Singapore and Indonesia Agree on Measures to Improve Investment Climate in Batam, Bintan and Karimun

SINGAPORE AND INDONESIA AGREE ON MEASURES TO IMPROVE INVESTMENT CLIMATE IN BATAM, BINTAN AND KARIMUN

Ministers from Singapore and Indonesia discussed the implementation of economic initiatives in Batam, Bintan and Karimun, at their 2nd Joint Steering Committee (JSC) Meeting, convened just 6 weeks after their inaugural meeting.

Co-chaired by Singapore’s Minister for Trade and Industry, Mr. Lim Hng Kiang, and Indonesia’s Coordinating Minister for Economic Affairs, Dr Boediono, the JSC supervises the implementation of the “Framework Agreement on Economic Cooperation in the Islands of Batam, Bintan and Karimun” – an agreement signed between Indonesia and Singapore on 25 June 2006.

At this 2nd JSC Meeting, Ministers endorsed an Action Roadmap that had been drawn up by the Joint Working Group (JWG), chaired by Singapore’s Chairman-designate of the Economic Development Board, Mr. Lim Siong Guan, and Indonesia’s Minister of Trade, Dr Mari Pangestu.

The Action Roadmap details initiatives and milestones in 9 key areas – capability development, customs, immigration, infrastructure development, investment, industrial relations, manpower wages, taxation, training and certification – to be achieved over the next 18 months, in order to streamline processes, simplify documentation, ease business travel, improve industrial relations and reduce bureaucratic bottlenecks. This is in fulfillment of President Susilo Bambang Yudhoyono’s call for the Batam, Bintan and Karimun Special Economic Zones (SEZ) to be “Faster, Better, Cheaper”.

A good first step and tangible outcome of the work of the JSC and JWG has already been realized, with the inauguration of an Integrated Investment Service Centre (IISC) on 25 July 2006 in Batam. The IISC is a one-stop service center for the processing of all permits and paperwork pertaining to investment, taxation, customs, manpower, and immigration.

Welcoming the progress of collaboration from the conceptualization stage to the implementation stage, the Ministers expressed their commitment, and underscored the importance of bringing to fruition all the measures in the Action Roadmap. “For the SEZ initiative in Batam, Bintan and Karimun to be successful in retaining and attracting investors, actual implementation is critical”, said JSC co-chair for Singapore, Mr. Lim Hng Kiang

Dr Boediono, JSC co-chair for Indonesia, said that the success of Batam, Bintan and Karimun as Indonesia’s first SEZs is important in the country’s efforts in improving the investment climate. "It will also set a benchmark and example to other areas in Indonesia to follow suit”, said Dr Boediono.

For the 2nd JSC Meeting, the Indonesian delegation comprised the Coordinating Minister for Economic Affairs, Minister of Trade, Minister of Industry, Minister of Manpower and Transmigration, Minister of Justice and Human Rights, Minister of Finance, Chairman of the Investment Coordinating Board, Head of the National Land Agency and the Governor of the Riau Islands Province.

The Singapore delegation was represented by the Minister for Trade and Industry, Minister for Manpower and Second Minister for Defense, Minister for Education and Second Minister for Finance, Minister in the Prime Minister Office, Senior Minister of State for Home Affairs and Law, and Chairman-designate of the Economic Development Board.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE AND COORDINATING MINISTRY FOR ECONOMIC AFFAIRS, INDONESIA
1 SEPTEMBER 2006