Jakarta, INTI - Batam is predicted to become a digital hub with multiple data center investments worth hundreds of trillions of rupiah. Although this industry is capital-intensive and does not employ as many workers as manufacturing, Batam Concession Agency (BP Batam) believes its presence will have a broad economic impact on the community.
The Head of BP Batam, Amsakar Achmad, stated that investment in the information technology, cloud, and data center sectors is an inevitable part of industrial transformation. He believes the benefits will not only be investment, but also improve the quality of human resources through technology transfer.
"This investment in information technology will have a multiplier effect. First, regarding the availability of human resources, there will naturally be training for these individuals to manage them," said Amsakar.
Shift from Manufacturing to Tech-Based Industry
He added that the main challenge currently is preparing local human resources to meet the needs of the high-tech industry, as Batam shifts from labor-intensive to technology-based industries.
Amsakar explained that the impact of investment has been visible since the data center construction phase, which has boosted the construction sector and absorbed project workers. Economic growth has also stimulated informal sectors such as the culinary, property, trade, tourism, and transportation.
"Economic growth has a multiplier effect. It's not just about formal labor absorption but also positively impacts the informal sector. Our culinary scene is very good, as can be seen in Thamrin and Bengkong, where culinary activity is thriving. Furthermore, the property, construction, trade, services, tourism, and transportation sectors are sure to also thrive," he explained.
BP Batam’s Data Shows Positive Trend
Despite Batam's aggressive non-manufacturing investment, including eight new data center projects underway, over the past year or two, its macroeconomic indicators have shown a positive trend.
This booming investment growth has had a direct impact on reducing poverty and unemployment rates. Based on data from BP Batam, the poverty rate in Batam has been reduced by 1.04 percent. Meanwhile, the Open Unemployment Rate (TPT) also shows a small downward trend.
Amsakar explained that the current unemployment challenge in Batam is not actually caused by a lack of jobs, but rather by the high influx of job seekers from outside the region.
Through this industrial transformation towards the digital era, the Batam City Government and BP Batam are optimistic that the welfare of local residents will be maintained. The biggest challenge now is to quickly improve Batam's young generation’s digital competencies so they can also be involved in the data center industry investment trend.
Conclusion
BP Batam assesses that the investment in data centers worth hundreds of trillions of rupiahs will have a broad economic impact, even though the industry does not absorb as many workers as manufacturing. Head of BP Batam Amsakar Achmad said that investment in the data center, cloud, and information technology sectors will encourage improvements in human resource quality through technology transfer and open up job opportunities in high-tech fields. The government is also encouraging Batam's younger generation to improve their digital competencies to take advantage of opportunities from the industrial transformation towards a technology-based economy.
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