lay out baru2 - KWR International

03 - I
REPORT
Batam Industrial Development Authority. BIDA Building, Batam Centre, Batam Island 29400, Indonesia. Tel : (62 - 778) 462047 - 48. Fax : (62 - 778) 464092. Website : www.batam.go.id. E-mail : inquiry@batam.go.id
BATAM COMPARISON RISKS
Special points of interrest:
! Batam’s participation at
Taiwan Travel Fair
! Batam Master Open 2002
! E-Government
! Investment Promotion in
Germany
An international independent risk-rating company,
based in Hongkong, Political and Economic Risk
Consultancy has conducted a survey in Batam
recently. Using the same parameters to the other
regions that they have surveyed before, Batam
has a rating of 4.87, much better compared to 7.52
for Indonesia as a whole. On the other hand,
China gets the rating of 5.64 and Vietnam of 5.7.
The rating of Batam is the third best in Asia, closely
following Malaysia and Singapore. Factors
surveyed include services to investors, labour and
security issues. This shows that Batam offers a
more investors-friendly environment.
As quoted from their report, "foreign investors in
Batam consider the business environment to be
less risky than overall Indonesian risks, especially
from the perspective of labor-intensive companies
manufacturing products for export to other
countries in Asia, North America and Europe." It
follows by stating that since Batam's superior
physical infrastructure, import of raw materials
and equipment as well as export of finished
products is very simple.
Mr. Robert Broadfoot, the internationally
recognized consultant, found through his survey
that Batam's foreign investors have taken
advantage on infrastructure, banks and other
supporting services offered by Singapore.
Therefore, putting Batam not only ahead of other
places in Indonesia but also to other free trade
zones in Southeast Asia, as "none have links with
Singapore that are as close as Batam's".
Therefore, this survey has indeed assisted
BIDA to be aware of main issues and
concerns of businesses, which contribute to
a conducive investment climate, such as
security and legal certainty. With the new
commitment and strong desire, BIDA will
certainly address these main issues to
maintain the sustainable business
environment in Batam.
Inside this issue :
! Batam.s participation at
Taiwan Travel Fair
! Batam Master Open 2002
! E-Government
! Investment Promotion in
Germany
! Grouper Cultivation in
Batam
! VISA Exemption for Chinese
-air-travelers to Batam
! Closer Ties of Batam and
Japan
! Foreign Dignitaries Visit to
Batam
! BIOTECHNOLOGY
! BATAM COMPARISON
RISKS
Risk Analysis for Foreign Investment
Sing Mal
Batam Thai.
China Viet. Phil
India Indonesia
a) External variables
3.74
3.38
3.89
4.26
3.45
3.44
4.96
8.22
4.67
b) Foreign investor variables
2.26
4.20
4.06
5.465
5.88
5.16
5.16
6.51
6.93
c) Physical infrastructure
0.52
3.95
4.31
4.71
5.04
6.45
6.27
7.15
7.41
d) The ease of doing business
2.47
7.94
4.49
6.58
7.36
6.84
5.77
7.36
8.57
e) Domestic social environment
2.37
3.93
5.00
4.02
4.67
4.34
5.25
6.27
7.73
f) Quality of expatriate life
2.02
3.52
5.04
3.02
3.73
5.03
4.51
5.68
6.50
g) The political environment
1.63
5.53
5.49
6.45
6.58
6.36
7.05
7.81
8.49
h) Natural environment
2.32
4.69
5.27
7.51
7.93
6.97
8.07
8.43
9.12
i) Education and human resource variables
3.17
4.91
5.52
6.06
4.05
4.96
4.97
4.20
6.90
j) Institutional quality, accountability and standards
2.28
6.29
5.59
8.08
7.72
7.46
7.64
8.03
9.51
TOTAL SCORE
2.28
4.62
4.87
5.61
5.64
5.70
6.05
7.09
7.52
Grades range from zero to 10, with zero being the best grade possible and 10 the worst.
Source : PERC Ltd.
1
REPORT
Investment Promotion in Germany
In order to promote investment
in Batam, the Batam Industrial
Development Authority, in
cooperation with the Consulate
General of the Republic of
Indonesia in Frankfurt and the
German-Asia Business Circle
(DAW, Deutch-Asiatischer
Wirtschaftskreis), conducted a
meeting with 30 businesspeople
on September 25, 2002 in
Frankfurt.
