TEMPO.CO, Jakarta - Batam Indonesia Free Zone Authority (BIFZA) is targeting to pull in US$750 million (Rp9.7 trillion) worth of investments by the end of this year. BIFZa's deputy for public service Gusmardi Bustami said that as of August 2016, the amount of capital inflows has reached US$ 350 million.

"We are on the right track to achieve the target," Gusmardi said on Monday, October 24, 2016.

BIFZA will lead investments towards Batam, Riau Islands, and in industrial sectors that have great added values. Gusmardi said out some of their main investment targets are electronics, marine tourism, service industry, manufacturing, and high-tech industries. "Including the shipyard business," Gusmardi said.

To attract investors, Gusmardi asks the government to incentivize taxing, such as by lowering the taxes imposed on income and corporate. "Otherwise it would be difficult to boost investments."

BIFZA will also adjust rental rates of industrial land, distinguished by the technology used. To encourage advanced industries, they will give low land rental rates. "The fares will be cheaper for industries that use high technology," Gusmardi added.

To facilitate investors seeking to set up businesses in Batam, the Investment Coordinating Board (BKPM) is providing a one-stop licensing service that can be taken care of in just three hours.

The service will provide investors with eight permits and one land availability, which include—among others—incorporation documents, tax identification numbers, and a license to employ foreign workers.

"The facilities are given to investors who invest at least US$100 billion and absorb a minimum of 1,000 workers," BKPM director of application services Iwan Suryana said.

CHITRA PARAMAESTI