A Multi-Criteria Decision Making Approach for Identifying Potential Industrial Development Locations in Batam Island

Abstract

This research utilizes a multi-criteria decision-making approach to evaluate the potential for industrial development in Batam City, with a focus on Batam Island, an important economic center and a free trade zone. By employing geographic information systems as a decision-making tool, we consider variables stipulated in Minister of Industry Regulation No. 40/M-IND/PER/6/2016 and PERMENPERIN No. 30 of 2020, in addition to the Batam City Spatial Plan for 2021-2041 policy, to assess the suitability of various areas for industrial land use. Based on the identification of the physical potential characteristics of the region, our research reveals the following suitability classifications: Very Suitable (0.14%), Suitable (15.14%), Moderately Suitable (41.66%), Less Suitable (37.91%), and Not Suitable (5.14%) on Batam Island. Considering the relevant Regional Spatial Plan, we identify specific areas with potential for development distributed across different districts: Batam Kota (58.33 Ha), Batu Aji (14.17 Ha), Batu Ampar (232.93 Ha), Bengkong (31.62 Ha), Lubuk Baja (26.45 Ha), Nongsa (336.11 Ha), Sagulung (138.41 Ha), and Sekupang (3.22 Ha).