TEMPO Interactive, Jakarta: The Change in Government Regulation (Perpu) No.1/2007, the basis of making Batam a free trade zone (FTZ), is regarded as causing the state to suffer a loss. The reason is, by this regulation, all goods that enter this zone will be free from duty, value-added-tax (VAT), luxurious goods sales tax and excise. An economist of the University of Indonesia, Faisal Basri, said that the regulation caused the government to lose the potential of immense tax revenues from Batam.

Batam (ANTARA News) - The government has decided to build Batam and Karimun into a full special economic zone, while Bintan will only be developed into an enclave, the head of the Capital Investment Coordinating Board, Muhammad Lutfi, said here on Tuesday. "Bintan is a level-seven category enclave," he said after meeting with the chairman of the regional legislative assembly Soeryo Respationo and Batam mayor Ahmad Dahlan.

Jakarta (ANTARA News/Asia Pulse) - Indonesia will potentially suffer losses of Rp4 trillion (US$444 million) annually in tourism earnings if a plan to ban all local airlines from flying to the European Union (EU) is carried out, according to tour operators. "The losses could reach Rp4 trillion in 2008 if the ban is implemented," chief executive officer (CEO) of Panorama Tours, Dharma Tirtawisata, said here Tuesday. As many as 700,000 to 800,000 European tourists come to Indonesia every year.

Yoyakarta (ANTARA News) - University of Gajah Mada economist Dr Sri Adiningsih said the government should not show favoritims in selecting areas to be included in the Negative Investment List (DNI). "If the criteria for areas to be included in the DNI have been formulated, the government should be consistent. There should be no favoritism by which certain sectors are purposely defined ambiguously so that they would still be open for certain groups or people," she said on Tuesday.