Govt announces July Package for Batam's 'Bonded Zone Plus'<\/p>\n
Zakki P. Hakim
\nand Fadli
\nThe Jakarta Post\/Batam<\/p>\n
The status of the Batam Industrial Bonded zone, Bintan Industrial
\nEstate and Karimun Industrial Cooperation zone have been upgraded
\nto \"Bonded Zone Plus\" to give investors more legal certainty, top
\nofficials say.<\/p>\n
Minister of Finance Jusuf Anwar and Minister of Trade Mari E.
\nPangestu introduced the governmental regulation and three
\nministerial decrees through the July Package of deregulation
\nmeasures here on Friday. The regulations would serve as legal
\nbasis for the status upgrade, they said.<\/p>\n
The package is expected to address four main legal and
\ninvestment issues -- the status of assets in the zones, the
\nstatus of land and spatial plans, the workings of the Batam
\nIndustrial Development Agency (BIDA) and the Batam municipality
\nadministration, Mari said.<\/p>\n
\"The package is based on input from various stakeholders. It
\nis expected to provide incentives for investors, including
\nfacilitating an easier and faster flow of goods,\" she said.<\/p>\n
Under the package, the government now allows manufacturers in
\nthe three areas to import used capital goods for industrial
\npurposes without official permits and surveyor inspections, as
\nlong as they were an inseparable part of relocating businesses to
\nthe zones.<\/p>\n
Several permits and taxes in the zones have also been scrapped
\nunder the package.<\/p>\n
The policy is also expected to improve export-oriented
\nbusiness performance and sustainability; reduce costs, simplify
\nprocedures and maintain consistent policies; give clear
\ndistinctions and regulate industrial and residential zones;
\nensure fair taxation; and maintain an easy and fast flow of goods
\nin the industrial zones.<\/p>\n
It would also enable the government to simplify customs
\nprocedures by delegating the authorities of the finance ministry
\nor its Directorate General of Customs to the heads of local
\nCustoms Service Office (KPBC).<\/p>\n
Mari acknowledged that the package might not solve all the
\nproblems in zones, \"but, at least it could address many problems
\nthat have been neglected for years.\"<\/p>\n
The private sector, however, cautiously welcomed the package.<\/p>\n
Head of the Indonesian Employers Association Riau Island
\nchapter, Abidin, said although the policies were business-
\nfriendly, they were weaker than laws, which would give businesses
\nmore confidence.<\/p>\n
\"We greatly appreciate the July Package, but we still expect
\nthat Batam's status be strengthened in a law,\" he said.<\/p>\n
Batamindo Industrial Zone general manager John Sulistiawan
\nsaid that the package seemed to have returned Batam's status to
\nFree Trade Zone; which was an extremely positive move.<\/p>\n
\"(However) we still have to see the implementation; will it be
\nas good as the ministers have announced?\" he said.<\/p>\n
Batam Small and Medium Enterprises coordinator Dorlan Naibaho
\nsaid the policies seemed to focus more on foreign investors than
\nlocal SMEs, many of whom still depended on imported goods.<\/p>\n
Batam is an attractive manufacturing and industrial location
\nin Southeast Asia, hosting some 600 foreign companies and
\nabsorbing more than US$3 billion in foreign investment.<\/p>",
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