Conducive Business Environment to Regain Competitiveness for Sustainable Firm Growth in Special Economic Zone of Batam, Indonesia

Abstract

The declining competitiveness of Batam has significant impact on Batam firms’ growth. Lack of supporting infrastructure, and lack of good public governance i.e., the dualism power of local government (PemKot) Batam and local authority (BP) Batam has caused the declining competitiveness and declining firms’ growth in Batam. Good supporting infrastructure, good public governance, productive manpower and good research and development institutions in Batam as part of conducive business environment is critical for regaining competitiveness that impacts firms’ growth in Batam. It is urgent to transform Batam from the status of Free Trade Zone (FTZ) to Special Economic Zone (SEZ) in the near future which has proven to be a powerful engine for regional economy growths and excellence, and to be able to compete in a highly competitive business environment of ASEAN Economic Community (AEC) that has been realized recently.

Keywords: competitiveness, firm growth, good public governance, business environment, SEZ