BIDA also conducted a seminar
and discussion session in Berlin
on September 26, 2002, which
was attended by more than 50
businesspeople and
government officials. This event
was in cooperation with the
Embassy of the Republic of
Indonesia in Berlin, the Berlin
Indonesia Business Council
(BIBC) and the Asia-Pacific
Forum Berlin.
Mr. Ismeth Abdullah, the
Chairman of BIDA, affirmed that
the organization has signed a
Memorandum of Understanding
(MoU) with BIBC to promote
investment and information and
communication development.
Bado Kruger, the President of
the DAW, believes that Batam is
the right location for German
businesses to expand in the Asia
Pacific region. Vice President for
the Executive Asia-Pacific
Forum Berlin, Mr. Eberhard
Temple, has also expressed his
enthusiasm in the investment
opportunities in Batam.
Participants were interested in
some sectors offered for
investment, which include the
electronics, shipyard, tourism,
and infrastructure facilities
development.
Batam's Participation at the Taiwan Travel Fair
The Batam Industrial
Development
Authority (BIDA)
participated at the Taiwan Travel
Fair, on November 23-26, 2002
in order to regain the trust of
foreign tourists to Indonesia
after the Bali tragedy last year.
This is part of the efforts of BIDA
as a government body in Batam,
promoting its development as a
tourism, industrial, trading, and
transshipment area.
2
Having Batam as the second
gateway for foreign visitors to
Indonesia with 1.2 million foreign
tourists last year, BIDA is
optimistic that Batam can
become a more popular tourist
destination. Therefore, BIDA
participates in international
events in order to introduce and
promote Batam's tourism
industry. Batam tourism officials
stated that they use these
opportunities to convince many
foreign investors, particularly
from the Asia Pacific, that Batam
has stepped up its security
measures to have a safe and
secure location for residents and
visitors.
Therefore, why don't you come
and enjoy the easy life filled with
nature and adventure?
REPORT
E-Government
Batam is set apart for the
national pilot project
development in Information
Technology to apply the concept
of e-Government (e-Gov) and
Batam Intelligent Island Project.
These two concepts are
expected to provide easy
information access to investors
who want to know more about
Batam and to assist the
government to obtain accurate
and reliable data for policy
making. The
Minister for
Information
a
n
d
Telecommuni
cations of the
Republic of
Indonesia, H.E. Mr. Syamsul
Mu'arif opened the Seminar on
the e-Government Development
held at Melia Panorama Hotel Batam on October 1, 2002. He
said that both e-Gov and BII are
definitely required in the global
era today. As joint efforts to
support this model, the Batam
Industrial Development
Authority, the Municipality of
Batam and Telkom (state-owned
telecommunication company)
have agreed to work together to
start establishing the website
www.ibatam.com to provide
information on Batam.
E-Gov will also integrate Smart
Card, a multifunctional card for
residents of Batam. This Smart
Card can simplify government
procedures to obtain information
on current demography and
future planning of Batam. “This
integrated system will be both
effective and compatible in the
international world,” said the
Chairman of BIDA, Mr. Ismeth
Abdullah.
Establishing close relations with investors
Up to December 2002, Batam
has accumulated a total
investment value of US$ 9.19
Billion comprised of US$ 2.15
Billion Government Investment,
US$ 3.7 Billion of Foreign
Private Investment and US$
3.34 Billion of Domestic Private
Investment. The overwhelming
figure from the foreign investors
has encourage BIDA to establish
a good and close relationship
with the foreign companies in
Batam. With that in mind, BIDA
has organised an open
discussion with 30 foreign
companies in Southlinks Golf &
Country club on January 21,
2003. It was also attended by
several -related investmentparties such as from the National
Investment Coordinating Board,
the Custom & Excise Office,
Taxation Office and the Batam
Police.
Through this meeting, BIDA is
able to gain the foreign investors'
opinions, suggestion and inputs.
Some of the attendees are
Singaporean, Japanese,
American, Malaysian investors
and some of the Indonesian
partners. In this comprehensive
meeting, the participants
e x p r e s s e d t h e i r
acknowledgement to BIDA high
effort to attract more investors to
Batam and BIDA full support
towards the foreign investors.
However, there are also several
issues that needed attention
such as the allocation of land,
security issue, taxation and
electricity provider.
BIDA is trying every effort to
sustain the conducive
investment climate in Batam,
surely there are several issues
to be enhanced such as
infrastructures and investment
procedures but through the
valuable inputs, BIDA is
committed to improve the above
for a better business
environment.
3
REPORT
Foreign Dignitaries Visit to Batam
The growth of Batam has
attracted much attention.
