Batam’s strategic location, integrated logistics infrastructure, and digital transformation could position Indonesia as a regional supply chain hub, logistics executives say, amid shifting global trade and investment patterns
Batam has the potential to become Indonesia’s primary logistics gateway to ASEAN and global markets as companies diversify supply chains and geopolitical shifts reshape regional trade, according to logistics industry executive Yukki Nugrahawan Hanafi.
Yukki, Senior Vice President of the International Federation of Freight Forwarders Associations (FIATA) and Chairman of the Advisory Board of the ASEAN Federation of Freight Forwarders Association (AFFA), said Batam’s location at the crossroads of shipping routes linking the Indian and Pacific oceans gives it a strategic advantage. Its proximity to Singapore and Malaysia should be viewed as an opportunity to strengthen regional logistics cooperation rather than as competition, he said.
More than 100,000 vessels are expected to transit the Strait of Malacca in 2025, carrying about 22% to 25% of global maritime trade, according to UNCTAD. Meanwhile, the ASEAN freight and logistics market is projected to expand to US$390 billion by 2030 from US$288.2 billion in 2025, driven by manufacturing growth, e-commerce, and cross-border investment, according to Mordor Intelligence.
Yukki said geography alone would not be enough to secure Batam’s position in regional logistics. Competitiveness, he said, will depend on the development of an integrated ecosystem linking seaports, airports, industrial estates, free trade zones, warehousing, customs services, multimodal transportation, and digital logistics platforms.
“Port modernization must become a national priority. It is no longer only about expanding capacity, but also about digitalizing operations, improving container terminal productivity, and adopting international standards that increase confidence among global businesses,” he said.
He said Batu Ampar Port could develop into a regional container gateway serving western Indonesia while supporting transshipment, regional distribution, and multimodal transport.
Yukki also pointed to Hang Nadim International Airport as an underutilized asset. With a 4,025-meter runway and available land for expansion, the airport could develop into an ASEAN air cargo hub through investments in aerocity development, maintenance, repair and overhaul (MRO) facilities, cold chain infrastructure, and express cargo services.
Integrating Batu Ampar Port and Hang Nadim Airport into a sea-air logistics network would improve connectivity while reducing logistics costs and transit times, he said.
Yukki said recent disruptions, including the COVID-19 pandemic and geopolitical tensions, have made supply chain resilience a strategic economic priority. He said technologies such as artificial intelligence, the Internet of Things, blockchain, digital customs systems, predictive logistics, and port community systems would play an increasingly important role in improving efficiency and resilience.
He added that cooperation through regional organizations such as AFFA and FIATA could support regulatory harmonization and stronger logistics connectivity across ASEAN.
To realize Batam’s potential, Yukki said Indonesia would need policy certainty, faster investment approvals, simplified licensing procedures, and closer collaboration among the government, BP Batam, airport and port operators, businesses, universities, and professional associations.