Fadli, Batam – The Riau Islands chapter of the Indonesian Employers Association has told the government it needs to crack down on corruption in special economic zones.

The association's deputy head, Abdullah Gose, said that based on the Batam Indonesian Employers Association's study in 2003, bribes accounted for up to 15 percent of total industrial operational costs in Batam.

"We urge the government to set up a 'bribe free' domain in special economics zones, such as those in Batam, Bintan and Karimun. "This is the government's duty. However, we have not yet seen any effort by the government to realize it," said Abdullah.

He said the bribes required by some institutions constituted a serious burden for investors, although he would not name the offices involved. "But they are afraid to object to paying the bribes. Maybe they have no other choice," Abdullah told The Jakarta Post.

He said that both local and foreign investors were afraid to speak out about corruption and that he was concerned it might eventually drive investment away from Batam.

"This practice absolutely is not in favor of businesses. Even though Batam has already been declared a special economic zone, we have not yet seen good will from the local and central governments to stop the illegal practice."

Batam Industrial Development Authority (BIDA) spokesmen Dwi Djoko Wiwoho said that his office had not received any complaints about bribery from businessmen in Batam.

"The Investment Coordinating Board recently established a task force to gather complaints. The task force is also assigned to stop these illegal fees. So if such practices occur please just feel free to inform the tast force members because they have a direct link to the President and related ministers," he added.

He also urged investors who run "clean" businesses not to be intimidated by corruption. He added that BIDA was committed to protecting all investors from any kind of difficulties, including bribery.