Batam Sees Influx of Singapore and Malaysia Shoppers

The number of tourists visiting Batam City, Riau Islands Province, Indonesia, from Singapore and Malaysia has risen in recent months, driven in part by favorable exchange rates.

Increased Tourist Numbers in Batam

A resident of Batam, Dilla, who works in the Nagoya area, noted that malls have been busier than usual with foreign tourists. “I happen to go to Grand Mall Batam almost every day, and it’s indeed crowded with tourists from Singapore and Malaysia,” she said on Monday, January 19, 2025. She observed increased foot traffic even on weekdays, a departure from the typical weekend rush.

Amat Tantoso, Chairman of the Foreign Exchange Affiliation and a money changer in Batam, echoed this sentiment, citing observations at markets and malls like Penuin Market, BCS Mall, Grand Mall, and the Thamrin Nagoya area.

Shopping and Culinary Tourism

The increase in tourism is believed to be linked to the weakening rupiah exchange rate against the Singapore dollar, Malaysian ringgit, and US dollar. The ringgit has increased by 15.2 percent in the past year, the Singapore dollar by 1 percent, and the US dollar by 3.4 percent against the rupiah, making prices in Singapore and Malaysia comparatively more expensive.

Amat described tourists arriving with empty suitcases and leaving with them full of groceries, even purchasing daily necessities in Batam. He estimated approximately 10,000 tourists visit Batam each weekend. Beyond shopping, tourists are also drawn to Batam’s more affordable culinary scene. “Just imagine, a single portion of food can cost Rp1-1.5 million, whereas here (in Batam) Rp100,000 is enough to get a good meal,” Amat said.

Tourists are also taking advantage of cheaper massage and salon services. Amat noted that the influx is impacting hotel occupancy rates, with hotels frequently fully booked on weekends. A recent business meeting held in Batam by a Malaysian association further demonstrates the city’s growing appeal.

With Chinese New Year approaching, Amat anticipates continued growth in tourist numbers, viewing it as a significant opportunity for Batam City. He believes the government’s development of the “New Nagoya” area is a positive step, but equitable development is also needed, especially considering declining local purchasing power.