Riau more attractive to S'pore

Riau more attractive to S'pore

SINGAPORE (AP): A new Indonesian law giving local regions more
autonomy has made the country more attractive to business people
in neighboring Singapore, the city-state's foreign minister said.

Indonesia enacted a fiscal decentralization law in January
that gives additional powers and a greater share of government
revenue to the vast archipelago's 364 local districts.

"With regional autonomy we can expect more Singapore
businessmen to explore business opportunities in the regions and
deal directly with the provincial authorities," Foreign Minister
S. Jayakumar said in Parliament on Tuesday.

Despite Jayakumar's optimism, investment prospects in much of
Indonesia are uncertain because of recent communal violence in
several regions and concerns surrounding President Abdurrahman
Wahid's ability to govern the country.

But prospects appear to be better in the mineral-rich Riau
province, which is only 20 kilometers (12 miles) from Singapore.
Singaporean investors hope more autonomy there will mean less
bureaucratic red tape, since transactions won't have to go
through the capital, Jakarta.

"Riau will be especially attractive, I think, to our
businessmen because of the region's proximity to Singapore and
the already extensive links which many of our private sector have
in the area," he said in response to minister's questions about
Singapore-Indonesian relations.

Riau's people have been pushing for more autonomy amid
complaints that profits from natural resources there lined
pockets in Jakarta.

Jayakumar said Singapore had set up a consulate and a trade
office in the capital of Riau, Pekanbaru, in anticipation of
further business in the region.

Singaporeans have invested heavily in Bintan and Batam, the
Riau islands closest to the wealthy city-state. Most of the golf
and beach resorts and some of the industry on the islands are
controlled by Singaporeans.