Batam's electronic goods exports reach $2.25 billion

JAKARTA (JP): The new head of the Batam Industrial Development Authority, J.E. (Fanny) Habibie, said yesterday that exports of electronic goods from the island last year exceeded US$2.25 billion, almost 80 percent of the island's total exports.

Fanny, who replaced his brother Vice President B.J. Habibie in the post last week, said oil-drilling equipment exports totaled $70 million last year, while exports of other goods, including telephone equipment, were $388 million.

"Exports of electronic goods could still increase," Fanny said yesterday after meeting President Soeharto.

He added that exports from Batam accounted for almost 10 percent of the country's total exports.

Under a 1973 presidential decree Batam was established as a specially designed industrial project.

It is strategically located about 20 kilometers southeast of Singapore, on the international shipping routes between the Indian and Pacific Oceans.

Fanny, a former Indonesian ambassador to Britain, said yesterday he would continue developing the island's infrastructure to lure more investors.

"The President told me to continue the development of Batam as an industrial area by improving its infrastructure, so that we can give added-value to investors."

He said investment in the island so far totaled US$6.46 billion, US$1.48 billion from the government and the remaining $4.98 billion from the private sector.

Fanny said the authority had overseen the completion of six bridges connecting Batam to the nearby Galang and Rempang islands.

In addition to the six bridges, the longest of which is 650 meters, a 54-kilometer-long road from Batam to Galang had also been completed, he said.

The President also asked him to develop the island's seaport and airport to improve the flow of exports.

An airport with good facilities would supplement the popular Singapore airport for the transit of air cargo, he said.

The President also ordered him to control the flow of people moving to Batam.

"Don't let the number of people who do not have skills and who are not useful in developing the labor market there to keep escalating... they cannot come and build homes illegally, cut down trees...," he said, quoting Soeharto.

There are about 60,000 skilled workers in Batam at present.

He said the total workforce had increased to 132,833 people last year from 6,159 people in 1985. (das)