SINGAPORE-INDONESIA ECONOMIC COOPERATION : A STUDY OF BINTAN'S INTEGRATED RESORTS

Abstract

Bintan Island, Indonesia, has undergone many changes for the past few years. These changes started when Indonesia and Singapore formed a partnership for mutual economic benefit. The Bintan Beach International Resort (BBIR) project, which covers an area of 23,000 hectares, is considered one of the largest tourism developments within South East Asia. The northern part of Bintan Island will be developed into an integrated tourist destination at an estimated cost of $3.5 billion. Now, the question lies in whether this project will live up to the expectations of investors and tourists. This purpose of this academic exercise is to look at the influences that led to the economic co-operation between Singapore and Indonesia. This study will also provide a detailed account of the development of the BBIR project. This is followed by an analysis of some of the teething problems of the project, which have since been compounded by the regional economic crisis. To add depth to this academic exercise, the marketing strategies of, and the challenges confronting, one of the investors, Nirwana Gardens, will be discussed. The study concludes with a brief discussion of the problems and prospects which the BBIR has to address in the foreseeable future.