Nongsa Digital Park: Why is it Important for Singaporean Investors?

Nongsa Digital Park: Why is it Important for Singaporean Investors?

  • InCorp Editorial Team
  • 20 March 2025
  • 6 minutes reading time

Indonesia’s digital economy is on a remarkable growth trajectory, with Nongsa Digital Park playing a key role in its expansion. With a projected market value of USD 330 billion by 2030, Indonesia is shaping to be Southeast Asia’s digital powerhouse. E-commerce, a supportive regulatory framework, and increased internet adoption drive this rapid development.

Notably, 21 million new digital consumers have emerged, with 72% from non-metropolitan areas, highlighting the broad reach of Indonesia’s digital revolution. This article explores the key drivers of Indonesia’s digital economy, the significance of Nongsa Digital Park, and the investment potential it holds for Singaporean businesses.

The Significance of Indonesia’s Digital Economy

Indonesia’s economy has been steadily growing, and the internet economy has also been seeing a similar trend. It is expected to reach USD 330 billion by 2030, which is almost double the current value of the Southeast Asian digital economy, which is USD 170 billion.

Government Support and Regulatory Framework

Indonesia has introduced business-friendly regulations, including:

  • Simplified digital business licensing
  • Tax incentives for start-ups
  • Investment-friendly policies for foreign businesses

Indonesia’s Role as a Regional Investment Hub

Indonesia is now one of the hottest investment destinations in Southeast Asia. Factors driving this trend include:

  • A large, digitally active population
  • A booming start-up ecosystem
  • Pro-business government policies

Nongsa Digital Park: Indonesia-Singapore Digital Collaboration

Nongsa Digital Park (NDP) is a joint initiative between Indonesia and Singapore to foster technology and innovation in Batam. It is a hub for start-ups, multinational companies, and digital businesses.

The Strategic Location of Batam

Batam is strategically positioned as a digital bridge between Singapore and Indonesia. Its location makes it ideal for:

  • Singapore-based companies looking to expand into Indonesia
  • Offshoring and outsourcing digital operations

Government-to-Government Collaboration

Both Indonesia and Singapore view Nongsa Digital Park as a key milestone for digital cooperation. Government leaders from both nations have expressed their commitment to its success.

The Role of Nongsa D-Town

Nongsa D-Town is a tech-focused smart city within NDP. It is designed to attract global technology companies with its high-speed internet, innovation hubs, and start-up ecosystem.

How Nongsa Digital Park Attracts Singaporean Investors

Singapore has one of the most advanced digital economies in the world, but its continued growth depends on access to larger markets, cost-efficient talent, and strategic partnerships. Nongsa Digital Park provides Singaporean investors a gateway into Indonesia’s thriving digital landscape. It offers lower operational costs and access to a skilled workforce.

Singapore’s Strong ICT Sector

Singapore’s information and communication technology (ICT) sector is booming, but expanding into new markets like Indonesia is essential for long-term sustainability.

Proximity to Singapore

With Nongsa Digital Park just 45 minutes away by ferry, Singaporean businesses can easily oversee operations and collaborate with Indonesian talent without the hassle of long-distance management.

Batam’s Free Trade Zone Advantage

As a Free Trade Zone (FTZ), Batam offers tax benefits, streamlined business processes, and investor-friendly policies, making it a desirable location for tech investments.

Rising Demand for Digital Services in Indonesia

Indonesia’s rapidly growing internet user base and competitive telecom industry create a high-demand market for e-commerce, fintech, and software solutions, drawing Singaporean investors.

The Benefits of Setting Up A Business in Nongsa Digital Park for Singaporean Investors

Nongsa Digital Park offers a unique blend of cost savings, proximity to Singapore, and access to a skilled workforce. It is an ideal location for offshoring, tech start-ups, and outsourcing operations. Businesses can benefit from world-class infrastructure, a government-supported ecosystem, and affordable operational costs.

Access to a Skilled Workforce

Batam, in particular, has an untapped pool of talented workers eager to make a change. Singaporean investors may also benefit from investing in the newly established park due to the sheer efficiency caused by the short distance. They are making it easy to set up and oversee a new business.

Lower Business Setup Costs

In addition, Batam is relatively close to Singapore and is accessible by a 45-minute ferry ride. The time difference between the two makes it easy to work across borders, posing little to no trouble for investors communicating with offshore talent. Despite having a high labor supply, India and Vietnam are geographically far from Singapore. Therefore, setting up a business in Nongsa Digital Park would save costs and overheads.

Ideal for Offshoring and Outsourcing

Nongsa Digital Park also has several resources, including an international data center, a start-up incubator, and numerous lodging options, making it an offshoring haven for those looking to explore this opportunity.

Why Nongsa Digital Park is the Ideal Data Center Hub for Singaporean Businesses

Why Nongsa Digital Park is the Ideal Data Center Hub for Singaporean Businesses

A data center is vital to modern business operations, offering security, scalability, and efficiency in managing digital assets. Nongsa Digital Park (NDP) provides an ideal data center solution for Singaporean businesses seeking a cost-effective, well-connected, high-performance infrastructure.

Centralized Data Management

NDP allows businesses to store and manage all data in one secure location, improving efficiency, accessibility, and analytics while reducing redundancy and enhancing operational insights.

Scalability

Businesses can quickly expand or downsize their data storage and computing power based on demand, making NDP a flexible and future-proof solution without requiring heavy infrastructure investments.

Enhanced Security

With advanced security measures, including biometric authentication, surveillance, firewalls, and encryption, NDP ensures that business-critical data remains protected from cyber threats and breaches.

Redundancy and Disaster Recovery

NDP’s backup systems and disaster recovery solutions provide businesses with data protection and rapid recovery options in case of power failures, cyberattacks, or natural disasters, ensuring minimal downtime.

Cost Efficiency

Building and maintaining an in-house data center in Singapore is expensive and resource-intensive. NDP offers a cost-effective alternative, allowing businesses to pay only for what they use while benefiting from top-tier infrastructure and services.

Guide to Doing Business in Batam

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Establish Your Data Center in Nongsa Digital Park with InCorp

Setting up a business in Nongsa Digital Park is smart for Singaporean investors looking to capitalize on Indonesia’s growing digital economy. If you’re ready to expand your business and take advantage of this prime investment opportunity, InCorp can assist with:

Fill out the form below to set up your data center in Nongsa Digital Park.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.