers which are made of high grade waste papers that are only available through importation. At the same time offer low cost advantage to produce low-medium grade papers as we have import license for mix-grade waste papers
• Exemption from import duty on imported raw material (including waste paper), machinery / equipment and spare parts for export-oriented production purposes.
•Exemption from VAT and Luxury Goods VAT on machinery / equipment, raw material and spare parts.
• Exemption from Income Tax, article 22, on imported raw material, machinery / equipment, and spare parts for production purposes.
• Generalized System Preferences facilities, GSP provides import duty deductions on exported products by recipient countries.
• Agreements with 56 countries to avoid double taxation.
STRATEGIC LOCATION OF BATAM AND KTB
Batam is an industrial boomtown, an emerging transport hub, located 20km (12 mi) off Singapore and also part of the Indonesia-Malaysia-Thailand Growth Triangle.
• Batam proximity to ASEAN countries (640 million people) with high population growth and high GDP growth providing huge economic opportunity
• KTB location is highly suitable for waste processing industry especially our industrial estate is located at far side of Batam island far from residential population
• KTB is situated in 1 KM away from Batam’s new International Port (330 Hectares handling 10 million TEU) that will start operating in 2024, hence putting KTB’s location as the most promising industrial area.
• Batam is adjacent to major international sea routes of Malacca Strait and the Singapore Strait, with fast and easy transit to major ports in Singapore and Malaysia
• Batam is easily accessible from overseas, with only 20 km from Singapore with a travel time of 45 minutes by ferry, and there any many direct international flights from/to Batam, contributing to over 1.5 million tourists visited the city in 2015
MODERN INFRASTRUCTURE OF BATAM
• Installed electricity capacity of 538.95 MW, with excess capacity available for industrial investment and expansion needs
• Availability of 7 reservoirs capable of meeting industrial and consumer demands with an installed capacity of 3,535 L / second
• An International Airport with the longest runway (4.025 km) in Indonesia, with capacity 6 million annual passengers
• 5 international passenger seaports and 4 cargo seaports
BATAM PROVIDE SAFE, CLEAN, COMFORTABLE ENVIRONMENT
Two thirds of Batam’s 1.2 million population are migrants from all over Indonesia, conducive to the development of economic, socio-political, and cultural aspects of the local community. Batam is safe from natural disaster like earthquake, typhoons, tsunami, volcano eruptions, etc.
BATAM IS A BOOMING FOREIGN-DIRECT-INVESTMENT DESTINATION IN RECENT YEARS
There are 696 Foreign investment (FDI) projects recorded in first half 2022. FDI realization in Batam for Q3 2022 grew 42% from Q2 2022 and the FDI value for the period of January to September 2022 reached USD 500 million.
Indonesia’s Positioning
PAPER AND PAPERBOARD CONSUMPTION
PER CAPITA (KG/YEAR/PERSON)
POPULATION (MILLION)
3rd largest
Pulp industry in the world
4th largest
Paper producer in Asia
Annual GDP Growth 5%-6%
Projected for the next 5 years