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.