Singapore investors still keen on Batam, Bintan
Singapore investors still keen on Batam, Bintan
Fadli, The Jakarta Post, Singapore
Businesses in Singapore still consider the neighboring islands
of Batam and Bintan in Riau province the most suitable places for
business expansion, despite China's increasing popularity as
Asia's most appealing country for foreign investment.
Singapore Confederation of Industries president Lew Syn Pau
said during an investment seminar here this week that Batam and
Bintan had the advantage of proximity to the city-state.
He pointed out that the two islands were only 20 kilometers
from Singapore and could be reached by a 40-minute ferry ride.
The seminar, aimed at reviving investor confidence in
Indonesia, was also participated in by top Indonesian government
officials like National Police chief Da'i Bachtiar and Investment
Coordinating Board (BKPM) chief Theo Toemion.
Lew said that the Oct. 12 Bali bombing did not deter
Singaporean investors from investing in Batam and Bintan in
particular as Singapore investors had confidence in the
Indonesian government's efforts to restore security.
The Bali bombing plus a host of uncertainties at home have
discouraged foreign investors from making new investments in the
country.
Batam and Bintan have until now received some US$1.1 billion
in investments from Singapore, making the city-state the largest
foreign investor in the two islands.
In mid December 2002, Singaporean Prime Minister Goh Chok Tong
visited Indonesia in a gesture of good faith and to support the
country's bilateral agreement to revive foreign investor
confidence in Indonesia.
In April of last year, Singapore also included Batam and
Bintan in a bilateral free-trade pact with the United States.
In addition, a memorandum of understanding (MOU) was signed by
the Batam Authority, the Singapore Confederation of Industries
and the Indonesian Business Association of Singapore (IBAS) in
order to promote Batam and other commercial areas in Indonesia
with potential to Singaporean investors.
Batam and Bintan are also popular tourist destinations among
Singaporeans.
Indonesian and Singaporean investors have invested in resort
development to tap tourism business opportunities.