JAKARTA (TheInsiderStories) - The government through the National Council for Bonded Zone (DKN) said it will announce new directors for BP Batam, which manages Batam Free Trade and Freeport Zone, next Monday. The planned board change came amid heated debate over overlapping authorities of BP Batam and the Municipality of Batam.
The government is considering to dissolve the BP Batam because the management of the Batam Free Trade and Free Port Zone is overlapping with the Batam Municipal Administration which has caused confusion among investors as well as the authorities between the two entities - BP Batam and Batam Municipality Administration. The move has been opposed by certain sections of the society.
DKN is headed by the Coordinating Minister for Economic Affairs Darmin Nasution and composed of 11 members: the Minister of Finance, Minister of Trade, Minister of Home Affairs, Ministry of Justice and Human Rights, Ministry of Agrarian Affairs and Spatial Planning, Cabinet Secretary, the Army Commander, the Police Chief, the Governor of Riau Islands, Mayor and Head of the Batam Regional Council.
Deputy Finance Minister Mardiasmo said on Monday that the government is to issue Presidential Decree No. 8 of 2016 on the National Bonded Zone Council (Dewan Kawasan Nasional/DKN), which would replace Presidential Decree number 18, 2013.
Mardiasmo said DKN will visit Batam next Monday and meet will Regional DKN to discuss the status of BP Batam. The new board of BP Batam will help BP Batam during transition period before it changes its status.
Pramono Agung, Cabinet Secretary, announced the establishment of DKN to improve the rules and also make Batam to be more attractive to investors.
He said President Joko Widodo has given task to DKN to improve investment climate in Batam and reform BP Batam. The government is planning to carry out audit on BP Batam.
Pramono added, business players in the free trade zone of Batam which have had the privilege on tax and customs facilities will still get the same privileges. Therefore, reform of BP Batam is aiming at improve investment climate in Batam.
The government hints that it may transform Batam FTZ into special economic zone (SEZ). (*)