SINGAPORE and Indonesia have agreed on measures to improve the investment climate in Batam, Bintan and Karimun in Indonesia.

Singapore's Minister for Trade and Industry Lim Hng Kiang and Indonesia's Coordinating Minister for Economic Affairs, Boediono, have endorsed an action roadmap that sets out initiatives and milestones to be achieved over the next 18 months.

These are to streamline processes, simplify documentation, ease business travel, improve industrial relations and reduce bureaucratic bottlenecks.

The move is in line with Indonesian President Susilo Bambang Yudhoyono's call for the Batam, Bintan and Karimun Special Economic Zones (SEZs) to be 'faster, better, cheaper'.

Already, an integrated investment service centre has been inaugurated in Batam to process all permits and paperwork relating to investment, taxation, customs, manpower and immigration.

Mr Lim and Dr Boediono co-chair a joint steering committee that is supervising the implementation of a framework agreement on economic cooperation in Batam, Bintan and Karimun that was signed between Indonesia and Singapore on June 25.

The action roadmap was drawn up by the joint working group, chaired by Singapore's chairman-designate of the Economic Development Board Lim Siong Guan and Indonesia's Minister of Trade Mari Pangestu.

It details initiatives and milestones in nine key areas - capability development, customs, immigration, infrastructure development, investment, industrial relations, manpower wages, taxation, and training and certification.

Dr Boediono said the success of Batam, Bintan and Karimun as Indonesia's first SEZs is important in the country's effort to improve its investment climate.

Mr Lim said: 'For the SEZ initiative in Batam, Bintan and Karimun to be successful in retaining and attracting investors, actual implementation is critical.'