1. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Luncheon Meeting Business & Investment Opportunities in Batam

2. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Ismeth Abdullah Chairman Batam Industrial Development Authority BUSINESS & INVESTMENT OPPORTUNITIES IN BATAM - INDONESIA

3. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Strategic Location of Batam 20 kilometers Only 20 Km away from Singapore 40 minutes ferry-ride

4. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Hang Nadim International Airport : Regular Flight and Cargo Flight Runway : 4,000 m (longest in Indonesia) International Ferry Terminals: 40 minutes from Singapore 120 trips daily (6am – midnight) How to Reach Batam

5. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Mission of Development Transshipment Batam Rempang Galang Galang Baru Total Area : 715 sq-km

6. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 The growth engines in the Indonesia economy 100% foreign company Economic Growth 2003 : 7.7% Export-oriented manufacturing Business Prospects

7. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Investment from 34 Countries - 735 Companies in Batam - Investment Value: US$ 3.4 Billion 20 American Companies (US$ 59.8 million) Foreign Investment in Batam

8. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Development of Batam Jan – Sept 2004 47 new foreign companies (US$ 43.3 million) 11 expansions existing foreign companies (US$ 117 million)

9. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Potentials to Outsource & Trade Electronics components Telecommunication Computer equipments Metal stamping Shipyard industry Metal & steel related industry Oil & gas supporting industry Rubber products Optical products Plastics & related products Garments

10. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 17 Industrial Estates Ready-built factories (rental fee around US$ 2 / sq-m per month) Labour Cost Competitive Economical Utilities Investment & Operational Costs

11. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Workers: Formal sector : 185,000 workers Non-formal sector : 75,000 workers Development of Batam

12. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Foreign Visitors ….attracting 1.3 million foreign visitors last year or around 108,000 visitors monthly…..

13. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Singapore Malaysia Batam China Vietnam Thailand Philippine India Indonesia 2.28 4.62 4.87 5.64 5.70 5.61 6.05 7.09 7.52 0.00 2.00 4.00 6.00 8.00 Risk of Batam: 4.87 Grades range from zero to 10, with zero being the best grade possible and 10 the worst Batam Risk Report

14. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Batam China India INA Mal.Phil.Sing.Thai.Viet. External variables 3.89 3.458.224.673.384.963.744.263.44 Foreign investor variables 4.06 5.886.516.934.205.162.265.465.16 Physical infrastructure 4.31 5.047.157.413.956.270.524.716.45 The ease of doing business 4.49 7.368.577.945.776.632.476.586.84 Domestic social environment 5.00 4.676.277.733.935.252.374.024.34 Quality of expatriate life 5.04 3.735.686.503.524.512.023.025.03 The political environment 5.49 6.587.818.495.537.051.636.456.36 Natural environment 5.27 7.938.439.124.698.072.327.516.97 Education and human resource variables 5.52 4.054.206.904.914.973.176.064.96 Institutional quality, accountability and standards 5.59 7.728.039.516.297.642.288.087.46 TOTAL SCORE 4.87 5.647.097.524.626.052.285.615.70 Grades range from zero to 10, with zero being the best grade possible and 10 the worst. Overall Risk Evaluation Batam Risk Report

15. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Security and Safety Working hand in hand with the Batam Police. Better equipped and trained Unemployment is kept very low Batam has stepped up security measures in the past few years. * X-ray facilities at all entry points (domestic and international). * Technical assistance for security assessment by the USA (US TDA).

16. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Slim bureaucratic procedures One Stop Service Focused Scope of Work Professional & Qualified Human Resource Special status of the island Land rights management In line with the regional autonomy BIDA (Batam Industrial Development Authority)

17. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Free Trade Agreement US and Singapore (Jan 2004): Special facilities to export to the US outlined through the Integrated Sourcing Initiatives. 266 types of IT and medical related products. Products manufactured in Batam will be more competitive. US – Singapore FTA

18. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Forthcoming Infrastructure Projects

19. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 Forthcoming Infrastructure Projects

20. “Business & Investment Opportunities in Batam” New York & Washington Visit - October 26-27, 2004 BATAM : An Invitation ………Come and Visit Us in BATAM ! THANK YOU