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)