Soeharto, Goh to open Karimun Besar estate
Soeharto, Goh to open Karimun Besar estate
JAKARTA (JP): President Soeharto and Singapore Prime Minister
Goh Chok Tong will open Sunday a 1,050-hectare marine and
industrial complex on Karimun Besar island, Riau.
The two leaders will also inaugurate a big shipping yard in
the industrial complex.
The Karimun Marine and Industrial Complex was developed by
Salim Group subsidiary PT Karimun Indojaya Corporation and
Singapore companies; Sembawang Corporation and Jurong Town
Corporation.
The director of PT Karimun Indojaya Corporation (KIC),
Handoko, said the project was part of a 1990 economic cooperation
agreement between Indonesia and Singapore to develop the triangle
between Singapore, the southern Malaysian state Johor and Riau.
Karimun is the third island to be developed under the
bilateral pact. The first two were Batam and Bintan islands in
Riau.
The marine and industrial estate complex is 60 percent owned
by KIC, 40 percent by Sembawang and 10 percent by Jurong.
He said it had facilities for ship repairs, ship building,
engineering, fabrication works, a logistics supply base,
industrial plants, maritime activities and tank terminals.
"Around S$90 million had been invested for the first phase of
the marine and industrial estate development," he said.
Besides the industrial complex, a self contained township has
also been built.
Handoko said he was optimistic the complex would draw
investors because of its strategic position.
Special incentives will be offered to investors opening
businesses on the island including full foreign ownership and
duty free bonded zone status.
Land titles on the island will be valid for 80 years compared
to 20 years elsewhere in Indonesia.
"An international port has also been set in the complex to
facilitate the flow of goods," he said.
Karimun island is about 40 kilometers southwest of Singapore
and accessible from the Straits of Malacca shipping route.
The ports deep water berths of between 15 meters and 30 meters
were suitable for very big crude carriers.
"The island is on the international shipping route, and it
only takes an hour and 15 minutes to get to Singapore by ferry,"
he said.
Soeharto and Goh will also open PT Karimun Sembawang's
Shipyard which is 35 percent owned by Salim Group and 65 percent
by Sembawang Corporation.
The 20-hectare shipyard will have a floating dock with a
dead weight ton capacity of 65,000, a 400 meter pier, a 15 ton
crane, and tug services with 2,500 horse power to 3,000 horse
power tugs.
"Later we will expand the shipyard to 40 hectares, build three
more 400-meter piers and add two more floating docks with a
capacity of 100,000 and 150,000 dead weight tons," he said.
Handoko refused to say exactly how much the shipyard cost but
said it was over S$100 million.
At the ceremony Salim Group and Sembawang will also sign a
memorandum of understanding with Japanese firm Tomen to build a
facility for oil tankers to dock and offload barrels of oil.
He said the companies were still studying the proposed project
but said it would probably have a capacity of 95 million barrel
of oil.
Salim Group is one of Asia's biggest conglomerates with 12
divisions covering banking, cement, food, textile, chemicals, and
property. The group's turnover was US$8 billion last year. (02)