$190-million IR to be built in Batam

FIRST, there was one for Bintan. Now, a second integrated resort will be built in the Riau islands close to Singapore — this one on Batam.

The Jakarta Post has reported that a 15-hectare integrated tourism and business resort that is worth 1.5 trillion rupiah($193 million) will be completed in 2011, with construction set to begin next month.

According to the company behind the project, PT Grand Uway Development, the tourism development will have an international water park, a condominium hotel and a convention centre with capacity for 6,000 people.

The resort is considerably smaller than the 49-hectare Resorts World at Sentosa being built by Genting International, which will also have a water park with rides, but appears to be pitched for the Meetings,Incentive, Convention and Exhibition (Mice) trade that the Marina Bay Sands in Singapore is targeting.

According to the Jakarta Post, Indonesia’s Culture and Tourism Ministry has designated Batam as the Mice city.

In comparison, the Sands is situated on a 20.6-hectare site with a convention area that can host 45,000 people.

Talk of competition for Singapore’s IRs from Bintan and Batam began after the authorities here awarded two licences in 2005. Malaysian developer Landmarks, whose biggest shareholder is Genting, is already building Bintan Treasure Bay, a huge 343-hectare IR.

But while the Bintan IR is still seeking approval for a casino element, there was no mention of gambling at the latest one in Batam, which will be located in the Batam Center area and will be run by international property management Aston International, the Jakarta Post reported.

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