RI urged to decide on Batam status<\/p>\n
Zakki P. Hakim, The Jakarta Post, Singapore<\/p>\n
The incoming government should quickly decide on the free trade
\nzone (FTZ) status of the industrial island of Batam, otherwise
\nexisting and potential investors would turn away to competing
\ninvestment areas in China and Vietnam, Singapore foreign minister
\nGeorge Yeo has warned.<\/p>\n
Yeo was quoted by the visiting chairman of the Indonesian
\nChamber of Commerce and Industry (Kadin), MS Hidayat, as saying
\nthat Batam had the potential to become a leading industrial
\ncenter like China's Shenzhen within 10 years as long as the
\nlingering legal uncertainty was quickly resolved.<\/p>\n
Hidayat said that whether to turn the whole of Batam into a
\nFTZ area (as suggested by the House of Representatives), or to
\nadopt the enclave FTZ approach where only certain industrial
\nzones on the island would enjoy FTZ status (as demanded by the
\ncurrent government), was not an issue for investors as what was
\nmost important was that the status of Batam be clearly defined.<\/p>\n
A delegation of Kadin officials held a meeting with Yeo on
\nMonday during a visit to Singapore to attend the five-day Global
\nEntrepolis @ Singapore (GES) 2004 investment and trade forum.<\/p>\n
Singapore companies are among of the top investors in Batam,
\nlocated some 30 kilometers southeast of the city state.<\/p>\n
Yeo's statement came after the House and the outgoing
\nadministration failed to reach an agreement on the status of
\nBatam as a FTZ. Last month, the House endorsed its own version
\nof a bill that granted FTZ status to the whole of Batam Island.
\nThis was opposed by the government.<\/p>\n
Without the government's approval, the law cannot take effect,
\ncreating further uncertainty for investors on the island, which
\nsince 1978 has been promoted by the government as an industrial
\nbonded zone to attract foreign investors. It is now one of the
\nmost attractive manufacturing and industrial locations in the
\nSoutheast Asia region, playing host to some 600 foreign companies
\nand absorbing over US$3 billion in foreign investment.<\/p>\n
The government has argued that extending full FTZ status to
\nthe whole Batam would cause envy in other regions not privileged
\nwith FTZ status.<\/p>\n
"The Kadin local representative (in Batam) told me that there
\nare about 250 investors that have expressed interest in investing
\nin Batam, but postponed their decisions until there is a clear
\ndecision on Batam's future," Hidayat told reporters on the
\nsidelines of the GES annual forum.<\/p>\n
He added that Kadin had invited the investors, who are mostly
\nparticipants in the GES forum, for a two-day visit to Batam.<\/p>\n
This year, the GES is expected to attract more than 3,000
\nleading executives, entrepreneurs and venture capitalists from
\nAsia and the world, with more contingents from India and China as
\nwell as from the U.S., Japan, Russia and Korea, and regional
\ngroups from ASEAN, the Middle East and European Union.<\/p>\n
In total, some 10,000 visitors from around the world are
\nexpected to attend the event, in which cosmetics producer PT
\nMartina Berto and apparel maker PT Great River Garments represent
\nthe Indonesian side.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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