RI to finish study on free trade zone soon

RI to finish study on free trade zone soon

SINGAPORE (Dow Jones): Indonesia expects to complete within
months a study on how to turn several islands near Singapore into
a free trade zone, Trade and Industry Minister Luhut Pandjaitan
said.

Luhut told Dow Jones Newswires in Singapore on Tuesday that
President Abdurrahman Wahid's government is committed to creating
a free trade zone.

A study to set policies for making this possible should be
finished "within two to three months," he said.

Places that might be included in such a zone are Batam, Bintan
and Karimun islands close to Singapore, plus the nearby port of
Dumai on the eastern coast of Sumatra island.

The Indonesian government - struggling to attract new
investors due to the country's political and economic
uncertainties - hopes that the islands close to Singapore can
attract significant investment.

The trade minister, who Tuesday relinquished his position as
Indonesia's ambassador to Singapore, said a newly-announced
investment on Batam "shows there is a strong interest in
Indonesia."

He witnessed the signing of a joint venture agreement between
PT Citra Tubindo, a Jakarta-listed pipe maker, and a unit of
Singapore's state-run SembCorp Logistics Ltd. to set up a network
of offshore oil and gas logistics supply bases throughout
Indonesia.

Under the agreement, the first base will be on Batam, 25
kilometers from Singapore. Construction of that base, in which
US$1 million will be invested, will begin before the end of the
year.

Kris Wiluan, president-director of Citra Tubindo, said he
anticipates that the new joint venture will invest S$20 million
over several years in a series of bases.

Singapore Offshore Petroleum Services, the SembCorp unit, will
own 70 percent of the new venture, with Citra Tubindo holding 30
percent.

Luhut said the joint venture "shows the serious intent of
Singapore to invest and help Indonesia overcome (its) crisis."