Batam Really A Duty-Free Resort?
The Jakarta Post, Tuesday, February 10, 2009


I refer to an article titled "Batam to scrap taxes on luxury items in free 
trade zones," (The Jakarta Post, Dec. 4, 2008).

Finally, Indonesia has got it - making Batam, Bintan and Karimun Islands tax 
free for luxury goods like cars, electronics, tobacco and alcohol.

This change is a warning for Malaysia and Singapore that their tourism industry 
will be significantly affected by the policy in Batam, because people will 
choose to holiday in a place with better tours and cheaper prices. In short, 
why holiday in Singapore when Batam is so easily accessible?

Kudos to Minister of Trade Mari Pangestu who, with her team, will see her 
neighbors' currencies flow in and generate a variety of spin-offs for the 
islands.

However, if one visits the duty-free shops in Batam's ferry terminals, one 
notices the glaring fact that nothing has changed. Liquor sold across the 
counter seems to be the same, or in some cases more expensive, than that in 
Singapore.

One shopkeeper remarked that the Ministry's notification had not reached them 
and the other said that there had been an apparent increase in liquor prices!

The question is: Didn't the local authorities in Batam and Karimun Islands 
check to see if the law as legislated was implemented, so why is there 
profiteering still going on to tarnish the image of the free trade zone?

Sonny Loo 
Batam, Riau Islands


Source: THE JAKARTA POST
URL: 
http://www.thejakartapost.com/news/2009/02/10/letter-batam-really-a-dutyfree-resort.html




      
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