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Batam Report Edisi 2 II - 2003 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 : [email protected] INDONESIA INVESTMENT YEAR 2003 On February 27, 2003, the President of the More than 400 participants nationwide attended Republic of Indonesia, Her Excellency Madame this event, including 50 local and foreign Special points of interrest: Megawati Soekarnoputri inaugurated the companies representing Batam. After the “Indonesia Investment Year 2003” at the launching ceremony, a luncheon was hosted at ! Indonesia Investment Year Presidential Palace in Jakarta. This declaration Borobudur Hotel Jakarta, with highlights of the 2003 shows the high priority attached to investment for signing of Memorandums of Understanding ! Recent Foreign Investment in economic growth and job creation. It is a between the BKPM and all Governors of Indonesia, Batam government commitment to improve the as well as BKPM and Batam Industrial ! Indonesia - China investment climate and support for all investment Development Authority (BIDA) to promote and Friendship Association and related services. assist investment throughout the nation. ! Housing for Foreign Nationals in Batam The purpose of the “Indonesia Investment Year The Government of Indonesia has prepared ! How is SARS handled in 2003” is to restore confidence of foreign investors several industrial sites to facilitate investment Batam? in conducting investment activities in Indonesia in activities in Indonesia. For example, the success of creating a conducive investment climate. It is also BIDA in managing such industrial sites on the one of the national efforts to develop public island of Batam, offering a wide range of services awareness, care, and commitment from the and facilities to support investment. population of the importance of investment in creating job opportunities and assisting the The Batam Industrial Development Authority national economic recovery. Several new (BIDA) together with BKPM and PT Pos Indonesia programs have also been launched by the National (Indonesian Postal Service) also launched the Investment Coordinating Board (Badan Koordinasi philatelic commemorative envelopes (first day Penanaman Modal, BKPM) in order to assist covers for the launching. Collectors may contact investment, especially foreign investment in the Marketing Department of BIDA at Inside this issue : Indonesia. [email protected]. ! More Japanese Associations to Visit Batam ! Investment Promotion in Germany ! Taiwan Golf Tour BATAM ! The First Batam Automotive Show ! International School of the Global Indo- Asia ! Theatre Perfomance: A Chinese Love Strory ! Batu Besar Village ! Batam Trivia: Who is Raja Ali Haji? 1 REPORT Recent Foreign Investment in Batam In the year 2002, 80 new foreign Most popular business sectors in Batam Australia, Austria, Denmark, France, companies were established, worth include metal and heavy machineries, Germany, Japan, Malaysia, Singapore, US$185.2 million. Besides these new shipbuilding & repair, trading & the Netherlands and the United States investments, there were also wholesale, developer/property, in the first quater this year who came to expansions from 12 existing foreign electronics & mechanical components, seek the first hand information on companies worth US$40.5 million. packaging & shipping. Others range investment climate in the region. Thus, foreign investment for the year from health care products to mining was US$225.77 million. processing, and furniture to jewelry. Altogether, up to March 2003, Batam has been the home for 633 foreign These companies originated from 14 In the first quarter of this year, from companies from 34 countries with the countries, with the largest investments January to March of 2003, there are total foreign investment of over US$3.7 from Singapore and Malaysia. There already an additional 22 foreign billion. This way, any new investment were also some investments from companies with investment worth US$ would immediately feel at home. Korea, Taiwan, Japan, Hong Kong and 18 million. There are also 6 existing Australia, and companies from UK, foreign companies who will expand their USA, British Virgin Island, Netherlands, manufacturing plants this year with the Sweden, People's Republic of China, value of US$19.63 million. Mauritius. Among these, there were also 31 companies in cooperation with Due to the progressive promotional Indonesian companies that established programs conducted by BIDA, Batam joint ventures. has also been visited by approximately 300 potential foreign investors from More Japanese Associations to Visit Batam More than 20 members of the Economic cooperation, investment mission, trade has many potential investors, where the Federation