Govt to develop bordering islands for business

The Jakarta Post, Jakarta

The government was preparing regulations to encourage foreign investment and tourism on small islands in border areas, the Minister of Maritime Affairs and Fisheries said on Tuesday.

Freddy Numberi said the ministry was still waiting for directions from President Susilo Bambang Yudhoyono before he would reveal the specific detail of the policy.

"(We) expect to complete the formulation of the regulations this year," Freddy said after opening a seminar and exhibition on coastal resources in Jakarta.

After the regulations were enacted, the government would invite private investors to build facilities for business activities, he said.

"With a strong commitment, both the government and the private sector can develop partnerships and establish economic activities on small islands in border areas."

Indonesia has more than 90 small islands in areas bordering neighboring countries, most of which are little developed.

The minister said that for the time being, the government would promote the development of Nipah island in Riau as a maritime tourist resort and international transit port and shopping hub.

"As the port in Singapore is full to capacity we can establish a port in Nipah," Freddy said. However, land reclamation work would be needed for the establishment of port facilities, he said.

Which such facilities, the island could accommodate the docking of Singaporeans' yachts, he said.

"We can also use Nipah island as a reference point to control economic activities around the border."

Freddy said his ministry had been involved in discussions with the Ministry of Public Works on a possible joint development of facilities on the island.

Nipah is located about eight kilometers northwest of Batam island and the same distance southwest of Singapore.

The island used to be 90 hectares wide and stand 2.5 meters above sea level.

However, sand dredging on the island during the past two decades has decreased its width and height -- to about 62 hectares and one meter respectively. (004)