In the face of regional free trade era Indonesian government has decided to implement a Free Trade Zone (FTZ) in nine strategically valued local areas. One of them is Batam, being prepared much earlier and known in reality so far implementing an FTZ-like system. Hopefully, such an FTZ becomes a backbone for stimulating the national economy, especially in attracting more investors to Indonesia. Batam Island Bonded Zone is a policy the Indonesian government made to response to the business demand and economic growth through investment that supports exports.Pursuant to the abovementioned description in order to support and increase investments in Indonesia a policy of exempting PPN, PPn BM and BM from Free Trade Zone (FTZ) of Batam Island Bonded Zone is considered so necessary. This issue is the main problem of the research author carried out. The goal of the research is to explain and elaborate on how far the policy of Free Trade Zone (FTZ) influences investment in Batam Island Bonded Zone.It is known from the analysis on the fast-growing development achieved by Batam as a bonded zone in Indonesia that Batam is an interesting place to investment. There are some reasons why investors interested in investing their capitals in Batam: a number of attractive incentives to investors, many others, for example, Batam status as a free import duty area that charges no PPN and PPn BM for purchasing local goods and/or importing capital goods and equipments directly related to manufacturing activities; a relatively professional services from relevant governmental agencies and apparatuses, easy, fast and effective coordination; optimal provision of facilities and infrastructures; capability and availability of competitlvenmanpower; and guarantee for law enforcement along with a consistent implementation of respective regulations. Provision of fiscal facility to any investments in Indonesia is still needed and expected by both existing and potential investors.Conclusion of the result is that: there is a significant correlation between the policy of Free Trade Zone (FTZ) Enclave of Batam island Bonded Zone of investment It is obviously from correlation coefhcient of 0.75 and determination coefficient of 52.6 %. Those coefficients indicate that investment increase is very affected by FTZ Enclave policy with 52.6%, with the rest of 47.4% affected by other factors.Suggestions made from this research are, there should be an improvement and optimization to any lacks of Free Trade Zone (FTZ) Enclave from fiscal facility, procedure, license, facility and infrastructure. availability and capability of manpower and coordination with the competent local governmental agencies. Identifying appropriately other causes other than FTZ Enclave to make them known. controlled and remedied. Performing an evaluation on the policy of FTZ Enclave continually to increase the investment in the future.