By Fadli

The Riau Islands province administration has set up a representative office in Japan to market the Batam, Bintan and Karimun (BKK) free-trade zone.

Hajime Kinoshita, former president director of PT National Panasonic Gobel Indonesia, has been appointed to lead the representative office in Osaka.

To reach a wider Japanese market, the administration signed a promotion agreement Friday with the country's largest newspaper catering to the economic and manufacturing industry, the Nikkan Kogyo Shimbun.

Riau Islands Governor Ismeth Abdullah said his administration was targeting to attract 15 Japanese investors to the free-trade zone next year.

"We're not just promoting Batam, but also Bintan and Karimun islands to the Japanese investors," Ismeth, who is also chairman of the BKK Council, said after the signing ceremony. "Some investors, in shipbuilding and electronics, have expressed interest."

The governor said his administration had allocated Rp 300 million (US$30,000) from its 2009 provincial budget for the promotional cooperation with the newspaper.

He said the cooperation would later be evaluated to see if it was benefiting the BKK free-trade zone.

Ismeth said total current Japanese investment in Batam was $3 billion from 30 companies.

He added his administration would try to convince investors that production costs in the free-trade zone were lower than in similar zones elsewhere in Asia.

Nikkan Kogyo Shimbun president director Toshitake Chino said his newspapers, established 100 years ago, specialized in big- and small-industry publications.

"The cooperation is expected to help market the BKK free-trade zone to Japanese investors through our media," Chino said.

BKK representative office head Kinoshita said that during promotional meetings, many investors had asked about the existing infrastructure in the three islands.

"Investors often ask about the availability of clean water, about labor laws and investment policy," he said.

"I convince them the infrastructure is already in place in the islands."

Kinoshita's appointment as chief representative of the BKK free-trade zone began with the promotion of the zone to Japanese investors in September.

"Many Japanese investors know Batam as an industrial island," said Kinoshita, who has lived in Indonesia for the past 20 years.

"But as for Bintan, they only know it as a resort island and they know nothing about Karimun."

Kinoshita has since 2003 served as the head of the Batam Industrial Authority's (BIDA) Japan representative office.

He said Japanese investment in Batam had increased, adding he had brought in 12 companies investing a total $25 million in the past six years.

However, he said it had been difficult promoting Batam at first, citing he had once invited 10 investors, but none had attended the meeting.

"Nowadays, if you ask 10 Japanese businessmen about Batam, at least three know about the island," said Kinoshita, who is also the chairman of the Japan Indonesia Business Association of Kansai.