Fri, 31 Jul 2015

Singapore, – Following President Joko ‘Jokowi’ Widodo’s two-day state visit to Singapore early this week, some investors from the island state have expressed interest to develop real estates, the maritime sector and logistics zones in Batam, an hour ferry ride from Singapore.

The Singaporeans’ investments reach a combined US$1.3 billion, Investment Coordinating Agency (BKPM) Head Franky Sibarani told reporters in Jakarta on Thursday (30/7), according to .

The maritime sector will be one of the investment priorities along with infrastructure, agriculture and industrial estates.

“BKPM, through its representative office in Singapore, is finalizing the investment processes,” Franky said.

Franky was in Jokowi’s entourage during the President visit to Singapore from Tuesday to Thursday (28-29 Jul 2015). Others were Coordinating Minister for the Economy Sofyan Djalil, Coordinating Minister for Human and Culture Development Puan Maharani, Foreign Minister Retno LP Marsudi, Trade Minister Rachmat Gobel, State-Owned Enterprises Minister Rini Soemarno, Administrative Reform Minister Yuddy Chrisnandi, and Youth and Sports Affairs Minister Imam Nahrawi.

While in Singapore, Franky also held talks with top leaders of International Enterprise (IE) Singapore which promotes Singapore investments overseas. Franky said his office and IE Singapore had agreed to make new efforts to encourage Singapore investments in Batam, Bintan and Karimun (BBK) and in other parts of Indonesia.

President Jokowi, in his business dialog in Singapore, strongly invited the state’s investors to do business in Batam and its surrounding islands. Batam’s Special Economic Zone has become less appealing to foreign investors over the past several years. Higher minimum wage was reported to be one of the reasons.

In the second quarter of 2014, Singapore ranked second as foreign investor in terms of investment value, which reached $1.1 billion. Malaysia was on top ($2.3 billion), while coming in third and fourth ere Japan ($400 million) and the United States ($300 million).