Overview

Country
:
Indonesia
Province
:
Riau Islands
Capital Province
:
Batam City, Karimun Regency, Bintan Regency, Tanjung Pinang City,Natuna Regency, Lingga Regency dan Anambas Regency.
Area
:
251.810 sq km (96% water)
Population
:
2.116.176 Million people ( data up to June 2013 )
Language
:
Bahasa Indonesia ( English as Intermediate Language )
Natural Resource
:
Oil & Gas, minerals (bauxsite, tin, granite)
Infrastructur
:

Road, Airport ( Domestic & International ), Port ( Domestic & International )

Club International
:
Korea Club, Japan Club , Malaysia Club, Taiwan Club
Bank
:
Local Bank, International Bank & Government Bank

Riau Islands Province is rapidly developing archipelago of over 2, 408 island, located strategically at Malacca Straits, one of the busiest shipping routes in the world, and close to neighbor countries like Singapore, Malaysia, Thailand and the Philippines.

Beside being one of the main gateway for international tourist in Indonesian, the province also offers foreign investors plentiful opportunities to invest and to explore its unlimited potentials. Batam, Bintan, Karimun (KBK) as Free Trade Zone (FTZ) area are the most developed regions of Riau Islands Province, equipped with modern infrastructure such as roads, seaports, airports, power supply and industrial park that province complete facilities.

Investment by Sector

The long term target of Riau Islands Province is not only to attract more Foreign Direct Investment and Tourist, but also have progressive development spread throughout as many island as possible in the province. The provincial Government is also mindful of need to preserve the province’s rich cultural heritages, natural environment and social harmony.

Riau Islands Province provides you with

  1. Strategic location
  2. Pro-business environment
  3. Competitive cost
  4. Skilled and affordable work force
  5. Integrated connectivity
  6. Modern infrastructures
  7. Full Government Support           

 

Attracting Foreign Investment

Riau Islands Province offers foreign investor numerous investment opportunities such as in manufacturing, trades, mining, agriculture, fishing and tourism. The Regional Government has committed to fully support and provide investors with the world-class services requirement for feasible investment.

On 28th June 2006, the Government of the republic of Indonesia declared the Indonesian island of the Batam, Bintan and Karimun as a Special Economic Zone (SEZ) with Free Trade Zone (FTZ) status. And the President of the Republic of Indonesia officially launched Free Trade Zone Batam, Bintan and Karimun on 19th January 2009. To date, Riau Islands Province has attracted over 1.100 foreign companies including MNCs such as McDermott International, Unichem, Perkin Elmer, Bechtel, Seagate Technology, Bobcock & Wilcox, Matsushita, Kyocera, Hitachi, Nippon Steel, Hyundai, sony & Philips.

 Given its strategic location, proximity to Singapore and Free Trade Zone status – as well as ability to act a gateway to rapidly growing emerging Asian markets and an increasing robust and attractive Indonesia – there are numerous attractive investment opportunities within the Kepulauan Riau Islands and its Batam, Bintan and Karimun (BBK) Special Economic Zone (SEZ).

Hub of Regional Growth Triangle: BBK was picked as a location for a SEZ due to its long history of being a manufacturing base and part of a growth triangle involving Singapore, Indonesia and Malaysia. It has a competitive advantage over alternative given its strategic location on the world’s busiest shipping lane in the Straits of Malacca, along with its Free Trade Zone status, and the basic infrastructure needed to complete in the manufacturing sector. 

Extension of Singapore: In a sense BBK can be seen as an extension of Singapore, as BBK provides an easily accessible platform which to produce lower value – added, labor and land – intensive product and services. In this regard, Singapore is the largest investor in BBK as well as Indonesia, and serves as an important conduit for investment, as well as the financial, legal, banking, marketing, educational, healthcare and other services to attract and retain sophisticated multinational and internationally- focused enterprises. Along with Singapore’s world – class logistic network, this relationship provides the Riau Islands Province with an economic growth rate that surpasses Indonesia as a whole by a significant amount. 

