Mega to inaugurate new industrial estates on Batam<\/p>\n
Fadli, The Jakarta Post, Batam\/Jakarta<\/p>\n
President Megawati Soekarnoputri is expected to inaugurate four
\nnew industrial complexes on Batam next month, which will cover a
\ncombined area of 700 hectares and accomodate up to 30 foreign
\ncompanies from various countries.<\/p>\n
Chairman of the Batam Industrial Development Authority (BIDA)
\nIsmeth Abdullah, said the opening of the new industrial complexes
\nwould bring the total number of industrial areas on the island to
\n18, housing 611 foreign companies.<\/p>\n
\"This shows that Batam is enjoying an investment inflow. It
\nmeans that the investment flow into the island is outpacing that
\nof areas outside Batam,\" Ismeth said on Wednesday.<\/p>\n
The four new industrial areas are Tunas Industrial Estate,
\nPanbil Industrial Estate, Citra Buana III and Latrade.<\/p>\n
Ismeth said that there was a possibility that two additional
\nindustrial areas could also be launched next month if were
\ncompleted in time. The two areas are Bintan II and Kabil
\nIndustrial Estate.<\/p>\n
Meanwhile, Ismeth reiterated his concern over the slow
\nprogress in the deliberation of a bill which will declare the
\nisland, 20 kilometers from Singapore, a free trade zone (FTZ).
\nThe bill is currently under deliberation in the House of
\nRepresentatives.<\/p>\n
Ismeth feared that the prolonged deliberation would have a
\nnegative effect on investors' appetite for investing in the
\nisland, as they could see the lack of commitment on part of the
\ngovernment in luring investment.<\/p>\n
\"If the deliberation cannot be finished this year, I fear it
\nwill dampen the interest of the investors,\" he said, adding that
\nso far, total investment in Batam has reached US$9 billion.<\/p>\n
An FTZ status for Batam would mean that exporters operating on
\nthe island would be allowed to import raw materials without
\npaying customs duties and taxes, pending their eventual
\nprocessing, transshipment or reexport.<\/p>\n
Batam was declared an industrial bonded zone in 1978 to lure
\ninvestment and foster export competitiveness. Batam has become
\nthe country's main industrial center ever since, where 70 percent
\nof economic growth is contributed by the export-oriented
\nmanufacturing sector.<\/p>\n
The export value of the islands' output last year was over
\n$6.5 billion, or about 14 percent of the country's total exports
\nin a year.<\/p>\n
According to Ismeth, some 60 percent of the total 611 foreign
\ninvestment companies operating on Batam were in the electronics
\nsector.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mega-to-inaugurate-new-industrial-estates-on-batam-1447893297",
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"sponsor": "Okusi Associates",
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