Singapore, 18 July 2008  -  Ministers from Singapore and Indonesia met in Singapore today for the 6^th Joint Steering Committee (JSC) meeting on economic cooperation in Batam, Bintan and Karimun (BBK). This continues a series of regular meetings under the Framework Agreement, signed on 25 June 2006, to develop special economic zones (SEZs) in the Indonesian islands of BBK.

In the area of capability development, the JSC agreed to conduct more training courses for Indonesia’s SEZ officials, following the completion of a second phase of training.  The second phase was conducted in November 2007 for two weeks at the Civil Service College and covered Singapore’s experience in the areas of customs, taxation, immigration and urban planning.

The JSC was also updated that Singapore’s Institute of Technical Education has completed training on how to conduct a Mechatronics course to Batam Polytechnic (BP) instructors and course managers at the end of last year.  BP has commenced an 8-month part-time Mechatronics course with effect from April 2008.  

Singapore and Indonesia recently completed a Joint Promotion Investment trip to Japan in July 2008.  The objectives of this trip were to promote BBK SEZs to Japanese investors and to inform them of the progress of our two countries’ efforts to build an investor-friendly environment in BBK SEZs.

The JSC concluded that both sides will continue to keep up momentum in implementing further improvements to make BBK SEZs internationally competitive and attractive for investments.

During the meeting, the JSC was updated that since Indonesian President Susilo Bambang Yudhoyono signed the government regulations designating Batam and enclaves of Bintan and Karimun as Free Trade Zones (FTZs), the regulations had been ratified into law on 1 November 2007.  Presidential Regulations were also signed in May this year to set up Regional Councils on these islands, which will be responsible for the administration and policy making of the FTZs across BBK.  These Councils are helmed by the Governor of Riau Islands and will be represented by top Kepri tax, custom, immigration and police officials.  Separate management bodies are being set up on each island to run the FTZ and manage investments.  These developments demonstrate Indonesia’s commitment to make BBK an attractive location for investments.

The Indonesian delegation comprised the newly-appointed Coordinating Minister for Economic Affairs Sri Mulyani who concurrently holds the portfolio of Minister of Finance.  She was accompanied by the Minister of Trade, Chairman of Indonesia’s Investment Coordinating Board, the Governor of Riau Islands province and Secretary General for Ministry of National Education.

The Singapore delegation was represented by the Minister for Trade and Industry, Minister for Finance, Minister for Education, Acting Minister for Manpower, and Chairman of the Economic Development Board.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE