Riau attracts Singapore investors

Riau attracts Singapore investors

Deutsche Presse-Agentur, Singapore

Indonesia's Riau province is turning into an attractive investment destination for Singapore companies intrigued by its pro-business stance, it was reported on Monday.

More than S$100 million (US$55 million) was invested by Singapore-based companies in the province during the first six months of this year, with about a dozen firms opening factories and farms, The Business Times said.

Those attracted to Riau over the old favorites of Batam and Bintan islands cite implementation of a law this year granting provinces more political autonomy and control over development of their natural resources.

With foreign investors in Riau now allowed to own 100 percent of the companies they set up, the provincial capital of Pekanbaru is viewed as fast becoming an important meeting place for business people from all over East Asia.

Arifin Jurharman, deputy head of the provincial parliament, told the newspaper both his office and the governor were aware of the need to attract foreign investors to improve economic and social conditions for the province's 4 million inhabitants.

"Our resources are vast and we can offer much to businessmen and investors," he was quoted as saying.

Keith Peh, whose family runs a logistics and transport business in Singapore, picked Riau for a factory producing high- grade smokeless charcoal to be exported to Japan, South Korea, Hong Kong and India.

Peh noted many business people think of security problems and harassment by local officials when Riau or Indonesia is mentioned.

These concerns can be easily addressed, he said, now that a Singapore consulate has been set up to provide assistance for those interested in investing in Riau.