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92 [[newspaper clipping]] Friday, Aug. 10, 1991 JKT POST Industrial estates may be opened for 80 years UJUNG PANDANG, South Sulawesi (JP): Foreign and local investors may operate in the country's industrial estates for as long as 80 years despite 30-year "right to use" land certificates granted to them, says Junior Minister of Industry Tungki Ariwibowo. The junior minister told The Jakarta Post here Wednesday that the Indonesian law was still attractive enough to foreign operations despite the fact that the country's land leasing term of 30 years was much shorter than that offered by other Southeast Asian countries. Tungki said after witnessing the signing of agreements for the establishment of 50 business interlinkage programs between large and small companies in South Sulawesi that the government, in fact, only granted a 30-year right to use land for the operations of foreign and local investors in the industrial estates. "However, those investors could apply for the extension of their land titles for another 20 years." he said. "If the companies see that their operations are still feasible, they can renew their land titles for another 30 years if they expand operations with additional investments," he added. The junior minister explained that under such leasing procedures, both foreign and local investors could use the land for their operations for 80 years. He said that the land certificates for companies operating in the industrial estates would be given to the industrial estate developers, who should distribute them among the industrial estates' occupants according to the size of plot they had leased. Bonded zone Tungki, who also acts as the coordinator for the development of industrial estates in the country, said that the government had established a bonded zone managing company PT PKBI to manage bonded zones or export processing areas established by private industrial estate developers. He said that private industrial estate companies, were now allowed to open up bonded zones in their industrial estates to attract export-oriented investors to set up factories in the estates. "The establishment of bonded zones, which were previously licensed only to state-owned industrial estate companies, is very important in facilitating export activities," he said. Tungki said that at least five private-sector industrial estate firms had filed applications for the establishment of bonded zones. "The number of private industrial estate companies applying for such licenses is expected to grow in the coming years because most industrial estates are now under construction," he said. He said that the government was also still discussing the possibility of giving more power to provincial administrations in the issuance of licenses for investment projects. Tungki said that the issuance of licenses by provincial administrations would provide another incentive for investors because they would no longer need to go through complicated procedures to process their investment licenses. Karimun Islands The junior minister, who was on the last leg of his four-day eastern Indonesian tour to Irian Jaya, Maluku and South Sulawesi, said that the development of the Karimun islands, some 40 kilometers southwest of Singapore, into a heavy engineering and oil-related industrial center, would be carried out under the umbrella of joint cooperation agreements signed by the Indonesian and Singapore governments in August last year to develop industrial and tourism projects in the Riau archipelago. The islands, strategically located along a tanker route, are very suitable for heavy industries. Jkt Post 93 MORE KAJAR QUESTIONS 1. betters ways w/ dam, springs, Anak Sungai Oya
