Karimun builds vital infrastructure

Fadli, The Jakarta Post, Batam

Karimun regency in Riau Islands province will commence construction of a container terminal this year in a bid to promote its status as a special economic zone.

Funds for the construction of the 70-hectare container port will be derived from the state and provincial budgets and total Rp 27 billion (approximately US$3 million) and Rp 32 billion respectively.

Located on the northern tip of the island facing the Malacca Strait and Singapore, the container port is expected to lure foreign investors from neighboring countries.

Karimun Vice Regent Aunur Rofiq told The Jakarta Post recently that the regency would embark on two other vital infrastructure projects this year -- the Sei Bati Airport extension development, with its runway being lengthened from 900 meters to 1,300 meters, and the construction of a 30-megawatt power generating station by the private sector.

"As an island regency we are compelled to build the first container port this year. The port thus far is just a traditional cargo port whose condition is no longer viable and is unable to accommodate big tankers and vessels," said Aunur.

So far the loading and unloading process has been conducted far off the island because of the current port's limited capacity. However, the transfer of cargo at sea does not contribute much to the regency's income and local employment.

The construction of the port will be incorporated with the planned development of an industrial area the administration has designated. The industrial estate will be developed on a 300 ha plot of land in Malarko, Tanjung Balai Karimun.

The administration has begun coastal reclamation work for the industrial area and completed a highway network to the port.

The regency hopes the projects will attract more foreign investors here, given that Karimun is very close to Singapore.

According to the blueprint, the container port will be able to accommodate freighters of up to 10,000 tons and will be supported by a deep ship channel, as Karimun is renowned for its deeper waters compared to other areas in the Riau Islands. Ship channel depths in the area range between ten and 20 meters.

Aunur said the local administration office had carried out three initiatives in line with the special economic zone status for the regency, Batam and Bintan.

"Firstly, we have done our main task of forming a one-stop service system. The second is the allocation of land for the industrial area, and the third is infrastructure construction. All the three mega-projects are near completion."

According to Aunur, the construction of the container port is is desperately needed by foreign investors to transport their raw materials and export products.

Based on the existing data, the regency has accommodated 12 foreign investors investing a total Rp 200 billion in the shipyard industry.

Last August, four foreign investors signed an agreement with the local government in the presence of Vice President Jusuf Kalla, to invest $497 million in numerous sectors with the employment of 2,900 local workers.

Karimun with a total population of 205,400 was made an autonomous regency in 1999 and covered 245 islets which are part of the Riau archipelago and is divided into nine subdistricts.

Its major islands are Karimun Besar, where the capital is located, Kundur and Sugi.