Business

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• Luncheon Meeting
• Business Investment Opportunities in Batam

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BUSINESS INVESTMENT OPPORTUNITIES IN BATAM -
INDONESIA
Ismeth Abdullah Chairman Batam Industrial
Development Authority
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Strategic Location of Batam
20 kilometers
Only 20 Km away from Singapore 40 minutes
ferry-ride
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How to Reach Batam

• Hang Nadim International Airport
• Regular Flight and Cargo Flight
• Runway 4,000 m (longest in Indonesia)
• International Ferry Terminals
• 40 minutes from Singapore
• 120 trips daily (6am midnight)

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Mission of Development
Total Area 715 sq-km
Batam
Rempang
Transshipment
Galang
Galang Baru
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Business Prospects

• The growth engines in the Indonesia economy
• 100 foreign company
• Economic Growth 2003 7.7
• Export-oriented manufacturing

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Foreign Investment in Batam

• Investment from 34 Countries
• - 735 Companies in Batam
• - Investment Value US 3.4 Billion
• 20 American Companies (US 59.8 million)

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Development of Batam

• Jan Sept 2004
• 47 new foreign companies (US 43.3 million)
• 11 expansions existing foreign companies (US
  117 million)

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Potentials to Outsource Trade

• Electronics components
• Telecommunication
• Computer equipments
• Metal stamping
• Shipyard industry
• Metal steel related industry
• Oil gas supporting industry
• Rubber products
• Optical products
• Plastics related products
• Garments

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Investment Operational Costs

• 17 Industrial Estates
• Ready-built factories
• (rental fee around US 2 / sq-m per month)
• Labour Cost Competitive
• Economical Utilities

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Development of Batam

• Workers
• Formal sector 185,000 workers
• Non-formal sector 75,000 workers

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Foreign Visitors
.attracting 1.3 million foreign visitors last
year or around 108,000 visitors monthly..
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Batam Risk Report
Risk of Batam 4.87
7.52
8.00
7.09
6.05
5.70
5.64
5.61
6.00
4.87
4.62
4.00
2.28
2.00
0.00
India
China
Batam
Thailand
Vietnam
Malaysia
Indonesia
Singapore
Philippine
Grades range from zero to 10, with zero being the
best grade possible and 10 the worst
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Batam Risk Report
Overall Risk Evaluation
Grades range from zero to 10, with zero being the
best grade possible and 10 the worst.
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Security and Safety

• Working hand in hand with the Batam Police.
• Better equipped and trained
• Unemployment is kept very low

Batam has stepped up security measures in the
past few years. X-ray facilities at all entry
points (domestic and international).
Technical assistance for security assessment by
the USA (US TDA).
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BIDA (Batam Industrial Development Authority)

• Slim bureaucratic procedures
• One Stop Service
• Focused Scope of Work
• Professional Qualified Human Resource
• Special status of the island
• Land rights management
• In line with the regional autonomy

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US Singapore FTA

• Free Trade Agreement US and Singapore (Jan 2004)
• Special facilities to export to the US outlined
  through the Integrated Sourcing Initiatives.
• 266 types of IT and medical related products.
• Products manufactured in Batam will be more
  competitive.

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Forthcoming Infrastructure Projects
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Forthcoming Infrastructure Projects
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BATAM An Invitation
THANK YOU
Come and Visit Us in BATAM !