Stability gives tourism, industry bright hopes
Stability gives tourism, industry bright hopes
By A. Junaidi
BATAM, Riau (JP): Industry and tourism in Batam appear to be
reviving, thanks to the return of political stability following
the democratic election of President Abdurrahman Wahid in October
last year.
Chairman of the Batam Industrial Development Authority (BIDA)
Ismeth Abdullah said recently several investors had renewed their
commitment to invest in Batam after the presidential election.
"Tourist arrivals are also currently increasing," Ismeth told
The Jakarta Post.
He said this year Batam's 389 companies, mostly foreign
investment firms, would contribute more than Rp 1 trillion
(US$142 million) in corporate and income taxes to state revenues.
He said 47 new factories were expected to be built on the
island in 2000, with US$ 90 million dollars from Singaporean,
Korean and Japanese investors.
Out of 30 countries investing in Batam, Singapore is the
largest, accounting for 75 percent of all investment, followed by
the United States (5.6 percent) and Japan (five percent).
Ismeth hoped the recent visit of President Abdurrahman, better
known as Gus Dur, to Singapore would encourage more Singaporean
firms and individuals to invest on the island.
During his visit in November Gus Dur reportedly offered
Singaporean senior minister Lee Kuan Yew a job as his
international economic advisor.
Gus Dur's predecessor B.J. Habibie, the pioneer behind Batam's
development, was believed to have a poor relationship with Lee.
During a recent consultative meeting with the House of
Representatives Gus Dur announced that Batam, along with Bintan,
Karimun and Sabang, would be declared free trade zones.
He said the new status was aimed at speeding up development in
the islands and increasing job opportunities.
Ismeth hailed the free trade area status, saying it would
attract more investors to the 145-square-kilometer island
situated just 20 kilometers south of Singapore.
Batam's economy grew by two percent last year, while other
parts of the country recorded minus growth. This year Batam's
economy is predicted to grow by between four and five percent.
"Batam was the only province to enjoy economic growth during
the monetary crisis," Ismeth said.
Confidence
A president of a local car repair firm, Sujak Widodo, also
expressed confidence that Batam would continue to blossom in the
futures.
Sujak said that, in cooperation with a local investor, he
planned to build a car factory in Batam in three years time with
an initial investment of Rp 10 billion.
Local property businessman M. Rindo Purba said the property
market in Batam was on the right track, thanks to the survival of
industry on the island.
"The economic crisis affected us a little bit," Rindo, an
executive of the Indonesian Real Estate Developers Association
(REI) in Batam, said without elaborating.
The tourist sector in Batam has also regained its feet since
the presidential election.
Foreign tourist arrivals dropped significantly after bloody
ethnic clashes between Bataks and Florinese broke out here last
July, leaving at least 13 people dead.
From 110,000 in July, they dropped to 88,456 in August, the
lowest number this year. The figure then increased to 98,456 in
September, 110,900 in October and 123,000 in November.
Sales manager at Batam's Turi Beach Resort Ida Bagus Oka
Negara said many tourists canceled their visits and asked for
refunds on hearing reports of fighting on the island.
"Now they have returned. Almost every weekend hotels here are
fully booked," Bagus said.
BIDA's deputy director for tourism Prieddy Soegondho P. said
Batam would develop and promote cultural and ecotourism to
lengthen tourist stays.
"Now tourists only stay here an average of two days," Prieddy
said, adding that 70 percent of the tourists are Singaporean and
eight percent are Malaysian.
He predicted this year the number of tourists would reach 1.2
million, making it the country's second most popular tourist
destination after Bali.