May 18 20:54

Indonesia, Singapore to develop special economic zones

Jakarta (Antara News) - Indonesia and Singapore plan to sign an agreement to develop special economic zones (SEZ) in Batam and Bintan in June, Singapore ambassador to Indonesia Edward Lee said here on Thursday.

"The development of SEZ is expected to boost investors` confidence. If the SEZ project in Batam and Bintan proves successful it may later be developed in other parts of Indonesia. Success may be accomplished because the cooperation project will combine appropriateness, synergy and competitive edges of Singapore and the Riau islands," he said at the inauguration of Singapore Chamber of Commerce Indonesia (SCCI).

Lee said a SEZ which is suitable for investors would attract foreign investors and in turn open employment opportunities for Indonesians.

"This is a beneficial formula for the two countries," he said.

Indonesian trade minister Mari Elka Pangestu who has ever visited an SEZ in Singapore meanwhile expressed her admiration to the SEZ in Singapore.

"I think that is a well-planned park and it is interesting to see its institutional structure and its joint steering committee in which the central government guarantees an applicable policy while a local government implements it," she said.

Another thing which is interesting to see is that the SEZ is managed by an independent authority which operates like a private business including its one-stop service and contribution to the Singaporean government.

"We are also considering other than the Singaporean model such as the Vietnamese model. We will see which one is suitable for Batam," she said. (*)
_________________________ Indonesian Business and Investment News Aggregator