BATAM IS FREE NOW !

Since, 9th October 2007, Batam has entering to the new business and investment environment. ‘Cos, the Indonesian parliament in Jakarta has approval the new law of Free Trade Zone (FTZ) and Free Port for Batam Island and two others, Karimun and Bintan. Also in Riau Islands Province. But this law can not be applied directly. Must be approval by the Indonesian President, Susilo Bambang Yudhoyono (SBY).

I wanna bring you to review of short history of investment in Batam. Batam is the neighbor of Singapore (only 45 minute by the boat) and Malaysia (only 50 minute by the boat) and beside the Malaka strain. So, that all potential economic of geography is used by the last Indonesian President, Soeharto, to build Batam island become the industrial and international port.

And Soeharto command to his minister BJ. Habibie to develop Batam island. And this engineer from Bugis Sulawesi island start to develop Batam and invite the foreign investor to Batam. He also build the six bridges in Batam island, Rempang island and Galang island. Of course that is the monumental construction building in Indonesia. Until now, the people of Batam is very proud of that six bridges.

Since 1990-ies, the foreign investor from all over the world take the gold opportunity to take big gain in Batam. They invest in shipyard industry, electricity, transportation, real estate and tourism. They’re come from many country like Japan, Singapore, England, US, British, Germany ext. ‘Cos Batam in that time still one of the best choose to invest. Batam near Singapore, the land is available for building, the seaside for shipyard is available too. And the important one is, the cheep labor salary depending to others country in region.

In that time, Batam still on developing in every sector of business facilities. Like electricity, water distribution, streets and roads, houses for the people and industrial worker and the local government starting begun. Everything is running well until the new era of democracy come in Indonesia and begin realized in 2001. In that time, the local government is powerful and have authority to make the local tax regulation and use the money.

Now, Batam is different. Batam is free now, although the new regulation give more facilities for the foreign investors like free tax and simple import spare part procedure. But, many “police” ready to catch every one who proofed again the law and our new regulations. They’re including the police, navy, custom, immigration staff, tax staff and more. Some time, they’re doing like the “god cop” but in other opportunity they like to doing like “bad cop”. (!)