Batam reduces growth target

Batam reduces growth target

The Jakarta Post, Jakarta

The Batam Industrial Development Authority (BIDA) has
downgraded its economic growth target of 8.25 percent for this
year to 8 percent due to the outbreak of Severe Acute Respiratory
Syndrome (SARS) and possible military operations in Aceh.

BIDA chairman Ismeth Abdullah said SARS and the security
issues in Aceh had prevented investors from pursuing their
investment plans on the island.

"Hopefully, the SARS case and the Aceh issues will not
continue for long," Ismeth told reporters after signing a
memorandum of understanding with the Ministry of Agriculture and
the Ministry of Fisheries on Tuesday.

Although Indonesia is not a SARS-infected country, investors
from SARS-infected areas such as mainland China, Hong Kong and
Singapore have been advised to avoid traveling by their
respective governments. Many of the investors in Batam come from
these countries.

Ismeth said in 2002, Batam had 80 new foreign investors who
invested a total of US$600 million. The additional companies
bring the total foreign investment by all companies in Batam to
611 companies with a total investment of $3.6 billion.

As of March 2003, there were some 22 new foreign investment
companies on the island this year, injecting some $60 million
worth of investment.

For 2003, Ismeth said that BIDA had set a similar target of 80
foreign investment companies.

As for domestic investment, the growth is not as fast as
foreign. According to Ismeth, there were only 10 additional
domestic investment companies in Batam this year.