Eli5: Why is Batam, Indonesia not that wealthy?

247 viewsEconomicsOther

Batam lies across the strait from Singapore. And it already has special economic zones with Singapore.

I expected Batam to be among the top 5 wealthiest cities in Indonesia. But it’s ranked 9 instead.

I guess I was expecting Batam to resemble Singapore more than it really does. Even bu population Batam has 1.2m vs SG’s 5m.

What do other prominent cities have that Batam does not have? Are there other factors that get in the way of its development, perhaps SG policy and/or ID politics? Or maybe competition from Johor?

Overall that region seems to have so much potential to be a powerhouse economically but it does not live up to that.

Very ignorant but interested in this topic. Pls help. Thank you!

In: Economics

2 Answers

Anonymous 0 Comments

Not a major population center – not even in top 10, while being out of the way for rest of Indonesia.

Majority of economy is tourism related, while the tourists that go there (Singaporeans) view it as just a place to go to for cheap massages rather than being any sort of a premium destination.

The more interesting question that would be more directly comparable, is why is Johor Bahru (the Malaysian city that is directly across a bridge from Singapore) not as well off despite having had the potential to be what Singapore became by being located next to the same shipping routes, having access to far more land and natural resources, being better connected to rest of the country etc.

But to answer that, it’s a much deeper dive into cultures, political systems, religion etc

You are viewing 1 out of 2 answers, click here to view all answers.