Batam is positioning itself as a leading destination for digital infrastructure investment, but local authorities say the true value of data center projects extends well beyond the number of jobs they create. Instead, the city sees these investments as a catalyst for developing a highly skilled workforce and driving broader economic growth across the region.
Batam Mayor and Head of the Batam Free Trade Zone Authority (BP Batam), Amsakar Achmad, explained that data center projects belong to a different category of industry than manufacturing. While factories are typically labor-intensive and employ large numbers of workers, technology-based industries require fewer employees with far more specialized expertise.
“Technology-based investments such as data centers, cloud computing, and information technology require workers with specialized skills. Therefore, the primary focus is on improving the quality of human resources,” he said on Monday (July 13, 2026).
Recognizing this shift, the Batam City Government and BP Batam are intensifying efforts to strengthen workforce capabilities so local talent can meet the evolving needs of the digital economy.
“Batam is moving toward a more modern industrial landscape. What we need now are workers who possess the skills required by today’s labor market,” Amsakar said.
According to him, the impact of data center investment will not be limited to the technology sector alone. The projects are expected to generate a multiplier effect that benefits numerous industries throughout Batam’s economy.
Construction companies are expected to experience increased activity during the development phase of data center projects. Once the facilities become operational, the resulting business activity is projected to stimulate additional growth across trade, transportation, culinary businesses, tourism, and a wide range of supporting services.
“The construction sector will benefit throughout the project development phase. Once operations begin, economic activity is expected to increase across multiple sectors, including trade, transportation, culinary businesses, support services, and tourism,” he said.
Amsakar believes investment success should not be judged solely by the number of formal jobs created. Equally important is the wider economic activity generated by businesses and communities that support the industry’s ecosystem.
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He also noted that Batam’s investment landscape has undergone a significant transformation in recent years. While manufacturing once dominated incoming investment, technology-driven industries are now attracting increasing attention as investor confidence in Batam’s role as a digital economic hub continues to grow.
“If the manufacturing sector once dominated investment, technology-based investment is now growing rapidly as investor confidence in Batam as a digital economic hub continues to increase,” he said.
Despite continued public concern over employment opportunities, Amsakar said labor market conditions in Batam have steadily improved. He explained that the large number of job seekers reflects the city’s attractiveness as an employment destination, with many people relocating from other parts of Indonesia in search of work.
“Employment conditions continue to improve. The high number of job seekers is also influenced by the large inflow of people coming to Batam to work,” he said.
As data center investment expands, infrastructure requirements such as electricity and clean water have also become a major focus. Amsakar stressed that these challenges were discussed openly with investors from the very beginning, allowing both sides to prepare practical solutions before construction begins.
To support long-term operations, investors have committed to building essential infrastructure, including pipeline networks and seawater reverse osmosis (SWRO) facilities to secure an adequate clean water supply for future data centers.
According to Amsakar, these commitments are designed to ensure that strategic investment projects can move forward without compromising the daily needs of Batam residents.
“With careful planning, the necessary supporting infrastructure has been anticipated together with investors, allowing these investments to move forward sustainably,” Amsakar concluded.
