[Kabar-indonesia] BT: RI-S'pore SEZ accord to be signed on Sunday [+Malaysia deals]

[JoyoNews at aol.com]

also: JP: Indonesia, Malaysia review progress in economic deals 

Business Times (Singapore)
Wednesday, June 21, 2006

S'pore-Indonesia SEZ accord to be signed on Sunday

Nande Khin In Auckland And Melissa Lwee

THE long awaited framework agreement between Singapore and Indonesia
to help set up Special Economic Zones (SEZs) for the islands of Bintan
and Batam is to be signed on Sunday.

This is part of a joint move to enhance the business environment of
the two Indonesian islands by rekindling investor interest.

Prime Minister Lee Hsien Loong, who will be going to Batam on Sunday
to meet with Indonesian President Susilo Bambang Yudhoyono, told
Singapore media in Auckland: 'If you can sort out the SEZs and sort
out these areas and bring investments in, then you set the model and
you will be able to develop the same in the rest of Indonesia.'

PM Lee, who was in the final stages of an official visit to New
Zealand, pointed out that Bintan and Batam had been successful in
attracting investments in the past, but in recent years had seen a lot
of them moving away.

'At the same time, new investments are reluctant to move in and a lot
of that has to do with the investment environment, the rules, the
legislation, the laws, the way they are implemented, the
administration,' he said.

That is why under the proposed agreement, Singapore and Indonesia will
work together to tackle problem areas such as investment, taxation and
immigration, said Thong Pao-Yi, director of the International Policies
Division of the Singapore Economic Development Board (EDB).

Other key areas of collaboration include customs and excise, manpower,
capability development, and finance and banking.

To help manage the zones, there will be a joint steering committee of
economic and foreign ministers from Singapore and Indonesia.

The ministers meet every six months during the initial period to
review and resolve problems the zones might face.

There will be a joint working group to assist the ministerial
committee, co-chaired by the chairman of the EDB and the chairman of
the Indonesia Investment Coordinating Board.

The ministers and their advisers are expected to have quite a few
difficulties in their path. Previous attempts like the Indonesian
Government's Bonded Zone Plus initiative to ease customs clearance at
Batam and Bintan have failed to boost investors' interest in the
islands, giving rise to doubts about the zones' potential.

However, the parties involved and representatives from the Batamindo
Business Council and Bintan Industrial Estate Investors Association on
these islands remain 'cautiously optimistic'.

Minister of Trade and Industry Lim Hng Kiang, who was with PM Lee in
Auckland, said: 'Our value-add is that we are close to the investors,
we have experience in attracting investors to Singapore. We know what
investors want and we can communicate the requirements to (Indonesia)
and also advise our Indonesian counterparts how they can change their
rules to be more investor-friendly.'

Ms Thong added: 'The timing is opportune for this framework agreement
signing because we have a strong Indonesian team complemented by eager
assistance from the Singapore side.

'Our experience and inputs from the past will also guide us along, as
the two governments work together to enhance and foster cooperation on
the islands to make them internationally competitive.'

The proposed agreement follows the visit to Indonesia earlier this
year by Minister Mentor Lee Kuan Yew when he talked with political
leaders about improving the country's investment climate.

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The Jakarta Post
Wednesday, June 21, 2006

Indonesia, Malaysia review progress in economic deals 

Rendi Akhmad Witular, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono and visiting Malaysian Prime Minister 
Abdullah Ahmad Badawi met Tuesday to discuss the progress of a number of 
collaboration agreements in the energy and palm oil sectors.

Coordinating Minister for the Economy Boediono, who accompanied Yudhoyono 
during the meeting, told reporters that among the topics discussed by the two 
leaders was the progress achieved to date as regards a recent collaborative 
agreement between state oil and gas company PT Pertamina and its Malaysian 
counterpart Petronas in the upstream and downstream sectors. 

"There was also discussions on collaboration in the palm oil industry," he 
added without elaborating. 

Indonesia and Malaysia have inked a number of economic deals recently, with 
the latest one concerning the production and marketing of agricultural 
commodities, such as palm oil, cocoa and pepper. 

Based on a memorandum of understanding (MOU) signed in May, the two countries 
have decided to establish a joint committee that will promote their 
plantation produce on the international market, and foster expertise in the sector. 

Boediono also said that the two countries would work closely to develop the 
nascent biofuels industry, with Indonesia providing land for investments by 
Malaysian palm oil firms in this country. Palm oil is a raw material used in the 
production of biofuels. 

The two leaders also discussed the issue of Indonesian migrant workers in 
Malaysia, particularly in relation to a plan by Malaysia to provide access to 
Indonesian curriculum education, with Indonesian teachers, for children 
accompanying their parents working in Sabah State. 

An estimated 36,000 Indonesian children in Sabah, which is in Borneo, have no 
access to formal education because they cannot be enrolled in state schools, 
which are reserved for Malaysians, while it is too costly for them to study at 
private schools. 

Indonesia and Malaysia also recently signed an MOU on the protection of 
Indonesian migrant workers in Malaysia, especially domestic workers. Approximately 
300,000 Indonesians are working legally in Malaysia, mostly as domestic 
helpers. 

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Joyo Indonesia News Service
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