​Batam Empowers Small Businesses Through Training and Capital

RRI.CO.ID, Batam - The Batam City Administration is aggressively pivoting its strategy toward scaling up small businesses to broaden the reach of its local economy. The strategy runs by tackling the two biggest hurdles for entrepreneurs, which are regulatory red tape and capital access.

Through the Cooperatives and Micro Enterprises Agency, the city is implementing a comprehensive "class-upgrade" program. This initiative combines technical training with an ambitious expansion of financial partnerships beyond traditional state-owned lenders.

The Agency’s head, Salim, revealed that throughout 2025, over 200 micro-entrepreneurs received intensive guidance.

“Our efforts to help micro-businesses move up to the next level involve development training and technical guidance, including facilitating essential permits such as Business Identification Numbers (NIB), Home Industry Food (PIRT) certificates, and halal certifications,” said Salim during a call from Batam on Friday, January 30, 2026.

As reported by Antara, while capacity building remains a pillar of the program, the city is placing a heavy emphasis on tiered financial support. For enterprises ready for significant expansion, the Integrated Business Service Center (PLUT) and the Regional Revolving Fund Technical Unit (UPTD) offer loans up to IDR 150 million (USD 8,923) with collateral requirements.

However, the most distinctive feature of the current administration is the Mayor’s priority program. This specific initiative provides interest-free, collateral-free loans of IDR 20 million (USD 1,191) designed for micro-enterprises.

Despite the appeal of zero-interest funding, the transition from applicant to recipient remains rigorous. Out of 1,105 applicants recorded between June and December 2025, only 19 micro-businesses successfully passed the final financing agreement by the end of the year. This particular initiative is currently managed in collaboration with the Batam branch of State-owned PT Bank Tabungan Negara (BTN).

Addressing this bottleneck, Salim plans to diversify the city's banking partners to reach more of the estimated 40,000 Small and Medium Enterprises (SMEs) operating in Batam.

“The number of applicants is indeed high, but the selection process is strict. In 2026, we are working to establish partnerships with regional banks, moving beyond just the State-Owned Banks (Himbara) association, to ensure broader access to financing,” he explained.

Beyond financial and legal aid, the city is also focusing on market visibility. Currently, 2,375 fostered SMEs, spanning the food, fashion, and creative economy sectors, benefit from exhibitions and the amenities at PLUT Batam. The center provides specialized services including packaging design and printing, licensing assistance, and business consulting.

“Because of the vast number of businesses, our coaching is a continuous and gradual process. Our hope is that more micro-enterprises can upgrade their status and become truly competitive,” concluded Salim. (Annaila Azzahra/Bambang MBKA)