Government studying plans to open free trade zones

Government studying plans to open free trade zones

BANDUNG (JP): The Ministry of Industry and Trade is studying
the possibility of establishing free trade zones in Sabang,
Dumai, Batam, Bintan, Karimun, Natuna, Bitung, Morotai and Biak.

Minister Luhut P. Panjaitan said here on Tuesday that the
first studies would be carried out in Batam (Riau) and Sabang
(North Sumatra) early next month.

He was in Bandung to speak at a seminar to commemorate the
10th anniversary of the Indonesian Managers Association's West
Java chapter.

"Soon after the first study is completed, scheduled for
November, the next studies will be on Bitung (North Sulawesi),
Morotai (Maluku) and Biak (Irian Jaya), and three months after
February the next studies are to be conducted," he said. But he
did not detail the studies.

In another part of his statement, Luhut said the government
had allocated a total of Rp 500 billion for a credit scheme for
small and medium-scale businesses.

"The central government cooperated with the provincial offices
of the Ministry of Industry and Trade in selecting needy
businesses," he said.

"A firm with a good track record, and which has overseas
buyers and is able to export, is eligible for a loan," he said,
adding that the scheme began last month and would end in
December.

Loans have been distributed to businessmen in Bali, East and
Central Java, Yogyakarta and Cirebon, he said.

He said Bank Mandiri had agreed to set aside Rp 4.5 billion
for the program. Bank Rakyat Indonesia and Jasindo, in
cooperation with a Dutch bank, have also expressed willingness to
help the scheme. (25/sur)