| |
The Singapore-Riau Advantage
The Riau Islands of Bintan and Batam are just a stone's throw from Singapore. Located to the south of the city-state, Bintan is 45 km or an hour away by ferry, while Batam is 20 km or a 45-minute ferry ride. Together, these two islands offer abundant labour and facilities.
The competitive business environment of Bintan and Batam has entrenched global players from industries as diverse as precision engineering, plastic moulding, chemicals and garment fabrication.
Companies benefiting from the Singapore-Riau Combination include Philips, Thomson, Siemens, Seagate, Nidec and Venture, to name a few. They also include business giants from the US, Japan and Germany, amongst others.
Pro-business environment
Industrial facilities at the Riau Islands are conducive to manufacturing. There are modern amenities and self-sufficient services, including utilities (water and electricity), waste disposal and telecommunications. Systems are also in place to ensure that there is minimal disruption to services essential for business operations. Bintan and Batam are well served by modern infrastructure.
Competitive costs
Land and rental costs vary according to specifications, but whether it's a commercial ready-to-use factory building or customised structure, prices are highly competitive. Raw materials are also readily available at cost effective prices.
Skilled and affordable workforce
Suitably trained manpower is never in short supply in Bintan and Batam. Labour is highly affordable, and much lower than in other manufacturing centres in the region.
Track record
Both islands have a track record spanning more than 12 years for industrial operations. The number of multinational companies has grown to reach more than 70. Other developments like housing and recreational facilities have sprung up.
Today, these islands and their industrial areas have developed to become vibrant places for both residents and company executives working in the industrial parks.
The Riau Islands can easily support both business and leisure pursuits.
|
 |
| |
Framework Agreement on Economic Cooperation in the islands of Batam, Bintan and Karimun between the Republics of Singapore and Indonesia
The Framework Agreement on Economic Cooperation in the Islands of Batam, Bintan and Karimun was signed on the 25 June 2006 in Batam by Dr. Boediono, Indonesian Coordinating Minister for Economic Affairs and Mr Lim Hng Kiang, Singapore Minister for Trade and Industry.
The signing was witnessed by Indonesia President Susilo Bambang Yudhoyono and Singapore Prime Minister Lee Hsien Loong.
The Framework Agreement cements the Singapore-Indonesia partnership to establish special economic zones (SEZs) in Batam, Bintan and Karimun. The SEZs will lay the groundwork for both islands to become investor-friendly and cost-competitive manufacturing zones that can attract international flows of foreign direct investments.
Key Areas of co-operation
The Framework Agreement outlines seven key areas that Indonesia and Singapore will cooperate in to ensure that business, regulatory and labour conditions in Batam and Bintam are favourable to investors. These seven areas are – investment, finance and banking, taxation, customs and excise, immigration, manpower, and capability development.
Dedicated administration and its guiding principles
The Framework Agreement also details that a dedicated and effective administration(s) would be set up for the special economic zones(SEZs). This dedicated administration would be guided by the following principles:
(i) Developing an effective institutional framework for the SEZs to be internationally competitive;
(ii) Ensuring clarity and consistency in the policy framework of the SEZs;
(iii) Streamlining regulatory procedures to ensure clarity and transparency in the implementation of policies;
(iv) Creating and sustaining a competitive and stable business environment to enhance the development of the SEZs; and
(v) Developing and maintaining a well-planned, competitive and efficient industrial infrastructure
Joint Steering Committee & Joint Working Committee
A ministerial-level Joint Steering Committee (JSC), responsible for the implementation of the Framework Agreement, will be established.
A working-level Joint Working Group will also be established support the JSC to implement the action plan for the development of the special economic zones in Batam, Bintan and Karimun. |
|  |
|
