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December 12, 2006 edition

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October 31, 2006 edition

ECONOMIC activities on Batam Island became more vigorous following the governments stipulation that beginning this year, together with Bintan and Karimun islands, it is now a special economic zone. This new status is expected to enhance Batams role in supporting the countrys economic sector.
However, there are already early signs of obstacles. The Tanjung Uma industrial zone, which faces Singapore, is still struggling despite the fact that its development began 10 years ago. Tanjung Uma was supposed to be in the forefront of Batams development.
Presently there is a continuing dispute between the Batam Authority and PT Ekamas Perkasa, the company appointed to develop the industrial zone. The company, which has the backing of a number of powerful people, is accused of having failed in executing its responsibilities. The development of Batam is being seriously tested.

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