RI to finish study on free trade zone soon<\/p>\n
SINGAPORE (Dow Jones): Indonesia expects to complete within
\nmonths a study on how to turn several islands near Singapore into
\na free trade zone, Trade and Industry Minister Luhut Pandjaitan
\nsaid.<\/p>\n
Luhut told Dow Jones Newswires in Singapore on Tuesday that
\nPresident Abdurrahman Wahid's government is committed to creating
\na free trade zone.<\/p>\n
A study to set policies for making this possible should be
\nfinished \"within two to three months,\" he said.<\/p>\n
Places that might be included in such a zone are Batam, Bintan
\nand Karimun islands close to Singapore, plus the nearby port of
\nDumai on the eastern coast of Sumatra island.<\/p>\n
The Indonesian government - struggling to attract new
\ninvestors due to the country's political and economic
\nuncertainties - hopes that the islands close to Singapore can
\nattract significant investment.<\/p>\n
The trade minister, who Tuesday relinquished his position as
\nIndonesia's ambassador to Singapore, said a newly-announced
\ninvestment on Batam \"shows there is a strong interest in
\nIndonesia.\"<\/p>\n
He witnessed the signing of a joint venture agreement between
\nPT Citra Tubindo, a Jakarta-listed pipe maker, and a unit of
\nSingapore's state-run SembCorp Logistics Ltd. to set up a network
\nof offshore oil and gas logistics supply bases throughout
\nIndonesia.<\/p>\n
Under the agreement, the first base will be on Batam, 25
\nkilometers from Singapore. Construction of that base, in which
\nUS$1 million will be invested, will begin before the end of the
\nyear.<\/p>\n
Kris Wiluan, president-director of Citra Tubindo, said he
\nanticipates that the new joint venture will invest S$20 million
\nover several years in a series of bases.<\/p>\n
Singapore Offshore Petroleum Services, the SembCorp unit, will
\nown 70 percent of the new venture, with Citra Tubindo holding 30
\npercent.<\/p>\n
Luhut said the joint venture \"shows the serious intent of
\nSingapore to invest and help Indonesia overcome (its) crisis.\"<\/p>",
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"sponsor": "Okusi Associates",
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