Reviewing Batam Industrial Estate, Commission VII Stresses Port Integration to Boost Export Competitiveness

PARLEMENTARIA, Batam  – Integrating land and sea logistics connectivity is an important aspect that needs to be strengthened in developing national industrial estates. Integrated infrastructure is considered capable of facilitating goods distribution, reducing logistical bottlenecks, and enhancing the competitiveness of Indonesian industrial products in international markets.

This was stated by Hendry Munief, head of the Special Working Visit Team of Commission VII, during an inspection of various infrastructure and connectivity issues at Kabil Integrated Industrial Estate (KIIE) in Batam, Riau Islands, on Friday (13/11/2026).

He said the findings from the visit would inform discussions by the Working Committee on the Industrial Estate Bill. These inputs are needed to ensure the bill addresses infrastructure needs in a more integrated manner and benefits all stakeholders.

According to input from the Ministry of Industry, KIIE has demonstrated good practices in maritime logistics integration. The estate is supported by an International Public Port and integrated CIQP (Customs, Immigration, Quarantine, Port Clearance) services within the estate.

The Ministry of Industry has also identified several challenges, including limited integrated land and sea logistics infrastructure in a number of industrial estates, the need to obtain special terminal permits from the Ministry of Transportation, and difficulties in acquiring land in coastal buffer zones and protected mangrove areas.

To address these issues, the Ministry of Industry has proposed that industrial estate companies be allowed to independently provide special terminals to meet the needs of businesses within their estates, with adequate national and regional road infrastructure to support them.

Hendry said all these issues must be viewed holistically because industrial estate development cannot be separated from infrastructure support and cross-sectoral policies.

"All the input presented earlier will help us identify and gather the issues. These are just parts of a broader whole that we must address in an integrated and comprehensive manner," Hendry said.

He hopes Batam's industrial estate development can serve as a model for other industrial estates in Indonesia. Batam's strategic position on international trade routes must be leveraged through infrastructure development that can support production and exports.

He said strong connectivity would strengthen cooperation among the government, industrial estate managers, and businesses. This would enable industrial estates to function not only as production centers but also to operate efficient and competitive logistics systems in support of national industrialization. (eno/rdn)