Growing pains: Indonesian growth zone makes patchy progress
Article Abstract:
Indonesia's government has focused on Batam Island, 20 kilometers south of Singapore, to become a center of economic development. Minister of Research and Technology B.J. Habibie is leading the effort to attract foreign investment in Batam in the belief that the region's abundant labor and proximity to Singapore will prove attractive. However, many observers believe that Batam's economy must be deregulated and its infrastructure revamped before it can grow as a manufacturing center. By Dec 31, 1992, 34 companies has invested $119 million in Batam's industrial complex.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Promises, promises: Indonesia's Habibie draws increasing fire
Article Abstract:
B.J. Habibie has masterminded a 20-year project to introduce high technology in Indonesia that has cost billions of dollars but has produced only a few trophy factories that are dependent on government subsidies. Critics maintain that his plans rely too heavily on import substitution, state direction and a level of education and training that Indonesians do not yet possess. A 1993 cabinet reorganization may increase Habibie's power, and business leaders are worried about the effect on Indonesia's high foreign debt.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Far from stainless: Krakatau Steel plagued by high prices, overstaffing
Article Abstract:
Krakatau Steel PT is a state-run Indonesian industry that has received as much as $3 billion in subsidies since 1973. Despite this investment, the company is plagued by problems. Its output is priced at 20% above imported steel, its cold-rolled facility is underutilized and it is highly overstaffed. The company is protected from competition, which adds to the price of its products and increases its cost to the Indonesian economy. Many of the same problems are evident in the state-run IPTN aircraft-assembly plant.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
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Comment about this article or add new information about this topic:
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