of Kansai (Kankeiren) and information exchange from the two region has contributed 20 per cent of the visited Batam on February 10, 2003. parties. trade scales of Japan. This was the first trip after the signing of the MoU with the Batam Industrial On this particular trip, Kankeiren was Three days later, on February 13 2003, Development Authority (BIDA) on researching the possibility of investing the Japan Chambers of Commerce and October 7, 2002 in Osaka. The MoU in Batam, hence visited several Industry (JCCI) in Singapore also comprised of several binding industrial estates, foreign companies, visited Batam. The delegation consisted agreements in the promotional and looked at several infrastructures in of 50 senior executives of major the region. Kankeiren is an economic Japanese companies in Singapore. The association in Japan comprised of President of JCCI Singapore, Mr. Multinational, Small and Medium Takashi Muraki, affirmed that JCCI Enterprises from the Kansai region would like to direct and assist its (Osaka and the surrounding areas). The members to suitable investment regions delegation was led by Mr. Masayuki such as Batam, as their main business Matsushita from the Matsushita Group, destination. who have their branch in Batam. Kansai to be continued 2 REPORT These recent Japanese delegation Batam, with an investment of almost Some of the current Japanese visits are evident of BIDA's high US$ 400 million comprising of twelve investments are in electronics & commitment to continuously develop 100%-Japanese ownership and 39 electrical products, plastic industry, and introduce Batam as the most joint-venture companies. In addition to shipbuilding, and oil-gas supporting suitable investment location in the Asia these companies, there are many more industry, with multinationals, such as Pacific region. Japanese companies who have Matsushita, TEAC, Chiyoda, Epson, expanded to Batam, as part of their Sanyo and Nippon Steel who have There are currently 51 (fifty one) existing manufacturing activities in excelled in their businesses in Batam. Japanese companies in operating in Singapore and Malaysia. Investment Promotion in Germany A further step was taken by the Batam that Batam is be the right choice for Industrial Development Authority German companies to expand in the (BIDA) to promote Batam in Germany East Pacific Asia region. after several promotion trips to introduce Batam as a strategic On February 18, more business investment location in Asia. The trip, meetings were conducted in Stuttgart in conducted on 17-19 February 2003, coopeartion with BIDA, Baden- was a more intensive and The promotional trip comprised of a Wurttemberg Agency for Economic comprehensive meeting with the workshop, seminar and dinner meeting. Cooperation (GWZ) and the Indonesian potential investors in Frankfurt and The workshop meeting was on 17 Consulate General in Frankfurt Stuttgart. These meetings were led by February in Frankfurt, jointly organized attended by the Ministry of Economics Mr. Ismeth Abdullah, Chairman of BIDA by BIDA and the Consulat General of of B-W IHK Stuttgart, Germany accompanied by H.E. Mr. Arifin Siregar, the Republic of Indonesia and attended Chamber of Commerce, Banking and the former Ambassador of the Republic by 70 business people and trade other trade associations. of Indonesia to the United States and associations. This meeting was Currently, German investment in Batam also the Chairman of EKONID, and Mr. designed to provide detailed is worth of US$32 million from 5 Risaldi Kasri, the Deputy for Investment information to the attendees in the areas companies in the electronics, oil & gas Promotion of the National Investment of industry development, tourism, supporting industry, and other Coordinating Board. technology and infrastructure facilities. During the evening, BIDA together with industries. Hence, all promotional the German-Asian Business Circle overseas trips to Germany will stimulate (DAW, Deutsch-Asiatischer and attract more German investors to Wirtschaftskreis) hosted a dinner invest in Batam. meeting which was attended by the Vice Prime Minister of Hessen Region, Mrs. Ruth Wagner and more than 500 business people, trade associations, and German government institutions. Bodo Kruger, the DAW President, said 3 REPORT Theatre Performance: A Chinese Love Story In order to value cultural diversity in fell in love with her schoolmate, a boy Batam and to welcome the Chinese named Sampek, and later revealed her New Year, the Women's Association of truth. The love story was shattered BIDA (PIKORI, Persatuan Istri when Engtay had to return to her village Karyawan Otorita Batam), together with to be wedded with a man chosen by her
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