Head of Batam Authority:
\n\"We offer the best for investors\"<\/p>\n
Since the establishment of Batam as an industrial, trade and
\ntourism zone, it has become more well-known and has attracted
\nnumerous foreign investors. This is due to Batam's superior
\nfeatures, such as its strategic location, modern infrastructure,
\nefficient services, sufficiency of manpower, competitive costs of
\ninvestment and production, professional management and bonded-
\nzone tax incentives, comprising exemption from value-added tax,
\nsales tax and customs duty.<\/p>\n
All these have contributed to the improvement of Batam's
\neconomy year by year and have turned Batam into one of the
\ncountry's growing economic centers. During the period 1990 to
\n1992 Batam experienced a most fantastic growth rate of 28.01
\npercent, which was triggered, among other things, by the
\nformation of the Indonesia-Malaysia-Singapore Growth Triangle
\n(IMS-GT). Ever since, more and more foreign companies invested on
\nthe island. Even during the 1998 economic crisis, the Batam
\neconomy positively grew at the rate of 3.08 percent, while, in
\ncontrast, other regions in the country suffered a decrease of 13
\npercent.<\/p>\n
Thanks to God Almighty, we have been able to maintain this
\nfavorable growth, based on our cooperation with all parties
\nconcerned and every element in the community. Batam has remained
\nsolid and unaffected by anything that could disrupt its economic
\nactivities. This is one of the reasons Batam is one of the most
\ncompetitive industrial zones in Asia Pacific. New additional
\nforeign investments as of October 2002 comprise 74 companies.
\nBatam has therefore surpassed its target of 70 foreign investment
\ncompanies for 2002.<\/p>\n
However, with Batam's status merely as a bonded zone, we feel
\nthat it does not provide sufficient legal certainty for the
\ncontinuance of existing investors. An inadequate legal status
\ncould be a threat and cause these foreign investors -- currently
\ntotaling 531 -- to leave Batam, which would cause unemployment.
\nAt present Batam is home to some 160,000 workers and the island
\nhas largely contributed to the growing economy of its
\nsurroundings. Workers in Batam transferred to their various
\nhometowns no less than Rp 125 billion in 2001.<\/p>\n
These are some of the reasons why Batam wants the government
\nto issue the relevant law and officially declare the island a
\ntrue Free Trade Zone (FTZ), as it is de facto already very much
\nlike a Free Trade Zone anyway. Everyone on the island, including
\nthe executive, legislature, businesspeople and NGOs, are working
\ntogether for Batam to obtain clear legal status under the
\numbrella of FTZ law. Our aim is to enable Batam to accommodate a
\nlarger number of foreign investors, targeted to reach 800, to
\nabsorb greater manpower and improve the welfare of its
\nhinterland. Batam must become a zone with more superior and
\ncompetitive features in the Asia Pacific area.<\/p>\n
The law on free trade and free port (FTZ Law) will create
\nlegal certainty for foreign investors in all aspects of economic
\nactivities both for the present and in the future. With the
\nexistence of this umbrella law, it will be easier for the
\ngovernment to decide on other strategic steps and policies to
\nspeed up development in Batam and its hinterland for the benefit
\nof the national economic recovery.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/head-of-batam-authority-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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