JAKARTA (TheInsiderStories) – Singapore-based company Koh Brothers Group Ltd., prepares funds US$100 million to will build a precast concrete factory in Batam Island, Kontan reported today (09/02). Previously, the multinational company having difficulty to build the project due to the land issues.
CEO of the company Francis Koh, he was interested in investing in Indonesia causes the investment rating in Indonesia getting better as well as Batam’ strategic proposition. Later, Koh Brother will market its products in Indonesia and Singapore.
“President Joko Widodo has also committed to becoming Batam as one of the priority investment locations in Indonesia,” said Koh without giving furhter details on the .
Deputy Head of Batam Free Zone Authority (BFZA), Purwiyanto adds, the Singapore’ firm has get permit to lease land for 30 years and open to be extended in the next 20 years. Previously, former head of BFZA Edi Putra Irawadi said, the land acquisition among the policies that hampered investment plans in Batam.
“There are Koh Brothers and Putri Resort who have long planned investments in Batam but I cannot execute,” said the official on July 22 by adding the two potential investors need land on the coast to realize their investment plans.
Actually, he explained, with the Presidential Regulation Number 87 of 2011 concerning Batam, Bintan and Karimun Spatial Planning, the investors be able to execute their investment plan. In the decree, its regulated the use of the sea area for investment.
But the regional rule hampered the realization of the investment plan. “Even I used the decree I could not executed the projects, caused I had to ask for a water permit (from the Riau Islands Provincial Government). Even though this is my territory,” Irawady said.
So far, he continued, Batam Authority has allocated a number of areas along the sea, especially the Tering Bay area to a number of companies. Other invisible authority is in the form of the status quo of Galang Island and Rempang.
He rated, uncertainty because of the invisible authority will make BFZA act rashly in pushing investment targets. Irawady also worried that this condition would discourage its members.
Koh Brothers is an investor from Singapore who is a provider of construction services in civil engineering and public sector development projects. The conglomeration company has 40 subsidiaries, joint ventures and associated companies, spread across Singapore, China, Indonesia, Malaysia and Vietnam.
The developer plans to invest in Batam since 2016 but until now, the investment is not running. In 1993, Koh Brothers established its real estate division through its wholly-owned subsidiary, Koh Brothers Development Pte. Ltd. (KBD). .
KBD has ventured into the regional property markets in Batam. The company has completed projects included 28 units of double-storey terrace houses at Jodoh Permai, and 25-units of three-storey shophouses at Nagoya Point and a shopping mall and residential project in Batam Centre.
by Linda Silaen, Email: email@example.com