However, some of the foreign
diplomats currently posted in
Jakarta, the capital of Indonesia,
have not experienced what
Batam has to offer. In order to
promote a good cooperation and
friendship with other countries,
BIDA has invited officials of the
foreign embassies in Jakarta to
visit Batam.
Foreign dignitaries from 23
countries have visited Batam
throughout the year. BIDA
has learned a lot from
suggestions and concerns
raised by these guests. BIDA
also has a wonderful
opportunity to share
investment opportunities of the
area. Some first-hand
experience and discussion were
also enjoyed by the diplomats
while visiting
industrial and tourism
businesses in Batam.
During his visit, the
Ambassador for the
United Kingdom, H.E
Mr. Richard Gozney
said that Batam is one of the best
alternatives in the South East
Asia region for businesses,
considering its modern
infrastructures and conducive
investment climate. He joined
other Ambassadors to assure
BIDA that they will assist in
promoting Batam as the
investment destination in
Indonesia.
VISA Exemption for Chinese - air-travelers to Batam
Batam is gradually becoming the
preferred tourist destination in
Indonesia, with its position as
the nation's second gateway for
tourism. Although most of the
current tourists are from
neighbouring countries, there
has been a consistent increase
of tourists from Taiwan, Hong
Kong and China.
4
In order to ease
travel arrangements,
the Government of
Indonesia has now
exempted visa for
Chinese tourists who
came to Batam by
air, while a US$50
visa charge will still be applied
for sea travel. Head of Batam
Immigration Office, Mr.
Mardjono confirmed that the
new policy has improved the
number of Chinese tourists to
Batam.
Batam is actively promoting its
beautiful beaches, natural and
adventure travel, as well as
luxury and relaxing resorts.
Tourists can also visit an ExVietnamese Refugee Camp in
Galang Island, which is
accessible in 45 minutes by road
from Batam.
REPORT
Closer Ties of Batam and Japan
Batam has established closer
ties with Japan and it's business
sectors, developing a mutual
understanding and cooperation
for benefits of Japanese
investors. In order to form an
official framework, the Batam
Industrial Development
Authority has signed
Memorandums of
Understanding (MOU's) with
four Japanese major business
associations on October 7, 2002
in Osaka.
These four associations were
the Kansai Economic
Federation (Kankeiren), an
economic association for
industries in Kansai; the Japan
Indonesia Business Association
of Kansai (JIBAK), a Japan-
Indonesia business association
that assists investment from
either country; the Small and
Medium Enterprises Fukui
Prefecture, an association of
small and medium enterprises in
Fukui; and the Osaka Business
Partner City Council, a business
body which assists
businesspeople in Asia to
market their products in Japan.
Through these MOUs, BIDA and
the four associations will work
together in joint promotion,
investment mission, trade and
data exchange and various other
missions. BIDA will provide
special assistance to Japanese
investors who are planning on
expanding in Batam. Mr.
Nobusama Take, Director of the
Japan External Trading
Organization (JETRO) Osaka
mentioned that many of the
Japanese businesspeople have
been driven to find better
locations, and Batam is an
excellent choice.
With 52 Japanese companies
currently in operation in Batam,
Japanese investors will
definitely feel welcome in
Batam. The Batam Japan
Business Club will also assist
and promote a better
understanding on day-to-day
business activities.
Workshop Investment Promotion Program
Batam Industrial Development
Authority (BIDA) organized and
delivered a three-day workshop
on October 30, 31 and
November 1, 2002 together with
assistance from the Canadian
International Development
Agency (CIDA). The event was
held at Marketing Centre of the
Batam Industrial Development
Authority (BIDA). A total of 28
participants took the training.
Participants came from 7
Kabupatens, 3 Kotas, 2 KAPETs
and 1 FTZ, which included
Kabupaten Natuna, Sambas,
Kota Balikpapan, Bintan,
KAPET Sasamba, Bitung, and
the FTZ Sabang. The
participating regions were
particularly from those who had
previously requested assistance
from BIDA.
The main objectives on the
training program are to
strengthen the capacity of a
selection of Kabupatens, Kota
and KAPETs to plan and
implement their own programs
for investment promotion as well
as to develop and strengthen a
self-sustaining capacity within
BIDA to plan, organize and
deliver (and evaluate) 'world
class' training and similar
events.
Through this workshop,
participants also learned how to
market the potential of their
regions more effectively and
efficiently. In turn this should
help at least some (if not all) of
these regions to create new
economic development
opportunities and thereby help
to create new employment and
improve their economy.
