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)