Batam provides land guarantee
Batam provides land guarantee
JAKARTA (JP): The Batam Industrial Development Authority, in its effort to attract foreign investors to the island in Riau, has issued a new regulation offering a "guarantee" for the use of land by investors for up to 80 years.
Soeryohadi Djatmiko, a senior official of the authority, was quoted over the weekend by Antara as saying in Hannover, Germany, that: "The new rules will give written guarantees for investors in Batam if they want to extend their land lease."
Soeryohadi was in Hannover because Batam took part in last week's Hannover Messe '95, an international fair of which Indonesia was the country-partner of Germany.
Investments in Batam so far have reached more than US$5 billion (including government and private projects). The authority forecast that by 2006, the investment figure will grow to $17 billion.
The authority now also oversees the development of two other nearby islands -- Galang and Rempang.
According to existing regulations, an investor in Batam and the other two islands can lease land for one leasing period of up to 30 years. The investor is allowed to extend the leasing period for up to two additional leasing periods, which will comprise of one period of 30 years and another of 20 years. Thus, an investor may lease land in Batam for up to 80 years if all obligations are fulfilled.
Included in the obligations is the payment of annual leasing fees which can actually be paid in advance for one entire leasing period. The leasing can be extended on the condition that the land is used for what it was originally appropriated for.
Soeryohadi said that under the new ruling, made effective on April 1, an investor who has paid leasing fees for 30 years will be automatically guaranteed a lease extension for another 20 years.
Similarly, an investor which has paid all the fees for 50 years will be given an extension for another 30 years.
The leasing fees are determined according to the land area and purpose of the lease, Antara said. (hdj)