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Investors
Briefed on Batam Free Trade Zone During
October Road Show to New York and Washington – Program
Summary
BATAM -
January 12, 2005 - A delegation representing the Batam
Industrial Development Authority (BIDA)
traveled to New York and Washington last
October to familiarize investors, analysts,
executives, journalists and other targeted
individuals about the benefits of locating
industrial and service-related facilities
within the Batam
Island Free Trade Zone (FTZ).
Attention was also devoted to infrastructure
projects and the potential for tourism within
Batam and the Province of Riau
Islands in
the Republic of Indonesia, where it is located.
 Strategically
located on the Indian and Pacific Oceans
-- only 12 miles from Singapore -- Batam
Island and the Riau archipelago represents
one of the most
attractive industrial, manufacturing and logistical platforms in
the ASEAN region. It is also the second most
popular
international tourist destination in Indonesia.
Due to its Free Trade Zone status, strategic location, low cost structure, skilled
work force, and tax and other investment incentives, Batam Island has attracted
numerous foreign investors. Prominent names include McDermott
International,
AT&T, PerkinElmer, Bechtel, Seagate
Technology, Babcock & Wilcox, Holiday
Inn, Matsushita, Kyocera, Hitachi, Sanyo, Nippon
Steel, Hyundai, Sony and Philips.
In addition to site development, current investment priorities include wastewater
treatment, hospital, medical and educational facilities, and
port harbor expansion.
Highlights of Batam Island Free Trade Zone Road Show – October
2004
The Batam Island FTZ Road Show opened on October 26, 2004 with a seminar held
at the Indonesian Consulate in New York. It was attended by approximately 50
individuals including representatives of major multinationals such as AIG, Lehman
Brothers, Telstra and
numerous small to medium-sized enterprises, financial and service firms, real
estate developers, journalists, analysts and other individuals
with a potential interest in the Batam Island FTZ. 
Following opening remarks by
Wayne Forrest, President of the American Indonesian
Chamber of Commerce (AICC)
and Kristio Wahyono, Consul General of the Republic of Indonesia in New York,
the audience was presented with an overview of the
implications of Indonesia’s recent national election, moves toward regional
autonomy and other important developments by Former Minister
of Trade of the
Republic of Indonesia and Indonesian
Ambassador to the U.S. Arifin Siregar. Following
Mr. Siregar, the audience heard from Bruce Hatton, who spoke about the experience
of J.
Ray McDermott, which has had a Batam-based
facility for well over a decade.
 BIDA Chairman and
Acting Governor of the Province of Riau Islands Ismeth Abdullah,
then briefed the
audience, delivering
a comprehensive
presentation, detailing
how Batam was developed, current trends and statistics, the opportunities it
presents for direct investment, industrial, tourism and infrastructure development
and the benefits companies can obtain from a Batam-based operation. After a question
and answer session the morning’s presentation concluded with a brief overview
on Batam’s tourism potential by Alex Eapen, Vice President and Director
of the Palm
Springs Golf
and Beach Resort, a luxury resort and 27 hole course
located in Batam.
After adjourning for a working lunch and a series of one-on-one meetings with
seminar participants and interested journalists, BIDA Chairman Ismeth Abdullah
was interviewed
by Bloomberg Television concerning the reasons BIDA organized
this road show and the attractions that Batam offered to foreign firms and investors.
To view a photo album of Batam’s New York Road Show activities, click
here.
The next day’s activities began with a luncheon meeting hosted by PerkinElmer
Fluid Sciences President Robert A. Barrett at the Cosmos
Club in Washington,
D.C. This was followed by an afternoon presentation, following a similar agenda
as the New York event, hosted by The
United
States – Indonesia Society (USINDO). After an introduction by USINDO
President Alphonse F. La Porta, BIDA Chairman Ismeth Abdullah provided a comprehensive
briefing on the progress made
in developing Batam Island as an entrepot manufacturing center, which will become
all the more important in light of the recent approval by Parliament (DPR) granting
free trade status to the island.
 The
Chairman also called attention to the impressive
improvements in the island
group’s infrastructure, together with improved
and positive relations with Singapore. The Chairman’s presentation was
followed by an appraisal of the economic prospects for the new administration
of President Susilo Bambang Yudhoyono, including measures for increasing national
GDP growth to 6-7%, improvements in the regulatory regime, and formation of
the new cabinet economic team. It was also noted that the macro-economic stability
achieved in the past three years, coupled with forecasts for higher economic
growth, will also heighten the role to be played by Batam’s continued
development as an industrial and trade center. This event was attended by more
than 30 people,
including representatives of Freeport
McMoRan,
CAPGroup, Mitsubishi
Corporation, SAIC, The
Kenan Institute, U.S.
Department of State, U.S. Department
of the Treasury, the Department
of Homeland Security and other organizations
with an interest in Indonesia and the Batam project.
To view a photo album of Batam’s Washington Road Show activities, click
here.
 “We are extremely pleased by the high level of interest and warm reception
that we encountered during our first road show visit to the United States last
month” noted
BIDA Chairman and Acting Governor of the Province of Riau Islands Ismeth Abdullah. “As
perhaps the most competitive and best located investment location in ASEAN, Batam
offers a wealth of advantages and benefits to the foreign investor. This is demonstrated
by the 700+ companies from around the world that have already established operations
on the island – some of whom have been here since the FTZ was first established
in the 1970s. We look forward to following-up on the many inquiries generated
during our visit and to developing many more relationships with U.S. companies
and investors in the years to come.”
For additional information on the Batam Island Free Trade Zone, please contact:
KWR International, Inc.
Attn: Keith Rabin, President
Tel: 212/532-3005
Fax: 212/685-2413
E-mail: batam@kwrintl.com
Or access the information included below:
This material is published and disseminated
by KWR International,
Inc., which is registered under the
Foreign Agents Registration Act
as an agent of the Batam
Industrial Development Authority. It is filed with the U.S. Department of Justice
where the required registration statement is available for public inspection.
Registration does not indicate approval of the contents of this material by
the
United States Government.
The preceeding information is provided by:
KWR International, Inc.
New York, NY 10023
Phone: +1.212.532.3005
Fax: +1.212.685.2413
E-mail: kwrintl@kwrintl.com
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