Riau Islands nets $2b Chinese investment
Riau Islands nets $2b Chinese investment
Urip Hudiono, The Jakarta Post, Batam
Efforts by the Riau Islands to attract foreign direct investment
are off to a good start, with the sealing on Sunday of a
US$2 billion investment commitment in the tourism sector between
a group of entrepreneurs from the province and their counterparts
from China.
The group also signed a memorandum of understanding with the
Maldivian Chamber of Commerce and Industry -- for a similar
cooperation in the tourism sector -- and established the Riau
Islands Development Acceleration Agency, with the local
administration to follow up the implementation of the FDI
agreements.
Head of the Riau Islands Development Acceleration Agency
Rufinus I. Susanto said the $2 billion investment commitment from
China would be realized in the form of developing several of the
province's islands into private tourist resorts.
"Many investors from China have expressed their interest in
building private tourist resorts on the Riau Islands," he said.
"And not just resorts in a single area, but turning the whole
island into an integrated, complete tourist resort."
For that purpose, the agency will make an inventory of all the
islands and select those that have potential as resort islands.
"That, and the construction of access roads on the selected
islands, will be the priority of the investment commitment in the
first year," he said, adding the development of the islands would
boost the province's overall economic condition and improve its
infrastructure.
The commitment itself will be realized within a five-year time
frame, and will be carried out through PT Naga Putra Sakti, a
company established by the consortium of the province's local
entrepreneurs and Chinese investors.
Rufinus explained the Chinese investors were also interested
in building airstrips on the planned resort islands for direct
flights to and from China, as well as the construction of
interconnecting bridges between certain resort islands.
"They want these -- especially the direct flight airstrips --
for easier access to the resort islands, without having to go
through the hassle of immigration procedures," he said.
"Of course there is a possibility that this might create
problems regarding the country's immigration regulations, but the
agency is ready to work this out with the local administration."
Meanwhile, commenting on the newly signed MOU between Riau
Islands province and the Maldives, president of the Maldivian
Chamber of Commerce and Industry Mohamed Salih was optimistic
that it would be beneficial for both parties.
"The Riau Islands will be a good investment place for
Maldivian tourist resort businesses, while the Riau Islands can
learn from the Maldives' experience in managing its island
tourism sector," he said.
The Maldives are renowned for having among the finest beach
resorts in the Indian Ocean region.
The development of resort islands will be another investment
landmark for the newly established province of Riau Islands,
following Batam island, already renowned for the major industrial
investments in its free-trade zones.