Batam provides land guarantee<\/p>\n
JAKARTA (JP): The Batam Industrial Development Authority, in
\nits effort to attract foreign investors to the island in Riau,
\nhas issued a new regulation offering a \"guarantee\" for the use of
\nland by investors for up to 80 years.<\/p>\n
Soeryohadi Djatmiko, a senior official of the authority, was
\nquoted over the weekend by Antara as saying in Hannover, Germany,
\nthat: \"The new rules will give written guarantees for investors
\nin Batam if they want to extend their land lease.\"<\/p>\n
Soeryohadi was in Hannover because Batam took part in last
\nweek's Hannover Messe '95, an international fair of which
\nIndonesia was the country-partner of Germany.<\/p>\n
Investments in Batam so far have reached more than US$5
\nbillion (including government and private projects). The
\nauthority forecast that by 2006, the investment figure will grow
\nto $17 billion.<\/p>\n
The authority now also oversees the development of two other
\nnearby islands -- Galang and Rempang.<\/p>\n
According to existing regulations, an investor in Batam and
\nthe other two islands can lease land for one leasing period of up
\nto 30 years. The investor is allowed to extend the leasing period
\nfor up to two additional leasing periods, which will comprise of
\none period of 30 years and another of 20 years. Thus, an investor
\nmay lease land in Batam for up to 80 years if all obligations are
\nfulfilled.<\/p>\n
Included in the obligations is the payment of annual leasing
\nfees which can actually be paid in advance for one entire leasing
\nperiod. The leasing can be extended on the condition that the
\nland is used for what it was originally appropriated for.<\/p>\n
Soeryohadi said that under the new ruling, made effective on
\nApril 1, an investor who has paid leasing fees for 30 years will
\nbe automatically guaranteed a lease extension for another 20
\nyears.<\/p>\n
Similarly, an investor which has paid all the fees for 50
\nyears will be given an extension for another 30 years.<\/p>\n
The leasing fees are determined according to the land area and
\npurpose of the lease, Antara said. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/batam-provides-land-guarantee-1447893297",
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