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SBF-led delegation of Singapore business leaders meets President Susilo Bambang Yudhoyono for business dialogue

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The Singapore Business Federation led a delegation of 27 Singapore business leaders for a dialogue with President Susilo Bambang Yudhoyono in Batam, Indonesia on 19 January 2009.

The business dialogue, attended by some 100 local and foreign businessmen was held in conjunction with the visit of President Susilo to Batam to inspect the industrial zone and to officially launch Batam, Bintan, and Karimun (BBK) as Free Trade Zones (FTZs). President Susilo also inaugurated eight projects in the manufacturing sector worth US$604 million; three in the tourism sector valued at US$22.3 million; one port project worth US$107 million as well as two hotel expansion projects worth US$30 million.

In his address, President Susilo mentioned that he looked forward to increased collaboration between Indonesia and other countries through the BBK FTZ, for the benefit of Indonesian and foreign investors. He expressed hope that the establishment of BBK FTZ will further enhance the economy in the Riau Archipelago Province (KEPRI). He promised that moving forward there will be no overlap between regional and central regulations that can create barriers for investments in Indonesia, especially in the BBK.

In his welcome remarks, Mr. Ismeth Adbdullah, Governor, Riau Archipelago Province (KEPRI) expressed optimism that the official launch of the BBK FTZ will end five years of legal uncertainty for businesses over the issue of governing regulations on customs, taxes and duties for goods entering the BBK FTZ.

Other noteworthy points of his speech are as follows:

Companies operating in Riau Islands will no longer pay value-added tax (VAT), import duties and luxury tax; spurring hope that more foreign businesses will invest in the islands to tap its already low production and operating costs.
The Industrial facilities in the Riau Islands are conducive for manufacturing activities. There are modern amenities and self-sufficient services including utilities (water & electricity), waste disposal and telecommunications. Suitably trained manpower is readily available in Batam and Bintan. The wages are competitive and are lower than in other manufacturing locations in the ASEAN region.
With the setting up of the "Badan Pengusaha Kawasan" (Regency Development Authority), applications for export, import and work permit documents will be expedited faster.
Cumulative investments in KEPRI now exceed US$11 billion from more than 1,150 foreign companies. In 2007, KEPRI attracted about $1 billion in new investment, which is more than double the US$484 million received in 2006. Karimun Island alone attracted US$700 million in 2007.

About Singapore Business Federation (SBF)

For media enquiries please contact:
Gerald De Cotta, Tel: 6827 6896
Genette Koh, Tel: 6827 6874