Special Economic Zone of Batam Losing Appeal to Foreign Investors
Sonia Kong, the Chairman of the Association of Korean Businesspeople in Batam, said that the investment or business climate in this Special Economic Zone (SEZ) has become less conducive in recent years. In the past five years, 17 Korean companies decided to move to other countries. Batam (including several surrounding islands) was given the status of SEZ with Singapore in 2007. This SEZ status means that tariffs and value-added taxes for goods shipped between Batam and Singapore are eliminated between 2007 and 2077.