Growing Industrial and Tourism Potential: For example, BBK competitiveness in electronics and manufacturing is accentuated by Singapore strength in communications, technology, research, finance, science and other key sector. Furthermore, BBK is presently the second most popular tourism destination in Indonesia. Significant investment opportunities exist by virtue of Singapore’s ability to provide accesss to growing numbers of regional and international visitors seeking a few days of golf, beaches, seafood and other attractions that can be found in the Riau Islands Province. The recent introduction casino operations in Singapore only promises to provide more visitors in the years to come. 

BBK’s strategic location near Singapore’s world-class port facility also make it an ideal venue for shipyard/repair services or business that assemble large components or machinery such as the oil-service sector. BBK also has the potential to complement Singapore as a center for training, education or business meeting and conventions. One of many possible examples is the idea now being floated to located an ASEAN University in Batam. 

FTZ Enhances Competitiveness: The designation of BBK as a SEZ with Free Trade Zone (FTZ) status, the inclusion of an Integrated Sourcing Initiative within the US-Singapore Free Trade Agreement, which allows some BBK products to be considered Singaporean, as well as the region’s ability to source a skilled and motivated work force from other parts of Indonesia, have made the region less reliant on agriculture and resources and far more competitive in areas such manufacturing than Indonesia as a whole. 

This success is reinforced though higher average monthly wages and lower unemployment, which provide additional opportunities and a higher level of skill and motivation within the workface than would otherwise be available. 

One Stop Service : BBK’s establishment as an SEZ in 2009 promises to further accentuate investor interest in the province. Officially are initially focusing on improving the business and regulatory environment in seven areas including investment, finance, and banking, taxation, customs and excise, immigration, manpower, and capability development. An integrated Investment Service Unit has also been formed to provide one-stop-service. This will simplify investment licensing and permits, both from Indonesia’s Central Government as well as local regencies and administrative bodies in BBK. 

Rising Demand in Emerging Asia : Traditionally the primary driver motivating international business expansion into Emerging Asia was cost reduction and desire of foreign multinationals and internationally-focused companies to keep production cost as low as possible. This was achieved by basing facilities in locations such as BBK, where goods were produced primary for markets in the US, Japan and Western Europe. 

These strategies led to rising and more affluent populations in these locations, which also possess more favorable demographics, and a far younger population than these more mature economies. This is contributing to rising demand for a whole range of customer good and services at far higher growth rates than are imaginable in more advanced economies. For example, in January 2010 total domestic car sales in Indonesia rise 67%. Similar performances can be found in telecom, technology, white goods and other sectors. 

Growing Driver of Global Growth : While total demand is admittedly still small in comparison with the markets that exist in the US, Japan and Western Europe, it is important to understand that Emerging Markets in Asia are still being developed and are likely to constitute one of the most important incremental drivers of global growth moving forward.

This trend is based not only on fundamentals in the region but also on the need for these emerging economies to be more self reliant in the face of anemic demand from more advanced economies. This is because the advanced economies who traditionally absorbed exports from Emerging Asia are now struggling to deliverance and increase their saving in the financial turmoil that has enveloped the world over the past few years.

As a result significant investment opportunities exist, not only for the externally-oriented production facilities that are the primary focus of any FTZ, but also for the infrastructure service and other business that benefit, from strong regional growth and rising numbers of people who are rising their consumption as the generate the incomes needed to support a “middle class” lifestyle..

Altogether these developments are raising the importance and attractiveness of regions such as the Riau Islands Province, BBK and Southeast Asia. As a result, investor’s interest is rising and project approvals are rising as a result.

 

Source : Board of Investment and One Stop Services Riau Islands Province 

City & Regency Riau Islands Province

 
 
      

Address

Liaison Office of Riau Islands Province
Jl. Jend.Gatot Subroto Kav.326
Jakarta Pusat - 10210
Telp. 021-579 392 26
Fax. 021-579 392 25
email : penghubung_kepri@yahoo.com

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