[Kabar-indonesia] Indonesia, Singapore to boost island cooperation

[Joyo at aol.com]

Associated Press 
June 25, 2006
    
Indonesia, Singapore to boost island cooperation

BATAM, Riau Islands (AP): The leaders of Singapore and Indonesia met Sunday 
to sign a deal that would help set up special economic zones on three islands 
that lie close to the city-state to attract much-needed foreign investors.

The framework agreement on economic cooperation on Indonesia's Batam, Bintan 
and Karimun islands is designed to attract more Singaporean and international 
business to the region.

Indonesia and Singapore have agreed to jointly look at ways to make it easier 
and cheaper for businesses to set up shop on the islands by cutting out red 
tape and giving tax incentives to companies.

Singapore is the largest foreign investor in Riau Islands province. Almost 
one-third of about 800 foreign companies in Batam and Bintan are subsidiaries of 
Singapore-based companies.

President Susilo Bambang Yudhoyono and Singapore Prime Minister Lee Hsien 
Loong will also continue long-standing negotiations on an extradition treaty as 
part of regional cooperation in combating terrorism and security, an Indonesian 
government spokesman said.

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Joyo Indonesia News Service
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