BATAM DEVELOPMENT, 1979?2006 : A REVIEW FROM PROJECT MANAGEMENT PERSPECTIVE

Abstract

Batam is proposed to be the area for tourism and export-oriented activities due to its strategic location on one of the most important international trade routes and proximity to Singapore. By Year 2006, Batam is projected to provide 283,224 employment opportunities, increase population to 582,122 people, with Gross Domestic Product per capita of US$2,903.00 at a total project cost of US$21 billion (1983 US dollar value). Batam Development is the first of its kind in Indonesia. It is a huge project and involve a lot of public spending. Recent reports which indicate problems such as the spread of illegal squatter housing and under-developed transshipment facilities require a review to Batam Development. The main objectives of this study are to assess whether Batam Development properly and adequately planned, and whether its implementation successfully provided employment opportunity, increased income of the workers, and increase population growth as planned, in respect of time and cost stipulated in the Master Plan. It is to identify problems in order to propose corrective actions to rectify the situations, and to make recommendations that may improve estimating capabilities for future planning, and to establish a measurement of accomplishment against plan. The study has found that Batam Master Plan provided imbalance information between public and private sectors. All developments and investments on public sectors were adequately quantified; detailed into milestone dates, and well-documented But, only one private sector area (Industry) which was properly planned into the same level of detail of public sector areas. The authority in Batam attained balanced achievement record between public and private sectors Almost all developments and investments on both public and private sectors were well-documented The study has found that, as at 1996, Batam Development has successfully exceeded its target to provide employment opportunity and increase population But, the actual income was lower than expected The over-achievement on employment opportunities and population growth may danger the development target, due to the limitation of natural resources (the availability of water). The under-achievement on income of the workers may lead Batam to be a low-skilled industrial area. Furthermore, the study has found that some public sector areas (airport, water reservoir and road) were over-developed, while some other public sector areas (power supply, water supply, telecommunication and other) were under-developed. These mean inefficient use of public investment. The study has also found under-investment in some private sector areas (industry, tourism, and other area) and no investment in the area of trading and transshipment. This situation may prolonged the underachievement of development revenue. The present development has resulted Batam to be an under-facilitated development area with an over-population of people with low income The success of Batam Development in terms of quality may be jeopardized In conclusion. Batam Development should eliminate all restrictions of the capacity to produce profitable results which were valuable and acceptable to the market. Thus, the routine activities (to get Batam Development back on track) were to re-appraise, redirect and re-concentrate the development, so that it can exploit prospective opportunities in a changing environment.