Govt agrees to include Bintan in U.S.-S'pore trade pact<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The government has agreed in principle to include Bintan island
\nin the proposed Free Trade Arrangement (FTA) being negotiated
\nbetween Singapore and the U.S, under which IT products made in
\nBintan will enjoy duty-free access to the American market.<\/p>\n
Minister of Trade and Industry Rini Soewandi said on Thursday
\nthe broad trade pact, if finalized, would benefit Indonesia in
\nterms of luring foreign investors particularly to Bintan, which
\nlies very close to Singapore.<\/p>\n
\"The government has basically agreed to the idea, which we
\nthink, would lure more investors to (Bintan) island to set up
\ncompanies,\" Rini told reporters on the sidelines of a one-day
\nseminar on the ASEAN Free Trade Area (AFTA).<\/p>\n
Aimed at making the island a manufacturing base for IT
\n(information technology) products, the idea was the subject of a
\ndiscussion between Rini and her Singaporean counterpart George
\nYeo during his five-day visit to the country this week.<\/p>\n
Yeo said that if the plan works with IT products it could be
\nbroadened to other products in the future.<\/p>\n
Rini however warned there were conditions that Indonesia had
\nto meet first if Bintan were to join the pact.<\/p>\n
Talks to determine all the requirements are still underway,
\nshe said, but the main prerequisite is that it should be able to
\nprovide security for the investments.<\/p>\n
The two countries would set up a joint working group to review
\nthe investment climate in Bintan, particularly in relation to
\nsecurity, labor, taxation, customs and immigration problems.<\/p>\n
While it was reported that the U.S. welcomes the plan,
\nIndonesia still has plenty to do to catch up.<\/p>\n
Aside from providing security, the government would also need
\nto provide professionals in the customs and tax sectors, as well
\nas in labor management, in a bid to speed up the economic
\nprocess.<\/p>\n
The government also has to set up a council comprising
\nemployers, workers and government officials to promote industrial
\nharmony and form a private sector-led international advisory
\npanel.<\/p>\n
The island of Bintan, just an hour ride by ferry from
\nSingapore, currently has an industrial estate, hosting 28
\nSingaporean and other foreign firms.<\/p>\n
Meanwhile, an economist welcomed the plan as long as it
\ncontributed to the country's economy as a whole, such as
\nabsorbing workers.<\/p>\n
\"As long as it includes production activities, which will have
\ngood effect on the economy, and the transfers of knowledge and
\ntechnology, I think the plan is positive.<\/p>\n
\"The important thing is, how this will accelerate our economic
\nactivity, thus having a good impact on our GDP,\" Bustanul Arifin
\nof the Institute for Development of Economics and Finance (Indef)
\nsaid, referring to growth in gross domestic product terms.<\/p>",
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