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BATAM — The absorption of local workers has become a key focus of the Batam City Government and the Indonesian Employers Association (APINDO) Batam amid continued economic and investment growth in the city.

The commitment was formalized through a Memorandum of Understanding (MoU) on strengthening cooperation in labor affairs in Batam. The agreement was signed by Batam Mayor and Head of the Batam Indonesia Free Zone Authority (BP Batam), Amsakar Achmad, and Chairman of APINDO Batam, Rafky Rasyid, at the Batam Mayor’s Office on Friday (September 11).

The signing ceremony was witnessed by Deputy Minister of Home Affairs Bima Arya.

As an initial step, 30 major companies in Batam have committed to allocating at least 20 percent of their workforce requirements to local residents.

Amsakar said the partnership reflects the commitment of the local government and business community to strengthen local employment. He noted that strong economic and investment growth has not always translated into a corresponding increase in the employment of local workers.

“It has often been a subject of public discussion that strong economic and investment growth has not necessarily been matched by increased employment opportunities for local workers. Through this MoU, we will no longer rely solely on verbal appeals. We are strengthening our commitment to ensure that companies in Batam prioritize the recruitment of local workers,” Amsakar said.

Batam’s economic growth increased from 6.76 percent in 2025 to 7.28 percent in the first half of 2026. During the same period, realized investment reached Rp29.9 trillion, approaching the total investment recorded throughout 2025.

Batam’s poverty rate also declined from 4.85 percent in 2024 to 3.81 percent in 2025.

However, Amsakar said high levels of migration into the city remain one of the challenges in controlling Batam’s Open Unemployment Rate (TPT). Based on data from the Directorate General of Population and Civil Registration (Dukcapil), Batam was reportedly the second-largest destination for migrants nationally in 2026, after Jakarta.

“The high influx of residents must be balanced with policies that favor local communities. Therefore, the Batam City Government has initiated an affirmative action scheme to ensure that companies prioritize Batam residents in their recruitment processes,” he said.

In addition, approximately Rp40 billion in funds collected through the Permit to Employ Foreign Workers (IMTA) scheme continues to be optimized for vocational training and skills development for local communities.

Deputy Minister of Home Affairs Bima Arya welcomed the Batam City Government’s efforts to strengthen cooperation with the business community. He said Batam’s economic growth needs to be supported by an integrated ecosystem.

“We highly appreciate the synergy between the Batam City Government and the business community. Local leaders must ensure that they correctly diagnose the challenges. In Batam, economic growth should not benefit only a small segment of society, but must be supported by an ecosystem that enables the formal employment sector to reach nearly 70 percent,” Bima said.

Nevertheless, Bima cautioned that economic growth must be accompanied by improvements in basic public services and infrastructure. He said local authorities need to map the economic value chain in greater detail, from upstream to downstream activities, particularly in manufacturing, tourism, and high-tech industries.

Economic development should also go hand in hand with the provision of clean water, traffic management, integrated public transportation, and sustainable waste management.

Bima added that the high rate of migration must also be anticipated through precise spatial planning and urban development policies. Such policies, he stressed, should be formulated without imposing discriminatory restrictions on migration.

He also cautioned that Batam’s modernization as a metropolitan city should not come at the expense of its Malay culture, spirit, and cultural identity.

Meanwhile, Rafky Rasyid said APINDO was ready to follow up on the agreement with concrete measures. APINDO Batam currently has approximately 700 member companies.

“Batam’s economy is growing rapidly. Our shared responsibility is to ensure that local workers and local entrepreneurs also benefit from this growth. APINDO, together with its 700 member companies, is ready to implement this MoU in concrete terms,” Rafky said.

The commitment has already begun to be implemented by PT Pegatron, which has recruited 200 local workers. All of those recruited are reportedly residents of the local area.

Head of the Batam City Manpower Office, Yudi Suprapto, said the partnership-strengthening event was attended by around 300 participants, including company executives, human resources representatives, and other relevant stakeholders.

Going forward, the process and evaluation of workforce placement will be monitored through the integrated SIMNAKER application.

Source: metropolis.batampos.co.id