Indonesia to Host Investor Forum Highlighting Batam Free Trade Zone in New York City on October 26, 2004

Business Wire, Oct 8, 2004

NEW YORK -- The American Indonesian Chamber of Commerce (AICC) in cooperation with the Batam Industrial Development Authority and the Consulate General of Indonesia in New York invites internationally-focused investors, executives, financial and service professionals, journalists and other interested individuals to attend an Investor Forum highlighting the potential of the Batam Island Free Trade Zone, the emergence of regional autonomy and other important developments in Indonesia.

This meeting will be held without charge in New York City on October 26, 2004 from 10:30 AM-2:00 PM and hosted at the Consulate General of Indonesia, located at 5 East 68th Street (between 5th and Madison Avenues). Registration will commence at 10:30 AM and the program will begin promptly at 11:00 AM. It will open with a presentation by former Indonesian Ambassador to the U.S., Arifin Siregar, who will speak about Indonesia's recent Presidential election, regional autonomy and other important developments. This will be followed by comments from a U.S. investor active in Indonesia, an Indonesian-style buffet lunch and a keynote presentation by Drs. Ismeth Abdullah, Chairman of the Batam Industrial Development Authority and Acting Governor for the newly created Province of Riau Islands, where Batam is located. After a question and answer session, the event will conclude at 2:00 PM, followed by one-on-one scheduled meetings with members of the Batam delegation.

Strategically located on the Indian and Pacific Oceans -- only 12 miles from Singapore -- Batam Island and the Riau archipelago represent one of the most attractive manufacturing, industrial and logistical platforms in the ASEAN region. It is also the second most popular international tourist destination in Indonesia. Due to its Free Trade Zone status, strategic location, low cost structure, skilled work force, and tax and other investment incentives, Batam Island has attracted numerous foreign investors. Prominent names include McDermott International, AT&T, PerkinElmer, Bechtel, Seagate Technology, Babcock & Wilcox, Holiday Inn, Matsushita, Kyocera, Hitachi, Sanyo, Nippon Steel, Hyundai, Sony and Philips. Current investment priorities include wastewater treatment, hospital, medical and educational facilities, and port harbor expansion.

"J. Ray McDermott's Batam Island fabrication yard represents a strategic and cost effective facility that enables us to better provide offshore energy field development solutions, not only in Asia, but throughout the world," stated Steven W. Roll, President/Director, PT McDermott Indonesia. "For example, last February, JRM constructed a 586 feet high and 11,000 pound hull in Batam, which is now being used in the world's deepest oil spar drilling facility in the Gulf of Mexico."

"Since its designation as Free Trade Zone in 1971, Batam Island has attracted over 600 foreign companies and well over $3 billion in foreign investment. Sectors include, but are not limited to, technology, medical equipment and electronics, telecommunications, agribusiness, textiles, industrial assembly and fabrication, shipbuilding, oil and energy services. Given rising investor recognition of ASEAN's potential as well as -- the duty-free importation of Batam-made technology and medical equipment components into the U.S. as 'extensions' of Singapore's manufacturing base under the recently enacted U.S.-Singapore Free Trade Agreement -- we believe this flow will only accelerate in the years to come", noted Drs. Ismeth Abdullah, Chairman of the Batam Industrial Development Authority and Acting Governor of the Province of Riau Islands. "Batam also offers visitors six international standard golf courses, beautiful beaches, and a wealth of ecotourism possibilities. For the investor, this means many exciting new infrastructure-related opportunities, especially as the Bintan, Karmun, and Natuna Islands move to further develop their tourism potential."

"Last month's national election underscores the emerging maturity of democratic institutions in Indonesia, as well as the country's strong secular orientation. As a result, we are seeing more interest on the part of U.S. companies and investors in the many opportunities the nation offers," commented Wayne Forrest, President of the AICC. "Given the concurrent trend toward regional autonomy which will allow different regions within Indonesia to develop their comparative and competitive advantages, we are pleased to host this delegation from Batam to familiarize U.S. investors with one of the most exciting investment opportunities in Asia."

Investors, corporate executives, journalists and other individuals that would like to attend this are invited to seek additional information and to send in their registration requests as indicated below. Admittance, private meetings and interview requests will be offered on a space- and/or time-available basis.

For more information on Batam, please visit: http://www.batam.go.id/english/