Singapore and Indonesia Develop Capability Development Package for Batam, Bintan and Karimun

Jakarta, 3 November 2006

Ministers from Singapore and Indonesia today endorsed plans for training programmes to develop the capabilities of administrators and the industrial workforce in the Special Economic Zones (SEZs) of Batam, Bintan and Karimun (BBK).Plans for the training package include a 2-phase training programme for SEZ administrators and the development of vocational training for the industrial workforce at Batam Polytechnic.

These and other issues were discussed at the 3rd Joint Steering Committee (JSC) Meeting on economic cooperation in BBK, which was 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 ministers welcomed the emphasis on targeted vocational training, which will supply the SEZs with a stream of readily employable workers. The vocational training package that Singapore has tailored for BBK comprises consultancy services, ‘train-the-trainer’ programmes, and guidance from Singapore to develop a vocational training arm at the Batam Polytechnic.

The JSC also discussed other issues that would steer the development of the BBK SEZs in the right direction. These included keeping minimum wage increases low, improving the relationship between unions and employers, putting in place business-friendly taxation, customs and immigration measures, and developing legislation that would establish a clear authority to implement reforms in the BBK SEZs.

Capability development, customs, immigration, infrastructure development, investment, industrial relations, manpower & wages, training &certification, and taxation are the nine areas highlighted under the Action Roadmap, endorsed by the JSC at the 2nd JSC Meeting on 1 September 2006. The roadmap details initiatives and milestones critical for the successful implementation of the SEZs, to be achieved over 18 months.

The Indonesian delegation for the 3rd JSC Meeting comprised the Coordinating Minister for Economic Affairs, Minister of Trade, Minister of Justice and Human Rights, Minister of Manpower, Minister of Finance, and the Governor of KEPRI.

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’s Office, Senior Minister of State for Home Affairs and Law, and Chairman of the Economic Development Board.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE