New growth era hailed for Bintan

New growth era hailed for Bintan

BINTAN ISLAND, Riau (JP): An Indonesian-Singaporean resort and
industrial venture inaugurated new primary projects in its
tourism and industrial estates on Bintan Island, yesterday,
marking a new era of economic development in the triangle growth
area.

The inaugural ceremonies were dedicated at the start of
operations at a new ferry terminal at Teluk Sebung and a ground-
breaking ceremony for the new 181-hectare Club Mediterranee
tourist resort, both at the northern part of the island. There
were also ceremonies at the start of operations for the first
garment factory within the industrial estate located at the
northwestern tip.

The ceremonies were jointly opened here by Indonesia's six
economic ministers; Coordinating Minister for trade and Industry
Hartarto, Minister of Industry Tunky Ariwibowo, Minister of Trade
Satrio Budiardjo Joedono, State Minister for Investment/Chairman
of Investment Coordinating Board Sanyoto Sastrowardoyo, State
Minister for Agrarian Affairs/Chairman of National Land Agency
Soni Harsono, Minister of Public Works Radinal Moochtar; and a
number of Singapore's high rank officials headed over by deputy
prime minister Lee Hsien Loong.

"Good commitments showed by Indonesian and Singaporean
governments to developing the triangle growth area are essential
for the successful continuation of the Bintan projects," said
Hartarto during the opening ceremonies.

The triangle growth area links the Indonesian province of
Riau, Singapore and the Malaysian state of Johore.

Hartarto said that the operation of the Teluk Sebung ferry
terminal is an essential part of the venture's efforts to launch
the Bintan tourist resorts, covering the entire northern
shoreline of Bintan Island, as Indonesia's new and most exciting
tourist destination.

Approximately six million tourists from Singapore are expected
to come to Indonesia through the Bintan tourist resorts, he said.

"For this purpose, a ministerial team of both neighbor
countries have come to mark initial construction of the Club Med
resort in the island," he said.

The resort will include a 300-room hotel, an 18-hole
championship golf course, villas and condominiums. The resort,
absorbing a S$$224 million investment, is expected to be
operational by 1997.

The Indonesian-Singaporean governments last year set up a
ground-breaking of the first resort, called Bintan Lagoon beach
and golf resort, with a capacity of 400 rooms and 100 villas,
which will be equipped with a 54-hole golf course. The S$280
million resort is expected to be operational early next year.

Tunky meanwhile said that another new resort, Banyan Tree
Bintan, will be also set up next year with the investment of some
S$116 million. "It will include a 200-room, five-star hotel with
dozens of villas and a 27-hole golf course," he added.

Bintan Island, which has a population of over 100,000 people,
is 120 hectares in size.

Industrial park

Tunky said that at least 13 foreign companies have now signed
letters of intent to set up manufacturing operations in the
Bintan industrial estate.

He said that 10 of the companies are from Singapore, two from
Hong Kong and one from Japan.

Tunky yesterday joined the ministerial team to inaugurate
the first company, Gimmill garment factory, which is producing
knitwear, such as polo shirts, dresses and sweaters. Its annual
target output will reach 240,000 dozen pieces next year.

The park, which is intended for producing garments, textiles,
furniture, toys, food and printing goods, is owned by Salim
Group, Singapore Jurong Environmental Engineering Ptd Ltd. and
Singapore Technologies Industrial Corp.

Tunky told The Jakarta Post that Indonesian government is
committed to realigning and deregulating its policies related to
development of industrial activities on the island, if it is seen
necessary in the future.

"We are always ready to deregulate policies as far as giving
advantages to the industrial development." he said. He added that
Indonesia feels that, so far, the current deregulatory measures
are enough for the industrial development of the island.

He said that total investment planned in the Bintan resorts
will reach US$2 billion and Bintan industrial estate US$350
million.

"In addition, investments for the Kampar water project located
on a 37 hectare plot of land will cost some US$5 billion, and the
Karimun petroleum complex and marine project on Karimun Kecil
Island US$1.6 billion," he said.

He added that water projects, which will 50 percent be
supplied to Singapore and another 50 percent to the resort and
industrial estate, will have a capacity of 121 million gallons
per day in its first stage of operations in 1997.(fhp)