THE Indonesian government has invited Singapore investors to get an early foothold in the growth of a resource-oriented industrial park.
About 30 local business executives were briefed last week on the investment opportunities available in the 200ha Jambi Agro Industrial Park (Jaip) in Jambi province, on Sumatra's east coast. The talk was jointly organised by Kimwell Holdings of Singapore and PT Sumatera Promotion Centre of Indonesia as part of efforts to strengthen business ties between the two countries.
'The Jaip project will showcase the wealth of potential in Jambi's eco-tourism, crude palm oil, rubber, coconut, potato, agro-farming and fishing industries, as well as the long-term exploration of gas fields there,' said Kimwell Holdings chief executive Jumari Suwiti.
He added that the Indonesian government's investment reforms and an improvement in the business climate in recent years had helped assure foreign investors that they would be 'treated equally, with no minimum capital requirement or restrictions on the repatriation of profits'.
While some investors have expressed interest, no investments have been locked in yet, as the project is still in the early stage of development, said the chairman of the investment coordinating and promotion board of Jambi province, Dr Muhammad Safri.
To understand the needs of the market, the Indonesian government is seeking investor feedback before it finalises the regulatory framework and other investment policies.
Jaip is aiming to attract up to three trillion rupiah (S$388 million) in both local and foreign investments, he said.
Singapore and Asean investors stand to enjoy some benefits, including free land leases for five years and having any government appeals expedited.
Investors can tap Jambi's wealth of natural resources, including crude palm oil, rubber and coconut plantations, said the economic adviser to the Jambi governor, Dr Arif Ariman.
Until recently, Indonesia, an exporter of crude palm oil, had benefited from high commodity prices and the strong domestic consumption seen over the past three years, he said.
'It is the right time to invest in the resource sector, which will quickly recover from the effects of the economic slowdown.'
This article was first published in The Straits Times on December 22, 2008.
