WIRARAJA INDONESIA’S STRATEGY IN ATTRACTING FOREIGN INVESTMENT IN THE RENEWABLE CLEAN ENERGY SECTOR IN THE BATAM FREE TRADE ZONE AND FREE PORT (KPBPB)

Abstract

This research aims to analyze the strategies implemented by Wiraraja Indonesia in attracting foreign investment in the renewable energy sector within the Batam Free Trade Zone and Free Port (KPBPB Batam) using The Eclectic Paradigm. The background of this study is based on the urgent need to develop renewable energy industries to support the transition towards sustainable development, aligned with the Sustainable Development Goals (SDGs), particularly SDG 7 (affordable and clean energy) and SDG 13 (climate action). Despite Batam’s reputation as a manufacturing and logistics hub, the contribution of renewable energy industries in the region remains relatively limited, necessitating strategic efforts to increase foreign investor interest in this sector. This research employs a qualitative approach with a case study method. Data were collected through in-depth interviews with relevant stakeholders, including the management of Wiraraja Indonesia, BP Batam as the regulatory authority, as well as documentation and field observation. The results indicate that Wiraraja Indonesia’s key strategies in attracting foreign investors include providing clean and clear industrial land, offering integrated licensing services that reduce transaction costs, and promoting the industrial area both independently and in collaboration with government entities. Furthermore, these strategies are supported by Batam’s comparative advantages, such as its strategic location along international shipping routes, adequate infrastructure, and fiscal incentives. However, the study also reveals significant challenges, including limited available land for industrial expansion, complex technical licensing processes centralized at the national level, and potential political conflicts of interest between local political actors and industrial estate managers. Mitigation efforts include enhancing licensing transparency through the OSS/IBOSS system and strengthening synergy between the government, private sector, and related institutions. The study concludes that adaptive, partnership-based, and sustainability-oriented investment strategies are essential for attracting foreign investment in the renewable energy sector in KPBPB Batam.