Batam to Become Investment Center
Thursday, 29 June, 2006 | 16:12 WIB
TEMPO Interactive, Jakarta: The government will turn the islands of Batam, Bintan and Karimun into investment centers.
“Those areas will be opened up to companies that can contribute a direct impact to the economy,” said Boediono, the Coordinating Minister for the Economy, yesterday (28/6).
These direct impacts include job opportunities as well as new technology.
For this reason, the government will eliminate all investment obstacles in these areas.
It will overcome tax, customs and employee problems in the special economic areas.
“We will correct what the investors are complaining about,” said Boediono.
However, the government will still collect taxes, including income tax.
As is already common knowledge, the Indonesian and Singaporean governments have signed a draft of economic cooperation to develop special economy areas in Batam, Bintan and Karimun.
In response to the government's decision, the Riau Islands Provincial Government will form a tax desk.
“To assist investors in tax administration,” Jangkung Sudjarwadi, Area Head of Tax Directorate at Central Sumatra, told Tempo in Batam yesterday.
According to him, several items will be taken care at the tax desk, including incentives for investors.
H. Ahmad Dahlan, the Mayor of Batam, said that the Batam Municipal Government has prepared a building promoting the whole of Sumatra as a one-stop center.
The one-stop center concerns several institutions including the tax, land, and employment agencies, as well as the State Electricity Company (PLN) and the Municipal Drinking Water Company (PAM).
Yudha Setiawan, Rumbadidale Dale and RR Ariyani