Offer promising investment opportunities<\/p>\n
Batam is strategically located within an international
\nshipping route between the Indian Ocean and the Pacific Ocean. It
\nlies only 20 kilometers southeast of Singapore which has one of
\nthe busiest seaports in the world. A ferry ride to Singapore
\ntakes only 40 minutes.<\/p>\n
The area of Batam Island is 415 sq kms. However, due to rapid
\ndevelopment and the demand for space, the Batam Industrial area
\nwas extended in 1992 to include two other islands, Rempang and
\nGalang and the smaller surrounding islands. Hence, the area was
\nnamed: Batam-Rempang-Galang or Barelang. The total area thus
\nbecame 715 sq kms. All the main islands are linked by the Trans-
\nBarelang road, which includes six beautiful bridges.<\/p>\n
Although it is considered an industrial area, Batam has been
\ndeveloped to serve four main functions, namely: industry, trade,
\ntourism, and as a transshipment area. The whole area of Batam,
\nRempang and Galang has been designated a bonded area. All
\nimported goods for production purposes, such as capital goods and
\nraw materials, are exempt from import tax.<\/p>\n
Batam is built to be an export oriented industrial area, so as
\nnot to compete with other industrial areas in Indonesia that
\nmarket their products within the country.<\/p>\n
Proximity to Singapore is an advantage as investors do not
\nfeel isolated in Batam. Batam has been developed to benefit from
\nthe progress that has been achieved by its neighbor.<\/p>\n
With a shortage of available land and high labor costs,
\nSingapore takes advantage of land availability and investment
\ncost competitiveness in Batam. A close relationship between the
\ntwo governments has encouraged good cooperation between private
\nsectors on both sides.<\/p>\n
Why invest in Batam?<\/p>\n
As of December 2001, Batam had accumulated approximately
\nUS$8.8 billion in investment comprising $2.1 billion (24 percent)
\nin government investment and $6.7 billion (76 percent) in private
\ninvestment.<\/p>\n
Government investment is in terms of infrastructure
\ndevelopment. Private investment comprises 49 percent or $3.3
\nbillion domestic investment and 51 percent or $3.4 billion
\nforeign investment. More than 531 foreign companies are operating
\nin Batam while the number of local companies is nearly 9,700. In
\nthe first semester this year, Batam gained investment from 47
\nadditional foreign companies worth over $1 billion.<\/p>\n
Industrial facilities are abundant. Investors can choose
\nwhether to plug into a commercial ready-to-use factory building
\nwith complete facilities or to acquire a lot to custom-build its
\nfactory. Erecting a 1,000 sq meter factory building on a 2,000 sq
\nmeter lot would cost only around $200,000, including the cost of
\nacquiring the land.<\/p>\n
There are 14 industrial estates offering facilities ranging
\nfrom ready-to-build lot parcels to buildings with complete
\nfacilities. Some industrial estates also offer a complete
\npackage, which includes the processing of permits and licenses
\nfrom related authorities and the recruitment of workers. Housing
\nfor workers in dormitories is also provided within the industrial
\nestate.<\/p>\n
There are approximately 520,000 people living in Batam, coming
\nfrom all over the Indonesian archipelago with 165,000 people
\nemployed in the formal sector, and 70,000 more in the informal
\nsector.<\/p>\n
This labor force is becoming increasingly better skilled as
\nthey have years of training and experience. This skilled labor
\nforce can be sourced directly in Batam, without the need to
\nrecruit workers from other regions, such as Java and Sumatra.
\nHalf of the population in Batam are factory workers, making it a
\nvery healthy dependency ratio.<\/p>\n
An application for foreign investment is processed with a one-
\nstop policy in Batam and takes no more than 20 days to get
\napproval.<\/p>\n
All permits and licenses required to start development are
\nalso processed under one roof by the Batam Industrial Development
\nAuthority with streamlined procedures. Companies are allowed to
\nhave 100 percent foreign ownership. The temporary resident visa
\nfor foreigners working in Batam is easy to obtain from the local
\nimmigration office. Foreign visitors to Batam will be given a
\nvisa on arrival for most nationalities. Foreign nationals are
\nallowed to buy and own houses, including shop houses, whether or
\nnot they work in Batam. So, Batam could become a second home for
\nforeigners.<\/p>\n
All of these things reflect the commitment of the Indonesian
\ngovernment to fully support the development of Batam. Private
\nsector involvement with strong support from the government are
\namong the ingredients for successful development.<\/p>\n
Well-developed infrastructure<\/p>\n
Besides its strategic location, space availability, labor
\nsupply, and government support, Batam has the advantage of having
\nwell-developed, modern infrastructure.<\/p>\n
More than 1000 kms of paved roads and highways link all
\ncenters of activity. These roads are continuously being improved
\nand widened to anticipate the rapid growth in traffic. Traffic
\njams are nowhere to be seen even during peak periods. There are
\nseaports to serve cargo vessels and six passenger ferry terminals
\naround the island to minimize travel time to destinations with
\nmore than 100 trips daily serving Singapore and Malaysia. The
\nbiggest seaport in Kabil has a berthing capacity of 35,000 Dead
\nWeight Ton (DWT) and is being improved to accommodate ships up to
\n150,000 DWT. In its ultimate phase, it will have a total wharf
\nlength of 5.5 km with an 18-meter draft.<\/p>\n
The Hang Nadim International Airport has a 4,000-meter runway,
\nthe longest in Indonesia, to serve wide body passenger and cargo
\naircraft with eight flights daily to Jakarta, and 50 flights
\nweekly to other major cities in Indonesia. The terminal building
\nhas a total floor area of 31,500 sq meters and will gradually be
\nexpanded to 88,000 sq meters.<\/p>\n
Telecommunication facilities are also of the highest standard
\nwith state-of-the-art technology, of which only 75 percent of the
\navailable capacity has been used. One does not feel isolated in
\nBatam since communication to all parts of the world is only a
\nbutton away. Electricity is supplied by PLN, the state-owned
\nelectricity company, and additional power is also supplied by
\nprivate power plants.<\/p>\n
Fresh water is abundant from six reservoirs built around the
\nisland with the total capacity of 3,850 liters per second. The
\nsupply of clean water is sufficient to support a population of
\n800,000 people and industry and conforms to the standards of the
\nWorld Health Organization. It currently runs at a capacity of
\n1,710 liters of clean water per second.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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