5
REPORT
BATAM MASTERS 2002
As part of the infrastructure
development for communities,
the Batam Industrial
Development Authority (BIDA)
has built an Indoor Sports Hall in
Batam. The official opening of
the Sports Hall was conducted
through the International
Badminton Championship of
Batam Masters 2002 on
November 21-24, 2002.
20 world-class players from 9
(nine) countries took part in this
event. These participants are
outstanding players from
Denmark, England, Germany,
Hong Kong, South Korea,
Malaysia, Singapore and the
host Indonesia. More than 2,000
viewers attended the opening
ceremony of the Batam Masters
2002, and at the same time, the
inauguration of the Sports Hall
by the Chairman of the National
Olympic Committee of
Indonesia (KONI, Komite
Olahraga Nasional Indonesia),
Mr. Wismoyo Arismunandar.
This milestone for Batam was
witnessed by the former Vice
President of the Republic of
Indonesia, H.E. Mr. Try Sutrisno;
Chairman of the Indonesian
Badminton Association (PBSI,
Persatuan Badminton Seluruh
Indonesia), Mr. Chairul Tanjung;
President of Asian Badminton
Confederation, Mr. Fans
Gunalan; and the Chairman of
the Batam Industrial
Development Authority, Mr.
Ismeth Abdullah.
After four days of excellent
sports, the championship was
closed with a trophy
presentation to Taufik Hidayat
(Indonesia) who won the men's
single, and Chandra Wijaya /
Sigit Budiarto (Indonesia) who
won the men's double. The
Batam Masters 2002 has truly
opened a path for more
international sports
championships at the 715-km2
island of Batam.
BATAM'S APPRECIATION NIGHT
Batam Industrial Development
Authority (BIDA) held an
evening of appreciation at
Dharmawangsa Hotel, Jakarta
as a token for appreciation to all
parties who have contributed to
the development of Batam.
There are numerous
organizations; public and
private, as well as countless
6
individuals who have
participated significantly in the
31 years of development Batam.
In addition to recognizing these
parties, the Appreciation Night
was attended by 200 invited
guests, attributing to the Central
Government whose policies
have made Batam successful,
as well as to the
Representatives of Foreign
Embassies and Chambers of
Commerce and Industry who
have helped promoting Batam to
their business world.
Chairman of the Batam
Industrial Development
Authority, Mr. Ismeth Abdullah,
on his welcoming speech
dedicates the success of Batam
to the confidence and teamwork
of the public and private sectors.
He also pledged that BIDA will
work even harder to provide
better services and efforts next
year to create the new Batam, a
place where visitors and
investors feel welcome.
to be continued
REPORT
BATAM'S APPRECIATION NIGHT
At the same time, BIDA has also
presented token of appreciation
to 11 companies that have
contributed significantly to the
economic development of
Batam, which include PT. Mc.
Dermott (Offshore
Construction), PT. Citra Mas
Group (Tourism, Real Estate),
P T. S c h n e i d e r E l e c t r i c
(Electronics), PT. Sat Nusa
Persada (Electronics
Assembly), Bintang Industrial
Park, Batamindo Investment
Cakrawala (Industrial Park), PT.
CIBA Vision (Contact Lenses),
PT. Matsushita Kotobuki
Electronics, PT. EcoGreen
Oleochemical/Batamas Megah
(Chemical), and PT. Thomson
Multi Media Batam (Multimedia,
Television Assembly).
BIOTECHNOLOGY
In its 31 years of development,
Batam has been widely known
as a manufacturing base - now
moving on towards technology
based industries. Batam has
been selected nationally to
promote the bio-technology
industry in Indonesia.
Biotechnology is relatively new
in Indonesia. For this reason, the
Ministry of Research and
Technology and BIDA will carry a
national pilot project on the
development of Bio-technology.
Rempang Island, an island that
is part of Batam FTZ, has been
chosen to be the location of the
nation's Bio Island.
Prior to the formulation of the
concept, the Ministry of
Research & Technology, BIDA,
the Municipality of Batam and
the Bogor Institute of Agriculture,
have conducted studies to
neighbouring countries.
With the biotechnology in
Rempang, Indonesia will be
looking into a winning project,
considering its spacious and
fertile land, efficient
infrastructure for the
development of the technology
and its production.
Grouper Cultivation in Batam
Galang Baru, one of the
extended islands of Batam, has
great potential for fisheries,
particularly in grouper
cultivation. Deputy Chairman for
Administration and Planning of
BIDA, Dr. Wendy Aritenang, said
that grouper agri-business has a
bright opportunity to be
developed considering the high
demand of international
markets, especially from
Singapore and Malaysia.
