Indonesian island's income could increase tenfold if gaming is allowed at its integrated resort site. By Azhar Ghani, Indonesia Bureau Chief
JAKARTA - A CASINO located less than an hour away from Singapore by ferry on Indonesia's Bintan island could be built if some local politicians have their way.
District legislator Timbul Sianturi was reported by the Associated Press as saying on Friday that Bintan's government has submitted a draft bylaw to the local parliament to legalise gambling at a planned integrated resort (IR) development site at Lagoi Bay, spread over roughly 1,300ha.
The 130 land parcels there, ranging from 2,000 sq m to 30ha, will allow for resort, residential and commercial investment purposes.
There is already a high level of interest in Lagoi Bay from potential investors from Singapore as well as the Middle East, with almost 25 per cent of saleable land available already being reserved.
No one is saying for now where exactly at Lagoi Bay the casino would be located if the proposal goes through.
Malaysia's Landmarks is said to be behind the casino plan. It is partly owned by leisure group and casino operator Genting, and is developing a RM4 billion (S$1.7 billion) resort in Lagoi Bay.
Although Malaysian business daily The Edge quoted Landmarks as saying on Nov 2 that it has no plans to set up gaming operations for the Bintan resort, The Sunday Times understands that the company has been involved in talks with the local government and legislators.
If gaming is allowed on Bintan, the economic boost could be spectacular. Bintan's deputy regent Mastur Taher estimated that the proposed casino could raise the island's annual income tenfold to US$132 million (S$190 million).
Bintan is already popular with tourists, most of whom take the ferry ride from Singapore. The island's resorts welcomed 323,600 visitors last year, just 5 per cent shy of the 2001 record of 340,500 visitors.
Singaporeans made up half of the island's visitors in the past, but that ratio has dropped to one-
third, with Korean and Japanese tourists fast catching up.
Other plans to build casinos in Indonesia, including one on the neighbouring island of Batam, have faltered due to vocal opposition from Islamic activists.
It is unclear when lawmakers will debate the casino bylaw. But if passed, it could face legal obstacles, given that it would be at odds with Indonesia's anti-gambling national laws and could be annulled by the country's Home Affairs Ministry.
In addition, the Bintan government would need approval from Indonesia's investment board to set up the casino, as well as clearance from the national police.
Current police chief Sutanto is known for his tough stand on gambling and was the bane of illegal casino syndicates in his previous postings.
Sources in the provincial government of Riau Islands, of which Bintan is a part, however told The Sunday Times yesterday that they expect objections from the central authorities to be less vehement than many expect.
They claimed that the push to allow a casino on Bintan came from elements in Jakarta, and that Indonesia's Tourism Ministry has already given in-principle support.
Still, it remains to be seen whether Bintan island's local government will be able to push the plan through. As it is, the proposed bylaw has already courted controversy, with student groups protesting against the plan.
District legislators from the Islamic Prosperous Justice Party have also indicated that they would vote against the proposal.
'We are aware of the controversy,' said deputy regent Mastur, pointing out that only foreign tourists and non-Muslims would be allowed into the casino.
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