Jakarta, Feb 19 (Antara) - The government is yet to arrive at a definitive decision on its plan to disband the Batam Free Trade Zone Authority (BP Batam) as it still needs time to contemplate on its pros and cons.
"The government has not yet arrived at a final decision as it is still conducting evaluations. We have not decided to dissolve it," Coordinating Minister for Political, Legal and Security Affairs Luhut Binsar Panjaitan stated in Batam on Thursday.
Panjaitan said the plan to disband BP Batam has been put on hold while awaiting the results of the government's studies, which were now being conducted by a team from the University of Indonesia.
After all, the central government is still waiting for the right time to invite Muhammad Sani, the governor of Riau Islands Province (Kepri), to Jakarta to seek inputs.
The BP Batam on Batam Island, which is being developed as an industrial island and a free trade and port zone near Singapore, is awaiting dissolution by the government for overlapping authority with the Batam Municipal Administration.
Minister Luhut gathered 30 investors on Thursday to discuss the government's plan to dissolve BP Batam, which was once voiced by Home Affairs Minister Tjahjo Kumolo.
On December 30, 2015, Minister Tjahjo had noted that BP Batam would be disbanded in an attempt to improve services offered to the people and to boost investment in the islands.
Minister Tjahjo explained that the plan to dissolve BP Batam was based on considerations of emerging problems due to the overlapping authority between BP Batam and the Batam Municipal Administration that could hinder the flow of investment.
However, Minister Luhut remarked on Thursday that the government had not yet taken a definitive decision to dissolve it as it was still evaluating it.
Luhut urged the Kepri governor to prepare inputs and explain them to the president on what is the best way forward for Batam. The inputs will be compared to the results of studies conducted by the team of the University of Indonesia.
"If the government has made a 'statement' (on its plan to disband BP Batam), then it does not mean that it will soon be carried out tomorrow or soon thereafter," Luhut clarified.
He said investors in Batam should not be apprehensive regarding the government's plan as it is committed to transforming the islands of Batam, Bintan, and Karimun into the engines of the Indonesian economy. Batam, Bintan, and Karimun are a cluster of small islands in the Kepri province near Singapore.
Therefore, Luhut held a special meeting with 30 investors in Batam on Thursday to discuss the fate of the Batam Free Trade and Free Port Zone (KPBPB).
"The meeting was also attended by Nurdin Basirun, the deputy governor of Kepri," Rizal, the regional government spokesman of Kepri, stated in Batam on Thursday.
The team from Jakarta visited Batam to obtain direct inputs from relevant parties regarding the government's plan to disband BP Batam.
Apart from investors, the meeting was also attended by the speaker of the Regional Legislative Assembly (DPRD), chief of the local high prosecutor's office, regional police chief of Kepri, and head of BP Batam.
Representative of the Indonesian Chamber of Commerce for Batam, Ampuan Situmeang, questioned the government's plan to change the KPBPB into a Special Economic Zone (KEK).
"Before a final decision is made, we want to know the reason why the free trade zone should be changed into a KEK. What are the shortcomings in the free trade zone? We can understand if the government dissolved BP Batam, but if the area is transformed into a KEK, we will certainly question the consistency of the government," he affirmed.
Ampuan stated that the law on KPBPB stipulates that the implementation of the free trade zone will last for 70 years, while the law on KEK does not regulate any timeline. If the government is determined to change it, investors are hopeful that it would not transform Batam into a KEK area.
Silalahi, an investor in Batam, also rejected the idea to transform Batam into a KEK as he believes that changing Batam into a KEK is a step in the backward direction.
Therefore, investors in Batam have urged the government to not eliminate the Batam free trade zone (FTZ) facility, which has so far served as a magnet for businesses to invest in Batam's industrial city.
"Regardless of who is going to be authorized to manage Batam, we, the investors, urge the government to not demolish the FTZ facility," Chairman of the Honorary Council of the Indonesian Employers Association (Apindo) for Riau Islands Abidin Hasibuan remarked.
Hasibuan said his association would not intervene in the structure of BP Batam, but the investors want the government to maintain FTZ's status and facilities.
"We do not know who is in charge or in power (in Batam). But what is feared most by the investors is that the government could eliminate the Batam FTZ facility, which has so far served as a magnet for Batam City," he emphasized.
Hasibuan said that should the status of Batam or whoever is in charge as its authority be changed; Batam should be able to develop better conditions.
"If the government is willing to change it into a KEK, we will welcome it. The facility should, however, not be eliminated," Abidin noted.
He said businessmen in Batam had invested tens of billions of US dollars for decades. So, it should not happen that the change in Batam's status would discourage them.
"We are afraid that global trust in Indonesia would be reduced. It is important to provide guarantees to investors," Abidin emphasized.
In the meantime, BP Batam Chairman Mustafa Widjaja was still reluctant to respond to questions concerning a discourse on the government's plan to disband BP Batam.
"We have informed Coordinating Minister for Political, Legal and Security Affairs Panjaitan about the matter during the meeting," Mustafa stated on a separate occasion***3***
(A014/INE)EDITED BY INE(T.A014/A/BESSR/F. Assegaf) 19-02-2016 13:13:1 |
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