The Minister for Research and
Technology of the Republic of
Indonesia, H.E. Mr. Hatta
Rajasa, harvested the first batch
of grouper cultivation at Galang
Baru, consists of 12 nets of
about 1,500 fish or around 500
kg. This grouper cultivation is
also supported by a research
department with Germany to
gain a higher quality of groupers.
BIDA has decided to further
develop the cultivation in 2003,
thus, will establish a stronger
cooperation with the Agency for
the Assessment and Application
o f Te c h n o l o g y ( B a d a n
Pengembangan dan Pengkajian
Teknologi) in this project.
7
REPORT
Seminar “Re-building Investor Confidence”
Batam - Indonesia, an area that is specialized for industries and
trade located 20 km from Singapore, has been able to show a
consistent achievement by the growth of investment despite the
Indonesian financial crisis of recent years. By December 2002,
Batam has attracted 612 foreign companies, with a US$3.55
billion net worth of investment. The increasing inflow of foreign
investment has helped in the nation's economic recovery. Along
with the development and progress of Batam and the
implementation of AFTA 2002 and Batam Free Trade Zone, some
policies and laws are being changed to make the region more
investor-friendly.
This seminar “Batam Indonesia: Re-Building Investor
Confidence” is jointly organized by the Batam Industrial
Development Authority (BIDA), the Singapore Confederation of
Industries (SCI) and the Indonesian Business Association of
Singapore (IBAS) and supported by the Indonesian Embassy to
the Republic of Singapore. Through the event, participants have
obtained the current and most up-to-date information on foreign
investment policy as well as security issues in Batam, Indonesia.
By the end of the discussion, delegates have also gained valuable
insights on new decisions from the Government of Indonesia on
foreign investment as well as personal and investment security in
Indonesia, especially in Batam.
The signing of the MOU's between BIDA, SCI and IBAS was done
to provide stronger assistance to the members of the two
associations who wish to invest in Batam. The initial agreement
with these two associations will be officially signed by Mr. Ismeth
Abdullah, as the Chairman of BIDA and Mr. Lew Syn Pau, the
President of SCI, Mr. Suryo Sulisto, the President of IBAS.
The Seminar and MOU signing was held at the Marina Mandarin
Hotel, Singapore, and attended by all members of the
Singaporean Confederation of Industries, directors, executives of
SCI and IBAS and media. Mr. Theo Toemion, the Chairman of
the Investment Coordinating Board (BKPM) of the Republic of
Indonesia, was the keynote speaker for the day and delivered his
address on "Indonesia: Re-Building Investor Confidence”.
General Da'i Bachtiar, National Police Chief of the Republic of
Indonesia, gave a special presentation on “Security Issues in
Indonesia”. Mr. Ismeth Abdullah, the Chairman of the Batam
Industrial Development Authority focused on Security and
Investment Climate in Batam.
Other speakers include Mr. Eddi Hariyadhi, the Chargé d'affaires
A.I. of the Republic of Indonesia to Singapore, Mr. Lew Syn Pau,
the President of the Singapore Confederation of Industries (SCI),
Mr. Suryo Sulisto, the President of
the Indonesian Business
Association of Singapore (IBAS).
In addition to the seminar, delegates
had also have the opportunity to
catch a glimpse of Batam's
industrial growth through
presentations by several industrial
estates. These industrial estates
offer various packages of services
(e.g. labour recruitment, licenses)
and facilities (e.g. wastewater
treatment, uninterrupted utilities).
BATAM REPORT
Published by: Batam Industrial Development Authority, Patron: Chairman of BIDA, Deputy for Administration & Planning, Deputy for Operation, Deputy for Supervision & Control,
Publisher: Bureau of Marketing and Public Relations, Chief-Editor: Riatna Jeo, Editors: Geoff Page, Ariastuty Sirait, Novrita, Lay-Out: Ilham Eka Hartawan, Dendi Gustinandar
Administration & Circulation: Marketing Division, Address: Jakarta: D.I. Panjaitan Kav. 24, Jakarta 13410 Indonesia, Tel. (62-21) 8580009-11, 8580034, Fax. 8580038; Batam:
Batam Centre, P.O. BOX 151, Batam Island 29400, Indonesia, Tel. (62-778) 462047-48, Fax. 462456, 462240, 462432. The content does not necessarily reflect the view or policy of
BIDA unless clearly stated. Parts of content may be quoted by permission from the publisher. Published Quarterly.