Batam is a growing industrial hub, making it an attractive destination for manufacturers looking to expand their operations. Renting a Batam property offers strategic advantages due to its proximity to Singapore, well-established infrastructure, and cost-effective rental options for businesses.
By choosing to rent instead of own, manufacturers can optimize their operations and focus on scaling their business without the long-term financial burden of property ownership.
The growing manufacturing industry in Batam
BP Batam reported that the six sectors include:
- The housing, industrial estates, and office industry.
- The rubber and plastics industry.
- The transportation, warehousing, and telecommunications industry.
- The trade and repair industry.
- The construction industry.
- Other services.
The housing, industrial estates, and office sectors recorded an investment of IDR 607.997 billion, reflecting a 38% growth compared to 2022. Meanwhile, the rubber and plastics sector saw an impressive increase of 175%, with an investment of IDR 554.46 billion throughout 2023.
Moreover, the transportation, warehousing, and telecommunications industry attracted IDR 414.81 million in investments, a 241.1% increase from the previous year.
The trade and repair, construction, and other services also grew significantly. With many industries relying on warehouses for inventory management and storage, warehousing in Batam holds strong potential for further growth.
Read more: Best business in Batam: 7 promising sectors to start
Batam property outlook
The Batam property market is showing strong signs of revival after the challenges brought by the pandemic. With increased interest from local and international investors, the arrival of major property developers is further boosting its growth. Here’s a snapshot of recent developments:
Post-pandemic revival
Following a pandemic-related slowdown, Batam’s property market is bouncing back, with active participation from developers and growing interest from investors, particularly from Singapore and Malaysia.
The arrival of property giants
Three major developers, Sinar Mas Land, Ciputra Group, and Agung Podomoro Land, have entered the Batam market, signaling its vast potential.
Types of property in Batam available for rent
The Batam property market is thriving, offering various options that cater to different needs, whether for residential or commercial purposes. Here are the types of properties available for rent:
- Modern apartments: Apartments are increasingly popular among expatriates and young professionals. Their strategic locations and all-inclusive facilities make them attractive choices for urban living.
- Landed houses for families: Local families still prefer landed houses. Developers now offer a range of housing options, from simple cluster homes to upscale housing complexes.
- Shophouses (Ruko): Shophouses remain a favored option for business owners, especially due to their prime locations in the city center, offering excellent investment potential.
- Commercial properties: As Batam’s economy grows, there is a rising demand for commercial properties like offices and shopping centers, making them a strong investment option.
The benefits of renting Batam property for manufacturing business
Renting a property, mainly a warehouse, can offer several business advantages, especially when flexibility and cost savings are crucial. Here’s why:
More flexibility
Renting a warehouse provides significant cost flexibility. With only a deposit required, you can allocate more funds to other budget areas. Additionally, you can rent multiple warehouses if needed, offering operational freedom.
Variety of choices
Rental agencies offer a range of warehouse options in terms of location, size, and capacity, allowing businesses to find the best fit for their needs.
No regular maintenance costs
Unlike owning a warehouse, which comes with ongoing maintenance costs, renting a property in Batam covers these expenses as part of the rental fee, easing your financial responsibilities.
Cost savings
Renting is far more cost-effective than building or purchasing a warehouse, making it an ideal option for growing businesses with limited capital.
Freedom to move
At the end of your lease, you can easily relocate to a more strategic location, giving you the flexibility to adapt as your business grows.
Best areas to rent property in Batam for manufacturing businesses
Batam offers a range of industrial parks tailored for manufacturing businesses, featuring strategic locations and essential infrastructure. If you’re looking for Batam property for rent, here are some of the top areas to consider:
Batamindo Industrial Park
An established 320-hectare park with ready-to-use facilities, including pre-built factories and logistics areas, has attracted international brands since 1990.
Kabil Integrated Industrial Estate
This 540-hectare park specializes in oil and gas. It has large plots and an International Cargo Port, offering tax benefits within the Free Trade Zone.
Citra Buana Industrial Park (I, II, III)
This park is ideal for clean and light industries, particularly food and beverage businesses, with high-quality properties that appeal to Singaporean companies.
Bintang Industrial Park (I, II)
A 75-hectare park focused on shipbuilding, automotive, and electronics industries, supported by the Ministry of Industry and Trade.
Kawasan Industri Wiraraja
A state-owned park with a streamlined setup process and essential services offers foreign investors convenience and security.
Panbil Industrial Estate
This integrated estate is known for supporting the electronics and automotive industries and features modern infrastructure and commercial spaces.
Sarana Industrial Point
Centrally located, this park offers ready-to-use factories and strong utilities near key government offices and ferry terminals.
Tunas Industrial Estate
The largest park in Batam Center, spanning 64 hectares, offers industrial buildings and warehouses to meet rising business demands.
Tips on how to rent a Batam property for manufacturing business
Renting a property for your manufacturing business in Batam involves careful planning and decision-making. Here are key tips to guide you:
Define your objective
Before you begin outsourcing your warehouse needs, it’s essential to establish your long-term business goals. Consider whether you will need the warehouse for an entire year or a specific period.
Select the right vendor
Look for a company that meets your requirements, such as one with experience managing operations in your industry. Conduct thorough research to gather this information.
Understand the warehouse scope and specifications
Ensure you are clear about the warehouse’s capabilities and specifications, which meet your expectations. Schedule regular meetings with the warehouse point of contact to prevent miscommunication and avoid shipping delays.
Integrate your team
If you choose to rent a warehouse without utilizing a fulfillment service, you must assign an internal team member to oversee the management of your warehouse and products.
Establish a performance monitoring system
Create a system to assess your outsourced partner’s performance. This should include monitoring tasks such as warehouse cleanliness and maintenance and ensuring that operations are well-documented and structured.
Manage potential risks
Every vendor or partner comes with certain risks. Identify potential risks to ensure that your business remains protected from potential losses.
Conduct regular evaluations
It is important to assess your warehouse outsourcing vendor’s performance regularly. Stay informed about any updates, such as increases in rental prices per cubic meter or maintenance needs, and ensure that these changes are communicated promptly.
Guide to Doing Business in Batam & Surabaya
Streamline your manufacturing business in Batam with InCorp
Industries in Batam require warehouse space for efficient inventory management and storage. Suppose you’re a foreign investor seeking to rent Batam property to foreigners. In that case, InCorp Indonesia is here to assist your business with comprehensive legal and incorporation services, ensuring a smooth process for securing property and navigating local regulations.
Our services include:
- Incorporation: We help you quickly establish your business in Batam by taking care of the registration process.
- Business Licensing: Assistance in obtaining necessary licenses and permits to ensure compliance with local regulations.
Click the button below to unlock your business’s potential in Batam.
Fauzyah Fasya
Branch Manager – Batam Office at InCorp Indonesia
With 7 years of experience in business consultancy, Fauzyah Fasya brings expertise in managing clients from diverse backgrounds. She excels in delivering service information, fostering strong business relationships, driving brand strategy, evaluating product performance, and maximizing revenue through quality management system implementation and management auditing.
